India seeks Saudi investment in building strategic reserves

India has invited Saudi Arabia to invest in its strategic oil storage program to help support its short-term crude requirements.

The Kingdom's participation in the Indian Strategic Petroleum Reserve program was discussed at a meeting between the Saudi Energy Minister Khalid Al-Falih and his Indian counterpart Dharmendra Pradhan in New Delhi on Saturday.

"Strategic engagements in energy will mutually benefit both our countries and further bolster our bilateral ties," Pradhan said in a tweet.

Met HE @Khalid_AlFalih, Min. Of Energy, Industry & Mineral Resources, Saudi Arabia and discussed about further strengthening the Strategic Partnership that exists between India 🇮🇳 and 🇸🇦 Saudi Arabia. pic.twitter.com/nc8wxU39xs

— Dharmendra Pradhan (@dpradhanbjp) March 9, 2019

The two ministers further discussed expediting the proposed $44 billion oil refinery project on India’s west coast which is co-funded by Saudi Aramco and UAE’s ADNOC, the Indian oil ministry said in a statement on Sunday.

India, which meets 83 percent of its oil needs through imports, has been building the storages as insurance for any disruption in supplies.  

"Both the ministers agreed to take concrete steps for early implementation of the decisions taken in the oil and gas sector during the visit of Crown Prince Mohammed bin Salman to India last month," the statement added.

Saudi Arabia is the second largest supplier of crude and LPG to India. In 2017-18, India's crude oil imports from the Kingdom were 36.8 million tons, accounting for 16.7 percent of its total imports.