Saudi Aramco 'looks to invest in two oil refineries in India'

Aramco Is in talks to invest in Bharat Petroleum Corp’s planned refinery in the southern state of Andhra Pradesh and a proposed ONGC refinery in western Gujarat state

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Saudi Aramco is in talks to invest in two planned refineries in India as the world's top oil exporter looks for a stable outlet for its crude in the world's fastest-growing emerging market, several Indian sources with direct knowledge of the matter said.

India, the world's third-biggest oil consumer and importer, wants to become a global refining hub as Western companies cut crude processing capacity in their shift to cleaner fuels.

Aramco is in separate talks to invest in Bharat Petroleum Corp's (BPCL) planned refinery in the southern state of Andhra Pradesh and a proposed Oil and Natural Gas Corp (ONGC) refinery in western Gujarat state, the sources said.

Aramco, BPCLand ONGC did not immediately respond to requests for comment.

Both Indian firms are state-controlled. While ONGC's Gujarat refinery plans are at a nascent stage, BPCL's chairman said in December that it aimed to invest $II billion in its Andhra Pradesh refinery and petrochemical project.

Two refinery sources said separately that the projects would proceed regardless of whether Aramco invests.

"It all depends on the proposal that Aramco gives," one of them said.

Sources said state-controlled Aramcoproposes to supply oil equivalent to three times its stake in each project, and wants to sell its share of production either in India or by export.