India continues being Saudi Arabia largest supplier of oil. And at the India Energy Forum, promises were made to India.
At the forum, Saudi Arabia’s Oil Minister Khalid Al Falih praised Prime Minister Narendra Modi and his government for making it easier to do business in the country and ushering in “acche din”.
While the rise in price is not in the hands of Saudi Arabia, they have decided to help with price shocks by absorbing them.
“Many factors lie outside the control of oil producers like us… we only control supply,” Falih told reporters on the sidelines of the event.
While there are many factors that could influence global oil prices, Saudi Arabia and other major producers will continue to act to cushion the market from oil price shocks.
He also promised of investments as well as meeting India’s growing oil demands.
“I had the privilege of meeting Prime Minister Narendra Modi and Oil Minister Dharmendra Pradhan today. I assured them of our full and continued commitment of meeting India’s oil demand as well as continuing to invest here in India,” Al Falih said.
“Saudi Aramco’s desire is to invest in consumer-facing segments such as retail fuels and petrochemicals, building an integrated downstream business in India as well as our commitment to invest in strategic storage,” Falih said.
India plans to build two strategic storage facilities to hold 6.5 million tonnes of oil costing around 110 billion Rupees ($1.6 billion) through a joint partnership between an Indian state firm and a private company.
Falih also said Saudi Basic Industries Corp (SABIC) is keen to invest in India’s chemicals sector.
He cited his country’s national oil company Saudi Aramco together with Abu Dhabi National Oil Company (ADNOC) signing up for taking 50% stake in the proposed $44 billion, 60 million tonnes Ratnagiri refinery and petrochemical complex in Maharashtra as “early example of growing partnership” between India and Saudi Arabia.
“Under Prime Minister Modi’s stewardship, today I am glad to note that doing business in India has become significantly easier. FDI has grown and inflation is under control. In other words, Prime Minister Modi is making good on his promise of Achhe din… good days are here. We see good days in India,” he said.
The minister said India’s accelerated economic growth is playing a major role in rebalancing the distribution of global economic growth. “India is the world’s fastest-growing energy and oil consuming nation. And this trend is playing an important role in driving future demand for oil and gas for decades to come.”
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