Abu Dhabi National Oil Company will sign an agreement with Saudi Aramco and Indian companies on Monday for an up to 25% stake in a planned $44 billion refinery and petrochemical project in India, a government source said.
Major oil producers are targeting Asia where fuel demand is growing, as a stable outlet for their oil, Reuters reported.
India, the world's third biggest oil importer and consumer, aims to expand its refining capacity by 77% to 8.8 million barrel per day by 2030.
"The deal will be signed on Monday," said a government source. ADNOC plans to invest $45 billion over the next five years to expand its refining and petrochemical operations.
Saudi Aramco in April signed a deal with Indian state refiners for a 50% stake in the planned 1.2 million barrels per day project to be built on the country's west coast.
Indian Oil Corp, the country's top refiner, owns a 25% stake in the project, while Hindustan Petroleum Corp. and Bharat Petroleum Corp have a 12.5% stake each.
Aramco had said in April it may introduce a strategic partner to share its 50% stake. This would be ADNOC's second investment in Indian oil and gas sectors after a deal to lease part of Indian oil storage in southern India.
Add new comment
Read our comment policy before posting your viewpoints