Saudi Aramco, world's largest oil firm, has rejected Indian participation in its upcoming export-oriented Yanbu refinery on the Red Sea.
Aramco, Saudi Arabia's national oil firm, this week wrote to Indian Oil Corporation and Hindustan Petroleum Corporation that it has not shortlisted them for equity participation in the 20 million tonnes refinery project, informed sources said.
Petroleum Minister Mani Shankar Aiyar had offered Saudi Aramco a stake in HPCL's 7.5 million tonnes Vizag refinery or IOC's upcoming 12 million tonnes Paradip refinery in Orissa to get an Indian firm on board the Yanbu refinery. The barter deal was aimed at deepening cooperation between the two nations in the hydrocarbon sector.
Sources said Saudi Aramco made it clear that it preferred a western partner in the project and did not even shortlist any Indian firm for discussions.
Aramco had offered a minimum of 25 per cent and up to 50 per cent stake in the 400,000 barrels per day (20 million tonnes per annum) Yanbu refinery to international investors depending upon their commitment to offtake products.
Besides IOC and HPCL, Saudi Aramco was in dialogue with about half a dozen global firms including Chinese and European oil companies for a strategic partnership in the refinery.
IOC and HPCL were also given offer documents for the Yanbu refinery stake during Aiyar's visit to Saudi Arabia in March this year.
