Saudi’s SABIC (Saudi Basic Industries Corp) wants to buy about half of the $4.6-billion Indian petchem project backed by Oil and Natural Gas Corp (ONGC), two sources familiar with the matter said.
ONGC is a majority shareholder in ONGC Petro Additions Ltd (OPaL), which operates India’s biggest petrochemical plant in western Gujarat state. “They want to have a significant stake in OPaL, around 50%,” said one of the sources. “SABIC is the latest entrant and recently it has held talks with ONGC officials about a stake purchase,” the second source said.
Saudi Aramco recently signed an initial deal with India to buy a 50% stake in a planned 1.2 million barrels per day west coast refinery and petrochemical project. To expand its footprint in the world’s third-biggest oil importer, Saudi Arabia is also scouting for a stake in existing major refineries, its energy minister Khalid al-Falih has said.