Andhra Pradesh Chief Minister expressed strong confidence that Saudi Arabia’s Aramco will invest in the upcoming nine million tons per annum (mtpa) crude oil refinery and petrochemicals complex being developed by Bharat Petroleum Corporation Limited (BPCL) at Ramayapatnam, Nellore. The announcement comes amid growing energy cooperation between India and Saudi Arabia.
India-Saudi Energy Ties Strengthen
During Prime Minister Narendra Modi’s recent visit to Saudi Arabia, both countries agreed to deepen their energy partnership by setting up two oil refineries in India through joint ventures. Naidu highlighted that work on the BPCL refinery is progressing steadily, with the company securing necessary permissions and moving towards project completion.
Aramco’s Stake Acquisition at Initial Stage
When asked about Aramco’s interest in acquiring a stake in the refinery, Naidu said the discussions are at an early stage but expressed optimism, stating, “I’m confident they will come.” This potential investment underscores the strategic importance of the project for both the state and the nation.
Refinery Complex to Boost Regional and National Growth
Naidu emphasized that the refinery complex will generate substantial wealth not only for Andhra Pradesh but also for the country as a whole. Besides BPCL’s project, he noted that ArcelorMittal plans to invest around ₹1.43 lakh crore to set up a steel plant in the state, marking significant industrial growth.
Project Details and Timeline
BPCL identified around 6,000 acres of land for the refinery complex and is advancing pre-project activities. The company’s board approved ₹6,100 crore mainly for land acquisition, estimating the total project cost between ₹95,000 and ₹100,000 crore.
BPCL aims for a nine million ton refining capacity, with plans to produce approximately 3 to 3.5 million tons of petroleum products and around 4 million tons of petrochemicals. Thehindubusinessline.com reports that BPCL expects to commission the refinery within 48 months of the final investment decision, marking a critical milestone in India’s energy infrastructure expansion.
