Saudi Arabia national oil company Aramco is still in talks to invest in a minority stake in Reliance Industries Limited's (RIL) refinery operations, according to the country's Minister of Energy Khalid al-Falih. The negotiations had encountered a brief problem earlier this week after RIL stated it wanted a better valuation margin for Aramco's ownership.
RIL's refinery operations, located in the city of Jamnagar in India's western state of Gujarat, are the biggest in the world with a processing capacity of around 1.4 million barrels a day. Aramco is looking to widen its market penetration on account of slowing down of domestic demand in its native country.
Speaking to Reuters on the issue, Falih who had a meeting with his Indian counterpart, Dharmendra Pradhan, said, "The two companies, Reliance and Aramco, are talking with a lot of goodwill, with good intention. We still see daylight.
We will announce the terms when they are concluded." Taking to social media after the conclusion of his meeting with Falih, Pradhan said that India had called upon Aramco "to participate in India’s Strategic Petroleum Reserve Program."
Currently, after Iraq, India looks towards Saudi Arabia for its crude import needs. Earlier in May this year, India had to stop importing crude from Iran following the end of the deadline imposed by the United States to stop crude imports from the Middle-eastern country.