Saudi and UAE bolster cooperation with India, after agreement for $70 billion Maharashtra oil refinery

A plan to build a multi-billion dollar oil refinery in western India was discussed during a meeting between Crown Prince Mohammed bin Salman and Mohammed bin Zayed on Wednesday.

MENA

2 min read

The New Arab & agencies

28 November, 2019

Mohammed bin Salman [L] and Mohammed bin Zayed [R] met on Wednesday [Getty]

Saudi Arabia and the UAE discussed a planned refinery in the western Indian state of Maharashtra that will cost at least $70 billion, a figure that exceeds the initial $44 billion estimate previously announced.

The new figure came from readout of a meeting in the UAE between Saudi Crown Prince Mohammed bin Salman and Abu Dhabi Crown Prince Mohammed bin Zayed Al Nahyan Wednesday evening.

The statement said the two sides discussed the initiative, first announced in 2018, to develop the refinery and petrochemicals complex, which would secure the supply of 600,000 barrels per day of Saudi and Emirati crude oil for India’s market.

The project, which would be run by a consortium that includes Saudi Aramco and ADNOC, has yet to begin or secure land.

The petroleum industry has fuelled much of India and the UAE's economic partnership. The Abu Dhabi National Oil Company and Indian Oil Corporation inked an agreement just this April.

"The economic ties between India and the UAE are deep and growing," said Dr Dhananjay Tripathi, an assistant professor of international relations at South Asian University.

"India is the largest trading partner of the UAE, and, for India, the UAE is the third-largest trading partner after China and the US. Both countries are interested in enhancing this trade partnership."

During an August visit to the UAE, Indian President Narendra Modi thanked Abu Dhabi's crown prince for backing India's recent manoeuvres in Kashmir.

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