Saudi to almost double crude exports with India

Saudi Arabia is willing to increase crude supplies to India to 40 million tonnes from about 25.5 million tonnes currently to meet the rising energy demand of the south Asian country, the Indian government said.                                           

"India (is looking) for (the) doubling of crude oil supply by Saudi Arabia," the Indian government said in a statement after Indian oil minister Shri Murli Deora met his Saudi counterpart Ali al-Naimi in Riyadh.                                           

"India also indicated sourcing heavier crude from Saudi Arabia," the statement said without giving a time frame for the increase in Saudi crude supplies to India.                                           

India will add 1 million barrels per day to its refining capacity within two years, which would increase Saudi crude exports by 500,000 barrels per day (bpd) over the next two years, said Ashok Sinha, head of Indian refiner Bharat Petroleum Corp (BCPL).

"Virtually all Indian oil refineries are designed to process Saudi oil," he told Saudi business leaders during a visit of prime minister Manmohan Singh to the top OPEC exporter, India's biggest supplier of crude.                                           

India's current refining capacity is 3.5 million bpd, Sinha added.

Boosting energy ties are high up on the agenda of Singh's visit.

The Indian government has offered a 10% stake in the upcoming Paradip refinery of state-run Indian Oil Corp to Saudi Aramco for about $650 million, an Indian government official said on Thursday.