New Delhi: Worried about rising prices of crude oil; India, the world’s third largest oil importer, raised the issue with Saudi Arabia during the visit of Gulf Minister of State Khalid al-Falih.
This was expressed by Petroleum Minister of India Dharmendra Pradhan in a meeting on Saturday. Saudi Arabia is an important source of energy for India and India is the second largest supplier of crude oil and cooking gas. India imports 36.8 million tonnes of crude oil from Saudi Arabia, which was 16.7% of total imports in 2017-18.
In a statement on Sunday, the Ministry of Petroleum and Natural Gas of India said, “During the meeting, Mr. Pradhan played the role of Saudi Arabia as the leading producer of crude oil in the world and the global oil market balance. mentioned.”
Al-Falih is also the President of Saudi Arabia’s Industry and Mineral Resources and President of the Saudi Arabian Oil Company (Saudi Aramco), the world’s largest oil producer. The journey of Al-Falih is in February this year after the first state visit of Prince Mohammed bin Salman bin Abdulaziz al-Saud of Saudi Arabia and comes in the backdrop of stressful tensions between India and Pakistan. In addition, there will be general elections in seven phases in India, in which polling will start on 11th April and end on May 19th.
“He (Pradhan) has expressed concern about the rising trend in global crude oil prices. He also pointed out the need for uninterrupted supply of crude oil and cooking gas in the wake of OPEC + cut. The statement said that both the Ministers also discussed about the possible adverse effects of recent geopolitical developments on the global oil market.
Indian strategic planners have been concerned with short-term supply interruptions, given that the energy requirements of the country are mainly met through imports. Any increase in international crude oil prices will affect India against the backdrop of factors such as the Organization of Petroleum Exporting Countries of India (OPEC), of which Saudi Arabia is a key member, and Russia cuts supplies. In addition to this, the US administration has banned the state-owned oil company Petrilos de Venezuela SA (PDVSA), and President Donald Trump has ousted the US from the historic agreement with energy-rich Iran, which is the Islamic Republic of Atom Was signed to curb. In exchange for terminating the sanctions, the program
According to Petroleum Planning and Analysis Cell, the cost of crude oil of Indian basket, which represents the average of Oman, Dubai and Brent Crude, was $ 66.03 per barrel on March 7. In the 2016-17 and 2017-18, the price of crude for Indian baskets was $ 47.56 and $ 56.43 per barrel, which recorded an average of $ 64.53 in February. International crude oil prices reached record high of $ 147 a barrel in July 2009.
It comes in the background of Saudi Aramco’s growing interest in India, driven by its energy demand, which is expected to grow 4.2% over the next 25 years. It has inspired other global large companies like Russia’s Rosneft PJSC to invest in India, which can ensure security.
For more projects in India, Saudi Aram has also spoken with Mukesh Ambani-controlled Reliance Industries Limited (RIL), and others, Mint reported on February 21. While Saudi Aram shared partnership with Indian government oil companies to establish world’s largest oil refinery and petrochemical complex in Ratnagiri, the BJP-led Maharashtra government recently said that after the protest of farmers and allies, $ 44 Billion decided to move the project. Shiv Sena.
Saudi Aram has also planned to enter fuel retailing in India, and apart from investing in Ratnagiri Refinery Project, will also produce crude oil.
West Coast Refinery and Petrochemical Project in Maharashtra, which costs $ 44 Billion, which will be the largest greenfield refinery in the world. The statement said that Indian strategic petroleum ridge W (SPR) went also discussed Saudi Arabia’s participation in the program.
As part of India’s developed energy security architecture, the National Democratic Alliance (NDA) government is also working on the second phase of strategic petroleum reserves. Such stores will help India manage short-term supply disruptions. Member States of the International Energy Agency (IEA) maintain emergency oil reserves equal to the net import of at least 90 days.
India has current storage capacity of 5.3 million tonnes. In June, the government approved additional construction of 6.5 million tonnes of additional crude oil reserves. These facilities will help to meet India’s crude oil needs of 22 days.