Aiyar: Taking it forward

New Delhi, March 30: Hindustan Petroleum Corporation (HPCL) has made some headway in its efforts to acquire an equity stake in Saudi Aramco?s 20 million-tonne Yanbu refinery, being set up on the Red Sea coast.

Petroleum minister Mani Shankar Aiyar said from Riyadh that the crown prince of Saudi Arabia has allowed Saudi Aramco to hold talks with HPCL. ?Now, it is up to the two companies to come to a commercial settlement.?

HPCL chief M.B. Lal and joint secretary in the petroleum ministry, Prabh Das, will stay back in Riyadh to continue talks while Aiyar returns to Delhi on Thursday.

Products made at the Yanbu refinery will be exported to the West. HPCL, on its part, has offered Aramco a stake in its Vizag refinery, which will cater to East. The minister said even Indian Oil will consider offering the Saudi oil major a stake in its Paradip refinery.

The minister said funds were not a constraint as far as overseas investments in the downstream sector were concerned because the combined financial strength of the national oil companies could be pooled in for the purpose.

The minister said Saudi Arabia will also allow ONGC Videsh (OVL) to bid for exploration blocks at the end of this year. He said both countries were looking for co-operation in the entire value chain of natural gas, which includes liquification for exports. A Gail team is also with the minister to examine possibilities in this sector.

The setting up of a fertiliser plant in Saudi Arabia in partnership with National Fertiliser is also under consideration. Fuelled by Saudi gas, the venture will be modelled on the lines of the Hindustan Fertiliser unit in Oman. Saudi is also keen on an Indian alliance in aluminium.

The minister said the web of investments in the hydrocarbon sector was part of the vision articulated at the first Asian buyers and sellers? meet in Delhi this January.

Saudi Arabia, Aiyar said, was ready to meet India?s increasing requirement of crude in the long term. Existing contracts would also continue on an evergreen basis.