Saudi Aramco is likely to acquire around a 20% stake in BPCL’s proposed greenfield refinery near Andhra Pradesh.
BPCL is reportedly exploring the sale of 30–40% equity in the refinery, with Oil India Ltd expected to take close to a 10% stake.
The remaining 4–5% equity could be offloaded to interested banks.
West Asian oil giant Saudi Aramco is reportedly planning to pick about a 20% stake in state-owned Bharat Petroleum Corporation Ltd (BPCL)'s greenfield refinery near Andhra Pradesh's Ramayapatnam port. The project, which is expected to cost over ₹96,000 crore and have an operational capacity of 9–12 million tonnes per annum (mtpa), may also see investment from another state-owned firm.
Bharat Petroleum Corporation Ltd (BPCL) is considering selling 30–40% equity in its proposed greenfield refinery, according to a Business Standard report. Quoting a senior BPCL official, the report said Saudi Aramco is likely to acquire a minority holding of around 20%, while Oil India Ltd (OIL) could take close to a 10% stake. BPCL may also offload 4–5% equity to interested banks.
1 December 2025
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The refinery and petrochemicals complex is planned near Ramayapatnam port in Andhra Pradesh’s Nellore district, aimed at meeting growing domestic fuel demand and boosting petrochemical exports. The state government has allocated about 6,000 acres for the project. The BPCL executive said final investment decisions will be taken after the detailed feasibility report (DFR) is completed, as this will determine the project’s final cost.
The feasibility study is expected to be wrapped up by the end of February. The final outlay for the refinery could vary by up to 30% from initial estimates, the official told the newspaper, adding that large refinery projects take time to design and that the facility will have a higher petrochemical component to match rising demand.
BPCL has held discussions with several overseas investors, including Saudi entities, for participation in the project. In 2019, Saudi Arabia signed a memorandum of understanding with India outlining plans to invest $100 billion across sectors such as energy, agriculture, infrastructure and manufacturing, though those investments have yet to take shape.
In October, BPCL also entered into an MoU with Oil India to explore a strategic partnership for the Andhra Pradesh refinery, including the option for OIL to acquire a minority equity stake.
“By joining hands with OIL, we are combining complementary strengths to create a project of strategic scale and sustainability. The Ramayapatnam complex will not only reshape BPCL’s portfolio but also reinforce India’s self-reliance in fuels and petrochemicals, in line with the vision of Atmanirbhar Bharat,” said Sanjay Khanna, Director (Refineries), with additional charge of Chairman & Managing Director, BPCL, at the time.
BPCL is the country’s second-largest oil marketing company, recording domestic sales of 52.4 million tonnes in the previous financial year and holding a market share of 27.44%. It also operates the third-largest refining capacity in India, accounting for around 14% of the national total, through its refineries at Mumbai, Kochi and Bina.
