New Delhi, Mar 2: In a development that may have massive adverse impact for India’s energy sector, a major refinery of the world’s largest oil producer Aramco in Saudi Arabia was today hit by an Iranian drone, affecting its functioning.
The refinery went up in flames after being hit and was shut down subsequently.
Although the extent of the impact was not immediately known, the development may have adverse impact for India which sources a large quantity of crude oil and gas from this company.
Saudi Arabia is the second largest supplier of crude to India after Iraq, accounting for about 19% of crude oil imports and 29% of LPG imports, respectively.
Aramco supplies the petroleum products to State-run Bharat Petroleum Corporation Ltd (BPCL) and Reliance Industries.
Over the years, it has been strengthening its presence in India, focusing on securing long-term crude supply and investment in downstream assets.
Through its subsidiary Amarco India, Saudi Aramco serves as a crucial bridge for supply and investment in the Indian energy landscape, focusing on energy security and long-term partnerships.
As of early 2026, Aramco was exploring a 20% stake in a new $11 BPCL refinery.
The company has targeted significant investments, including a potential 20% stake in a new BPCL refinery at Ramayapatnam in Andhra Pradesh, which aims to process 180,000–240,000 barrels per day.
The Saudi company also had long-term plans to supply 500,000 barrels per day of Arabian crude to major refineries in India, including the Jamnagar complex run by Reliance Industries.
Aramco’s continued investment interest is aligned with India’s growing energy demand and the nation’s efforts to increase its refining capacity.
