Sep 23: The RIL-Saudi Aramco deal benefits both companies in a big way. It allows Saudi Armaco to corner 40% of RIL's crude (at 500 kb/d) reqirement while acquiring only a 20% stake in RIL. For the latter, these additional supplies would also help offset the decline in procurement from other heavy sour producers, namely Iran and Venezuela. RIL in turn aims to increase its oil-to-chemicals ratio to more than 70% by gradually eliminating all road transportation fuels (gasoline, diesel) from Jamnagar’s refinery product slate.
8While the deal is a win-win one for both companies, there is now speculation over whether Saudi Aramco will  hang on to the agreement with Indian public sector companies for a new 1.2 bbb/day refinery, with a prestigious Saudi publication now claiming that a delay in land acquisition and increase in costs may have promoted Saudi Aramco to look at "another alternative".
Comment: The question then is: If a suitable alternative has been found, will Saudi Arabia abandon its commitment to the new refinery? Does the kingdom under pressure from multiple directions, have the stomach for another big equity investment in India, now that the captive supply deal with RIL will enable it to become the biggest supplier of crude to India?
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