Shares of ONGC, BPCL surged up to 4% on March 28 as a report said Saudi Aramco is looking to invest in Indian refineries.
Saudi Aramco is in talks to invest in two planned refineries in India as the world's top oil exporter looks for a stable outlet for its crude in the world's fastest-growing emerging market, sources told Reuters on March 27.
Aramco is in separate talks to invest in Bharat Petroleum Corp's (BPCL) planned refinery in Andhra Pradesh and a proposed Oil and Natural Gas Corp (ONGC) refinery in Gujarat, the report added.
While ONGC's Gujarat refinery plans are at a nascent stage, BPCL's chairman said in December that it aimed to invest $11 billion in its Andhra Pradesh refinery and petrochemical project.
At 12 pm on March 28, ONGC shares on BSE were trading 5% higher at Rs 254.4 apiece to emerge as top Nifty gainer while BPCL shares were trading 2% higher at Rs 282 apiece.
Sources told Reuters that state-controlled Aramco proposes to supply oil equivalent to three times its stake in each project, and wants to sell its share of production either in India or by export.
In January, Indian Oil Minister Hardeep Singh Puri said India would look to set up three refineries of 400,000 bpd each.
Meanwhile, global brokerage Jefferies has maintained its 'buy' rating on the stock with a target price of Rs 375, an upside of 47% from its current price on the NSE.
The company expects a 10-12% compounded annual growth rate in production over 2025-26 (Apr-Mar) to FY30 on the back of strong growth at Mumbai High, the country's largest oilfield in the Arabian Sea.
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