Saudi Aramco is considering entering India as part of its expansion strategy in Asia, the state oil giant’s chief executive has said.

Aramco is reportedly planning to set up a refinery in India, and is in talks with a few Indian companies for partnerships, Amin Nasser told the Nikkei Asian Review.

"Saudi Aramco is looking at additional investments in China, and India is also a very important destination which we are giving great consideration, and (where we are) currently in discussion with some companies," Nasser has been quoted by the Nikkei Asian Review as saying in an interview.

Aramco had set up an office in New Delhi last year, in order to be close to one of its key customers globally, as well as work towards expanding operations in the Indian market from a local base.

MEED understands that Aramco may be eyeing an independent downstream venture in India’s eastern state of West Bengal, or may invest in a stake in local refiner Haldia Petrochemicals for upgrading the refinery.

Aramco had participated in an international investment summit the government of West Bengal had organised earlier this month, and had reportedly expressed interest in investing to expand business in the state. The West Bengal government is also reportedly seeking $4bn in investments from Aramco in downstream and maritime projects.

Aramco may also consider investing in India’s Andhra Pradesh state. The chief minister of the southern state had met the head of Aramco’s international business unit, during the World Economic Forum in Davos earlier in January, in a bid to lure the Saudi energy major into investing in Andhra Pradesh.

A potential downstream venture by Aramco in India will put it in direct competition with Indian billionaire Mukesh Ambani-owned Reliance Industries Limited’s refinery in Gujarat state’s Jamnagar. The Reliance refinery is the world’s largest and produces 1.24 million barrels a day of refined products, more than twice the capacity of Aramco’s Ras Tanura refinery in Saudi Arabia.