Aramco may review investment in mega greenfield refinery in M'rashtra.

As oil giant Saudi Aramco reviews plans to expand at home and abroad in face of sharply low oil prices and heavy dividend burden, one of the projects that its likely to face the axe or the pause button from the oil major may be its proposed investment in a $44 billion mega refinery project at Ratnagiri in Maharashtra.

Sources familiar with the development said that hit hard by Covid-19-induced demand suppression and lower oil prices, Aramco is reviewing several of its investment projects globally, and the Indian project involving a 50:50 partnership between Indian state-run oil companies and Aramco/Adnoc has been included in it. This would mean that the company would either indefinitely suspend planned investment or press the pause button for now and review the decision once the market improves.

When contacted Aramco said: "The company does not comment on rumours or speculation. We continue to explore potential growth opportunities in Asia including India and will make appropriate updates as and when necessary."

ET