Bharat Petroleum of India and Oman Oil Marketing Co. will jointly study the possibility of setting up a lube blending plant in Oman and marketing its products in neighboring countries, the India ministry of commerce and industry said Monday.
The announcement followed the sixth Indo-Oman Joint Commission Meeting in Muscat, Omans capital city, on Sunday. The meeting reviewed bilateral economic relations and means of improving trade between the two countries.
Shri Anand Sharma, minister of commerce and industry, led the Indian delegation to Oman. According to the agency, he emphasized the priority attached by the Indian government for cooperation with Oman in the petroleum, gas and fertilizer sectors.
The India-Oman Joint Investment Fund, created in November 2008, has seed capital of U.S. $100 million, to be increased up to $1.5 billion, the India ministry stated in its news release Monday. The initiative is expected to promote partnerships between the two countries private sectors and to enhance trade and investment between India and Oman.
Bharat Petroleum operates a base oil plant in Mumbai, India, with 3,500 barrels per day of API Group II capacity. The Middle East, including Iran, has 40,630 b/d of Group I capacity, with significant new Group III capacity expected to stream in coming years.