New Delhi (Sputnik) — Anticipating a major surge in the stakes of global firms in India's energy sector, Chinese oil and gas firms are spinning a plan to take an indirect entry into India's biggest oil refinery. Last week, Chinese state-owned oil firms PetroChina and Sinopec had written to Saudi Aramco seeking a 5 percent stake in the company, which is soon going to be listed on exchanges based in London and New York.
"Saudi Aramco is a very big company. If Chinese firms buy a stake in Saudi Aramco, it would have a minority stake only and it will not have much impact on India. Oil firms from Gulf countries already have a stake in American companies such as Exxon Mobil and BP. I do not think a minor stake of Chinese will have any threat to India," SC Tripathi, a former oil and gas secretary, told Sputnik.
Meanwhile, despite the recent border standoff, India's Ministry of Home Affairs denied charges of hindering security clearances for Chinese firms aiming to directly enter into the Indian oil sector through the foreign direct investment route. In the last three years, there has been a 37 percent increase in Chinese investments in India, including in the sensitive sector of telecom.