Oil major Royal Dutch Shell plans to buy a 50% stake in Indian-based Nayara Energy’s up to $9 billion planned petrochemical project, a source familiar with the matter said.
Global oil majors are looking at expanding foothold in the vast Indian market, where local refiners are investing billions of dollars to boost their petrochemical capacities.
They are looking to meet an expected surge in demand for goods ranging from plastics to paints as the country seeks to promote durable, cheaper materials in industries such as farming and food packaging.
Shell and Nayara – which is part-owned by Russian oil major Rosneft – signed a memorandum of understanding in early June, the source said, adding an equal joint venture will be created for building the project.
