The signing followed a highly anticipated summit between Saudi Crown Prince Mohammed bin Salman and Indian Premier in the historic city of Jeddah which is 80 kms away from the Holy City of Mecca.

Officials from both sides described the discussions as “brotherly,” a term that reflects more than diplomacy—it suggests a vision grounded in mutual respect and forward-looking ambition.

Energy and Sustainability at the Core

Half of the deal—$50 billion—is earmarked for energy cooperation, underscoring the sector’s centrality to the partnership. Two state-of-the-art Saudi-funded oil refineries will be built in India, aiming to reduce dependency on energy imports from third countries and enhance India’s refining capacity.

But this isn’t just about fossil fuels. In a signal of shared green ambition, energy giants like Aramco and SABIC will also collaborate with Indian counterparts on hydrogen production and renewable technologies.

There’s even a joint feasibility study in the works for a cross-border electricity grid, which could one day allow energy to flow between the two nations—a vision of sustainable interdependence rarely seen on the global stage.

Revving Up Infrastructure and Industrial Collaboration

Another $20 billion will be steered into infrastructure and manufacturing, primarily through the Saudi Public Investment Fund. Indian port cities and metro rail networks are expected to be key beneficiaries, boosting urban mobility and freight efficiency.

A standout initiative is the Bharat Mobility Corridor, which will connect key logistics hubs across India.

At the same time, over 40 Indian firms are preparing to set up their regional headquarters in Saudi Arabia, in alignment with the Kingdom’s Vision 2030 economic diversification goals. It’s a two-way street of investment, jobs, and shared growth.

New Security Ties in a Changing World

With $15 billion allocated to defense and security, the deal also marks a significant turn in military cooperation. The establishment of a bilateral Defense Cooperation Committee lays the groundwork for joint military exercises and technology sharing, particularly in the rapidly evolving drone and surveillance sectors.

This level of military synergy signals more than a transactional relationship—it’s a long-term alignment in response to shifting geopolitical dynamics, from the Red Sea to the Indian Ocean.

Betting on the Future: Tech, Space, and Startups

The agreement also places a bold bet on the future. A $10 billion investment package will boost India’s innovation sectors, especially artificial intelligence, biotech, and space technology.

Saudi venture capital is expected to flow into Indian startups, fostering a tech pipeline that stretches from Bengaluru to Riyadh.

Four new MoUs related to space research were signed, including proposals for satellite launches and collaborative missions. The nations also announced joint initiatives in postal tech upgrades and anti-doping research, reflecting a broader embrace of science and ethics in global cooperation.

People, Culture, and the Soft Power Connection

Topping off the deal is a $5 billion investment in cultural and human exchange. Saudi Arabia has increased India’s annual Hajj quota to over 175,000 pilgrims, recognizing the deep spiritual ties between the countries.

In a unique cultural twist, the Kingdom is also investing in Bollywood, a move that not only celebrates Indian cinema but also enhances Saudi Arabia’s own cultural soft power.

Restoration projects for historical sites in both countries are on the agenda, reinforcing the idea that heritage and history are assets—not just artifacts—in diplomacy.

A Deal Measured in More Than Dollars

This isn’t just a $100 billion agreement—it’s a strategic realignment. It signals a world where oil partnerships coexist with clean energy dreams, and where security ties are reinforced with shared tech and cultural understanding.

As the Indo-Gulf axis grows stronger, India and Saudi Arabia are setting a precedent. Not merely as trade partners or defense allies, but as co-architects of a new regional order—one built on shared prosperity, mutual respect, and a future-oriented vision.

The discovery of the Al-Hiran gas field was confirmed after gas flowed at a rate of 30 million standard cubic feet per day, and 1,600 barrels of condensate daily. The Al-Mahakik gas field was confirmed after gas flowed from it at a rate of 0.85 million standard cubic feet, the agency said.

“Natural gas was also discovered in five reservoirs in previously discovered fields,” the agency added, citing the minister.

Other discoveries were also announced in fields in the Eastern Province, according to the agency.

Aramco, overwhelmingly an oil producer, aims to boost its gas production by 50% by 2030 from 2021 levels.

It said in late September that it agreed to acquire a strategic minority stake in liquefied natural gas (LNG) company MidOcean Energy for $500 million, with an option to increase the stake – part of its push into natural gas.

Last month, Aramco Chief Executive Amin Nasser said Aramco was looking at more investments in LNG to boost its plans to become a leading player in the seaborne gas market.

MidOcean is owned and managed by U.S. investment firm EIG Partners, which led a consortium to buy a 49% stake in Aramco’s oil pipelines business in 2021, a deal that raised $12.4 billion for Aramco.

“This is an important step in Aramco’s strategy to become a leading global LNG player,” Aramco Upstream President Nasir K. al-Naimi said in a statement, which did not disclose the size of the stake.

“MidOcean Energy is well-equipped to capitalise on rising LNG demand, and this strategic partnership reflects our willingness to work with leading international players,” he added.

MidOcean is in the process of buying interests in four LNG projects in Australia as part of its growth strategy to create a global LNG business, the statement said.

In October 2022, MidOcean said it agreed with Tokyo Gas Co to buy the Japanese company’s stakes in a portfolio of four Australian LNG projects for $2.15 billion.

Sources told Reuters in July EIG was tapping international investors, particularly in the Middle East, to buy into MidOcean, which is part of a consortium taking over Australia’s Origin Energy for $10.2 billion.

Aramco President and Chief Executive Amin Nasser said the deal strengthened Aramco’s relationship with EIG and “gas will be important in meeting the world’s rising need for secure, accessible and more sustainable energy”.

In March, Nasser had said that Aramco actively looking at LNG opportunities globally.

Aramco’s acquisition of the MidOcean stake is subject to regulatory approvals among other conditions.

“While our initial focus is on the announced transactions in Australia, we believe the opportunity set is global,” EIG Chairman and Chief Executive Blair Thomas said in the statement.

But other executives at the Energy Asia conference in Kuala Lumpur were divided, with Malaysia state oil firm Petronas reporting a slowdown in demand for petroleum and petrochemicals in the second quarter and growing refinery capacity putting pressure on the market.

“Overall, we believe that oil market fundamentals remain generally sound for the rest of the year,” said Nasser, who heads the world’s largest oil company.

“Despite the recession risks in several OECD countries, the economies of developing countries – especially China and India – are driving healthy oil demand growth of more than 2 million barrels per day this year,” he told the conference.

Although China faces economic headwinds, the transport and petrochemical sectors are still showing signs of demand growth, he added.

Brent crude futures are down about 14% since the start of the year as rising interest rates hit investor appetite, while China’s promising economic recovery has faltered after several months of softer-than-expected consumption, production and property market data.

Crude oil supplies from Russia and Iran have also held up despite Western sanctions, offsetting production cuts by Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC).

While a failed mutiny by mercenaries in Russia over the weekend has raised concerns about political instability and pushed up oil prices, none of the industry executives and officials speaking on the first day of the conference mentioned it during their onstage remarks.

“There’s not much geopolitical impact on the market now. It is dominated by economics, not geopolitics,” Daniel Yergin, vice chairman of S&P Global, said on the sidelines of the event.

Mixed Views

Russell Hardy, CEO of Vitol, the largest independent oil trader, said the industry probably faces a period of reasonably strong fundamentals in the next three or four months, but uncertainty with Russian supply and Chinese demand make it more difficult to forecast market balances and where prices are going.

“What has happened so far this year is the supply side has slightly overperformed, particularly Russia, where there were expectations of production loss as a result of the difficulty getting oil to market because of the sanctions,” he said.

Sazali Hamzah, Petronas’ executive vice president and CEO of downstream, was less optimistic, saying that demand for petroleum and petrochemicals started slowing in the second quarter despite a recovery in jet fuel consumption.

He expects new refining capacity coming online this year to put “a lot of pressure on the market”.

“We believe in second-half of this year we will still see weak demand, and that will be extended to part of next year,” he added.

Looking ahead, Vitol and Petronas executives said oil demand could peak around 2030.

“We got it peaking in about 2030 and a gradual decline out to 2040 … And then (it’s a) rapid decline thereafter as the EV fleet and energy transition takes over,” Hardy said.

As part of its transition, Petronas will focus on improving natural gas efficiency and find solutions for carbon abatement while exploring other renewable energy such as biofuel in the mid-term and hydrogen in the long run, Hamzah said.

The company is working on a pilot plant and engineering design as it plans to start its first biorefinery in 2026.

“If the trend continues to grow, we are ready to convert the Kerteh refinery into biofuel in the future,” Hamzah said.

Nasser said there has been a pick up in global demand since COVID lockdowns eased.

Drone strikes hit a petroleum products distribution terminal in the southern Jizan region, a natural gas plant and the Yasref refinery in the Red Sea port of Yanbu, the ministry said in a statement.

“The assault on Yasref facilities has led to a temporary reduction in the refinery’s production, which will be compensated for from the inventory,” it said, referring to Yanbu Aramco Sinopec Refining Company, a joint venture between Saudi Aramco (2222.SE) and China Petrochemical Corporation (Sinopec).

Aramco CEO Amin Nasser told a call about the firm’s earnings there was no impact from the attacks on its supply to customers.

The Saudi-led military coalition that has been battling the Houthis in Yemen for seven years said the assaults on Saturday night and Sunday morning had also targeted a water desalination plant in Al-Shaqeeq, a power station in Dhahran al Janub and a gas facility in Khamis Mushait.

Later on Sunday, another Aramco distribution plant was attacked in the Red Sea city of Jeddah, leading to a fire in one of the tanks, according to the Saudi-led coalition. The fire was controlled and did not result in any casualties, it said.

Houthi military spokesperson Yahya Sarea said the group had fired ballistic and winged missiles as well as drones at Aramco facilities in the capital Riyadh, Yanbu and “other areas,” followed by attacks on “vital targets” in other Saudi regions.

Possible Truce

It said the attacks and debris from intercepted projectiles caused material damage but no loss of life.

The coalition said initial investigations showed the group used Iranian-made cruise missiles on the desalination plant and Aramco’s Jizan distribution centre. It said Saudi air defences intercepted a ballistic missile and nine drones.

State media posted images and videos of projectile debris, damaged cars and structures, and firefighters dousing flames.

U.S. National security adviser Jake Sullivan said that the United States condemned the attacks.

Saudi Arabia has struggled to extricate itself from the war in Yemen which has killed tens of thousands and left millions of people there facing starvation. Houthi attacks on Saudi Arabia have also endangered the kingdom’s airports, oil facilities and caused some civilian deaths.

United Nations special envoy Hans Grundberg is discussing a possible truce during the Muslim holy month of Ramadan which starts in April, his office said on Sunday. It was unclear if both sides had agreed on the U.N. plans.

The Houthis ousted Yemen’s government from the capital, Sanaa, in late 2014, prompting the alliance to intervene.

A little over 98% of the total votes polled on the resolution were in favour of Al-Rumayyan’s addition, Reliance said in a statement.

Last month, Reliance said Al-Rumayyan met all regulatory criteria for his appointment as an independent director, pending the shareholder vote on the decision.

That announcement came after media reports of shareholder California State Teachers’ Retirement Fund saying it would vote against the move, based on U.S. proxy advisory research firm Glass Lewis’ recommendation.

Al-Rumayyan’s inclusion was earlier widely seen as part of a process to formalise Reliance’s agreement to sell a 20% stake in its oil-to-chemical business to Aramco for $15 billion.

The Indian conglomerate, however, said last month that his appointment has no connection to the deal.

Al-Rumayyan has been the governor of the Public Investment Fund of Saudi Arabia since 2015.

“It is time to take out our swords and teach them a lesson,” the Iranian commander said.

Tehran (Reuters) – Four months before a swarm of drones and missiles crippled the world’s biggest oil processing facility in Saudi Arabia, Iranian security officials gathered at a heavily fortified compound in Tehran.

The group included the top echelons of the Islamic Revolutionary Guard Corps, an elite branch of the Iranian military whose portfolio includes missile development and covert operations.

The main topic that day in May: How to punish the United States for pulling out of a landmark nuclear treaty and re-imposing economic sanctions on Iran, moves that have hit the Islamic Republic hard.

With Major General Hossein Salami, leader of the Revolutionary Guards, looking on, a senior commander took the floor.

“It is time to take out our swords and teach them a lesson,” the Iranian commander said, according to four people familiar with the meeting.

Hard-liners in the meeting talked of attacking high-value targets, including American military bases.

Yet, what ultimately emerged was a plan that stopped short of direct confrontation that could trigger a devastating U.S. response. Iran opted instead to target oil installations of America’s ally, Saudi Arabia, a proposal discussed by top Iranian military officials in that May meeting and at least four that followed.

This account, described to Reuters by three officials familiar with the meetings and a fourth close to Iran’s decision making, is the first to describe the role of Iran’s leaders in plotting the Sept. 14 attack on Saudi Aramco, Saudi Arabia’s state-controlled oil company.

These people said Iran’s Supreme Leader Ayatollah Ali Khamenei approved the operation, but with strict conditions: Iranian forces must avoid hitting any civilians or Americans.

Reuters was unable to confirm their version of events with Iran’s leadership. A Revolutionary Guards spokesman declined to comment. Tehran has steadfastly denied involvement.

Alireza Miryousefi, spokesman for the Iranian Mission to the United Nations in New York, rejected the version of events the four people described to Reuters. He said Iran played no part in the strikes, that no meetings of senior security officials took place to discuss such an operation, and that Khamenei did not authorize any attack.

“No, no, no, no, no, and no,” Miryousefi said to detailed questions from Reuters on the alleged gatherings and Khamenei’s purported role.

The Saudi government communications office did not respond to a request for comment.

The U.S. Central Intelligence Agency and Pentagon declined to comment. A senior Trump administration official did not directly comment on Reuters’ findings but said Tehran’s “behavior and its decades-long history of destructive attacks and support for terrorism are why Iran’s economy is in shambles.”

Yemen’s Iran-aligned Houthi rebels, at the centre of a civil war against Saudi-backed forces, claimed responsibility for the assault on Saudi oil facilities. That declaration was rebuffed by U.S. and Saudi officials, who said the sophistication of the offensive pointed to Iran.

Saudi Arabia was a strategic target.

The kingdom is Iran’s principal regional rival and a petroleum giant whose production is crucial to the world economy. It is an important U.S. security partner. But its war on Yemen, which has killed thousands of civilians, and the brutal murder of Washington-based journalist Jamal Khashoggi by rouge agents last year, have strained its relations with U.S. lawmakers. There was no groundswell of support in Congress for military intervention to aid the Saudis after the attack.

The 17-minute strike on two Aramco installations by 18 drones and three low-flying missiles temporarily halved Saudi Arabia’s oil production and knocked out 5% of the world’s oil supply. Global crude prices spiked.

The assault prompted U.S. Secretary of State Mike Pompeo to accuse Iran of an “act of war.” In the aftermath, Tehran was hit with additional U.S. sanctions. The United States also launched cyber attacks against Iran, U.S. officials told Reuters.

Scouring Targets

The plan by Iranian military leaders to strike Saudi oil installations developed over several months, according to the official close to Iran’s decision making.

“Details were discussed thoroughly in at least five meetings and the final go ahead was given” by early September, the official said.

All of those meetings took place at a secure location inside the southern Tehran compound, three of the officials told Reuters. They said Khamenei, the supreme leader, attended one of the gatherings at his residence, which is also inside that complex.

Other attendees at some of those meetings included Khamenei’s top military advisor, Yahya Rahim-Safavi, and a deputy of Qasem Soleimani, who heads the Revolutionary Guards’ foreign military and clandestine operations, the three officials said. Rahim-Safavi could not be reached for comment.

Among the possible targets initially discussed were a seaport in Saudi Arabia, an airport and U.S. military bases, the official close to Iran’s decision making said. The person would not provide additional details.

Those ideas were ultimately dismissed over concerns about mass casualties that could provoke fierce retaliation by the United States and embolden Israel, potentially pushing the region into war, the four people said.

The official close to Iran’s decision making said the group settled on the plan to attack Saudi Arabia’s oil installations because it could grab big headlines, inflict economic pain on an adversary and still deliver a strong message to Washington.

“Agreement on Aramco was almost reached unanimously,” the official said. “The idea was to display Iran’s deep access and military capabilities.”

The attack was the worst on Middle East oil facilities since Saddam Hussein, the late Iraqi strongman, torched Kuwait’s oil fields during the 1991 Gulf crisis.

U.S. Senator Martha McSally, an Air Force combat veteran and Republican lawmaker who was briefed by U.S. and Saudi officials, and who visited Aramco’s Abqaiq facility days after the attack, said the perpetrators knew precisely where to strike to create as much damage as possible.

“It showed somebody who had a sophisticated understanding of facility operations like theirs, instead of just hitting things off of satellite photos,” she told Reuters. The drones and missiles, she added, “came from Iranian soil, from an Iranian base.”

A Middle East source, who was briefed by a country investigating the attack, said the launch site was the Ahvaz air base in southwest Iran. That account matched those of three U.S. officials and two other people who spoke to Reuters: a Western intelligence official and a Western source based in the Middle East.

Rather than fly directly from Iran to Saudi Arabia over the Gulf, the missiles and drones took different, circuitous paths to the oil installations, part of Iran’s effort to mask its involvement, the people said.

Some of the craft flew over Iraq and Kuwait before landing in Saudi Arabia, according to the Western intelligence source, who said that trajectory provided Iran with plausible deniability.

“That wouldn’t have been the case if missiles and drones had been seen or heard flying into Saudi Arabia over the Gulf from a south flight path” from Iran, the person said.

Revolutionary Guards commanders briefed the supreme leader on the successful operation hours after the attack, according to the official close to the country’s decision making.

Images of fires raging at the Saudi facilities were broadcast worldwide. The country’s stock market swooned. Global oil prices initially surged 20%. Officials at Saudi Aramco gathered in what was referred to internally as the “emergency management room” at the company’s headquarters.

One of the officials who spoke with Reuters said Tehran was delighted with the outcome of the operation: Iran had landed a painful blow on Saudi Arabia and thumbed its nose at the United States.

“Retail and Institutional subscription levels for the first five days of the offering have reached an unprecedented scale, demonstrating the confidence of investors in Saudi Aramco, and we anticipate further increases in subscription levels during the remainder of the offering period,” she said.

Institutional subscriptions amounted to SR58.4 billion and 1.8 billion total subscribed shares. Retail subscriptions were worth SR14.6 billion, representing 1.8 million subscribers and 465 million total subscribed shares.

Earlier, it was announced that the Kingdom will sell 3 billion shares in Aramco during its stock market launch — representing about 1.5 percent of the total — at a valuation between SR30 ($8) and SR32 a share. This gives the business a total valuation of between $1.6 and $1.7 trillion, making it the most valuable company in history.

Investment professionals welcomed the valuation, which was below than the highest estimates of Aramco’s worth, as a “compromise” between the Kingdom and the financial world.

Setting a price range and the number of shares to be sold starts a “book-building” process during which Aramco and its advisers will consult potential investors and await bids from institutions and private investors to help decide at what price the shares will be sold. The final pricing decision will be announced on Dec. 5, with trading expected to start on the Tadawul shortly after.

Image courtesy Modern Diplomacy.