Saudi Aramco and ADNOC have signed an agreement today to jointly develop and build an integrated refinery and petrochemicals complex at Ratnagiri in Maharashtra. The project will be implemented by Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL).
The project was first announced in April this year when Aramco inked a deal with the Indian consortium. At that point, the state-owned oil giant had indicated that it will seek a partner to co-invest in the project.
RRPCL, which is promoted by a consortium of Indian public sector companies including IOCL, BPCL and HPCL, will now have Saudi Aramco and ADNOC as overseas strategic partners. The project will be set up as a 50:50 joint partnership (50:50) between the consortium from India and Saudi Aramco and ADNOC. This will be the single largest overseas investment in the Indian refining sector.
The strategic partnership brings together crude supply, resources, technologies, experience and expertise of these multiple oil companies with an established commercial presence around the world.
The mega refinery will be capable of processing 1.2 million barrels of crude oil per day. It will produce a range of refined petroleum products, including petrol and diesel. The refinery will also provide feedstock for the integrated petrochemicals complex, which will have the capacity of producing approx. 18 million tonnes per annum of petrochemical products.
RRPCL will rank among the world’s largest refining & petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand. The project cost is estimated at around $44 billion.
The investment also comes as both Aramco and ADNOC eye further expansion in India, where energy demand is soaring. Gulf countries are looking towards the South Asian country to fuel demand for their oil barrels.