SINGAPORE (ICIS)--UAE's Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco will jointly own 50% of the proposed $44bn Ratnagiri refinery and petrochemical complex in India.
The two state-owned oil companies have signed a framework agreement on the strategic partnership on the Ratnagiri project in India's west coast, Adnoc and Saudi Aramco said in separate statements issued on 25 June.
They also signed a memorandum of understanding (MoU) with a consortium of Indian companies, which will hold the remaining 50% in the joint venture project.
Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), and Hindustan Petroleum Corp Ltd (HPCL) comprise the Indian consortium.
The proposed refinery in Maharashtra will be capable of processing 1.2m barrels of crude oil per day and provide feedstock for the integrated petrochemical complex, which will have about 18m tonnes/year in capacity.
The project will be run by a newly incorporated joint venture firm called Ratnagiri Refining and Petrochemical Co Ltd (RRPCL).
“This project is a clear example of our expanded downstream strategy, where we will make strategic, commercially-driven, targeted investments, both in the UAE and abroad,” said Adnoc Group CEO Ahmed Al Jaber.
“By investing in this project, we will secure off-take of our crude to a key growth economy, as well as one of the world’s largest and fastest growing refining and petrochemical markets,” he added.
Saudi Aramco had said in April that it may seek a strategic partner for the Ratnagiri mega project with IOC, BPCL and HPCL.
“Saudi Aramco is proud to partner with Adnoc and RRPCL to help ensure that the world’s fastest-growing economy has secure, reliable energy feedstocks for its long-term prosperity,” Saudi Aramco president and CEO Amin Nasser said, adding that the project will “meet India’s rising demand for fuels and chemical products”.
A pre-feasibility study will be conducted to determine the project’s overall configuration, according to Adnoc.
The planned Ratnagiri refinery is expected to produce a range of refined petroleum products, including motor spirit and diesel, which will meet Euro VI fuel specifications.
Picture: The framework agreement was signed by UAE minister of state and ADNOC Group CEO Ahmed Al Jaber; Saudi Aramco CEO Amin Nasser; IOC chairman Sanjiv Singh; HPCL chairman and managing director MK Surana; and BPCL chairman and managing director D Rajkumar. RRPCL CEO B Ashok witnessed the signing. (Source: Adnoc)