SINGAPORE (ICIS)--State-owned energy giant Saudi Aramco and three Indian energy firms led by Indian Oil Corp (IOC) signed on Wednesday a memorandum of understanding (MOU) to jointly develop and build an integrated refinery and petrochemical complex at Ratnagiri in the Maharashtra state.
The project cost is estimated at around $44bn, Saudi Aramco said in a statement.
IOC, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had incorporated their joint venture firm called Ratnagiri Refinery & Petrochemicals Limited for the project in the western region of India.
The proposed refinery will be capable of processing 1.2m barrels of crude oil per day – some of which will be Arabian crude – and produce a range of refined petroleum products, including motor spirit and diesel, which will meet Euro VI fuel specifications, IOC said in a filing to the Bombay Stock Exchange (BSE).
“It will also provide feedstock for the integrated petrochemical complex, which will be capable of producing approximately 18 million tonnes per annum of petrochemical products,” IOC said.
“The partnership would bring together the crude supply, resources, technologies, experiences, and expertise of these multiple oil companies with an established commercial presence around the world,” the company said.
IOC said that Saudi Aramco may also bring in a strategic partner to co-invest in the project, which is expected to be among the largest in the world.