Published on June 27, 2018
Abu Dhabi National Oil Company (ADNOC), Saudi Aramco (Aramco) and a conglomerate of three Indian oil companies signed a framework agreement to explore the development of a new $44 billion mega refinery and petrochemicals complex at Ratnagiri, in Maharashtra.
The deal will involve a strategic partnership and co-investment in the development between all parties.
Aramco and ADNOC will jointly own 50% of the new joint venture - Ratnagiri Refining and Petrochemical Company Ltd - with the remaining 50% owned by the Indian Consortium.
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.
Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO said project is a clear example of ADNOC’s plan to expand its downstream strategy “where we will make strategic, commercially-driven, targeted investments, both in the UAE and abroad”.
“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 said.
“The Ratnagiri project will meet India’s rising demand for fuels and chemical products while serving the strategic objectives of the partners,” said Nasser.
