Saudi Aramco, India sign MoU for $44 billion mega deal, World's largest refinery
RIYADH - Saudi Aramco signed on Wednesday a Memorandum of Understanding (MOU) with “Ratnagiri Refinery and Petrochemicals Ltd.” (RRPCL) for an estimated $44 billion mega refinery and petrochemicals complex on India’s west coast.
The India partner is a consortium of oil companies which includes The Indian Oil Corporation Ltd. (IOCl), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL), to jointly develop and build an integrated mega refinery and petrochemicals complex at Ratnagiri, in the state of Maharashtra, India.
The 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 gasoline and diesel, meeting BS-VI fuel efficiency norms. The refinery will also provide feedstock for the integrated petrochemical complex, which will be capable of producing approximately 18 million tons per annum of petrochemical production.
Ratnagiri Refinery and Petrochemicals Ltd. (RRPCL) will rank among the largest world refining and petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand.
Aramco President & CEO Amin H. Nasser said that “Investing in India is a key part of Saudi Aramco’s global downstream strategy, and another milestone in our growing relationship with India.”
Nasser also noted the opening in 2017 of Aramco Asia’s New Delhi office with a mandate to expand Saudi Aramco’s international portfolio in this key economic growth region.
“The signing marks a significant development in India’s oil and gas sector, enabling a strategic joint venture and investment partnership that will serve India’s fast-growing demand for transportation fuels and chemical products.
Participating in this mega project will allow Saudi Aramco to go beyond our crude oil supplier role to a fully integrated position that may help usher in other areas of collaboration, such as refining, marketing, and petrochemicals for India’s future energy demands,” he added.