Saudi Aramco to co-develop India’s $44 bln mega refinery

Saudi Aramco on Wednesday signed a memorandum of understanding (MoU) with Ratnagiri Refinery and Petrochemicals Ltd (RRPCL) to jointly develop and build an integrated mega refinery and petrochemicals complex worth $44 billion at Ratnagiri, Maharashtra.

A pre-feasibility study for the refinery has been completed, and the parties are now finalizing the project’s overall configuration, Aramco said in a statement.

Following the signing of the MOU, the parties will extend their collaboration to discuss the formation of a joint venture that would provide for joint ownership, control, and management of the project.

RRPCL is a consortium of Indian oil companies which includes The Indian Oil Corporation Ltd. (IOCl), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL).

“Investing in India is a key part of our company’s global downstream strategy, and another milestone in our growing relationship with India,” said Saudi Aramco president and CEO Amin H. Nasser, said.

The refinery will be capable of processing 1.2 million barrels of crude oil per day and will provide feedstock for the integrated petrochemical complex, which will be capable of producing approximately 18 million tons per annum of petrochemical products.

In addition to the refinery, cracker and downstream petrochemical facilities, the project will include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralized and shared utilities.

Saudi Aramco said it may also seek to include a strategic partner to co-invest in the mega refinery.