Saudi Aramco and ADNOC on Monday signed an MoU today to jointly develop and build an integrated refinery and petrochemicals complex at Ratnagiri in Maharashtra.
The project will be implemented by Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL). The MoU was signed between Saudi Aramco President and CEO, Amin H. Nasser and Dr. Sultan Ahmed Al Jaber, UAE Minister of State & ADNOC Group CEO.
The signing was witnessed by Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, UAE Minister of Foreign Affairs and International Cooperation, who is on an official visit to India, and Dharmendra Pradhan, Minister of Petroleum and Natural Gas & Skill Development & Entrepreneurship, Government of India.
“The investment by Saudi ARAMCO and ADNOC in the $ 44 billion project will be the highest ever overseas investment in the Indian refining sector. The significance, however, goes much beyond FDI,” minister a Pradhan said.
“It is a strategic partnership between India, Saudi Arabia and the UAE which is symbolised by the MoU. The strategic partnership brings together crude supply, resources, technologies, experience and expertise of these multiple oil companies with an established commercial presence around the world,” Pradhan said.
“The last four years have seen the three countries coming closer than ever before owing to the commitment and vision shown by our leadership. Prime Minister Modi and the leaders of Saudi Arabia and the UAE have met multiple times to strengthen the political, economic and strategic relations and people to people contacts,” the minister added.
Earlier, Saudi Aramco had joined the project by signing an MoU with the Indian consortium on 11th April 2018 on the sidelines of the16 International Energy Forum Ministerial. Saudi Aramco also sought to include anotherstrategic partner to co-invest in the project as an overseas investor.
RRPCL which is promoted by a consortium of India PSUs consisting of IOCL, BPCL and HPCL will now have Saudi Aramco & ADNOC as overseas strategic partners.
The project will be set up as a 50:50 joint partnership (50:50) between the consortium from India and Saudi Aramco and ADNOC. This will be single largest overseas investment in the Indian refining sector.
The strategic partnership brings together crude supply, resources, technologies, experience and expertise of these multiple oil companies with an established commercial presence around the world.
The mega refinery will be capable of processing 1.2 million barrels of crude oil per day (60 million metric tonnes per annum). It will produce a range of refined petroleum products, including petrol and diesel meeting BS-VI fuel efficiency norms.
The Refinery will also provide feedstock for the integrated petrochemicals complex, which will have the capacity of producing approx. 18 million tonnes per annum of petrochemical products.
RRPCL will rank among the world’s largest refining & petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand. The project cost is estimated at around Rs.3 lakh crore (USD 44 billion).
Background on Ratnagiri Refinery & Petrochemicals Ltd.(RRPCL):
Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL), a JVC, was formed on 22nd September,2017 between IOCL,BPCL& HPCL with equity participation of 50:25:25 respectively. This is to implement a 60 MMTPA (1.2 MMBD) Integrated Refinery & Petrochemicals Project at Ranagiri, Maharashtra. The expected Petrochemical production is likely to be around 18 MMTPA.
The estimated cost of the Project would be around Rs. 3,00,000 crores (around 44 billion dollars). |This would potentially be one of the largest Projects in the world. It is expected that it will contribute to a GDP improvement of around 2% Nationally and about 12% to the state of Maharashtra.
A preliminary Feasibility Study has been conducted by Ms. EIL which has also provided the basic technical configuration of the Project. Certain pre-project activities have also been initiated. A demand supply market study for petrochemicals has also been completed through M/s HIS Markit, a reputed global consultant.
A further configuration study through an international consultant is being taken up shortly which will lead to carrying out the Detailed Feasibility Study for the Project culminating into a Final Investment Decision.
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