Abu Dhabi National Oil (Adnoc), Saudi Aramco (Aramco) and a consortium of three Indian oil companies have signed a framework agreement to explore the possibility of a strategic partnership and co-investment in a new $44bn mega refinery and petrochemicals complex at Ratnagiri on India’s west coast.
UAE Minister of State and Adnoc Group CEO Sultan Ahmed Al Jaber, Saudi Aramco CEO Amin Nasser, Indian Oil chairman Sanjiv Singh, Hindustan Petroleum CMD MK Surana and Bharat Petroleum CMD Rajkumar signed the agreement.
UAE Minister for Foreign Affairs and International Cooperation Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, India’s Minister for Petroleum and Natural Gas Dharmendra Pradhan and Ratnagiri Refining and Petrochemical CEO B Ashok were present.
Sheikh Abdullah said: “This agreement strengthens the already close ties between the UAE and the Kingdom of Saudi Arabia and between the UAE and India.
“The UAE is unwavering in its commitment to its strategic multi-lateral relationships with both Saudi Arabia and India, as well as being a reliable partner in India’s energy security.
“We look forward to exploring further opportunities to expand our energy partnerships and to collaborating on new, broader opportunities that will further strengthen and deepen the long-standing economic links between our three countries.”
The agreement specifies the principles of the cooperation between Saudi Aramco and Adnoc to jointly build, own and operate the complex in collaboration with a consortium of Indian national oil companies consisting of IOCL, BPCL, and HPCL.
Saudi Aramco and Adnoc will together own 50% of the new joint venture company, Ratnagiri Refining and Petrochemical Company. The Indian consortium will own the remaining 50%.
The parties will now execute a pre-feasibility study to determine the project’s overall configuration.
Al Jaber said: “This project is a clear example of our expanded 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.”
Image: The companies’ executives sign framework agreement for the $44bn mega refinery. Photo: courtesy of Abu Dhabi National Oil Company.