Saudi Aramco has signed a memorandum of understanding (MoU) with Ratnagiri Refinery and Petrochemicals Ltd (RRPCL) to develop and build a $44bn integrated mega refinery and petrochemicals complex in Maharashtra, India.
RRPCL is a consortium of Indian oil firms, featuring The Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum.
The Saudi Arabian national petroleum and natural gas firm may also seek to include a strategic partner to co-invest in the refinery.
Saudi Aramco president and CEO Amin Nasser said: “Investing in India is a key part of our company’s global downstream strategy, and another milestone in our growing relationship with India.”
To be located in Ratnagiri, Maharashtra, the new refinery will have a capacity to process 1.2 million barrels of crude oil per day.
The facility will produce a various refined petroleum products, including gasoline and diesel, adhering to BS-VI fuel efficiency standards.
It will provide feedstock for the integrated petrochemical complex, which will be capable of producing about 18 million tonnes per annum of petrochemical production.
Furthermore, the project also will include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralised and shared utilities.
Nasser said: “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.”
With the MoU in place, Saudi Aramco and RRPCL will now discuss the formation of a joint venture that would provide for joint ownership, control, and management of the project.