$44B India Integrated Project Moves Forward
A proposal to build a refinery and petrochemicals complex at Ratnagiri, on India’s west coast, advanced on Monday.
Officials with the Abu Dhabi National Oil Co. (ADNOC), Saudi Aramco and a consortium of Indian Oil Corp. Ltd., Bharat Petroleum Corp. Ltd. and Hindustan Petroleum Corp. Ltd. met in New Delhi to sign a framework agreement under which the companies will explore a strategic partnership and co-investment in the proposed $44 billion project, according to a written statement from ADNOC. Moreover, ADNOC pointed out the complex would be its first overseas refinery investment – and mark a “key step” in the company’s international downstream strategy.
ADNOC also stated that it, along with Saudi Aramco and the Indian consortium, will now launch a pre-feasibility study to determine the Ratnagiri project’s overall configuration.
The memorandum of understanding (MoU) provides a blueprint under which Saudi Aramco and ADNOC would build, own and operate the facility with a consortium of Indian companies. Saudi Aramco and ADNOC would own 50 percent of the joint venture company, Ratnagiri Refining and Petrochemical Co. Ltd. (RRPCL), and the Indian consortium would own the remaining interest, ADNOC stated.
“Our oil and gas relations have taken a major leap today with the signing of the MoU between Saudi Aramco and ADNOC,” according to Shri Dharmendra Pradhan, India’s Minister of Petroleum and Natural Gas, who witnessed the signing. “This will make the UAE and Saudi Arabia partners in India’s rapidly growing refining sector and in India’s growth story.”
Sultan Ahmed Al Jaber, UAE Minister of State and the CEO of ADNOC Group, remarked that the project will help to secure the off-take of UAE crude to a “key growth economy.”
“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,” Al Jaber stated. “The agreement delivers on the wise directives of the UAE’s leadership, to strengthen and enhance our long-standing ties with our Saudi Arabian and Indian strategic partners. It underlines our expanded approach to energy partnerships, which combines a truly unique set of resources, capabilities and market access to create and maximize shared value.”
Saudi Aramco President and CEO Amin H. Nasser noted the JV’s time horizon extends for decades.
“World energy demand is expected to grow exponentially by 2050, driven in large part by India,” Nasser said in the ADNOC statement. “Saudi Aramco is proud to partner with ADNOC and RRPCL to help ensure that the world’s fastest-growing economy has secure, reliable energy feedstocks for its long-term prosperity.”
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