An Indian consortium comprising IOCL, BPCL and HPCL on April 11, 2018 signed a Memorandum of Understanding (MoU) with Saudi Aramco, the world’s largest oil producer.
Under the agreement, Saudi Aramco has taken 50 per cent stake in a planned USD 44-billion refinery-cum-petrochemical project in Maharashtra. The move will provide the Saudi Arabian company with an assured customer for additional 30 million tonnes of its crude oil.
• The Indian consortium and Saudi Aramco will jointly develop and build an integrated refinery and petrochemicals complex, Ratnagiri Refinery & Petrochemicals ltd (RRPCL) in Maharashtra.
• The strategic partnership will bring together crude supply, resources, technologies, experience and expertise of these multiple oil companies with an established commercial presence around the world.
• Saudi Aramco may also seek to include a strategic partner to co-invest in the project.
• While a pre-feasibility study for the refinery has been completed, the project’s overall configuration would be finalised soon.
• 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.
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About the Ratnagiri Refinery
• The 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 to be around Rs 3 lakh crore (USD 44 billion).
• The refinery will be capable of processing 1.2 million barrels of crude oil per day and 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 be capable of producing approximately 18 million tonnes per annum of petrochemical products.
Besides this, the project will include the development of associated facilities such as a logistics, crude oil and product storage terminals, raw water supply project as well as centralised and shared utilities.