Saudi ARAMCO, ADNOC sign MoU for participating in Ratnagiri Refinery project of Maharashtra

Jun 25, 2018 15:36 IST
Saudi ARAMCO, ADNOC sign MoU for participating in Ratnagiri Refinery project of Maharashtra

Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) on June 25, 2018 a Memorandum of Understanding (MoU) to jointly develop and build an integrated refinery and petrochemicals complex at Ratnagiri,Maharashtra.

The MoU was signed by Amin H. Nasser, Saudi Aramco President and CEO and Dr Sultan Ahmed Al Jaber, UAE Minister of State & ADNOC Group CEO.

Note

Earlier, Saudi Aramco had joined the Ratnagiri Refinery project by signing an MoU with the Indian consortium on April 11, 2018 on the sidelines of the 16th International Energy Forum Ministerial.

At that time, Saudi Aramco had sought to include another strategic partner to co-invest in the project as an overseas investor.


Significance

• The project will be implemented by Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL). 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.

Ratnagiri Refinery project

• 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.

• It will provide feedstock for the integrated petrochemicals complex, which will have the capacity of producing around 18 million tonnes per annum of petrochemical products.

• Once developed, 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).

Ratnagiri Refinery & Petrochemicals Ltd (RRPCL)

• Ratnagiri Refinery & Petrochemicals Ltd (RRPCL) was formed as a Joint Venture Company on September 22, 2017 between IOCL, BPCL and HPCL with equity participation of 50:25:25 respectively.

• The company was formed to implement a 60 MMTPA (1.2 MMBD) Integrated Refinery & Petrochemicals Project at Ratnagiri, Maharashtra.

• The expected Petrochemical production is likely to be around 18 MMTPA.

• The estimated cost of the Project would be around USD 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.

 

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Read more Current Affairs on: Saudi ARAMCO , ADNOC , Ratnagiri Refinery project , Maharashtra , IOCL , BPCL and HPCL , RRPCL

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