NEW DELHI, Indian government on Wednesday said that an Indian consortium of oil companies and the Saudi oil and gas giant Aramco inked a Memorandum of Understanding to jointly develop and build an integrated refinery and petrochemicals complex in the western-central Indian state of Maharashtra.
The MoU worth USD 44 billion would bring together experience and expertise of these multiple oil companies to establish Ratnagiri Refinery and Petrochemicals Ltd with an estimated capacity of processing 1.2 million barrels of crude oil per day (60 million metric tonnes per annum), Indian Ministry of Petroleum and Natural Gas said in a statement.
Discussion with the collaboration of all the parties including Aramco and India’s IOCL, BPCL and HPCL on the “joint venture that would provide for joint ownership, control and management of the project” would follow the signing of MoU, it said.
The proposed refinery 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 approx. 18 million tonnes per annum of petrochemical products,” the statement said.
“This project, with an estimated investment of over Rs. 3 lakh crore (USD 44 billion), would bring huge benefits to the region, the state of Maharashtra and the entire country in terms of large-scale employment generation, direct and indirect, as well as all-round economic development of the region,” India’s Minister of Petroleum and Natural Gas Dharmendra Pradhan said after the signing of MoU.
On his part, Aramco CEO Amin H. Nasser stated that the MoU is a watershed development in the oil and gas sector of India.
“Participating in this mega project will allow Saudi Aramco to go beyond the role of crude oil supplier to a fully integrated position which supports India’s future energy demands,” the ministry quoted Nasser as saying.
Source: Kuwait News Agency