An agreement was recently signed between both the firms to jointly explore a strategic partnership and co-investment in the mega project. The move has been undertaken by the companies to strengthen its access in one of the world’s largest and fastest growing refining and petrochemical markets.
New Delhi/India – Saudi Aramco and the Abu Dhabi National Oil Company (Adnoc) have recently announced that they have signed a Framework Agreement to jointly develop the Ratnagiri Refinery and Petrochemicals Ltd (RRPCL) project. Capable of producing 1.2 million barrels per day, the integrated mega refinery and petrochemicals complex at Ratnagiri is located 215 miles south of Mumbai in Maharashtra, India. The Framework Agreement was signed by Amin Nasser, CEO of Saudi Aramco, His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO.
The agreement defines the principles of the joint strategic cooperation between Saudi Aramco and Adnoc to jointly build, own and operate the complex in collaboration with a consortium of Indian national oil companies currently consisting of Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). Saudi Aramco and Adnoc will jointly own 50 % of the new joint venture Company RRPCL, with the remaining 50 % owned by the Indian Consortium.
Furthermore, Saudi Aramco CEO Amin H. Nasser signed a MOU and acknowledgement with all the companies involved in the project. The MOU was signed by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO; Sanjiv Singh, Chairman of IOCL; MK Surana, Chairman and Managing Director, HPCL; D Rajkumar, Chairman and Managing Director, BPCL and B Ashok, CEO of RRPCL.
His Highness Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, UAE Minister of Foreign Affairs and International Cooperation, and Dharmendra Pradhan, India’s Minister of Petroleum and Natural Gas, witnessed the signing of the agreements between Adnoc, Saudi Aramco and a consortium of three Indian oil companies. The agreement aims to explore a strategic partnership and co-investment in the development of a new 44 billion dollar mega refinery and petrochemicals complex at Ratnagiri, on India’s west coast.
The partnership between Saudi Aramco and Adnoc marks a significant step in regional energy partnership and cooperation, bringing together two of the world’s leading national oil companies as strategic partners with the Indian consortium. It will also combine their considerable expertise spanning crude supply, resources and technologies, along with an established commercial presence and global reach. A pre-feasibility study to determine the project’s overall configuration will now be jointly executed by the parties.