Saudi Arabia’s state oil giant has struck a deal with Indian consortium Ratnagiri Refinery and Petrochemicals to develop a $44bn mega refinery in India.
The MoU was signed by Saudi Aramco to jointly develop and build the complex in Ratnagiri, in the state of Mahrarashtra, with a group of firms including the Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum Corporation. Aramco said it may also seek to include a strategic partner to co-invest.
Aramco and the conglomerate will figure out the formation of a joint venture to provide ownership, control and management of the project, which will be capable of processing 1.2m barrels of crude oil per day.
The refinery will produce a range of products, including gasoline and diesel, and it will also provide feedstock for the petrochemical complex, which will be able to produce around 18m tonnes per year.
President and chief executive Amin Nasser said: “Investing in India is a key part of Saudi Aramco’s global downstream strategy, and another milestone in our growing relationship with India.”
He added: “Participating in this mega project will allow Saudi Aramco to go beyond our crude oil supplier role to a fully integrated position that may help usher in other areas of collaboration, such as refining, marketing, and petrochemicals for India’s future energy demands.”