ADNOC Joins Saudi Aramco to Build Ratnagiri Refinery

Oil giants – Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) – have signed a Memorandum of Understanding (MoU) to jointly develop and build the $44-bn integrated refinery and petrochemicals complex at Ratnagiri in Maharashtra.

Speaking to reporters after the MoU was signed, Aramco CEO, Mr. Amin H Nasser said, “Saudi Aramco and ADNOC will together hold 50 per cent stake. The terms are being discussed.”

In a tweet later, Minister for Petroleum and Natural Gas, Mr. Dharmendra Pradhan said, “State owned refiners IOC, HPCL and BPCL will have 50 per cent stake in the Ratnagiri Refinery. Aramco & ADNOC will have 25 per cent stake each.”

The refinery has a crude processing capacity of 1.2 million barrels per day, Mr. Pradhan said in the Twitter message. He also said the investment by ADNOC and Saudi Aramco is the biggest overseas investment by any company in India’s oil and gas sector.

It is unclear if there will be a financial investment by either Saudi Aramco or ADNOC in the project. Industry watchers are expecting a crude supply assurance from both Aramco and ADNOC to meet the requirements of the 60-mtpa refinery.

This refinery will also provide feedstock for the integrated petrochemicals complex, which will have the capacity of producing approximately 18-mtpa of petrochemical products.

Saudi Aramco had joined the project by signing a MoU with the Indian consortium in April this year on the sidelines of the 16th International Energy Forum Ministerial. It had also sought to include another strategic partner to co-invest in the project as an overseas investor.