Saudi Aramco signs MoU for 50:50 mega refinery JV in Ratnagiri

Randolph Lopez
April 12, 2018

Saudi Aramco, the world's biggest oil producer, has signed an agreement to develop with a consortium of Indian refiners a $44 billion integrated refining and petrochemical complex as it looks to secure its market share in India.

Saudi Aramco, the world's largest oil company, signed two separate agreements with oil-equipment makers TechnipFMC, which has headquarters in Houston, Paris and London, and Honeywell UOP to study their production technologies and potentially build a manufacturing complex on the U.S. Gulf Coast.

In addition to the refinery, cracker and downstream petrochemical facilities, the project will include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralized and shared utilities.

Saudi Arabia's stock exchange expects an influx of foreign funds to smooth the listing of national oil firm Saudi Aramco, despite concern among some analysts about whether the market can absorb the huge offer, the exchange's chief executive said on Sunday.

When completed, RRPCL will rank among the world's largest refining and petrochemical projects and will be created to meet India's fast-growing fuels and petrochemicals demand.

Saudi Aramco has finally chose to enter the Indian market with equity participation in India's largest oil refinery in Maharashtra, proposed by a consortium of state-owned oil marketing companies.

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India-the world's third largest oil consumer-has been pushing for reasonable crude oil pricing from The Kingdom.

During the 16th International Energy Forum (IEF) three state-owned companies- Indian Oil Corportaion (IOC), Bharat Petroleum Corporatiomn (BPCL) and Hindustan Petroleum Corporation (HPCL) signed the Memorandum of Understanding (MoU). "We will only list when the market is right", he said. When asked what took Saudi Arabia so long to enter the business here, he said, "Saudi Aramco has been interested in India for decades".

India plans to expand its refining capacity by 77 percent to about 8.8 million barrels per day by 2030. Aramco has a refinery joint venture with Sinopec and Exxon Mobil, and is building a 300,000-bpd refinery with Norinco.

The Indian accord is just the latest in a string of deals - with French, U.S. and Asian companies - announced by Aramco as it seeks secure markets for its oil and to move away from being just a producer.

Saudi Arabia is competing with Iraq to be India's top oil supplier.

Other reports by GlobalViralNews

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