Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) announced on Monday that they have signed a Framework Agreement to jointly develop the Ratnagiri Refinery and Petrochemicals Limited (RRPCL), a 1.2 million barrel per day integrated mega refinery and petrochemicals complex at Ratnagiri, India.
The Framework Agreement was signed in Dhahran by Amin Nasser, CEO of Saudi Aramco, Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.
In a statement to Saudi Press Agency (SPA), 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, Nasser signed an MoU and Acknowledgement with ADNOC, RRPCL, Indian Oil Corporation Ltd., Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, UAE Minister of Foreign Affairs and International Cooperation, and Shri Dharmendra Pradhan, India’s Minister of Petroleum and Natural Gas, witnessed the signing of the agreements between ADNOC, Saudi Aramco and the Indian consortium companies.
The agreements are aimed at exploring a strategic partnership and co-investment in the development of a new US $44 billion 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.
Dr. Jaber said: “This project is a clear example of our expanded downstream strategy, where we will make strategic, commercially-driven, targeted investments, both in the UAE and abroad. By investing in this project, we will both secure off-take of our crude to a key market for ADNOC, as well as strengthen access in one of the world’s largest and fastest growing refining and petrochemical markets.”
“It underlines our expanded approach to energy partnerships by joining hands with both Saudi Aramco, and our Indian colleagues, combining a truly unique set of assets, capabilities and market reach to meet India's projected energy demand growth. Furthermore, the project executes on the wise directives of the UAE’s leadership, to strengthen and bolster our long-term ties with these strategic partners, building on the successful partnerships that are already in place.”
Nasser stated: “World energy demand is expected to grow exponentially by 2050, driven in large part by India. “Saudi Aramco is proud to partner with ADNOC and RRPCL to help ensure that the world’s fastest-growing economy has secure and reliable energy feedstocks for its long-term prosperity.”
“The Ratnagiri project will meet India’s rising demand for fuels and chemical products while serving the strategic objectives of the partners. I am pleased that Saudi Aramco will deepen its engagement in India’s fast-growing oil and gas sector through this project that also positions us for future collaboration here as a key element of our company’s global downstream strategy.”
Shri Dharmendra Pradhan, Minister of Petroleum and Natural Gas, said: "Our oil and gas relations have taken a major leap today with the signing of the MoU between Saudi Aramco and ADNOC. This will make the UAE and Saudi Arabia partners in India's rapidly growing refining sector and in India's growth story."
