ADNOC, Saudi Aramco to partner on development of $44bn Indian mega refinery

Oil giants Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco will jointly invest in the $44 billion Ratnagiri refinery and petrochemical complex that is coming up in the Western Indian state of Maharashtra. 

The two firm signed a memorandum of understanding in this regard in New Delhi on Monday.

The refinery has a crude processing capacity of 1.2 million barrels per day, Indian oil minister Dharmendra Pradhan said in a 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.

Adnoc and Saudi Aramco will jointly have 50 per cent stake in the refinery while the remaining stake will be held by Indian companies like Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.

The development comes as ties between India and the UAE strengthen in the energy sector in recent times. Earlier this year, a consortium of three public sector enterprises of India were awarded 10 per cent stake in the development of Lower Zakhum off shore oilfield in Abu Dhabi.

Adnoc is also supplying crude oil for storage in India’s strategic petroleum reserves in Mangalore. A consignment of 2 million barrels of oil was delivered to India last month.

The signing of the deal coincides with the visit of Shaikh Abdullah Bin Zayed Al Nahyan, UAE’s Minister of Foreign Affairs and International Cooperation to India.