An Indian Consortium consisting of IOCL, BPCL and HPCL and Saudi Aramco signed a Memorandum of Understanding (MoU) here today to jointly develop and build an integrated refinery and petrochemicals complex, Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL) in the State of Maharashtra. Saudi Aramco may also seek to include a strategic partner to co-invest in the project.

The strategic partnership brings together crude supply, resources, technologies, experience and expertise of these multiple oil companies with an established commercial presence around the world.

A pre-feasibility study for the refinery has been completed, and the parties are now finalising the project’s overall configuration. Following the signing of the MoU, the parties will extend their collaboration to discuss the formation of a joint venture that would provide for joint ownership, control and management of the project.

The refinery will be capable of processing 1.2 million barrels of crude oil per day (60 million metric tonnes per annum, or MMTPA). It will produce a range of refined petroleum products, including petrol and diesel meeting BS-VI fuel efficiency norms. The Refinery will also provide feedstock for the integrated petrochemicals complex, which will be capable of producing approx. 18 million tonnes per annum of petrochemical products.

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

RRPCL will rank among the world’s largest refining & petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand. The project cost is estimated at around Rs.3 lakh crore (USD 44 billion).

Shri Dharmendra Pradhan, Minister of Petroleum and Natural Gas, Skill Development and Entrepreneurship said that this a joint partnership between the consortium from India consisting of IOCL, HPCL and BPCL and Saudi Aramco & an additional strategic partner on a 50:50 basis.

Shri Pradhan said that this project, with an estimated investment of over Rs. 3 lakh crore, would bring huge benefits to the Region, the State of Maharashtra and the entire country in terms of large-scale employment generation, direct and indirect, as well as all-round economic development of the Region. This project is in line with the vision of Hon’ble Prime Minister of India and His Highness the King of Saudi Arabia.

Amin H. Nasser, Saudi Aramco President and CEO said that the signing of MoU marks a significant development in India’s Oil & Gas Sector. He further stated that participating in this mega project will allow Saudi Aramco to go beyond the role of crude oil supplier to a fully integrated position which supports India’s future energy demands. He also noted the opening of Aramco Asia’s New Delhi Office in 2017 with a mandate to expand the Saudi Aramco’s international portfolio in this key economic growth region.

About Indian Oil Corporation (IndianOil)

Indian Oil Corporation Ltd. (IndianOil) is India's largest commercial enterprise, ranked 119th among the world's largest corporates (and first among Indian enterprises) in the prestigious Fortune ‘Global 500’ listing for the year 2015. IndianOil has been meeting India’s energy demands for over half a century. Its business interests straddle the entire hydrocarbon value-chain – from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas, marketing of natural gas and petrochemicals, besides forays into alternative energy and globalisation of downstream operations. As part of its Exploration & Production portfolio, IndianOil has participating interest in eight domestic and seven overseas blocks. The seven overseas blocks are located in Libya, Gabon, Nigeria, Yemen, Venezuela, Canada and USA.

About Saudi Aramco

Saudi Aramco is a leading global integrated energy and chemicals company. We are driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, more sustainable and more useful. This helps promote stability and long-term growth around the world.