The Saudi state-run oil and gas company Saudi Aramco has signed a Memorandum of Understanding (MoU) with the Indian consortium Ratnagiri Refinery and Petrochemicals (RRPCL) for the construction of a new 1.2 mb/d (around 60 Mt/year) refinery in Ratnagiri, in the state of Maharashtra (India). RRPCL is a consortium of three Indian oil companies, namely Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL). The consortium will own 50% in the project, while Saudi Aramco will take over 50%.
The total cost of the project is estimated at US$44bn and the facility is expected to produce a range of refined petroleum products such as gasoline and diesel, meeting BS-VI fuel efficiency norms. The project will also include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralized and shared utilities. The refinery is a key project and is designed to meet India's fast-growing fuels demand. Investing in it fits into Saudi Aramco's global downstream strategy, enabling to go beyond its crude oil supplier role and reach a fully integrated position in the oil supply chain.