UAE’S ADNOC PLANS INDIA INVESTMENT

NEW DELHI : Abu Dhabi National Oil Co (Adnoc), the state-run oil company of the United Arab Emirates (UAE), may pick up a 25% stake in the largest global refinery and petrochemicals complex coming up at Ratnagiri in Maharashtra.

Adnoc, the only company to commit to India’s crude oil reserve programme till date, plans to acquire the stake from the world’s biggest oil producer, Saudi Arabian Oil Co., or Saudi Aramco, which has partnered with a consortium of Indian state-run companies for the $44 billion project.

This is significant given that the UAE supplies 6% of India’s crude oil imports. With three million barrels per day of crude oil production, Adnoc is the world’s 12th largest producer.

“Post Adnoc’s acquisition of a 25% stake, Saudi Aramco and Indian Oil Corporation Ltd will hold 25% each in the project, while 12.50% each will be held by Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL),” said one person aware of the development, requesting anonymity. When the memorandum of understanding for the 60 million tonnes per annum Ratnagiri Refinery and Petrochemicals Ltd was signed in April by Saudi Arabia’s energy minister Khalid Al-Falih, it was announced that Saudi Aramco might induct a strategic partner by divesting its 50% equity stake in the project. Apart from investing in the project, Saudi Aramco will also provide crude oil to the project, ensuring supply security. “Aramco has the freedom to offload to anyone, including Adnoc,” said an Indian government official, requesting anonymity.

PTI on May 12 reported Adnoc’s interest in the project.