UAE, India deepen energy ties with refinery project deal

NEW DELHI: The United Arab Emirates ( UAE) and India have deepened their energy links with a deal for Abu Dhabi’s participation in a mega Indian refinery complex.

The UAE, wh ich is contributing to the buildup of India’s strategic petroleum r e s e r ve s , on Mond ay signed a memorandum of understanding to join the US$ 44- bi l l ion greenfield Ratnagi r i ref inery- cump et rochemic a l proj e c t launched in April by Saudi and Ind ian compa n ies in the western state of Maharashtra.

“It is a strategic partnership between India, Saudi Arabia and the UAE which is symbol ised by the MoU. The strategic partnership brings together crude supply, resources, technologies, experience and expertise of these multiple oil companies w it h an es t abl i she d commercial presence around the world,” Indian Petroleum M i n i s t er Dharmend r a Pradhan said in a statement in New Delhi.

Abu Dhabi National Oi l Company ( ADNOC) signed the investment deal with S au d i Ar amc o , wh i ch controls 50 per cent of the Ratnagiri project.

Indian Oi l Corporation, Hi ndu s t a n Pe t r ol e um Corporation Ltd and Bharat Petroleum Corporation own the remaining 50 per cent.

When the Ratnagiri project was unvei led earl ier this year, Saudi Oil Minister Khalid Al Falih had said Saudi Aramco would bring in another partner to work with it.

The re f iner y wou ld have a capacity to process 1.2 million barrels of crude oil per day.

The integrated petrochemicals complex would have an output of 18 million tonnes per annum.

“We look forward to ushering a new era of cooperation between India, Saudi Arabia and the UAE in the oil and gas sector,” the Indian oil minister said.

India depends on imports for 80 per cent of the oil it consumes.

Saudi Arabia accounted for 19 per cent of India’s crude oil imports and 29 per cent of its LPG imports.

The UAE firm, ADNOC, supplies crude for emergency storage facilities in southern India.

The first crude consignment to fill the Mangalore reserve was received in May.

Indian energy companies have invested in Abu Dhabi’s Lower Zakhum offshore field to secure more supplies for the world’s third biggest oil importer. — Bernama