Adnoc, Saudi Aramco enter deal to invest in India refinery
AGREEMENT MARKS A NEW ENERGY PARTNERSHIP BETWEEN UAE, INDIA AND SAUDI ARABIA
Energy giants Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco will jointly invest in the development of the $44 billion (Dh161 billion) Ratnagiri refinery and petrochemicals complex that is coming up in the western Indian state of Maharashtra.
The two firms signed a framework agreement in New Delhi yesterday that defines the principles of the joint strategic cooperation between Saudi Aramco and Adnoc to jointly build, own and operate the refinery complex in collaboration with a consortium of Indian national oil companies consisting of Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
The signing of the deal took place in the presence of Shaikh Abdullah Bin Zayed Al Nahyan, UAE Minister of Foreign Affairs and International Cooperation, who is on a weeklong visit to India, and Indian oil minister Dharmendra Pradhan.
‘Strengthens ties’
As per the agreement, Adnoc and Saudi Aramco will jointly own a 50 per cent stake in the new joint venture company named Ratnagiri Refinery and Petrochemicals Limited (RRPCL) while the remaining stake will be held by Indian companies like Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
“This agreement strengthens the already close ties between the UAE and the Kingdom of Saudi Arabia and between the UAE and India. The UAE is unwavering in its commitment to its strategic multilateral relationships with both Saudi Arabia and India, as well as being a reliable partner in India’s energy security,” Shaikh Abdullah said in a statement.
The refinery has a crude processing capacity of 1.2 million barrels per day and the investment by Adnoc and Saudi Aramco is the biggest overseas investment by any company in India’s refinery sector, Indian oil minister Padhan said in a twitter message.
Energy ties between India and the UAE have been strengthening in recent times. Earlier this year, a consortium of three public sector enterprises in India were awarded a 10 per cent stake in the development of Lower Zakum offshore oilfield in Abu Dhabi.
Long-range focus
Adnoc is also supplying crude oil for storage in India’s strategic petroleum reserves in Mangalore. A consignment of two million barrels of oil was delivered to India last month.
“This project is a clear example of our expanded downstream strategy, where we will make strategic, commerciallydriven, targeted investments, both in the UAE and abroad,” Dr Sultan Ahmad Al Jaber, UAE Minister of State and Adnoc Group CEO, said while commenting on the refinery deal.
Amin H. Nasser, Saudi Aramco President and CEO, emphasised the JV’s long-range focus.
“World energy demand is expected to grow exponentially by 2050, driven in large part by India. Saudi Aramco is proud to partner with Adnoc and RRPCL to help ensure that the world’s fastest-growing economy has secure, reliable energy feedstocks for its long-term prosperity.”