First overseas refinery investment represents a key step in ADNOC’s new international downstream strategy
A framework agreement between the Abu Dhabi National Oil Company (ADNOC), Saudi Aramco (Aramco) and a consortium of three Indian oil companies has been signed to explore a strategic partnership and co-investment in the development of a new $44 billion mega refinery and petrochemicals complex at Ratnagiri, on India’s west coast.
“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 multi-lateral relationships with both Saudi Arabia and India, as well as being a reliable partner in India’s energy security. We look forward to exploring further opportunities to expand our energy partnerships and to collaborating on new, broader, opportunities that will further strengthen and deepen the long-standing economic links between our three countries,” said HH Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, UAE Minister of Foreign Affairs and International Cooperation.
The agreement defines the principles of the joint strategic cooperation between Saudi Aramco and ADNOC to jointly build, own and operate the complex in collaboration with a consortium of Indian national oil companies currently consisting of Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd. Saudi Aramco and ADNOC will jointly own 50 per cent of the new joint venture Company Ratnagiri Refining and Petrochemical Company Ltd, with the remaining 50 per cent owned by the Indian Consortium.
“This project is a clear example of our expanded downstream strategy, where we will make strategic, commercially-driven, targeted investments, both in the UAE and abroad. By investing in this project, we will secure off-take of our crude to a key growth economy, as well as one of the world’s largest and fastest growing refining and petrochemical markets,” said HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.
Al Jaber added that the agreement will strengthen and enhance the UAE’s long-standing ties with Saudi Arabian and Indian strategic partners, and underlies ADNOC’s expanded approach to energy partnerships, which combines a truly unique set of resources, capabilities and market access to create and maximise shared value.
The strategic partnership between ADNOC and Saudi Aramco marks a significant step in regional energy partnership and cooperation, bringing together two of the world’s leading National Oil Companies as strategic partners with the Indian consortium. It will also combine their considerable expertise spanning crude supply, resources and technologies, along with an established commercial presence and global reach. A pre-feasibility study to determine the project’s overall configuration will now be jointly executed by the parties.
“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. The Ratnagiri project will meet India’s rising demand for fuels and chemical products while serving the strategic objectives of the partners. I am pleased that Saudi Aramco will deepen its engagement in India’s fast-growing oil and gas sector through this project that also positions us for future collaboration as a key element of our company’s global downstream strategy,” said Amin H. Nasser, Saudi Aramco President and CEO.