Saudi Aramco, Abu Dhabi National Oil Company (ADNOC) and a consortium of three Indian oil firms have signed a framework deal to explore the possibility of co-investing in a $44bn Indian refinery.
Th project, one of the largest refining and petrochemical complexes in the world, was previously announced by Aramco and Indian partners Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp in April.
Under the framework deal, Aramco and ADNOC would jointly build and operate the complex and own 50 per cent of joint venture Ratnagiri Refining and Petrochemical Company, with the consortium taking the other half.
“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,” said ADNOC group CEO Sultan Al Jaber.
“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.”
A pre-feasibility study is now being conducted to determine the project’s “overall configuration”, according to a statement.
Aramco CEO Amin Nasser said the project, which includes a 1.2-million-barrels-per-day (bpd) refinery integrated with petrochemical facilities with a total capacity of 18 million tonnes per year, would meet rising Indian demand and could lead to future collaboration.
He said separately said at a conference in New Delhi where the deal was announced on Monday that the company could increase its oil production from 10 million bpd to 12 million if needed to meet demand, according to Reuters.
OPEC and it’s non-OPEC allies met last week to review a 2017 pact to cut their combined output by 1.8 million bpd.
The two sides agreed to ramp up production by 1 million bpd in the coming months, Saudi energy minister Khalid al-Falih said at the weekend.