INDIA-SAUDI ARABIA |
supplier. In fact, Saudi Arabia lost ground to rivals in nine of its 15 key markets. Late the next year, Iran occupied the top spot as the jockeying for position in the Indian oil market continued. In the longer term, though, Saudi Arabia is likely to reclaim its ranking, or at least retain a very sizable market share, given its reserve capacity and India’ s projected energy needs.
The SEP signed a decade ago also called for the establishment of public and private joint ventures in the upstream and downstream sectors in India, Saudi Arabia and third countries; Saudi investment in oil refining, marketing and storage; and the construction of gas-based fertiliser plants in Saudi Arabia. The Joint Statement issued during Prime Minister Modi’ s visit to Saudi Arabia in 2016 breathed new life into India-Saudi Arabia energy relations. Under the Modi administration, India has invited Saudi Arabia to develop a stake in its petroleum reserves. Subsequent to Prime Minister Modi’ s visit to the Kingdom, the Chief Minister of Andhra Pradesh( an Indian province) Nara Chandrababu Naidu held discussions with Saudi Aramco President and CEO Amin H. Nasser regarding the setting up of a refinery in his state.
Saudi Aramco and Indian consortium“ RRPCL” signed MoU to develop Ratnagiri mega refinery and petrochemicals complex on India’ s west coast. Saudi Aramco recently signed a Memorandum of Understanding( MOU) with“ Ratnagiri Refinery and Petrochemicals Ltd.”( RRPCL), a consortium of Indian oil companies which includes the Indian Oil Corporation Ltd.( IOCl), Bharat Petroleum Corporation Ltd.( BPCL), and Hindustan Petroleum Corporation Ltd.( HPCL), to jointly develop and build an integrated mega refinery and petrochemicals complex at Ratnagiri, in the state of Maharashtra. Saudi Aramco may also seek to include a strategic partner to co-invest in the mega refinery.
The strategic partnership brings together crude supply, resources, technologies, experience, and expertise of these multiple
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The strategic partnership brings together crude supply, resources, technologies, experience, and expertise of these multiple oil companies with that of an established commercial presence around the world. |
oil companies with that of an established commercial presence around the world.
A pre-feasibility study for the refinery has been completed and the parties are now finalising the project’ s overall configuration. Following the signing of the MOU, the parties will extend their collaboration to discuss the formation of a joint venture that would provide for joint ownership, control, and management of the project.
The refinery will be capable of processing 1.2 million barrels of crude oil per day. It will produce a range of refined petroleum products, including gasoline and diesel, meeting BS- VI fuel efficiency norms. The refinery will also provide feedstock for the integrated petrochemical complex, which will be capable of producing approximately 18 million tons of petrochemicals per annum.
In addition to the refinery, cracker and downstream petrochemical facilities, the project will include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralised and shared utilities.
This project will rank among the largest world refining and petrochemicals projects and is being designed to meet India’ s fast-growing fuels and petrochemicals demand. The project cost is estimated at around $ 44 billion.
“ Investing in India is a key part of our company’ s global downstream strategy, and another milestone in our growing relationship with India,” said Saudi Aramco President and CEO Amin H. Nasser in April 2018, who also noted the opening in 2017 of Aramco Asia’ s New Delhi office with a mandate to expand Saudi Aramco’ s international portfolio in this key economic growth region.
The signing of this MoU marks a significant development in India’ s oil and gas sector, enabling a strategic joint venture and investment partnership that will serve India’ s fast-growing demand for transportation fuels and chemical products. Participating in this mega project will allow Saudi Aramco to go beyond its crude oil supplier role to a fully integrated position that may help usher in other areas of collaboration, such as refining, marketing, and petrochemicals for India’ s future energy demands.
* The author is studying Masters in Political Science in Ambedkar University, New Delhi
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