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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