Aramco signs MoU with 3 Indian Oil firms to acquire 50% stake in RRPCL
Date: 2018-04-12   Author: Saipriya Iyer  Category: #news

Aramco signs MoU with 3 Indian Oil firms to acquire 50% stake in RRPCL

Saudi Aramco, a leader in global oil production, has entered into a MoU (Memorandum of Understanding) with India’s three major oil marketers. The agreement, inclusive of Hindustan Petroleum Corporation, Indian Oil Corporation, and Bharat Petroleum aims to construct the Ratnagiri Refinery & Petrochemicals (RRPCL) project in Maharashtra.

As per the deal signed at the International Energy Forum conference, Aramco will get 50% of ownership rights in the USD 44 billion refinery cum petrochemicals unit, while the rest will be owned by the Indian refiners. The strategic move is likely to benefit Aramco by providing it with a major stake in one of the world’s biggest oil refinery.

According to Dharmendra Pradhan, the Oil Minister of India, the pre-feasibility study of the refinery, which is expected to be developed at Babulwadi near Ratnagiri in the state of Maharashtra, has already been completed. He has further claimed that the refinery, which is likely to be operational by 2025, can process nearly 1.2 million barrels of crude oil. It has been speculated that the refinery will have the ability to process nearly 60 million tons of crude oil per year, along with the production of nearly 18 million tons of petrochemicals annually.

Reportedly, Aramco is offered the option of divesting the part of its 50% stake to an overseas investor in the near future. The Abu Dhabi National Oil Company has already displayed an interest in the project and is likely to be a foreign partner in the later part of the project construction phase. Khalid-al-Falih, the Minister of Energy & Mineral Resources of Saudi Arabia, has also declared that Aramco will supply nearly 50% of crude oil to the refinery and assist the project development through the use of modern technologies. He further added that the firm will help the venture in reducing the project costs as a result of its high credit ratings.

Incidentally, Aramco is also looking forward to investing in the country’s oil & gas sector along with the retail industry.



About Author


Saipriya Iyer

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

More from Saipriya


Post Recommendents

Facebook claims its EU operations to be at risk due to inquest
Author: Pankaj Singh

Facebook voiced to Ireland’s High Court that it is not sure how it could operate its services in the European Union if the supervisors restrict its data transfer mechanism. The EU regulator of Facebook, the Irish...


ICT Investment Trends in Telco/Service Market 2020 Global Analysis, Trends, Forecast up to 2025
Author: Ashwin Naphade

The ' ICT Investment Trends in Telco/Service market' research added by Market Study Report, LLC, offers a comprehensive analysis of growth trends prevailing in the global business domain. This report also provides definitive data concernin...


Healthcare Supply Chain Managements Market to Grow at a Stayed CAGR from 2020 to 2025
Author: Ashwin Naphade

The ' Healthcare Supply Chain Managements market' research report added by Market Study Report, LLC, is a thorough analysis of the latest trends prevalent in this business. The report also dispenses valuable statistics about market size, p...