Saudi Aramco, India sign MoU for $44 billion mega deal, World's largest refinery

[Paranoid Android]

RIYADH - Saudi Aramco signed on Wednesday a Memorandum of Understanding (MOU) with “Ratnagiri Refinery and Petrochemicals Ltd.” (RRPCL) for an estimated $44 billion mega refinery and petrochemicals complex on India’s west coast.

The India partner is a consortium of 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, India.

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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 per annum of petrochemical production.

Ratnagiri Refinery and Petrochemicals Ltd. (RRPCL) will rank among the largest world refining and petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand.

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Aramco President & CEO Amin H. Nasser said that “Investing in India is a key part of Saudi Aramco’s global downstream strategy, and another milestone in our growing relationship with India.”

Nasser 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.

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“The signing 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 our 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,” he added.


https://timesofislamabad.com/11-Apr...44-billion-mega-deal-world-s-largest-refinery

 

[RudraMudra]

but ... but .... but China CPEC project in pakistan is 62 billion $

Except for the part where they have to pay interest to china and then pay back the entire amount

 

[Paranoid Android]

but ... but .... but China CPEC project in pakistan is 62 billion $

Except for the part where they have to pay interest to china and then pay back the entire amount

There is the difference between loan & investment...
They are doing just they see me rollin they hatin

 

[RudraMudra]

There is the difference between loan & investment...
They are doing just they see me rollin they hatin

I know, hence my post

But the pakistanis seems to think they are the same

 

[MIRauf]

Who is footing the bill $ by what % ? I see that there are three Indian Partners listed, so if even at 50% by Aramco, means they will make $22+ Billion off that.

It is not like, Aramco, "here please have us build you a refinery for $44 Billion," or is it ? which I highly doubt. So will India have to payback Aramco's investment over x years in $ ? share the profits with them for life of refinery or duration of the agreed period.

As you guys have mentioned N+1 times in CPEC, its not free, I don't see this as free either. I do see a good thing for both Aramco and India, wake me up when Aramco sells oil to India in Rupee like Ruskies use to sell weapons to India in rupee or barter deals, because that be the "wow factor" in this deal.

 

[RudraMudra]

Who is footing the bill $ by what % ? I see that there are three Indian Partners listed, so if even at 50% by Aramco, means they will make $22+ Billion off that.

It is not like, Aramco, "here please have us build you a refinery for $44 Billion," or is it ? which I highly doubt. So will India have to payback Aramco's investment over x years in $ ? share the profits with them for life of refinery or duration of the agreed period.

As you guys have mentioned N+1 times in CPEC, its not free, I don't see this as free either. I do see a good thing for both Aramco and India, wake me up when Aramco sells oil to India in Rupee like Ruskies use to sell weapons to India in rupee or barter deals, because that be the "wow factor" in this deal.

Aramco will hold 50 % stake while Indian companies will hold 50% stake.

And it will take a LONG time for them to break even and recover the capital cost. Close to 20-25 years.

Its going to be the worlds largest global refinery and petrochemical complex and will be built using Indian labour, India vendors and Indian components. It will be built on Indian land, and will employ thousands of Indians and will kick start hundreds of auxiliary industry who in turn will employe thousands.

What it will also do is ensure oil security in India since Aramco will source oil cheaply from Saudi Arabia to be processed in India and it will feed the local market.

Selling oil to India in INR will give no significant advantage to India since we are now aligned with the US. When the BRICS things really takes off, then we can talk.

Meanwhile This will draw SA closer to India and that is another strategic gain for India.

 

[ghameed]

One thing to keep in mind is the massive Aramco IPO this year (mostly NYSE) or early next year ....arguably be the largest ipo ever

 

[MIRauf]

.

Thank you for the no nonsense reply, appreciated.

Almost all countries are looking for their own oil refineries or have them, except perhaps for the tiny islands. Do you see export potential if so then to who ?

As for strategic gain, are you talking commercial / economic ? because $22 billions are peanut for KSA at the moment if the thought is anything else.

When it comes to the security of KSA they have already aligned themselves with USA and on the Muslim side with Pakistan along with few other tag along ( although their are Pakistanis who would like it not to be the case. ). But these are just my thoughts.

PS: Good Luck to India on this endeavor and betterment of their populous.