India Inc India Inc: Monday, 16 April 2018 06:02

Saudi Aramco gets Maharashtra refinery stake

 

Saudi Aramco, the world's largest oil producer, signed an agreement to pick up 50 per cent stake in a planned $44-billion refinery-cum-petrochemical project in Maharashtra, a move that will give it an assured customer for additional 30 million tonnes of its crude oil.

Visiting Saudi Oil Minister Khalid Al-Falih said that Aramco, at a later date, plans to dilute some of its 50 per cent equity stake in the 60 million tonne-a-year refinery project in favour of another strategic investor.

State-owned refiners Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) will own the remaining 50 per cent stake.
Aramco is also keen on venturing into fuel retailing.

He said, "Saudi Aramco will initially assume 50 per cent, but we have the option of introducing another international partner if it is in the interest of the project.”

Saudi Aramco CEO Amin Nasser signed a memorandum of understanding (MoU) with Ratnagiri Refinery & Petrochemicals, a consortium consisting of IOC, HPCL and BPCL. Currently, IOC holds 50 per cent stake in RRPL, while HPCL and BPCL have 25 per cent stake each. After Aramco's entry, the 50 per cent stake will be split in same proportion between IOC, HPCL and BPCL.

The refinery-cum-petrochemical complex is expected to be commissioned by 2022.

India Investment Journal’ has in-depth coverage on related topics.

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