The refinery complex in Maharashtra, India, which will be developed by Middle East’s oil behemoth Saudi Aramco and Adnoc, is going to cost around $70 billion, according to media reports.
Earlier, the estimated price of the development of the refinery complex in India by Adnoc and Aramco was announced to be around $44 billion.
The project by Aramco and Adnoc, which involves the development of a greenfield integrated refinery and a petrochemical complex will be developed in the Ratnagiri district of Maharashtra, India. The mega refinery will produce 1.2 million barrels per day which will make it India’s largest refinery.
While Adnoc and Aramco will own 50 percent of the joint venture, the other 50 percent will be owned by Indian oil companies such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.
A pre-feasibility study of the refinery was completed in January this year, however, since then; the project is still in the land acquisition phase. The project, which is called Ratnagiri Refinery and Petrochemicals (RRPCL), which was announced in December 2015, was to be commissioned by 2022 but due to delays in the land acquisition process, the deadline has been pushed to 2025.
According to media reports, the refinery complex will produce 18 million tons per annum of petrochemicals and create direct and indirect employment for around 150,000 people.
Last month, Adnoc entered into a partnership with India’s Adani Group, German chemical giant BASF and Austria’s Borealis to develop a $4 billion chemical complex in Mundra, in the Indian state of Gujarat. The project is expected to be completed by 2024.
During the same period, it was also reported that Aramco is planning to bid for a stake in India’s state-controlled Bharat Petroleum (BPCL), as the Indian government is pushing for its privatisation.