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UAE-based oil firm buys stake in Indian refinery

The Abu Dhabi firm on Monday signed a pact with Aramco, which in April entered an agreement with Indian oil companies to jointly develop the 1.2 million barrel per day Ratnagiri refining and chemicals complex.

Mail Today Bureau        Last Updated: June 26, 2018  | 08:30 IST
UAE-based oil firm buys stake in Indian refinery

ABU Dhabi National Oil Company (ADNOC) is partnering with Saudi Aramco for a total 50 per cent stake in the $44 billion refinery planned to be set up in Maharashtra.

The Abu Dhabi firm on Monday signed a pact with Aramco, which in April entered an agreement with Indian oil companies to jointly develop the 1.2 million barrel per day Ratnagiri refining and chemicals complex.

While Aramco and ADNOC will hold 50 per cent stake in the project, the share split between the two is being discussed. The remaining half will be split between state-owned Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL).

Aramco, which had at the time of signing the original agreement said it will bring a partner at a later date, is looking at not just refining its oil in the refinery but also selling downstream products in the market.

"We will support our investment with a large fully-integrated oil business in India that will cover the entire value chain in partnership with local companies who know their markets best," said Amin H Nasser, CEO and President of Saudi Aramco.

"With oil demand almost doubling to 10 million barrels per day by 2040, India's access to adequate, affordable oil has never been more important," he added.

As per the April agreement, Aramco is to supply half of the crude oil required for processing at the refinery that will be commissioned by 2025.

ADNOC will now supply some of the crude to be processed at the unit. Oil minister Dharmendra Pradhan said Saudi Arabia has always been a trusted and reliable supplier of crude for India and key element of India's energy security.

Saudi Arabia was the biggest oil supplier to India till 2016-17, but slipped behind Iraq last fiscal.

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