An Indian consortium of IOCL, BPCL and HPCL and Saudi Aramco inked a memorandum of understanding (MoU) to jointly develop and build an integrated refinery and petrochemicals complex, Ratnagiri Refinery & Petrochemicals Ltd (RRPCL) in Maharashtra. Saudi Aramco may also seek to include a strategic partner to co-invest in the project.

The strategic partnership brings together crude supply, resources, technologies, experience and expertise of these multiple oil companies with an established commercial presence around the world.

The refinery will be capable of processing 1.2 million barrels of crude oil per day which means 60 million metric tonnes per annum. It will produce a range of refined petroleum products, including petrol and diesel meeting BS-VI fuel efficiency norms. It will also provide feedstock for the integrated petrochemicals complex, which will be capable of producing around 18 million tonnes per annum of petrochemical products.

A pre-feasibility study for the refinery has been completed, and the parties are now finalising the project’s overall configuration. Following the signing of the agreement, the parties will extend their collaboration to discuss the formation of a joint venture that would provide for joint ownership, control and management of the project.

RRPCL will rank among the world’s largest refining and petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand. The project cost is around Rs 3 lakh crore or USD 44 billion.