MOSCOW (MRC) -- Oil giant Saudi Aramco is interested in a stake in India’s proposed 1.8 trillion rupee (USD27.87 bln) refinery in Maharashtra State, Indian Minister of Petroleum and Natural Gas Dharmendra Pradhan said, reported Plastemart.
The official said both Aramco and Abu Dhabi National Oil Co. (ADNOC) were in talks with New Delhi over investments in India’s energy sector. State-run Indian Oil, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) plan to build the 60 million tpa (1.2 million bpd) refinery to meet rising domestic fuel demand. Indian Oil owns 50% of the project, while BPCL and HPCL have 25% each. The project is likely to be funded through 60% debt and 40% equity.
Aramco is interested in the West coast refinery, while ADNOC is interested in petrochemical projects, Pradhan said, without divulging the size of the stake the Saudi NOC might pick up. The mega complex will produce gasoline, diesel, LPG, jet fuel and petrochemical feedstock. It will be the South Asia country’s largest refinery when completed.
The first phase will set up 40 million tpa (800,000 bpd) of capacity with an aromatic complex, naphtha cracker and a polymer complex, and will carry a price tag of INR 1.2-1.5 trillion (USD18.58-23.22 bln). Once the land has been acquired the initial phase is expected to take five to six years to complete. The second phase, involving a 20 million tpa (400,000 bpd) refinery, will cost INR 500-600 bln (USD7.74-9.29 bln).
As MRC infromed before, in late June 2016, Saudi Arabian Oil Co. and Saudi Basic Industries Corp. (Sabic) became one step closer to building their first plant to process crude directly into chemicals, cutting out a link in the production chain from hydrocarbons to the finished products that go into plastics and other consumer goods. The state-owned companies signed an agreement to study such a project to be located in Saudi Arabia, they said in a statement. A joint venture is possible if the companies decide to move ahead after the study is completed by early 2017, they said. Oil companies normally refine crude into transportation fuels including gasoline and diesel and leave byproducts such as naphtha to be processed separately into chemicals.
Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
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