MOSCOW (MRC) -- The Indian company Nayara Energy, 49.13% of which is owned by Russia's largest state oil company - Rosneft, has launched a USD750 million petrochemical development program, reported Vedomosti, citing a statement from Rosneft Chief Executive Officer Igor Sechin during the meeting of the Prime Minister of India Narendra Modi with the heads of the world oil and gas companies.
“We are confident in the long-term potential of the Indian market and therefore acquired a stake in Nayara Energy in 2017. This transaction remains the largest foreign direct investment in the oil and gas sector of your country. A large-scale program of petrochemical production with investments of about USD750 million is being implemented now, "he said.
Nayara Energy has the second largest refinery in India with a capacity of 20 million tons per year. The Indian company has already launched a refinery development program: within the first stage, it is planned to build units for the production of polypropylene (PP) with a capacity of up to 450,000 tonnes per year.
Nayara Energy's business also includes a deep-water port that can handle VLCC class extra-large tankers and one of India's largest retail chains.
As MRC informed before, the Anglo-Dutch oil and gas corporation Royal Dutch Shell plans to acquire a 50% stake in a petrochemical project planned by Nayara Energy (Mumbai, India) and involving investments of USD8-9 billion. Last June, the two companies signed a Memorandum of Understanding (MOU) on the creation of a joint venture (JV) for this project.
The planned complex, which will include a steam cracker with a capacity of 1.8 million tonnes per year and other plants, will be built in Vadinar, Gujarat, India, where Nayara Energy operates its refinery. This project will be completed in five years. It also includes a complex of aromatic hydrocarbons and will have a total production capacity of 10.75 million tonnes of petrochemicals per year.
Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.