ADNOC joins Saudi Aramco to take stake in $44 bn Ratanagiri refinery

Abu Dhabi National Oil Company (ADNOC) today signed an initial pact to take a stake in the planned USD 44-billion refinery in Maharashtra, joining Saudi Aramco which is looking at the project as a vehicle to enter India's entire energy "value chain" including fuel retailing.

Aramco and ADNOC will together hold 50 per cent stake in the 60 million-tonne-a-year refinery and adjacent 18 million-tonne-petrochemical complex while the remaining half will be split between state-owned Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL).

For both Saudi Arabia and UAE, "strategic business investment with the world's fastest growing oil consumer has reached an irresistible tipping point," said Amin H Nasser, CEO and President of Saudi Aramco.

Aramco, which had at the time of signing the original agreement to a 50 per cent stake in the planned project in April stated that 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.

"Saudi Aramco is determined to go a step further. 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," he told reporters after signing of the agreement.

Asked how much stake would ADNOC and Aramco hold in the project, he said, "Between us it is 50 per cent and terms of how much percentage for each is being discussed between the two partners."
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."
Asked about land acquisition troubles and opposition from ruling NDA ally, Shiv Sena to the project, Pradhan said, "We are discussing the issue with an open mind with all stakeholders. I myself will go meet (Shiv Sena leader) Uddhav Thackeray to brief him about the project. Any genuine concern will be addressed by our companies. We respect concerns of farmers and we will address them."