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Abu Dhabi oil giant to pick up stake in Ratnagiri refinery project

Press Trust of India  |  New Delhi 

After Saudi Aramco, National Company (ADNOC) will pick up stake in the planned USD 44-billion refinery-cum-petrochemical project in

An initial agreement for ADNOC taking stake is slated to be signed in UAE tomorrow, official sources said.

Saudi Aramco, the world's largest producer, had last month signed an agreement to take up 50 per cent stake in the project.

had, at the agreement signing event, stated that it will at a later date dilute some of its 50 per cent equity stake in the 60 million tonne-a-year refinery project in favour of another strategic investor.

Now, the Saudi national company is diluting some of that stake to ADNOC, they said.

UAE and Sultan Al Jaber, and Indian Oil will be present at the agreement signing in UAE tomorrow.

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

State-owned refiners (IOC), (HPCL) and (BPCL) will own the remaining 50 per cent stake.

Like other major producers, Aramco and ADNOC are looking to lock in customers in the world's third-largest through the investment. too is looking to invest in projects in return for getting an assured offtake of their

Last year, invested in refinery projects in and that came with supply deals.

was the biggest to till 2016-17, but slipped behind last fiscal. It had supplied 39.5 million tonnes of crude oil to in 2016-17, ahead of 37.5 million tonnes by

But, in the first 11 months of 2017-18 fiscal, Saudi supplies at 33.9 million tonnes, lagged behind Iraqi exports of 42.4 million tonnes to

UAE supplies a small quantity of oil to India.

Aramco is also keen on venturing into fuel retailing in India.

India has a refining capacity of 232.066 million tonnes, which exceeded the demand of 194.2 million tonnes in 2016-17 fiscal.

According to the International Agency (IEA), this demand is expected to reach 458 million tonnes by 2040. IOC has 11 refineries with a total capacity of 81.2 MT, while BPCL has four refineries with a total capacity of 33.4 has three refineries with a total capacity of 24.8 MT.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, May 12 2018. 10:50 IST