Abu Dhabi National Oil Company (ADNOC) has signed a framework agreement to join Saudi Aramco in developing the proposed refinery and petrochemicals complex at Ratnagiri in Maharashtra, India. ADNOC and Aramco will jointly own 50% of the new company, Ratnagiri Refinery and Petrochemicals Limited (RRPCL), with a consortium of Indian companies holding the remaining equity.

Aramco signed a Memorandum of Understanding (MoU) in April with the Indian consortium involved in the $44 billion project, namely Indian Oil, Bharat Petroleum and Hindustan Petroleum. The Saudi energy giant said at the time of signing that it might seek a strategic partner as a co-investor.

Commenting on the agreement, Sultan Ahmed Al Jaber, United Arab Emirates Minister of State and ADNOC CEO, said: “By investing in this project, we will both secure off-take of our crude to a key market for ADNOC, as well as strengthen access in one of the world’s largest and fastest growing refining and petrochemical markets.

“It underlines our expanded approach to energy partnerships by joining hands with both Saudi Aramco and our Indian colleagues, combining a truly unique set of assets, capabilities and market reach to meet India's projected energy demand growth,” Al Jaber said.

Amin Nasser, Aramco’s president and CEO, added that world energy demand is expected to grow exponentially by 2050, driven largely by India. He said: “The Ratnagiri project will meet India’s rising demand for fuels and chemical products while serving the strategic objectives of the partners.”

A pre-feasibility study will now be carried out to determine the project’s overall configuration. The refinery will be capable of processing 1.2 million barrels per day of crude oil, providing feedstock for the integrated petrochemical complex, which will have a total capacity of about 18 million t/y. The project is expected to be completed by 2025.