Aramco, Adnoc to invest in west coast refinery project
26 October 2020
Saudi Arabian Oil Co (Saudi Aramco) and Abu Dhabi National Oil Co (Adnoc) are still committed to investing in the planned USD 44bn west coast refinery-cum-petrochemical project, the Chairman of the project's lead Indian partner said. Saudi Aramco's talks to buy a 20% stake in Reliance Industries Ltd's oil-to-chemical business for USD 15bn, coupled with a crash in oil prices, slowing down of fuel demand, and land issues facing the west coast project had led to speculations of waning interest of the world's largest oil exporter in the project.
IOC, BPCL, and HPCL together with Saudi Aramco and Adnoc plan to set up a 60 million tonnes refinery-cum-petrochemical complex on Maharashtra coast.
Once the land issue is sorted out, both companies are committed to investing in the project, he said.
Aramco and Adnoc are to hold 50% in the project, while IOC has a 25% stake. The remaining 25% is split equally between BPCL and HPCL.
India currently has an oil refining capacity of about 250 million tonnes per annum (about 5 million barrels per day). Fuel demand is expected to double to 10 million bpd by 2050 and refining capacity would need to be augmented to meet that else the country would have to import petrol, diesel, and ATF.
Aramco and Adnoc see themselves as principal oil suppliers to the west coast refinery. Talks of Aramco picking up a 20% stake in Reliance's O2C business were conditioned on it supplying 5,00,000 barrels of oil per day (bpd).