Saudi Aramco will jointly develop and build an integrated mega refinery and petrochemicals complex at Ratnagiri, in the Indian state of Maharashtra with a consortium of state-owned oil companies, which includes Indian Oil Corporation Ltd. (IOCl), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL).

The refinery will be capable of processing 1.2 million barrels of crude oil per day. It will produce a range of refined petroleum products, including gasoline and diesel fuel, meeting BS-VI fuel efficiency norms. The refinery will also provide feedstock for the integrated petrochemical complex, which will be capable of producing approximately 18 million tonnes per annum of petrochemical production.

In addition to the refinery, cracker and downstream petrochemical facilities, the project will include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralized and shared utilities.

Ratnagiri Refinery and Petrochemicals Ltd. (RRPCL) will rank among the largest world refining and petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand. The project cost is estimated at around USD 44 billion.

Saudi Aramco President and CEO Amin H. Nasser, who signed the memorandum of understanding (MOU) with Ratnagiri Refinery and Petrochemicals Ltd. (RRPCL) on April 11, said that “Investing in India is a key part of Saudi Aramco’s global downstream strategy and another milestone in our growing relationship with India.”

Saudi Aramco may also seek to include a strategic partner to co-invest in the mega refinery.

The strategic partnership brings together crude supply, resources, technologies, experience and expertise of these multiple oil companies with an established commercial presence around the world.

A pre-feasibility study for the refinery has been completed and the parties are now finalizing the project’s overall configuration. Following the signing of the MOU, the parties will extend their collaboration to discuss the formation of a joint venture that would provide for joint ownership, control and management of the project.

“The signing marks a significant development in India’s oil and gas sector, enabling a strategic joint venture and investment partnership that will serve India’s fast-growing demand for transportation fuels and chemical products. Participating in this mega project will allow Saudi Aramco to go beyond our crude oil supplier role to a fully integrated position that may help usher in other areas of collaboration, such as refining, marketing and petrochemicals for India’s future energy demands,” said Nasser.

Saudi Aramco and the Indian consortium will each own 50% of the project, India’s Energy Minister Dharmendra Pradhan said in a statement.

The deal comes less than 24 hours after Saudi Aramco signed an agreement with French oil company Total SA to build a “giant” petrochemical complex in Saudi Arabia, representing an investment of around USD 5 billion.