• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 55 mins Shale Oil will it self destruct?
  • 23 mins White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 13 mins NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 3 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 2 hours U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 3 hours South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 4 hours Starlink Internet Courtesy of Tesla
  • 1 day Panama revoked registrations of tankers flying under their flag that have not complied with sanctions. Most are Iranian tankers. Vessel seized in Gibraltar, Grace I, flying under Panamanian Flag. Registration revoked in May. England seizing justified
  • 22 hours Rising air pollution and green house effect
  • 1 day Is This The End of BBQ?
  • 1 day Oil Price Could Fall To $30 If Global Deal Not Extended
  • 21 hours U.S. Economic Expansion: Rich Get Richer
  • 14 hours Germany exits coal: A model for Asia?
An Unexpected Boon For Alberta’s Oil Producers

An Unexpected Boon For Alberta’s Oil Producers

Canadian Light oil prices have…

$44B Indian-Saudi-UAE Oil Refinery Hinges On India’s Elections

refinery

The fate of a proposed mega refinery and petrochemical complex in India worth US$44 billion and involving the national oil companies of Saudi Arabia and the UAE could depend on the outcome of India’s general elections this spring and whether the party of incumbent Prime Minister Narendra Modi could win a second term in office.

In June last year, Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) signed a framework agreement and a memorandum of understanding with a consortium of Indian national oil companies to join the mega project at Ratnagiri in the Maharashtra state on India’s west coast. Saudi Aramco and ADNOC will jointly own 50 percent of the new joint venture company RRPCL, while the other 50 percent will be held by the Indian consortium. The parties agreed to explore a strategic partnership and co-investment in the development of the US$44 billion mega refinery.  

By investing in the giant Indian refinery, the national oil companies of leading OPEC producers Saudi Arabia and the UAE would secure off-take for their crude in a strategic fast-growing oil market in Asia. 

However, the process of land acquisition for the new giant complex was put on hold late last year due to strong opposition from local farmers, many of whom depend on their land for their income and livelihoods.

On Monday, the chief minister of Maharashtra state, Devendra Fadnavis, announced that the planned refinery would be relocated to another site, without specifying it.

Related: U.S.-China Trade Deal Could Boost Gasoline Prices

Fadnavis, a member of Prime Minister Modi’s Bharatiya Janata Party (BJP), made the announcement after sealing an alliance for the general election with regional party Shiv Sena, which has opposed the proposed refinery.

The completion of the refinery carries a lot of political risk, and it would also depend on who wins the next election or who makes it in a coalition government, Sri Paravaikkarasu, an analyst at industry consultant FGE in Singapore, told Bloomberg.

According to Ratnagiri Refinery & Petrochemicals Ltd (RPPL), the joint venture company responsible for the huge 1.2 million bpd complex construction and development, the refinery is expected to be commissioned by the year 2025.

According to FGE, the first phase could be ready in 2027-2028, and even this could be an optimistic timeline, considering the recent developments, Paravaikkarasu told Bloomberg.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play