• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 8 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 11 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 15 mins Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 1 hour Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 4 mins Theresa May to Step Down
  • 11 hours Total nonsense in climate debate
  • 12 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 14 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 15 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 15 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 7 hours Australian Voters Reject 'Climate Change' Politicians
  • 11 hours Apple Boycott in China
Tainted Russian Oil Crisis May Drag On For Months

Tainted Russian Oil Crisis May Drag On For Months

Russia could have seriously underestimated…

$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