Indian jv refinery project with Aramco/ADNOC estimated at US$70 bn

The cost of a giant oil and petrochemicals refinery project to be built jointly by Saudi Aramco and Abu Dhabi National Oil Co. (Adnoc) in India is expected to reach US$70 billion, it was reported recently. This is much more than the estimated cost given by India’s oil minister, Dharmendra Pradhan, of US$45 billion in September.

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A joint economic council between the United Arab Emirates and Saudi Arabia reviewed the planned plant on at a meeting on the sidelines of Saudi Crown Prince’s visit to his Gulf ally.

“The initial cost is estimated at US$70 billion,” a statement said.

The 1.2 million barrels-per-day (bpd) coastal refinery in the western state of Maharashtra is expected to be built at Roha in the Raigad district, about 100 km south of Mumbai, sources told Reuters agency.

The project is jointly developed by the Aramco-Adnoc jv and Indian refiners Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum on a 50:50 partnership basis. It is also expected to have a chemicals capacity of 18 million tonnes/year.

There have been reports about the escalation of cost of the refinery project due to shifting of the project to Roha.

The state administration was forced to shift the project site in the wake of farmers’ protest against acquisition of land for the project. The Ratnagiri belt consists of fertile land, famous for its Alphonso mangoes and cashew crops.