Post-deal with Aramco, these entities together would hold 50 per cent stake.
According to the partners, the refinery will be created to process 1.2 million barrels of crude oil per day to produce a variety of refined petroleum products like petrol and diesel that are expected to be compliant with BS-VI fuel efficiency norms.
Al-Falih, said India is a priority destination for Saudi investment and Aramco will continue to scout for opportunities beyond the west coast refinery.
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.
"Saudi Arabia is a growing market" and "it's also a place from where you can reach other markets in the Middle East and Asia", Total Chief Executive Officer Patrick Pouyanne said. UAE and Kuwait too are looking at investing in projects in return for getting an assured offtake of their crude oil. Yemen's armed Houthis said on Wednesday they had launched a drone strike on a facility belonging to oil giant Saudi Aramco in southern Saudi Arabia, Reuters reported.
Dharmendra Pradhan, the Union Minister of Petroleum and Natural Gas and Skill Development & Entrepreneurship, said that this project, with an estimated investment of over Rs 3 lakh crore, would bring huge benefits to the region and the entire country in terms of large-scale employment generation, direct and indirect, as well as all-round economic development.
Last year, Aramco said it would invest 18 billion United States dollars in Motiva to increase the capacity of the Port Arthur facility and move to petrochemical production.
The kingdom's state-owned crude producer is joining with UK oilfield-services firm TechnipFMC Plc to assess the potential for producing ethylene, a key component in plastics, Saudi Aramco's Motiva Enterprises LLC unit said in a statement Saturday. After Aramco's entry, the 50 per cent stake will be split in same proportion between the three PSUs.
In a bid to increase the share of oil imports from India, Saudi Aramco has signed an MoU for developing 60 MT per annum refinery in Ratnagiri, Maharashtra.
A second accord with Honeywell International Inc. could lead to the construction of a new manufacturing complex in the heart of the US petrochemicals industry.
Such a large cut sends two very clear messages to Aramco, the first being that Sinopec didn't agree with the price hike, and the second that the Chinese refiner feels it can make up any shortfall from other suppliers. The world's biggest oil producer was interested in the 9 million tonnes Bhatinda refinery but exited the project in 1998. Aramco has a refinery joint venture with Sinopec and Exxon Mobil, and is building a 300,000-bpd refinery with Norinco.