A mega oil refinery and petrochemical complex in India that also included the national oil companies of Saudi Arabia and UAE are depending on the outcome of general elections in India spring 2019. The giant oil company is worth 44 billion US dollars. It would be better if the current government could win a second term, the party of Narendra Modi.
The National Oil Company ADNOC of Abu Dhabi and the Saudi company Saudi Aramco signed the agreement last year in June to produce 1.2 million barrel per day. The oil refinery would be in India. They would be collectively investing 44 billion in it. This is the first agreement of its kind between countries. By inspired this joint venture if you also want to start your business or startup, then this is the best time to do so. Just recently UAE and Jordan signed the agreement to support entrepreneurs.
Two companies Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) did and signed an agreement along with the Memorandum of Understanding (MoU) with the Indian consortium of national oil companies. This agreement was signed to at another super development plan in Maharashtra state on the west of Indian coast at Ratnagiri.
The Saudi Aramco is national Saudi Arabian petroleum and natural gas Company that is based in Dhahran. It is the world’s largest oil company according to its revenue. On the other hand ADNOC, the Abu Dhabi National Oil Company is a state-owned company in UAE. It has one of the largest reserves of oil in the world.
Benefits and percentage:
Half of this new oil refinery company would be owned by the Arabic companies ADNOC and Saudi Aramco. The other half would be owned by the Indian consortium. This new company is known as RRPCL, Ratnagiri Refinery and Petrochemicals Limited. The strategic 50:50 partnership and co-investment of $44 billion is to develop the largest oil refinery for the increasing needs.
This joint investment of Saudi Arabian Aramco and UAE’s ADNOC is to take the oil from a reservoir for their unfinished strategic oil market. Their market is rapidly growing in Asia like fire in the jungle. There are benefits for UAE too as this partnership would bring then resources, technologies, give them experience, expertise, and exposure to the huge industry, and crude supply of oil.
Along with above-mentioned benefits the refining and petrochemicals services, this partnership is offering the development of things like crude oil, product storage terminals, raw water supply, and other associated facilities. So then, RRPCL would be world’s biggest oil refining and petrochemical company that will meet the growing needs. Other than that large scale employment and economic development is definitely be benefitting.
Acquiring new land:
As the project has to start by 2020, the CEO or RRPCL says that by the end of this year land acquiring would be done. Till the present day party is opposing this project because it could end nature and would be against farmers. And last year it was also put on hold because of the protest and disagreement from farmers.
As most of the farmer’s living is their land. Then Devendra Fadnavis the chief minister of state said the project would be moving to some other place. The location and area are still not specified. So this $44B oil refinery project is dependent on Indian elections.
Completing the project:
A member of BJP, the Bharatiya Janata Party of current Prime Minister Mr. Modi Bharatiya, named Fadnavis declared a statement after completing the consortium with the regional party, the Shiv Sena party for general election.
Completing this refinery brings lots of political risks with it. Its completion also depends on who is the next prime minister or who is the next ruling party. This statement was given by Sri Paravaikkarasu who is an analyst.
As far as the completing this project goes, pre possibility analysis for this mega $44B oil refinery is completed. The investing parties, the companies are now settling on the final details of the project and detailing the configuration. After passing the MoU all the parties sat to discuss the development of this joint venture.
When the project will be completed? As of now, we know that it would be started in the year 2020. But still, the land acquiring process is not complete. The CEO has claimed that it would be completed by the end of this year i.e. 2019.
According to some resources at Ratnagiri Refinery & Petrochemicals Ltd (RPPL), the companies that are investing in this $44B oil refinery project are expected to get their commission by 2025. This complex construction and development oil refinery project could complete its first phase from 2027 to 2028. These logistics were given by FGE, and this is according to their optimistic approach, keeping in view the recent developments that have happened.
Other than this project the development in UAE is never ending, recently another investment was don’t in UAE of. Read more about this in our blog. If you need to shop any sort of home or domestic appliances then buy the best and top quality ones from plug n point at cheap prices.