The Ratnagiri refinery is expected to have a capacity of 1.2 million barrels of oil a day.
On Wednesday Saudi Aramco announced a $44 billion deal to build a giant refinery complex in India with three Indian firms, according to Arabian Business.
The refinery at Ratnagiri is expected to produce up to 1.2 million barrels of oil a day, according to a statement by Saudi Aramco, following the signing of the memorandum of understanding with Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
The announcement comes as the latest in a number of deals. This week Saudi Aramco and French firm Total announced a $5 billion deal to build a refinery in Jubail, Saudi Arabia. Saudi Aramco is set to sign a total of eight deals worth $10 billion with French firms ; the agreement was reached during Crown Prince Mohammed bin Salman’s meeting with French President Emmanuel Macron in France. Final contracts are expected to be signed later this year when Macron travels to Saudi Arabia.
Last month more than $8 billion worth of contracts were awarded to US firms by Aramco to boost its US refinery operations, and the company pledged billions of dollars for deals in Malaysia and Indonesia in the past year.
Saudi Aramco president Amin Nasser said that investing in India is a part of the Aramco’s strategy and marks a significant development in India's oil and gas sector. The agreement will enable a joint venture and investment partnership that will serve India's fast-growing demand for transportation fuels and chemical products.
Indian Oil, Bharat Petroleum and Hindustan Petroleum have set up a joint venture for the deal with Aramco, Ratnagiri Refinery and Petrochemicals Ltd.