India and Saudi Arabia recently agreed to speed up the implementation of the $50 billion West Coast refinery project.
GS II: International Relations
About the West Coast Refinery Project (Ratnagiri Refinery and Petrochemicals Ltd. – RRPCL):
- Project Inception: The West Coast refinery project, also known as RRPCL, was initially conceptualized in 2014 as a significant endeavor in India’s oil and gas sector.
- Size and Capacity: This project was envisioned as India’s largest greenfield refinery with an impressive capacity of 60 million tonnes per annum. It is anticipated to become the world’s largest integrated refinery and petrochemical facility upon completion.
- Location: As the name suggests, the project is planned to be situated on India’s western coast, specifically in Ratnagiri, Maharashtra.
- Production: When fully operational, the refinery is expected to produce approximately 1.2 million barrels of oil per day. Additionally, it will generate various petroleum products through attached petrochemical plants.
- Joint Venture: Three leading government-owned public sector undertakings in India’s oil and gas sector joined forces in a joint venture partnership known as RRPCL. This partnership was formed in 2017.
- RRPCL Composition: RRPCL is a joint venture with a 50:25:25 ownership structure, with India’s three national oil companies participating – Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).
- Involvement of International Entities: In 2019, Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) became involved in the project. They collectively acquired a 50 percent stake, estimated to be worth around Rs 3 lakh crore, primarily in setup costs. This international partnership enhances the project’s global significance and investment scale.
-Source: Indian Express