The cost of 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 $70 billion, WAM news agency reported on Wednesday.
A joint economic council between the United Arab Emirates and Saudi Arabia reviewed the planned plant on Wednesday at a meeting on the sidelines of Saudi Crown Prince’s visit to his Gulf ally.
“The initial cost is estimated at $70 billion, a 36 percent escalation in the project cost of the refinery project due to shifting of the project to Roha in the Raigad district, about 100 km south of Mumbai, from the originally proposed site at Ratnagiri, about 400 km south of Mumbai.”
In September, India’s oil minister said the refinery would cost more than the originally planned $45 billion.
The proposed 1.2 million barrel per day project, to be jointly developed by the Aramco-Adnoc combine and the Indian refiners Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum on a 50:50 partnership basis, is also expected to have a chemicals capacity of 18 million tonnes annually.