State-owned energy major Saudi Aramco and a consortium of three Indian oil companies have signed a memorandum of understanding (MoU) to jointly develop and build an integrated refinery and petrochemical complex in the west coast of India. The project at Ratnagiri in the state of Maharashtra is estimated to cost around $44bn.

Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had incorporated their joint venture firm called Ratnagiri Refinery & Petrochemicals Limited (RRPCL) for the project. The proposed refinery will be capable of processing 1.2 million barrels of crude oil per day, and provide feedstock for the integrated petrochemical complex, which will have about 18m tonnes/year in capacity.

“Investing in India is a key part of Saudi Aramco’s global downstream strategy, and another milestone in our growing relationship with India,” Saudi Aramco president and CEO Amin Nasser said.“The signing marks a significant development in India’s oil and gas sector, enabling a strategic joint venture and investment partnership that will serve India’s fast-growing demand for transportation fuels and chemical products.”

The signing of the refinery project in India follows Saudi Aramco’s deal with French energy firm Total for a $5 billion petrochemical complex  in Jubail, Saudi Arabia, as well as the finalization of its petrochemical joint ventures with Malaysia’s state-owned oil and gas firm PETRONAS.