Cash squeeze set to hit $70 bn Saudi Aramco JV in Maharashtra

The $70 billion Ratnagiri Refinery and Petrochemicals Ltd (RRPCL) project in Maharashtra is facing an uncertain future amid a lengthy delay in land acquisition followed by a sharp cut in capital expenditure plans by joint venture partner, Saudi Aramco, the world’s largest crude oil producer.

“Saudi Aramco has been expressing concerns about the delays the refinery project is facing due to unavailability of land. Though it has not informed us of any plans to opt out of the project, the significant delay is a cause of concern,” said a senior official from an oil marketing company, working closely on the project.

Amin Nasser, chief executive of Aramco, had on 9 August said the company’s 2021 capex would be significantly lower from its official guidance of $40 billion to $45 billion, to the lower end of the $25 billion to $30 billion range.