Page 19 - DMEA Annual Review 2021

DMEA AUGUST DMEA

Refinery Gross Capacity (kbpd) Equity Net Capacity (kbpd)
Jazan* 400 100.0% 400
Ras Tanura 550 100.0% 550
Riyadh 130 100.0% 130
SASREF 305 100.0% 305
Yanbu' 250 100.0% 250
Domestic Wholly-Owned 1,635 1,635
PetroRabigh 400 50.0% 200
SAMREF 400 37.5% 150
SATORP 440 62.5% 275
YASREF 430 62.5% 268.75
Domestic JVs 1,670 893.75
Fujian (FREP) 280 63.4% 177.52
Hyundai Oilbank 650 100.0% 650
Idemitsu 945 25.0% 236.25
Motiva 635 7.7% 48.895
PRefChem* 300 17.0% 51
S-Oil 669 35.0% 234.15
Reliance O2C 1,820 20.0% 364
International JVs 5,299 1,761.82
Total 8,604 4,290.57
Source: Company publications, industry research

At the time, RIL’s chairman and managing bpd of Aramco crude, the move further supports
director Mukesh Ambani said: “Saudi Aramco the Saudi firm’s strategic objectives, in this case
and Reliance have agreed to form a long term by providing another dedicated crude outlet to
partnership in our oils to chemicals division […] which it can expand guaranteed crude place-
This signifies the perfect synergy between the ment in the Indian market.
world’s largest oil producer and world’s biggest Expanding dedicated outlet options is central
integrated refinery and petrochemicals com- to Aramco’s plans to shelter its key crude oil rev-
plex.” He added that while the deal was subject enue stream from market volatility. Under the
to due diligence, by ensuring Aramco crude is terms of the 2018 deal to acquire a stake in PRef-
used as feedstock for the refinery, the deal could Chem, Aramco supplies 50% of the refinery’s
pay for itself within 18 months. crude feedstock with the option of increasing it
Momentum has been building with Aramco’s to 70%.
chairman Yasir Al-Rumayyan appointed to Reli- According to the firm’s 2020 annual report,
ance’s board of directors in June in a move seen it supplied an average of 54% of crude feedstock
as a precursor to the deal moving forward. to its international JV refineries, outstripping its
weighted average participation in these facilities
Refining strategy of 42%. “This crude placement provides signifi-
Aramco has a long-stated aim of achieving a cant benefits to Aramco’s operations, including a
global refining slate of 8-10mn bpd. At year-end secure and reliable supply of high-quality crude
2020, it had a gross refining capacity of 6.4mn oil, which helps to ensure a secure and reliable
bpd and a net capacity of 3.6mn bpd. supply of refined products to its downstream
Reliance O2C owns and operates a refining customers,” the report said.
slate of 1.82mn bpd comprised of the world’s Crude sales to wholly owned and affiliated
largest refining complex at Jamnagar and refineries averaged 3.5mn bpd during 2020,
another sizeable facility located within the Jam- accounting for 37% of its total 9.2mn bpd aver-
nagar Special Economic Zone. With one move, age crude production.
the acquisition would increase Aramco’s partic- Upon completion of the potential Reliance
ipated refining capacity to 8.6mn bpd and its net deal, the resumption of operations at PRefChem
refining capacity to 4.3mn bpd once the Jazan and Jazan reaching capacity, Aramco will have a
refinery on Saudi’s Red Sea coast reaches its participated refining capacity of 4.29mn bpd. If
400,000 bpd capacity later this year and the trou- we assume flows to domestic refineries are main-
bled Pengerang Petrochemical Co. (PRefChem) tained at 2020 levels, sales to affiliated refineries
facility in Malaysia is finally commissioned. could rise to nearly 4.8mn bpd in 2022, account-
The Indian firm also has petrochemicals ing for more than half of its crude sales without
assets, a bulk wholesale marketing business, a domestic refineries operating at full tilt.
fuel retail arm which comprises a 51% stake in a As Aramco contends with concerns about oil
JV with BP and oil trading subsidiaries in Singa- demand, it is doing its level best to future-proof
pore and the UK. its crude operations while forging strategic rela-
With Ambani saying in 2019 that Reliance tionships with some of its most important con-
would agree to a long-term purchase of 500,000 sumer nations.™

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