Saudi Aramco and Abu Dhabi’s Adnoc now expect the planned 1.2mn b/d refining and integrated petrochemicals joint venture at Raigad south of Mumbai on India’s west coast to cost $70bn, a whopping 59% higher than the $44bn estimate when the Gulf NOCs first signed up for the project (MEES, 29 June 2018). Since then the expected start-up date has also slipped from 2023 to 2025 (MEES, 14 December 2018).
The $70bn price tag would see Raigad challenge Kazakhstan’s Kashagan ($50bn to first oil in 2016, more since) as the world’s most expensive oil and gas project. As with Kashagan, where ownership is split between seven large firms none with more than 1/6 share, the fragmented ownership structure at Raigad augurs badly for delays and cost overruns. (CONTINUED - 821 WORDS)
