Reliance Industries will set up a 50,000 barrels per day refinery in Yemen, where it has already picked up stake in two oil blocks.
"Reliance will partner local Yemen company Hood Oil for this refinery," Yemen's Minister for Oil and Minerals Khalid Mahfoudh Dahah told reporters on the sidelines of Petrotech Conference.
The minister said the refinery capacity would be 50,000 barrels per day in the initial phase and can be doubled later.
"Construction on the project would begin this year and it will take 36 months to complete," he said.
RIL will have an obligation to sell products from there refinery in the domestic market for first five months and there after can do exports.
RIL has been already awarded onshore exploration Blocks 34 and 37 in Yemen.
The Mukesh Ambani group firm has taken local company Hood Oil as partner in the two Yemen blocks.
Blocks 34 and 37, each measuring around 7500-sq km and located on the border with Oman, were among the seven blocks offered by Yemen in its second licensing round.
RIL also has exploration blocks in Oman, East Timor and Columbia.
The Indian company already partners Hood Oil in producing Block 9, where the two companies hold 25 per cent each.
Calvalley Petroleum of Canada is the operator with 50 per cent stake. The block currently produces 7,500 barrels of oil per day and the output will go up to 10,000 barrels this month.
GSPC has also been awarded three blocks in Yemen.