India: BPCL Seeks Additional Investment for Refinery
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Tuesday, 15 September 2009 |
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Bharat Petroleum Corporation (BPCL) is in talks with private equity
investors for a possible stake sale in its Bharat Oman Refinery at Bina
in Madhya Pradesh. BPCL and Oman government-owned Oman Oil Company
(OOC) jointly promoted the six-million-tonne per annum refinery.
BPCL is also in talks with OOC, which had expressed interest in
picking up a 26 per cent stake in the refinery for around $250 million
(Rs 1,200 crore) but has so far not increased its investment from the
initial capital. “We want to increase our equity (in the project) to
25-26 per cent. We are in discussions with BPCL,” Oman Oil Minister
Mohammed bin Hamad Al-Rumhy had said this May. Oman Oil at present
holds only 2 per cent stake in the refinery.
BPCL’s chairman Ashok Sinha had, after the company’s annual general
meeting, said: “Along with Oman Oil, there are many other people who
have shown interest in the venture. But we have not decided on that
yet.” BPCL and OOC have so far been equal partners in BORL, with an
investment of Rs 75 crore each. The project is to be funded by Rs 4,000
crore equity and Rs 6,400 crore debt.
BPCL will source around 80,000 tonnes of crude oil for the refinery
from Saudi Arabia in November. The refinery is 94.5 per cent complete
and in November, will begin testing its units—a crude storage terminal
at Vadinar in Jamnagar district of Gujarat and a 935 km pipeline from
Vadinar to Bina. The refinery will be fully operational in March 2010.
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