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| BPCL talks to PE investors for stake sale in Bina refinery |
| Kalpana Pathak / Mumbai Sep 14, 2009, 00:37 IST |
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State-run 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.
“The market knows the project is good and so there is a lot of interest from investors in the project. We are doing the due diligence at present,” said a source.
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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