BPCL arm to get investment form Oman Oil Co

Bharat Petroleum Corporation (BPCL) informed BSE today that BPCL, Oman Oil Company (OOC) and Bharat Oman Refinery (BORL) signed an agreement on November 15, 2009 in Oman on additional investment in BORL by OOC. OOC will invest be Rs 1,220 crore in BORL to hold 26 per cent of the equity share capital of BORL, after full equity closure.

The 6 million metric tonne refinery project of BORL is currently underway at Bina, Madhya Pradesh. The refinery is promoted by BPCL and OOC along with its crude oil import facilities and cross country crude pipeline. The total estimated cost of the project is expected to be Rs 11,397 crore or $2.4 billion and 96 per cent of the project is complete. The mechanical commissioning of the project should take place early next year and production is due to start in second quarter of 2010. The project envisages transporting crude oil from the western coast of India in Vadinar, Gujarat to Bina by a 935 km pipeline. The refining facility at Bina would make Euro JV compliant petroleum products available to central India as well as adjoining areas. This would enhance the supply security for BPCL.