)
State-run Oil and Natural Gas Corporation Ltd (ONGC) is set to sign a memorandum of understanding (MoU) with Kuwait Petroleum Corporation taking forward the West Asian country’s plans to grab stake in ONGC Petro Additions (OPaL) and ONGC Mangalore Petrochemicals (OMPL).
“We are signing a memorandum of understanding and a non-disclosure agreement regarding the stake sale of OPaL and OMPL on Tuesday. KPC would conduct a due diligence now and a final deal may be struck in this regard soon,” a senior ONGC executive told Business Standard.
During the visit of Kuwait Oil Minister Mustafa Al-Shimali to India in November, ONGC had showcased both the projects looking for an investment of $300 million each. For OPaL project at Dahej Special Economic Zone, ONGC was looking for a foreign participation of about 25%. ONGC holds 26% in the venture, in which GAIL and GSPC are also partners.
On the other hand, the company plans to rope in overseas players for 26% in OMPL. Apart from Kuwait, Qatar Petroleum and Emirates National Oil Company for 26% stake in the Rs 6,000-crore OMPL. ONGC plans to keep 46 per cent in the petrochemicals venture, while its subsidiary, Mangalore Refinery and Petrochemicals (MRPL), would hold another three% .
India was already looking for investment from $350 billion sovereign wealth fund by Kuwait. It is also believed that Kuwait may extend the credit period on crude oil sales to 90 days from the current 60 days soon. Kuwait is the fourth largest oil importer to India, after Saudi Arabia, Iraq and Venezuela.
The overall size of OPaL project is around Rs 21,000 crore. Kuwait was also offered a stake in 1 million tonne Paradip refinery by IndianOil Corporation. However, IOC chairman R S Butola today told Business Standard that at present not talks are going on with Kuwait for investments in Rs 30,000 crore Odisha refinery. “We are planning to complete the refinery by May this year. After that, would restart talks for foreign participation.
