29 April 2016
Muscat - The Indian government has given its approval to Indian refining giant Bharat Petroleum Corporation (BPCL), a public sector undertaking operating under the Indian Ministry of Petroleum and Natural Gas, to enhance its investment in Bharat Oman Refineries (BORL), which it set up more than a decade ago in joint venture with Oman Oil Company, the wholly Omani government owned energy investment vehicle.
According to reports in the Indian media, the investment amount could be enhanced to a maximum of Rs 3000 crore ($450 million) by way of subscription of convertible warrants/ other instruments giving BPCL the right to convert it into equity shares to be issued by BORL.
The infusion of funds by BPCL will enable BORL to overcome the implications on account of the erosion of the net worth. Besides it will enhance the availability of petroleum products in the Northern and Central parts of the country, industrial development of central Indian state of Madhya Pradesh and spur a substantial increase in employment and tax earnings in the state, local media reported.
Bharat Oman Refineries Limited (BORL) commissioned the 6 MMTPA (120 Thousand Barrels Per Day) refinery at Bina in Madhya Pradesh, in June, 2011 at a project cost of about Rs 12,754 crore ($1.95 billion). Currently the refinery is operating at 100 per cent of its installed capacity.
The company now proposes to undertake a debottlenecking project at the refinery to further increase the refining capacity from 6 MMTPA to 7.8 MMTPA. The estimated project cost is Rs 3,072 crore ($460 million), with an overall implementation schedule of 36 months from date of receipt of environmental clearances (Zero Date). The highlights of the proposal for debottlenecking project include certain modifications to produce products in accordance with India's new Auto Fuel Policy.
Oman Oil Company Limited, while expressing its support for the project, has indicated that it is not prepared to commit further funds for the project at this stage. Therefore, BPCL Board has decided to infuse funds to the tune of $450 million for funding the debottlenecking project and for meeting the extraordinary losses suffered on account of the sharp fall in the prices of crude oil and finished products.
Muscat - The Indian government has given its approval to Indian refining giant Bharat Petroleum Corporation (BPCL), a public sector undertaking operating under the Indian Ministry of Petroleum and Natural Gas, to enhance its investment in Bharat Oman Refineries (BORL), which it set up more than a decade ago in joint venture with Oman Oil Company, the wholly Omani government owned energy investment vehicle.
According to reports in the Indian media, the investment amount could be enhanced to a maximum of Rs 3000 crore ($450 million) by way of subscription of convertible warrants/ other instruments giving BPCL the right to convert it into equity shares to be issued by BORL.
The infusion of funds by BPCL will enable BORL to overcome the implications on account of the erosion of the net worth. Besides it will enhance the availability of petroleum products in the Northern and Central parts of the country, industrial development of central Indian state of Madhya Pradesh and spur a substantial increase in employment and tax earnings in the state, local media reported.
Bharat Oman Refineries Limited (BORL) commissioned the 6 MMTPA (120 Thousand Barrels Per Day) refinery at Bina in Madhya Pradesh, in June, 2011 at a project cost of about Rs 12,754 crore ($1.95 billion). Currently the refinery is operating at 100 per cent of its installed capacity.
The company now proposes to undertake a debottlenecking project at the refinery to further increase the refining capacity from 6 MMTPA to 7.8 MMTPA. The estimated project cost is Rs 3,072 crore ($460 million), with an overall implementation schedule of 36 months from date of receipt of environmental clearances (Zero Date). The highlights of the proposal for debottlenecking project include certain modifications to produce products in accordance with India's new Auto Fuel Policy.
Oman Oil Company Limited, while expressing its support for the project, has indicated that it is not prepared to commit further funds for the project at this stage. Therefore, BPCL Board has decided to infuse funds to the tune of $450 million for funding the debottlenecking project and for meeting the extraordinary losses suffered on account of the sharp fall in the prices of crude oil and finished products.
© Oman Daily Observer 2016
