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Oman Oil has bought 26% equity in BPCL’s Bina Refinery project. Oman Oil’s further investment of Rs 1220 crore would increase the stake from 2% to 26%. The 6-million tonne per annum refinery in Madhya Pradesh was envisaged through Bharat Oman Refineries Limited (BORL). The JV was formed in 1993, but Oman Oil’s contribution in equity did not go beyond the initial Rs 75 crore.
However, after unwarranted delays in the completion of the project, Oman Oil halted its investment at Rs 75 crore for a stake of 2%. It is now paying Rs 15 for a Rs 10 share in BORL and is picking up 26%.
BPCL has holds 50% stake in the project and provided Rs 4,000 crore equity as loan. BPCL would get its loan back after Oman Oil pays for its 26% share. It will get the residual 24% equity through an initial public offering, the dates of which are yet to be announced.
The project is scheduled for early 2010.
