After acquiring a 30% stake in some of India’s prestigious oil and gas fields in a $7.2-billion (Rs 32,400 crore) deal with Mukesh Ambani-led Reliance Industries Ltd (RIL), global energy major BP on Wednesday announced that it had signed an agreement with state-owned Indian Oil Corp (IOC) to explore the feasibility of setting up an acetic acid plant in western India.
“BP and Indian Oil have signed an MOU to work together to explore the potential for establishing a 50-50 JV to invest in a 1 million tonne per annum acetic acid plant in Gujarat together with associated gassification facilities for production of synthesis gas,” the two firms said in a joint press statement here. However, the companies did not disclose any financial details of the tie-up.
The plant in Gujarat will employ BP’s Cativa XL technology and use petroleum coke feedstock from Indian Oil. The project is targeting a 2015 start, and a joint feasibility study is under way, the statement added.