Oman Oil Company to invest Rs 1,220 cr in Bina refinery
Oman Oil Company will invest an additional Rs 1,220 crore in the Rs 11,397 crore Bina refinery project in Madhya Pradesh, being implemented by Bharat Oman Refineries Ltd, reports HT Correspondent.business Updated: Nov 15, 2009 23:11 IST
Oman Oil Company (OOC) will invest an additional Rs 1,220 crore in the Rs 11,397 crore ($2.4 billion) Bina refinery project in Madhya Pradesh, being implemented by Bharat Oman Refineries Ltd (BORL).
This fresh infusion of funds will help OOC to increase its stake in BORL to 26 per cent from the present 2 per cent.
An agreement for additional investment by OCC was signed in Nizwa (Oman) on Sunday between Maqbool Bin Ali Sultan, Minister of Commerce & Industry and also the Chairman of OOC, Ashok Sinha, chairman & MD of BPCL and UN Joshi, MD of BORL.
According to Maqbool Bin Ali Sultan, “ Oman Oil Company is pleased to join hands with Bharat Petroleum Corporation. This investment is in line with the company’s strategy to grow our investments internationally and successfully positions the company in one of the world’s largest growth markets.”
BPCL’s CMD, Ashok Sinha said “OOC’s decision to increase their stake in BORL to 26% would make BORL a very strong company. The project will considerably enhance availability of petroleum products in Central and Northern parts of the country which are in deficit.”
BORL is a joint venture company of state-owned Bharat Petroleum Corporation Ltd (BPCL) and OCC, formed way back in 1993. However, following inordinate delays in the implementation of the refinery project, OCC decided to freeze its investment in BORL at Rs 75 crore for a 2 per cent equity stake.
The 6 million tonnes per annum Bina refinery project is scheduled for commisioing in early 2010.