Busy in India: BP now inks pact with IOC, may set up plant

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.

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.

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“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.