Friday, January 19, 2007

HPCL to sell 50% stake in Vizag refinery to French oil firm Total

Hindustan Petroleum Corporation Limited (HPCL) is selling 50% stake in its Vizag refinery to French oil major Total SA. Total may pick up the stake in collaboration with Kuwait Petroleum for a consideration of Rs. 6000 crores.

HPCL is setting up a 9 mn tonne export-oriented refinery adjacent to the existing refinery at Vizag at an estimated investment of Rs. 12,000 crores. The refinery would be completed in 2011. HPCL is also planning a 1 mmtpa petrochemical chemicals plant at the refinery site.

The company may also look to raise funds through an initial public offering of the Vizag refinery. In a related development, the Lakshmi Mittal Group has reportedly shown interest for a 49% stake in HPCL’s 9 mmtpa Bhatinda refinery in Punjab.

Read the article in Business Standard.

No comments: