The Hindu Business Line : IOC hopeful of finalising consortium in Turkey project

IndianOil is hopeful of reaching a consensus with its consortium partners over stake-holding pattern and management control in the proposed $4.9 billion refinery at Ceyhan in Turkey in January. This would clear the last hurdle before the company to launch the feasibility report and make future progresses towards project implementation.

While Calik Holding of Turkey is IOC’s local partner in the proposed project, ENI of Italy and KazMunayGas (KMG) of Kazakhstan have already confirmed their intention to participate in the project.

According to sources, on behalf of the IOC-Calik joint venture the Turkish company is currently spearheading the negotiation with ENI and KMG for finalisation of the consortium.

As per the initial proposal forwarded by the JV (and is now subjected to be approved by ENI and KMG), all four proposed stakeholders IOC, Calik, ENI and KMG may pick up equal stake in the project with IOC-Calik JV controlling the management. IOC-Calik JV may also try to rope in the state-oil company of Azerbaijan SOCAR, as a minority partner in the consortium.

IOC sources, however, confirm that SOCAR has not yet shown any interest in this regard. The Azeri company was till recently in the race for the licence to build the 15- million-tonne refinery and is in the best of the relations with the Turkish Government.

While IOC officials are tight-lipped about the progress of the negotiation in Turkey, sources say that the company’s demand for management control of the project is yet to be approved by all the prospective consortium partners.

When contacted IOC Director (business development), Mr B.M. Bansal, told Business Line: “We are awaiting for the consortium to be finalised in the next couple of weeks.”

It may be mentioned that IOC currently partners ENI in the $1.5-billion Trans Anatolian oil Pipeline Project connecting the Turkish Northern Black Sea city Samsun to Ceyhan. The pipeline will feed the proposed refinery.

KMG is believed to have played a pivotal role in helping secure the final licence for the refinery, recently.