The Hindu Business Line : IOC offers Kuwait stake in two projects

Other projects
Both HPCL and BPCL Chairman met the Kuwaiti Minister.
While HPCL is looking for a partner for its Rs 12,000-crore nine-million-tonne Bhatinda refinery in Punjab, BPCL is setting up a six-million-tonne refinery at Bina in Madhya Pradesh.

New Delhi , June 16

IOC has offered Kuwait stake in the Panipat petrochemicals plant and the Paradip refinery.

After a meeting with the Kuwaiti Oil Minister, Sheikh Ahmad al-Fahd al-Sabah, the IOC Chairman, Mr Sarthak Behuria, told newspersons: "We have talked about inviting investments in the Panipat (naphtha) cracker project and the Paradip refinery. These are the two opportunities Kuwait can consider."

Mr Behuria, however, did not disclose the quantum of stake offered to Kuwait's national oil firm in the projects. "These are preliminary discussions. Let's see how things shape up."

IOC's participation in an upstream project in Kuwait also figured in the discussion, he added.

Project details

The Paradip project envisages an investment of Rs 21,000 crore in a 15-million-tonnes-per-annum capacity refinery and facilities for production of front-end petrochemicals, including paraxylene, polypropylene, and styrene.

The company plans to invest another Rs 11,000 crore in a naphtha cracker project, adjacent to the Panipat refinery, for the manufacture of 8-lakh tonnes of ethylene and 6-lakh tonnes of propylene a year, which may be used to produce polymers such as high-density polyethylene, linear low-density polyethylene, polypropylene and mono-ethylene glycol.

The IOC Chairman also said that in March, the company had signed a MoU with Kuwait Petroleum Corp to consider jointly setting up exploration and refining ventures in India, Kuwait, and other countries.

"We may be interested in a new refinery and gas cracker project in Kuwait."

Kuwait project

Mr Behuria also said that they discussed the participation of IOC and ONGC in a major oil field development project in Kuwait.

Mr M.B. Lal, Chairman of HPCL, and Mr Ashok Sinha, Chairman of BPCL, also met the Kuwaiti Minister.

While HPCL is looking for a partner for its Rs 12,000-crore nine-million-tonne Bhatinda refinery in Punjab, BPCL is setting up a six-million-tonne refinery at Bina in Madhya Pradesh. Asked whether any possible equity participation by Kuwaiti companies was discussed at the meeting, Mr Lal responded in the negative.

"They know what projects we have." The meeting focused on crude imports, he said.

Kuwait is looking at investing in Indian refineries to win a greater share of crude sales to South Asian countries.

Earlier, Kuwait's Oil Minister said that he was hopeful of a joint project between Indian and Kuwaiti oil firms soon, with operations in both countries.