BPCL to raise Bina refinery capacity to 9 mt

State-owned Bharat Petroleum Corp Ltd (BPCL) today said it will raise capacity at its just commissioned Bina refinery in Madhya Pradesh to 9 million tonnes and is looking at the right time for a public offering of the unit.

The 6 million tonnes a year, or 120,000 barrels a day unit was commissioned in January this year and will be formally inaugurated by the Prime Minister, Dr Manmohan Singh, on May 20, BPCL Chairman and Managing Director, Mr R.K. Singh, told presspersons here.

The project is being built by Bharat Oman Refineries Ltd — a joint venture between BPCL and Oman Oil Co (OOC) — at a cost of Rs 11,397 crore.

“We are looking at expanding the capacity to 9 million tonnes in the first phase in what is called creeping expansion,” he said. Under this, capacity of existing equipment will be raised, a process that may take up to three years and may cost about Rs 2,000 crore.

“When we take a maintenance turnaround in three years’ time, we plan to hook-up the expanded equipments,” he said.

Mr Singh said in the second phase, the Bina refinery capacity would be taken up to 15 million tonnes. “Second phase expansion is contingent upon certain conditions like availability of enough water,” he said.

Bharat Oman Refineries Ltd (BORL) Managing Director, Mr U.N. Joshi said the company plans to come out with an initial public offering (IPO) “when the market conditions are right“.

“We are ready for the IPO. It all depends on market condition,” he said, adding that a public offering of about 25 per cent equity shares is planned.

Post-IPO, BPCL will hold 49 per cent stake in BORL, while OCC would have 26 per cent.

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