Oman Oil Company SAOC (OOC), Bharat Petroleum Corporation Ltd (BPCL) and Bharat Oman Refinery Ltd (BORL) signed an agreement on 15th November 2009 in Nizwa, The Sultanate of Oman related to additional investment by OOC in BORL. The Agreement was signed by H.E. Maqbool Bin Ali Sultan, Minister of Commerce & Industry, Chairman of OOC, Mr. Ashok Sinha, Chairman & Managing Director of BPCL and Mr. U.N. Joshi, Managing Director of BORL. The investment will result in OOC having a final holding of 26% of the equity share capital of BORL, second major shareholder after BPCL.

 

The 6 Million Metric Tons Refinery project of BORL is currently underway at Bina, Madhya Pradesh, India, and includes related crude oil import facilities and cross country crude pipeline. The total estimated cost of the project is now expected to be Rs. 11,397 crore (US $ 2.4 Billion). The project is progressing at a fast pace and 96% of the work has been already completed. The commissioning of the project should take place early next year and production is due to start in Q2 2010. The project envisages transporting crude oil from the western coast of India in Vadinar, Gujarat by a 935 km pipeline to Bina. The ultra modern Refining facility that is being put up at Bina would make available top quality petroleum products to the central parts of India as well as adjoining areas.

 

Commenting on this event, H.E Maqbool Bin Ali Sultan said "Oman Oil Company is pleased to join hands with Bharat Petroleum Corporation. This investment forms an exciting opportunity for Oman Oil Company to advance its relations with India, a key player in the global economy, and establishes a long-term partnership with Bharat Petroleum." He added, "This investment is in line with the company’s strategy to grow our investments internationally and successfully positions the company in one of the world’s largest growth markets. Bharat Petroleum is well-recognized company in the refining and petrochemical sector with strong experience in developing and operating large scale projects and we look forward to a successful and profitable partnership."

 

Mr. Ashok Sinha averred "We welcome the decision of OOC to increase their stake in BORL to 26%. This would make BORL a very strong company. BORL is one of the biggest and most prestigious projects in India. The project will considerably enhance availability of Petroleum products in Central and Northern parts of the country which are in deficit. I believe that coming together of BPC and OOC would be of immense mutual benefit."

 

BHARAT PETROLEUM CORPORATION LIMITED (BPCL) is a global Fortune 500 company in the energy sector. The company is mainly involved in refining and marketing of petroleum products and petrochemicals in India. The company has recently ventured into exploration as well and has interest in 27 blocks across the globe. The company is also harnessing alternate forms of energy and has made significant strides in marketing natural gas – the fuel of 21st century. The company is considered leader in marketing and has a robust marketing network including 8500 petrol stations and 2500 LPG distributors. BPC has taken a lead role in implementing latest technology in all its areas of activity and is one of the select companies on the global advisory council of SAP. With the commissioning of refinery at Bina and expansion of existing Kochi refinery, total refining capacity of BPCL Group would be in excess of 610, 000 barrels a day.

 

 

Bharat Petroleum Corporation Ltd – www.bharatpetroleum.com

 

Bharat Oman Refinery Ltd – www.borl.in