New Delhi, March 28 (PTI): Hindustan Petroleum Corporation Ltd (HPCL) is in talks with Bharat Petroleum Corporation Ltd (BPCL) to pick up a stake in the Rs 6,354-crore Bina refinery in Madhya Pradesh to secure a permanent source of petroleum products for its operations in central India.
“HPCL is in talks with BPCL for taking an equity stake in Bharat Oman Refinery Ltd (the company executing the Bina refinery project). Nothing has been finalised as yet,” an industry source said.
Of six million tonnes of products that the Bina refinery will produce annually, Hindustan Petroleum has indicated a requirement of 1.4 to 1.6 million tonnes of petrol, diesel, LPG and kerosene for marketing in Madhya Pradesh.
The Bina refinery, where BPCL holds a 51 per cent stake, will be completed in the second half of 2008. The Oman oil company holds about 2 per cent interest and the remaining equity is to be offered to a strategic partner.
“The product slate is being revised to produce more of LPG and based on the revised product configuration, HPCL and BPCL will arrive at a production-sharing agreement. After that, Bharat Petroleum will indicate the equity it can give to Hindustan Petroleum,” the source said.