State run Bharat Petroleum Corporation is in talks with private equity investors for a possible stake sale in its Bharat Oman Refinery at Bina in Madhya Pradesh.

BPCL and Oman government-owned Oman Oil Company jointly promoted the 6 million tonne per annum refinery.

A source said that “The market knows the project is good and so there is a lot of interest from investors in the project. We are doing the due diligence at present.”

Mr Mohammed bin Hamad Al-Rumhy Oman Oil Minister had said that BPCL is also in talks with OOC, which had expressed interest in picking up a 26% stake in the refinery for around USD 250 million but has so far not increased its investment from the initial capital. He added that “We want to increase our equity (in the project) to 25% to 26%. We are in discussions with BPCL.”

Mr Ashok Sinha chairman of BPCL said that “Along with Oman Oil, there are many other people who have shown interest in the venture. But we have not decided on that yet.”

BPCL and OOC have so far been equal partners in BORL, with an investment of INR 75 crore each. The project is to be funded by INR 4,000 crore equity and INR 6,400 crore debt.

(Sourced from Business Standards)