Bharat Petroleum Corporation Ltd has informed BSE that BPCL, Oman Oil Company and Bharat Oman Refineries Ltd have signed an agreement on November 15 in Oman related to INR 1220 crore additional investment by OOC in BORL.

As a result of this investment, Oman Oil would be holding 26% of the equity share capital of Bharat Oman, after full equity closure. The 6 million tonne refinery project of Bharat Oman Refineries is currently underway at Bina in Madhya Pradesh.

According to BPCL, the total estimated cost of the project is INR 11397 crore. The project is progressing at a fast pace and 96% of the work has been already completed. The mechanical commissioning of the project is likely to take place early next year and production is due to start in the second quarter of 2010.

The project envisages transporting crude oil from Vadinar in Gujarat by a 935 km pipeline to Bina. The ultra modern refining facility that is being put up at Bina would make available Euro JV compliant petroleum products to the central parts of India as well as adjoining areas. This would enhance the supply security for BPCL.

(Sourced from Business Line)