…willing to sell 50% Bhatinda stake to OIL
Hindustan Petroleum Corp Ltd is willing to offer a stake of up to 50% in its proposed Bhatinda refinery to state-run Oil India Ltd, chairman MB Lal told reporters on Wednesday.
“We have spoken to them and they are looking at the proposal,” Lal said. “We are open to offering a 50% stake to Oil India, but the exact number depends on their response.”
HPCL is setting up a 1,80,000 barrels a day refinery in Bhatinda in the northern state of Punjab. The refinery was expected to cost Rs 15,000 crore ($3.3 billion) and be ready by September 2010.
Lal said HPCL was also looking at a partnership with Oil India to buy oil and gas assets abroad.
He said any stake in Bhatinda refinery that Oil India took would later be diluted through an initial public offering. “In case Oil India becomes an equal partner, then both of us will dilute our share equally for the IPO,” Lal said.
