Oman Oil Co Ltd will invest Rs 1,220 crore to buy additional equity shares in Bharat Oman Refineries Ltd, a joint venture with Bharat Petroleum Corp Ltd, at a 50% premium, an official with the state-owned refiner said on Wednesday.
The joint venture is setting up a 6-million-tonne-per-year refinery in Bina, Madhya Pradesh. The Oman company has around 3% equity stake in Bharat Oman Refineries, and has already invested Rs 76 crore in the project.
On November 15, BPCL had said the additional investment by Oman Oil will lead to the latter having a final holding of 26% of the equity share capital of Bharat Oman Refineries, which will make it the second major shareholder after the Indian state-owned company.
The official said BPCL will retain 50% equity shareholding in the joint venture company and the remaining 24% could be offered to the public and institutional investors at a later stage.
The refinery has achieved 96% physical progress. The project is likely to be ommissioned by early next year and production is due to start in April-June. The project also includes a crude importing and storage system at Vadinar, Gujarat, comprising a single-point mooring facility that can receive crude shipments from very large crude carriers, a 935-km crude pipeline to Bina and a crude oil terminal of 480,000 cubic metres.