HPCL to offload 50% holding in Vizag refinery

MUMBAI: State-run Hindustan Petroleum Corporation (HPCL) is in talks with Total of France and Kuwait Petroleum to offload up to 50% stake in proposed 15 MMTPA Vizag refinery. “Total and Kuwait Petro have envisaged interest in picking up to 50% stake in our Vizag refinery.

A new SPV would be formed on the lines of the Bhatinda refinery,” HPCL’s CMD MB Lal said.In Vizag, the company proposes to spend over Rs 18,000 crore for expanding the refinery and for setting up a petrochemical complex.

Meanwhile, the company has also firmed up its plans to offload 50% stake in its 9 MMTPA Bhatinda refinery to state-run Oil India (OIL) after British Petroleum backed out of this project even after signing an expression of interest.

HPCL is likely to achieve financial closure for Bhatinda refinery by the end of this fiscal.“OIL has some producing oil blocks in Rajasthan and we can procure crude from them. They have envisaged interest in joint participation in the mid stream and down stream projects with us,” said Mr Lal.Both the refineries are expected to be on stream by ’10-11.