“Talks with KPI are at a preliminary stage,” said one of the Indian sources. KPI is the international downstream unit of state-owned Kuwait Petroleum Corporation (KPC).
The 120,000-bpd Bina plant is operated by Bharat Oman Refineries Ltd (BORL), a 50-50 joint venture between Oman Oil Co and state-run Bharat Petroleum Corp.
Kuwait Petroleum International Chief Executive Officer Nabil Bourisli said in April his company intends to sign a deal soon to buy a stake in an Indian refinery and petrochemical project and supply as much as 200,000 bpd of oil.
BPCL, Oman Oil and KPI did not respond to Reuters e-mails, seeking comment on any discussions. BPCL
has funded an expansion of the Bina refinery to 156,000 bpd that is to be completed later this year. Oman Oil did not invest in the upgrade. BPCL
has an option to convert its additional spending into equity that would raise its overall share in BORL to 74 per cent.
Indian sources said BPCL
would like to retain at least 50 per cent in BORL, mirroring an equity structure for a planned west coast refining project co-financed by Saudi Aramco in which Indian and foreign ownership is evenly split. Saudi Aramco last month signed a deal to buy a 50 per cent stake in the $44-billion planned project in Maharashtra, with an option to share a part of its equity with a new foreign partner.
Abu Dhabi National Oil Co may join Aramco for the project, sources said last month. For Bina, the plan would be for BPCL to retain half of the refinery, while KPI and Oman Oil would share the remaining 50 per cent stake, the Indian sources said.
An Oman Oil Co source said participation of KPI is one of the proposals being discussed among the three parties - BPCL, Oman Oil Co and KPI — but that nothing is finalised yet. Reuters