Decision on raising stake in Bina refinery by early 2008

Oman Oil Company is planning to increase its stake in Bharat Oman Refinery (BORL) which is building a 6 million tonne per year refinery at Bina in Madhya Pradesh.

"We are evaluating this project to possibly increase our share in the Bina refinery. We will take a final decision by the first quarter of 2008," Oman Oil CEO Ahmed Al Wahaidi said today.

BORL had earlier spoken about its plans of going public in March 2008.

If Oman Oil increases its stake, BORL's public offering may not be needed as it has already raised money through debts and plans to raise more through financial institutions.

"We are still to take a decision on the public offer. It has to be taken up by the board first," said Ashok Sinha, Chairman and Managing Director of Bharat Petroleum Corporation (BPCL), which is Oman Oil's partner in the Bina refinery.

BPCL and Oman Oil hold an equal stake in BORL. The refinery is scheduled to be completed in December 2009.

BORL Managing Director RK Singh had earlier this year told Business Standard that the company was looking to offload shares to the public besides selling a part of its stake to a strategic investor, which would be a global oil company involved in crude oil production.

Singh is now almost ruling out the possibility of a strategic stake sale.

"We already have Oman Oil. We do not need anyone else," he said.

Al-Wahaidi said that Oman Oil was in talks with companies such as Reliance Industries, GAIL India and the Tata Group for exploring investment avenues in energy-related projects.

"We are discussing some general opportunities with Reliance Industries, while our subsidiary Takamul is in talks with the Tata Group for setting up soda ash and industrial salt plants in Oman," al-Wahaidi said.