Indian Oil Corp is mulling spinning of its Rs 29,777 crore Paradip refinery in to a separate subsidiary and doing an initial public offering (IPO), possibly closer to the completion of the 15 million tonnes project in 2011.
"We may form a separate company once substantial progress has been made on the project," a senior company official said.
The company may at that stage induct a strategic partner like Venezuelan national oil company PdVSA.
"Right now there is no question of giving anyone a stake. We can get premium only when the project has made substantial progress. Right now we will get nothing," he said adding.
For now, IOC is looking at financial closure of the project in three-four months time. "We have mandated SBI for arranging Rs 14,000 crore of debt for the project," he said.
The firm targeting to complete the refinery by the third quarter of 2011 calendar year, is keen to retain at least 51 per cent controlling stake in the project. It can divest the rest to a strategic partner and public.
IOC board has recently split the refinery cum petrochemical complex into two, deciding to do the refinery first and the chemical unit will follow later.
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The company would take a strategic partner like PdVSA only if it gets either an oilfield or crude oil supplies in return, said a company official.
"We are not exactly looking for a partner just for getting money. We want someone who bring value," he said adding the company was looking at sourcing at least 50 per cent of the crude requirement of the new refinery through the strategic partner.
"Paradip refinery," he said, "is being configured to process the toughest, heaviest and the most dirtiest crudes. Our refinery will have a Nelson Complexity Index of 15".
Reliance Petroleum's upcoming export oriented refinery at Jamnagar has a Nelson complexity of 14.
The higher the index, the more technically capable a unit is to process tough high sulphur and waxy crudes.