OPEC eyeing refining in India

The Organisation of Petroleum Exporting Countries (OPEC) is keen to invest in refining business in India, with its member countries evincing interest in the upcoming projects.

"We are open to investments from overseas in the refinery sector through joint ventures with private or public sector companies or even for standalone operations," a government official said.

"As 100 per cent FDI is allowed, we are promoting India as a refinery hub to cater to the export market, given that there is pressure in the global market for refined petroleum products," he added.

Petro Kuwait is looking at brown-field expansion in India, including retail marketing linked to refining. The Kuwait Petroleum Corporation earlier had an understanding to invest in Indian Oil Corporation's (IOC's) upcoming refinery at Paradip, but backtracked. It has again shown interest in the project.

IOC is reported to have teamed up with Kuwait Foreign Petroleum Exploration Company, a subsidiary of Kuwait Petro, for NELP-VI blocks. This is in line with its memorandum of understanding (MoU) with Petro Kuwait in March 2006 for cooperation in the hydrocarbon trade and upstream oil and gas projects.

IOC has also invited Petro Kuwait to participate in the Panipat naphtha cracker and downstream polymer complex. The modalities of the deal were being worked out, industry observers said.

OPEC oil majors are also eyeing Hindustan Petroleum's Bhatinda refinery.Oman already has a presence in Bharat Petroleum's upcoming refinery at Bina, and wants to enhance its stake beyond the present 5 per cent.