ONGC and IOC to cooperate to buy Governments stake in Haldia Petrochem

21-May-13

Public sector oil major ONGC is considering co operation with IndianOil for acquiring West Bengal Government’s 40% stake in Haldia Petrochemicals Ltd, according to sources. IOC holds a minority 9% stake in HPL. Interestingly, this is ONGC’s second attempt in acquiring equity interest HPL. In early 2012, Mangalore Refineries and Petrochemicals Ltd (the refining outfit of ONGC Group), proposed a hand-holding relationship with HPL. It was planned that MRPL will offer feedstock to the loss-making HPL at flexible terms. In return, HPL management would recommend handing over management control to ONGC-IOC combine.