Itochu and Mitsui & Co have offered to acquire a 25% stake in Oil and Natural Gas Corporation’s ONGC Petro-additions (OPaL), a special purpose vehicle promoted by ONGC and Gujarat State Petroleum Corporation (GSPC). OPaL is constructing a plant at Dahej with an expected of 1.1 mln tpa ethylene, 340,000 tpa propylene, 135,000 tpa benzene and 95,000 tpa butadiene.
It is estimated that ONGC could raise up to Rs 5,000 crore through the stake sale. Though the initial cost of the project was estimated at a little over Rs 12,000 crore, the project has crossed this figure to almost Rs 15,000 crore until completion. Royal Bank of Scotland and Rothschild are advising ONGC on the deal.
ONGC currently owns a 26% stake in OPaL, while GSPC owns 5%. Earlier this year, ONGC agreed to sell a 19% stake in OPaL to Gas Authority of India (GAIL).