India’s state-run Bharat Petroleum Corporation Limited (BPCL) has finalised a joint venture (JV) agreement with UK-based LP Chemicals for petrochemical business. BPCL is likely to hold 49% in the venture, with the British company holding a majority 51%. The JV would invest about Rs 5,000 crore in the project and have a 70:30 debt equity ratio. LP Chemicals may bring in Rs 1,500 crore. BPCL plans to spend Rs 40,000 crore in the next five years to set up a petrochemical plant at the Kochi refinery to produce niche products, expand the capacity of existing refineries, gas marketing and exploration and production.
The two are expected to sign a memorandum of association shortly, after which a feasibility study will be undertaken and later a company will be formed. The company would integrate the expansion of its Kochi refinery and construction of its petchem plant. The deadline for both projects has been set for 2015. |
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