ONGC aims to sell stake to foreign buyers in US$3.24 billion Gujarat petrochemical project

28-Aug-13

Oil and Natural Gas Corp. Ltd. (ONGC) aims to sell at least a 25% stake in its US$3.24 billion petrochemical project in Gujarat and is looking at foreign buyers, including Saudi Aramco, as per Economic Times. The project, being built by ONGC Petro-additions Ltd. (OPaL), will be commissioned by mid-2014 and will have an annual capacity to produce 1.1 mln tons of ethylene. ONGC has appointed Ernst & Young as adviser. The dual feed cracker will use naphtha from ONGC’s Hazira complex and gas from its extraction plant at Dahej in Gujarat, Jamestin said. State-run ONGC is the promoter of the project and owns a 26% stake. GAIL (India) Ltd. and Gujarat State Petroleum Corp. Ltd. (GSPC) hold a 15.5% and 5% share, respectively. Private shareholding through a mix of strategic stake sale and public offering would be about 50% in OPaL, while state-run companies would hold the remainder.