Date:19/01/2007 URL: http://www.thehindubusinessline.com/2007/01/19/stories/2007011905261300.htm

HPCL in talks with Total for Vizag project

Our Bureau

New Delhi , Jan. 18

Hindustan Petroleum Corporation Ltd (HPCL) is in talks with Total SA of France for its upcoming refinery at Visakhapatnam in Andhra Pradesh.

"We are talking to them and they will be an equal stakeholder in our new refinery," said Mr M.B. Lal, Chairman, HPCL.

Speaking to newspersons at the sidelines of the Petrotech-2007 here he indicated that a decision was likely to be taken by April. HPCL was willing to offer an equal stake to Total, which has envisaged interest in the refinery and would be coming in partnership with a Kuwaiti company. HPCL is expanding its refinery from the current 7.5 million tonne per annum to 9 mt and building another export-oriented 9 mt refinery adjacent to it.

The refinery would also have a petrochemical plant. The estimated project cost was about Rs 12,000 crore.

Mr Lal, however, said that details were expected to be finalised in the next two to three months. He also did not rule out the possibility of an initial public offering (IPO) at a latter date.

Shares of the company closed at Rs 321.15 in the firm Mumbai market. Talking about the Bhatinda project, Mr Lal said that HPCL was in talks with several companies including Mittal Group. ``We are talking to few companies. Nothing has been finalised as yet,'' he said.

As regards Oil India Ltd's proposal to participate in the project, he said that OIL has submitted its proposal. HPCL would place the offer before its board. Mr Lal, however, was clear that HPCL would continue to enjoy majority stake in the project. He also did not rule out the distinct possibility of an IPO for the project.