IOC-Calik submit pre-qualifying bid for Petkim

16 May 2007 13:48  [Source: ICIS news]

By Divya Chowdhury

 

MUMBAI (ICIS news)--Indian Oil Corporation (IOC) and Turkey’s Calik group have submitted a pre-qualifying bid for the Turkish government’s 51% stake in Petkim, a source close to IOC said Wednesday.

 

“We want the equity holding in Petkim and due diligence should start soon,” the source said.

 

Funding for picking up the Petkim stake from IOC would be 51%, with the remaining 49% coming from Calik, the source said.

 

The source said that buying a stake in Petkim makes business sense as it would fit well with IOC’s product portfolio. Besides, Petkim’s coastal location and infrastructure are also an advantage, he added.

 

In 2005, IOC-Calik had bid for Turkey’s Tupras (Turkish Petroleum Refineries Corporation), which it had lost to Shell, for the same reasons, the source said.

 

Turkish media sources also said on Wednesday that Anadolu Endustri Holding in a consortium with two Ulker Group subsidiaries has also bid for a 51% stake in Petkim, the largest producer in the Turkish petrochemical sector.

 

Turkey’s privatisation board had set 15 June as the deadline for financial bids for Petkim, hoping to attract a sufficient number by then.

 

IOC is also planning a 15m tonnes/year refinery in Turkey.

 

"This project will proceed even if the bid for Petkim fails. It makes sense as IOC already holds an equity stake in the Baku-Tbilisi-Ceyhan crude oil pipeline," the source added. 

By: Divya Chowdhury
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