22 August 2012 09:36 [Source: ICIS news]
The company is also considering floating bonds overseas to fund the project, in which NRL intends to triple its refining capacity in
The project also includes construction of a 150km pipeline to transport high-speed diesel (HSD) to
“NRL is a debt-free company and raising funds through a mix of debt and equity should be no problem. The company would shortly be appointing a merchant banker to advise on [the] debt-equity ratio and the number of shares to be offered to public within limits of equity holding dilution of existing shareholders of NRL,” the company official said.
NRL is 61.65%-owned by Bharat Petroleum Corp Ltd (BPCL), with Oil India Ltd (OIL) holding a 26% stake, while the remaining 12.35% is held by the provincial government of
“The timing of equity offer and debt raising exercise will depend on market conditions and closer to date of completion of the expansion project and subject to advise of merchant bankers,” he added.
The grassroot refiner was also exploring the option of roping in an investor for its crude and petroleum transportation project, including hiving it off into a separate entity subject to feasibility studies and marketing options, the official said.
Under the expansion project, NRL further plans to build a pipeline that will link its refinery in Numaligarh to
According to initial project report, the pipeline from
An option of seeking collaboration with OIL, an existing shareholder in NRL, for the pipeline project is also being considered and preliminary discussions have also been held between the two companies, the official said.
($1 = €0.80)
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