HPCL Plans To Acquire Stakes In Mangalore Refinery And ONGC Petro Additions From ONGC

Published: Jul 22 2017
Deal Summary

Hindustan Petroleum Corporation Limited (HPCL), a state-owned downstream company, intends to acquire stakes in Mangalore Refinery and Petrochemicals Ltd (MRPL) and ONGC Petro additions Ltd (OPaL), both petrochemical companies, from Oil and Natural Gas Corporation Limited (ONGC), an oil and gas company.

OPaL is a joint venture company promoted by ONGC and co-promoted by Gas Authority of India Limited (GAIL) and Gujarat State Petroleum Corporation (GSPC). It is setting up a petrochemical project in the PCPIR / SEZ zone at port city of Dahej, Gujarat, India. The complex will have a 1.1 million tons dual feed cracker. It will mainly produce HDPE (swing and dedicated lines), LLDPE, PP, Benzene, Butadiene, CBFS and Pygas.

MRPL has a 15 million metric ton refinery located in Mangalore, India. MRPL owns and operates ONGC Mangalore Petrochemicals Limited (OMPL), a petrochemical unit capable of producing 1 million tons of Para Xylene.

Currently, ONGC holds 71.63% and HPCL holds 16.96% stake in MRPL. ONGC holds 49.36% stake and GAIL holds 49.21% stake in OPaL.

Following the completion of the transaction, ONGC will exit from downstream operations and will focus on exploration and production operations. The transaction will enable HPCL to expand its business operations.

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