Financial closure of Paradip refinery in 3-4 months: IOC

Indian Oil Corp (IOC) on Friday said it will achieve financial closure for its 15 million tonnes Paradip refinery in 3-4 months time and is planning to expand its Mathura refinery to 11 million tons.

“We will achieve financial closure for the Rs 29,777 crore project in next three to four months,” IOC Director (Refineries) B N Bankapur told reporters in Panipat.

SBI Caps has been mandated to arrange Rs 14,700 crore debt for the project, he said while ruling out induction of a strategic partner for the refinery.

“Not yet. nobody has come to partner Paradip project,” he said while stating that IOC had not received any formal proposal from Venezuela for taking equity in the refinery.

There were reports that Venezuela’s state-run PdVSA may take a stake in Paradip refinery.

IOC is targeting commissioning of the refinery in first quarter of 2012. The board had recently split the refinery cum petrochemical complex into two, deciding to do the refinery first and the chemical unit will follow later.

The company would take a strategic partner like PdVSA only if it gets either an oilfield or crude oil supplies in return, said Bankapur.

“We are not exactly looking for a partner just for getting money. We want someone who will bring value,” he said adding the company was looking at sourcing at least 50% of the crude requirement of the new refinery through the strategic partner.

Paradip refinery, he said, is being configured to process the toughest, heaviest and the most dirtiest crudes. The refinery will have a Nelson Complexity Index of 15.

Bankapur said IOC was looking at expanding its Mathura refinery from its existing capacity of 8 million tons to 15 million tons in next 4-5 years and has approached the Ministry of Environment and Forest for permission.

The Mathura refinery has not been able to expand as it is about 40 km from the Taj Mahal and there are concerns that pollution from additional industrial activity may damage the historic world famous monument.

“We may go to Supreme Court to file an affidavit as long as we dont pollute and our sulphur emissions are within the limit, I think there should be no problem,” he said.

Besides, IOC is investing Rs 5,882 crore in residue upgrading project at Koyali refinery in Gujarat by January 2010 and another Rs 2,869 crore in yield improvement at its Haldia refinery by December 2009.

Panipat refinery capacity, he said, is being raised to 15 million tonnes from current 12 million tons at an investment of Rs 1,008 crore by December 2009.

Similarly, Haldia refinery capacity is being increased to 7.5 million tons from 6 million tons at a cost of Rs 2869 crore by August 2009.

“After all these projects, IOC’s refining capacity will increase to 66.85 million tons by first quarter of 2012 from current 47.35 million tons,” Bankapur said.

Paradip refinery, he said, is being configured to process the toughest, heaviest and the most dirtiest crudes. The refinery will have a Nelson Complexity Index of 15.

Bankapur said IOC was looking at expanding its Mathura refinery from its existing capacity of 8 million tons to 15 million tons in next 4-5 years and has approached the Ministry of Environment and Forest for permission.

The Mathura refinery has not been able to expand as it is about 40 km from the Taj Mahal and there are concerns that pollution from additional industrial activity may damage the historic world famous monument.

“We may go to Supreme Court to file an affidavit as long as we dont pollute and our sulphur emissions are within the limit, I think there should be no problem,” he said.

Besides, IOC is investing Rs 5,882 crore in residue upgrading project at Koyali refinery in Gujarat by January 2010 and another Rs 2,869 crore in yield improvement at its Haldia refinery by December 2009.

Panipat refinery capacity, he said, is being raised to 15 million tonnes from current 12 million tons at an investment of Rs 1,008 crore by December 2009.

Similarly, Haldia refinery capacity is being increased to 7.5 million tons from 6 million tons at a cost of Rs 2869 crore by August 2009.

“After all these projects, IOC’s refining capacity will increase to 66.85 million tons by first quarter of 2012 from current 47.35 million tons,” Bankapur said.