Oil and Natural Gas Corporation (ONGC) said that it has received the government approval to invest more capital into ONGC Petro additions Limited (OPaL). The investment will include infusion of additional equity capital upto Rs 10,501 crore in ONGC Petro additions Limited (OPaL), which will take ONGC’s stake in its subsidiary to 95.69 per cent. The company received the approval from the Ministry of Petroleum & Natural Gas, Govt. of India (GoI) on August 9, 2024.
“It is informed that the company has received a letter dated 09.08.2024 from Ministry of Petroleum & Natural Gas, Govt. of India (GoI), inter-alia, conveying approval of the GoI for infusion of additional equity capital upto Rs 10,501 crore in ONGC Petro additions Limited (OPaL), conversion of back stopped Compulsorily Convertible Debentures (CCDs) amounting to Rs 7,778 crore and balance payment of Rs 86 crore with respect to share warrants, totalling to Rs 18,365 crore,” it said in a regulatory filing.
The ministry has also provided a roadmap for OPaL which permits the company to allocate 50 per cent of the annual gas production from new wells or well interventions or upto 3.2 MMSCMD of domestic natural gas, for providing feedstock support to OPaL, at a price up to 20 per cent above APM (administrative price mechanism) price.
APM Price of natural gas per MMBTU is 10 per cent of Indian crude basket price per barrel of Oil.
OPal has a petrochemical complex in Dahej in Gujarat. OPaL has a capacity to produce 1.5 million metric tonne per annum (mmtpa) of polymers and 0.5 mmtpa of chemicals. OPaL was set up as a joint venture between ONGC, Gail India and Gujarat State Petroleum Corp Ltd (GSPC).