HPCL to acquire partners' 50-per cent stake in Prize Petroleum
15 Apr 2011
State-owned refining and marketing company Hindustan Petroleum Corporation Ltd (HPCL) will acquire 50 per cent equity stake owned by its joint venture partner in Prize Petroleum Corporation Limited (PPCL) and make it a 100 per cent subsidiary of HPCL.
PPCL was established in 1998 by HPCL, ICICI and HDFC Bank to mark a presence in the oil and gas exploration and production (E&P) space in India and abroad.
HPCL holds a 50-per cent stake in PPCL while ICICI Bank, ICICI Ventures and HDFC Bank hold 35 per cent, 10 per cent and 5 per cent, respectively, of the remaining 50 per cent.
HPCL announced this in a filing with the Bombay Stock Exchange (BSE). The company is already reported to have informed the market watchdog Securities and Exchange Board of India (SEBI) about its plans.
Meanwhile, HPCL today inaugurated a new fluidised catalytic cracking unit (FCCU) at its refinery in Mumbai. The unit, set up at a cost of Rs900 crore, will make products like liquified petroleum gas (LPG) and petrol.
The new unit has a number of state-of-art features which support high severity and high conversion operation and upgradation of heavy low value streams of the refinery. It also has integrated facilities to bring down the level of emissions.