IOC plans to acquire chemical unit, set up refinery in Turkey
28 Mar 2007
The state-run oil major also plans to set up a 15 million tonne refinery, at an estimated cost of $6 billion, at Ceyhan on the Mediterranean Sea, in Turkey, official sources said.
"We have put in an expression of interest (EoI) for 53-54 per cent stake in Petkim," said IOC director (planning and business development) B N Bansal.
The company may rope in Turkey`s Calik Group for making a joint bid for Petkim, he said.
IOC, with a war chest of Rs43,000 crore, is scouting for business opportunities both within and outside the country. It is looking for investment opportunities in Africa, Central Asian countries and the Middle East and is interested in taking over a medium sized oil producer, he said.
The company has previously made failed attempts to acquire French firm Maurel & Prom and Canadian Niko resources.
Turkey invited bids for a majority stake in chemicals maker Petkim worth at least $500 million on March 16. Offers are due June 15.
Petkim produces raw material for a range of products from plastic bags and textiles to polyvinyl chloride (PVC) and detergents. It is the only producer of such materials in Turkey, where imports account for about 70 per cent of the market. It exports about a quarter of its output. If IOC wins the bid, it will hold 51 per cent stake in the refinery project. IOC is looking at a partner which has access to oilfields in the Central Asian region or Russia to service the refinery.
"We want to integrate the refinery with Petkim (refinery products being feedstock in petrochemical plant)," he said.
The refinery will also have Calik Energy of Turkey as a partner.
IOC is also taking 12.5 per cent stake in Samsun-Ceyhan pipeline, which would transport oil from Turkeys Black Sea port of Samsun to Ceyhan on Mediterranean coast, Bansal said, adding construction work on the project will begin April-end.
The 350-mile, one million barrels per day line is being developed by a joint venture between Italy`s Eni and Turkey`s Calik Energy, called Trans-Anadolu Pipeline Company (Tappco).
ENI holds an 18.5 per cent interest in the Kashagan Oil Field in the Kazakh section of the Caspian Sea, which would likely be a primary source for the Samsun-Ceyhan Pipeline.
Bansal said IOC, along with its partner for oilfield acquisition, Oil India Ltd, are scouting for upstream exploration and production opportunities in Kazakhstan and Turkmenistan.