ONGC Petro plans initial public offer: report

Mumbai: ONGC Petro-additions Ltd. (OPaL), a special purpose arm being set up by state-run Oil and Natural Gas Corp for setting up a new petrochemicals plant, is planning an initial public offer, a newspaper report said.

"We are planning an IPO of OPaL after the other equity partner or partners to the project are finalised," the Business Standard newspaper quoted RS Sharma, chairman and managing director of ONGC, was quoted as saying.

ONGC holds a 26-per cent equity stake in the joint venture and the Gujarat State Petroleum Corporation (GSPC) holds 5 per cent, the report said.

The global-scale petrochemicals plant is scheduled to come up by 2010 and would have a 1.1 million-tonne-per-annum ethylene capacity dual feed cracker along with associated units, as well as polymer plants, the report said.

Sources said the petrochemicals complex would be integrated with ONGC''s methane and propane producing plant coming up at Dahej and will use naphtha from ONGC''s Hazira units as feedstock.

Sharma said ONGC was looking at acquiring oil and gas assets in Africa, Caspian Sea region and South America.

Meanwhile, ONGC has earmarked about $3 billion for exploration and production. ONGC Videsh, (OVL), the subsidiary of ONGC, has already struck oil and gas at four overseas locations, Sharma said.