ONGC plan to fund HPCL buy

New Delhi: ONGC Ltd is in talks with Saudi Aramco and Kuwait's Petrochemical Industries Company to sell its 26 per cent stake in ONGC-Petro Additions Ltd (OPaL) to repay the bank loan it has taken to fund the acquisition of refiner HPCL.

The state-owned explorer had been keen to induct a strategic partner in OPaL.

The timing seems to be right now to dilute stake in the petrochemical plant at Dahej, commissioned last year, as it has reached 100 per cent capacity in February.

"Now that the plant has come up well and stabilised, this is the time to monetise it," an official said.

According to the official, several companies, including some global giants, have evinced interest in taking equity in the project. He, however, refused to name the firms because of commercial reasons.

Firms based in Saudi Arabia and Kuwait are said to be interested, the official added.

ONGC had borrowed money from banks to buy the government's 51.11 per cent stake in HPCL for Rs 36,915 crore.

"We have been a debt-free company and would like to return to that status as soon as possible and we plan to monetise the assets to pay off the debt," he said.

On Indian Oil and GAIL stakes, the official said ONGC will sell "only when the price is right".

Oil and Natural Gas Corporation Limited (ONGC)

Hindustan Petroleum Corporation Ltd.(HPCL)