Lakshmi N Mittal plans to set up multi-billion dollar refineries in Congo and Nigeria and has approached state-run Hindustan Petroleum Corporation Ltd for a partnership.
NEW DELHI: Steel tycoon Lakshmi N Mittal plans to set up multi-billion dollar refineries in Congo and Nigeria and has approached state-run Hindustan Petroleum Corporation Ltd for a partnership.
Mittal Investments Sarl, the holding company of Mittal family, which earlier this year picked up 49 per cent stake in HPCL's $5-billion Bhatinda refinery in Punjab and signed agreement to explore setting up an export-oriented refinery at Vizag on east coast, has sought partnership with HPCL for expansion of a refinery in Congo and setting up a 10 million ton refinery in Nigeria, industry sources said.
SNPC, the national oil company of Congo, has offered Mittal Investment Sarl a stake in an offshore oil block along with a proposal for expansion of its one million ton capacity refinery in Point Noire which is also a major oil terminal.
The 1,044 sq km oil block Marine IX has Premier Oil of UK as the operator with 58.5 per cent stake. Ophir Energy holds 31.5 per cent stake while SNPC has the remaining 10 per cent. Premier Oil and Ophir are seeking a co-investor to join in the funding of a two-well drilling programme.
Sources said Nigerian National Petroleum Corp (NNPC) has invited Mittal for exploring feasibility of setting up a 10 million ton refinery. NNPC is to hold 40-49 per cent stake in the proposed refinery that will cater to domestic fuel demand and export surplus. HPCL-Mittal, who may be given 51 per cent in the project, are interested in working with NNPC to examine the feasibility of setting up the new refinery.
Interestingly, Mittal had earlier this year lost a bid to takeover Nigeria's biggest oil refinery at Port Harcourt. Mittal had originally planned to bid for the 10.5 million ton Port Harcourt refinery with HPCL but in the end went alone as the state-run firm's due diligence of the project did not find it feasible.
HPCL had on March 2, 2007, signed an MoU with Mittal Investments Sarl for exploring areas of mutual interests in upstream oil and gas exploration and production and downstream refining and marketing, both in India and overseas (other than countries where Mittal Investments have exclusive arrangements with ONGC Videsh Ltd).
Two years ago, Mittal had set up a ONGC-Mittal Energy Ltd with OVL, the overseas investment arm of state explorer Oil and Natural Gas Corp (ONGC), to look for oil and gas business in Angola, Azerbaijan, Congo Brazzaville, Democratic Republic of Congo, Indonesia, Kazakhstan, Romania, Trinidad and Tobago, Turkmenistan and Uzbekistan on exclusive basis.
Besides, the two had agreed to look at opportunities on a case-to-case basis in Bosnia, Canada, China, Czech Republic, France, Germany, Kyrgyzstan, Liberia, Macedonia, Mexico, Nigeria, Poland, Sao Tome and Principe, South Africa, Sudan, United Kingdom and the US.
Furthering its ambition to make its bid in oil and gas space, Mittal had on October 18, signed an MoU with HPCL, Total of France, gas firm GAIL India and Oil India Ltd to explore the possibility of setting up an integrated refinery and petrochemicals complex at Visakhapatnam.
If feasibility reports of the export-oriented unit are positive, this would be Mittal's second refinery investment in India after the 9 million ton Bhatinda refinery that is to be commissioned in 2010-11.
Sources said Mittal Investment is also likely to bid for acreage offered for bidding under the seventh auction round of New Exploration Licensing Policy (NELP).
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