Chinese Petro offered 26% in Nagarjuna Oil

HYDERABAD: Nagarjuna Oil Corporation, which is implementing the Rs 4,500 crore refinery project at Cuddalore near Chennai, is close to financial closure and will have more than one joint venture equity partner.

“While Chinese Petroleum Corporation is one of the options we are also talking to a few other prospective equity partners,” K S Raju, vice chairman and managing director of parent company Nagarjuna Fertiliser Corporation Ltd, (NFCL) told DNA Money.

The Taiwanese company had said in Taipei earlier on Monday it may invest in Nagarjuna Oil Company which had offered it 26% equity in the 6 mtpa capacity project. 

“We have not yet finalised the deal with Chinese Petroleum,” Raju said.

Being implemented at a 2:1 debt-equity ratio the project will have a majority holding by the promoter group while the remaining 49% is likely to be split among several joint venture partners. However, Raju did not name the others in the reckoning pending finalisation of the deal.  “But we are very close to financial closure and we would be on stream within 3-4 years from now,” he said.