Kuwait Petroleum eyes stake in IOC's Paradip refinery.

Kuwait Petroleum Corp (KPC) is in talks with Indian Oil Corp (IOC) for taking a stake in the state-owned firm's Rs. 29,777-crore Paradip refinery and a proposed petrochemical complex.

'They (KPC) have evinced interest (in taking stake). Talks are on,' a senior IOC official said.

IOC, which will start commissioning the 15 million tons a year refinery at Paradip in Odisha in June, is willing to offer no more than 26 per cent stake in the project.

'We are discussing details of their participation, whether they are interested in taking a stake in the refinery or in the petrochemical project or both is what we are discussing now,' he said.

IOC wants to closely examine conditions that Kuwait may attach for equity participation.

'If the equity participation will be subject to the refinery buying all or most of its crude oil requirement from Kuwait then that will be a big no-no from us as we don't want to tie ourself down to just one supplier,' he said.

The refinery has been built to process at least 40 per cent of toughest, heaviest and the dirtiest crudes like Maya of Mexico which are cheaper than the cleaner and easier varieties available from the Middle-East.


ET