BPCL commits to invest Rs 5000 cr. in oil exploration: Ashok Sinha

Mumbai, Dec 19 (UNI) The state-owned Bharat Petroleum Corporation Ltd (BPCL) is poised to become a fully integrated energy company with a commitment to invest up to Rs 5000 crore for carrying out exploration and production related activities in the next five years.

Replying to a question at the Post-AGM press meet here yesterday, BPCL Chairman&Managing Director Ashok Sinha said ''We have successfully bid for blocks in Oman, Australia and East Timor and also 'farmed-in' into an on-land block at Cachar in Assam.'' In addition, he said BPCL participated in the recently concluded NELP-VI bidding round and in the bidding for two blocks in Egypt, the results of which were awaited.

The aforementioned moves are in line with the BPCL's approach to be a fully integrated energy company. In this context, Mr Sinha said a wholly owned subisidiary company christened Bharat Petro Resources Ltd (BPRL) has been formed for carrying out exploration and production related activities.

To a related query, he said BPCL has already invested upto Rs 600 crore in setting up BRPL, which will have an authorised capital of Rs 1000 crore. According to Mr Sinha, BPCL would put all its upstream assets and blocks into this new wholly owned subsidiary.

Giving an update on the Bina refinery project, Mr Sinha said with all the approvals in place, the project with an approved revised cost of Rs 10,378 crore has gained momentum during the current year and initial construction work has started at the project site.

Elaborating, he said commitments to the extent of Rs 2444 crore have been made till the end of November 2006 and loans amounting to Rs 6387 crore have been tied up with a consortium of lenders led by State Bank of India.

To a query on equity component of Bina project, Mr Sinha said BPCL has obtained the Centre's nod to enhance its equity stake in the joint venture upto 50 per cent, while the old partner from Oman will have 2 per cent stake and the remaining 48 per cent stake will be raised through private equity investors and the initial public offering at later states.

Mr Sinha said the completion of Bina refinery and the expansion cum modernisation project at Kochi refinery will be crucial to BPCL conforming auto fuels to Euro IV norms.

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