Turkey refinery: IndianOil may tie up with KMG, ENI
New Delhi   11-Aug-2007
IndianOil may rope in KazMunayGas (KMG) of Kazakhstan and ENI of Italy as equity partners) in the proposed 15-million-tonne (mt) refinery in Turkey. According to preliminary estimates, the project will cost $4.9 billion or approximately Rs 20,000 crore. IndianOil has already formed 51:49 joint ventures with Calik Holding of Turkey for setting up the export-oriented refinery at the port city of Ceyhan. The project has received the provisional approval from the Energy Market Regulatory Authority of Turkey in May this year. "We are in discussion with KazMunayGas and ENI for possible equity participation in the refinery," an IndianOil official said, adding that issues related to shareholding pattern were yet to be firmed up. <b>Partners</b> KazMunayGas is die national oil company of Kazakhstan and was previously in die race for setting up the refinery. The company has interests across the oil value chain and produced 178 million barrels of crude oil a day in 2005. ENI is a global energy major with existing business interests with IndianOil in Turkey. The company has already agreed to offer 12.5 per cent participatory stake to IndianOil in the $1.5- billion crude pipeline Trans Anatolian Pipeline (TAPCO) - from Northern Black Sea city Sam-sun to Ceyhan.The 550-km pipeline will transport crude oil to be refined at the proposed IndianOil refinery at Ceyhan. Calik group is a co-promoter of the pipeline project <b>Feasibility Study</b> While it is not clear whether both KMG and ENI will participate in the refinery, IndianOil sources said that considering die huge investments required as well as to ensure greater market access, more partners preferably with a participatory stake might be included in die project Meanwhile, IndianOil-Calik combine has floated die request for proposal (RFP) for commissioning die feasibility report for die proposed refinery. According to sources, five international consultants, including UOP, Shell Global Solutions and Lurgi have joined die race. "The bidding process for commissioning study is expected to be over in next direemondis. The feasibility report will be prepared in six monodies from awarding die contract," die official said.