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  • Business
    IOC bids for Turkish chemicals maker; plans $6 bn refinery

    New Delhi, March 28. (PTI): Indian Oil Corp, the country's largest oil firm, has bid for acquiring Turkey's state-run chemicals maker Petkim Petrokimya Holdings AS and has also proposed to construct a $6 billion refinery on the Mediterranean sea.

    "We have put in an expression of interest (EoI) for 53-54 per cent stake in Petkim," IOC director (planning and business development) B N Bansal told reporters here on Tuesday.

    The State-run refiner may get Turkey's Calik Group for making a joint bid for Petkim, he said.

    IOC plans to spend Rs 43,000 crore by 2012 to expand in India and overseas. It is scouting for investment opportunities in Africa, Central Asian countries and Middle East and is interested in taking over a medium sized oil producer, he said.

    The company has previously made failed attempts to acquire French firm Maurel & Prom and Canadian Niko Resources.

    Turkey invited bids for a majority stake in chemicals maker Petkim worth at least $500 million on March 16. Offers are due June 15.

    Petkim produces raw material for a range of products from plastic bags and textiles to polyvinyl chloride (PVC) and detergents. It is the only producer of such materials in Turkey, where imports account for about 70 per cent of the market. It exports about a quarter of its output.

    Bansal said, IOC also plans to build a 15 million tonnes refinery at Ceyhan on the Mediterranean Sea. The refinery to be build by 2012 is targeting export markets in the US and Europe.

    IOC will hold 51 per cent stake in the refinery project and is looking at a partner, which has access to oilfields in the Central Asian region or Russia to service the refinery.

    "We want to integrate the refinery with Petkim (refinery products being feedstock in petrochemical plant)," he said.

    The refinery will also have Calik Energy of Turkey as a partner.

    IOC is also taking a 12.5 per cent stake in Samsun-Ceyhan pipeline, which would transport oil from Turkeys Black Sea port of Samsun to Ceyhan on Mediterranean coast, Bansal said, adding construction work on the project will begin April-end.

    The 350-mile, one million barrels per day line is being developed by a Joint Venture between Italy's Eni and Turkey's Calik Energy, called Trans-Anadolu Pipeline Company (TAPPCO).

    Eni holds an 18.5 per cent interest in the Kashagan oil field in the Kazakh section of the Caspian Sea, which would likely be a primary source for the Samsun-Ceyhan pipeline.

    Bansal said IOC, along with its partner for oilfield acquisition, Oil India Ltd, are scouting for upstream exploration and production opportunities in Kazakhstan and Turkmenistan.


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