BHARAT OMAN REFINERIES

Bharat Oman Refineries (BORL), a 50:50 joint venture company of Bharat Petroleum Corporation (BPCL) and Oman Oil company,has filed its DRHP with SEBI on 11th April 08 to enter the capital market with a public issue of equity shares of Rs 10 each at a price to be decided through a book building process. The company plans to raise Rs 1,200 crore through the issue It also plans a pre IPO placement. The public subscription and the private placement are likely to constitute about 48% of BORL equity and the balance 52% will be jointly held by BPCL and Oman Oil Company. The company proposes to list its shares on BSE &amp; NSE. The BRLMs to the issue are SBI Capital Markets, ICICI Securities, Citigroup Global, JM Financial, Enam Securities and Kotak Mahindra. The company intends to use the proceeds from the issue to part finance its refinery project cost of Rs 10,378 crore. The company will deploy Rs 138.44 crore for land and site developments; license &amp; know how and basic engineering fee of Rs 107 crore; plant and machinery, project management consultancy costs &amp; engineering procurement construction management costs of Rs 8,259.98 crore; Rs 358.34 core for township, roads, buildings, workshop and lab equipments and infrastructure &amp; construction site facilities; construction period expenses, syndication charges and upfront fees of Rs 235 crore; working capital requirement of Rs 450 crore; Rs 43 crore for start up and commissioning; financing charges and contingency provisions of Rs 786.24 cores. The refinery project's debt component of Rs 6,400 crore has already been tied up. The company is in the process of constructing a grassroots petroleum refinery at Bina in Madhya Pradesh. The refinery is designed to have a crude oil processing capacity of 6 MMTPA and is expected to start commercial operations by January 2010. The project also includes a crude oil import and storage system in Vadinar in Gujarat, and a single-point mooring facility which can receive crude oil shipments from very large crude carriers. The terminal will be connected to the refinery with a crude oil supply pipeline. The company has engaged Engineers India to provide basic engineering designs in relation to certain aspects of the refinery, project management, detailed engineering, procurement and construction management services for the refinery, as well as pre-commissioning and commissioning assistance. The company have licensed certain process technologies for the refinery's key process units from Chevron Lummus Global LLC, UOP LLC, Technip Benelux B.V. and Lummus Technology Inc., who are also providing the company with additional services with respect to their technologies. The company has also entered into contracts with key contractors for the project, including Bharat Heavy Electricals in respect of the refinery's power plant, Punj Lloyd for the refinery's sulphur block and Naftogaz India Private for the company's hydrogen unit,. Additionally, the company has a contract with China Petroleum Technology and Development Corporation for the supply of the reactors. The company intends to sell all of the refinery's petroleum products to BPCL following an offtake agreement. In connection with the project, BPCL intends to construct a marketing terminal for BORL's petroleum products, which the company will operate under a lease. BPCL also intends to construct a pipeline to connect the Marketing Terminal to the BPCL Product Pipeline for the transport of the refinery's petroleum products. The company has also entered into Crude Sourcing and Services Agreement for sourcing of crude oil for the refinery.

BHARAT OMAN REFINERIES

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