Essar Oil Ltd (EOL) would raise up to $1.5 billion (Rs 6,800 crore) in foreign currency loans to fund expansion. It may raise the funds through either of the instruments or a mix of these, including equity shares, convertible debentures, global depository shares or American depository shares or foreign currency convertible bonds by way of public and/or private offering in domestic or international market(s) and/or qualified institutional placement. The company has also deliberated the status of Essar Oil’s exit from Corporate Debt Restructuring and has decided to expedite the process to enable the exit before March 31, 2012.
EOL is expanding its Vadinar refinery in Jamnagar. The Phase-I expansion, which will take the facility’s capacity to 18 million tonnes per annum (mtpa) from 10.5 mtpa, is expected to be completed by September. EOL had completed 92 per cent work of the Phase-I expansion by June 30. The optimisation project, which will enhance the capacity to 20 mtpa, was 56 per cent complete by June 30. The completion of Phase-I refinery expansion will enhance the complexity of the facility from 6.1 to 11.8. The increased complexity means the refinery can increase the proportion of heavy and ultra-heavy crude it processes, and produce a higher proportion of middle and light distillates. EOL also intends to use the funds for other businesses, including coal bed methane (CBM) and exploration and production.
On the exploration and production front, it has started test production at its Raniganj CBM block. As on June 30, the production was recorded at 33,000 standard cubic metres per day (scmd), which is being sold through truck mounted cascades. The block is awaiting approvals to start commercial sales.crackcrack
| Company Name | CMP |
|---|---|
| Reliance Industries | 1365.10 |
| Indian Oil Corp. | 145.85 |
| BPCL | 312.05 |
| HPCL | 370.95 |
| MRPL | 183.20 |
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