Page 43 - Plastics News June 2021

Business news

MRPL buys 100% stake in ONGC McDermott bags EPCC

Mangalore Contracts for Haldia and
Barauni Refinery

angalore Refinery and Petrochemicals Limited (MRPL)
Mhas acquired a balance of 0.0002% equity holding cDermott International,
of ONGC Mangalore Petrochemicals Limited (OMPL),
a subsidiary of the company from Oil and Natural Gas MLtd today announced
Corporation Limited (ONGC). OMPL has now become it h a s re ce ive d t wo
a wholly-owned subsidiary of MRPL upon holding 100% separate engineering,
shares. MRPL Board on October 19, 2020 had approved procurement, construction
acquisition of 1,24,66,53,746 equity shares of Rs10 each and commissioning (EPCC)
of OMPL, a subsidiary of MRPL from ONGC. Accordingly, contract awards from Indian
a Share Purchase Agreement (SP MRPL said that such an Oil Corporation Limited (IOCL)
integration yields additional synergy benefits for the for the Haldia Refinery and
group. Accordingly, a share purchase agreement (SPA) the Barauni Refinery. The first
was executed with ONGC for the acquisition. An amount award is an EPCC contract
of Rs 1216,73,40,561was paid towards consideration for for a new diesel hydrotreating unit and associated
acquisition of 124,66,53,746 equity shares at a price of Rs facilities for the Barauni Refinery Expansion Project in
9.76 per share. According to the SPA, ONGC transferred Bihar, India. The second award is an EPCC contract for
124,66,53,746 shares of OMPL to MRPL’s demat account the catalytic dewaxing unit and associated facilities at
on January 1. With this, the shareholding of MRPL in OMPL the Haldia Refinery in West Bengal, India. The catalytic
increased to 99.9998 per cent. MRPL’s statement to the dewaxing unit will help produce base oil which can be
stock exchanges said that on acquisition of balance 0.0002 utilized in finished lubricants. India is the world's third-
per cent equity holding of OMPL, it has now become a largest user of finished lubricants but is also, with a
wholly owned subsidiary of MRPL. MRPL said that such deficit of base oil, one of the world's largest importers
an integration yields additional synergy benefits for of base oil. Work on both projects will commence
the group. Incorporated on December 19 2006, OMPL is in second quarter of 2021 contributing greater
located adjacent to MRPL in Mangalore SEZ, spread around independence for India's domestic energy needs. Both
441 acres of land.A majority of the feed stocks (naphtha projects will largely be executed by the McDermott
team in Gurgaon, India, with some support from Perth,
Australia and Brno, Czech Republic. "These awards
demonstrate our commitment to advancing India's long-
term energy market," said Samik Mukherjee, Executive
Vice President and Chief Operating Officer. "We look
forward to working with Indian Oil Corporation Limited
on these prestigious downstream projects, showcasing
our dedication to world-class project execution and
sharing our leading health and safety protocols." In line
with India's Make in India initiative, McDermott's Senior
Vice President, Asia Pacific, Mahesh Swaminathan,
and aromatics streams) generated by the refinery complex emphasized the strength of the local team."Our 2,000
of MRPL is being processed to produce paraxylene and personnel in India bring global experience with high
benzene in OMPL. Paraxylene and benzene are exported levels of technical and project management expertise,"
through a dedicated 14-km-long pipeline corridor through said Swaminathan. "These individuals continue to
the jetty of New Mangalore Port Trust (NMPT).OMPL demonstrate the strength of McDermott's vertically-
complex is the largest single stream unit in Asia to produce integrated solutions and the positive impact these bring
914 KTPA paraxylene and 283 KTPA benzene. to the Indian downstream market."

43 June 2021 Plastics News