ONGC in Talks with Middle Eastern Petrochem Companies to Sell Stakes in OPaL
ONGC Petro Additions Ltd (OPaL) is in talks with local and overseas petrochemical companies to sell 25% in the Oil and Natural Gas Corp. Ltd ( ONGC). The company is cooperatively owned by GAIC (India) Ltd, ONGC and GSPC (Gujarat State Petroleum Corp. Ltd. ONGC and GAIL hold 44% each in OPaL and GSPC holds the rest.

ONGC plans to have a public shareholding of 25% in OPaL along with other public sectors and strategic investors. ONGC officials said that they are in talks with some Middle Eastern petrochemical companies and Saudi Aramco is one amongst them.

OPaL at the moment is looking for a strategic investor who could add a lot of value to the project said an ONGC spokesperson. The mega petrochemical plant is located in Dahej, Gujar at. ONGC which was previously in talks with several foreign firms for a stake were stuck due to several delays which include cost overruns. The initial estimate of Rs. 12,440 crores has now increased to Rs.27, 011 crore so far.

Opal's petrochemical complex will house India's biggest Greenfields, single-location, and dual feed cracker. It can crack gaseous and liquid feed to produce 1100 kilo tonnes of ethylene per annum that can produce a wide spectrum of chemicals.
The petrochemicals business in India will set more competitive national and global market with OPaL commissioning its plant. OPaL will be competing with Reliance Industries Ltd, Indian Oil Corp, Haldia Petrochemicals and ONGC Manglore Petrochemicals Ltd (OMPL). India is the leader in the rest of Asia with increasing demand for products containing petrochemicals and the flourishing manufacturing sector will enhance the regional mar ket for petrochemical.