IOC Mulls Buying GSPC's Stake in Mundra Terminal
Indian Oil Corporation (IOC), the country's largest oil company, is in talks to buy debt-laden Gujarat State Petroleum Corp’s (GSPC) stake in the under-construction Rs.4,500 crore ($669 million) Mundra LNG import terminal, according to PTI.
IOC is keen to buy a stake in Mundra terminal but does not want GSPC to exit the project completely. IOC wants the state government entity to remain as a part of the project for smooth operations, sources said.
GSPC is looking to exit the 5 million tonnes a year LNG import terminal project, which is likely to be completed by mid-2017. It has offered its 50 per cent stake in the terminal to IOC.
GSPC LNG - a unit of GSPC - holds 50 per cent interest in the project. Adani Group holds 25 per cent while the remaining 25 per cent is to be bid to a strategic partner, the shortlist of which also included Indian Oil Corporation.
It will be selling 5 million tonnes a year LNG terminal together with storage and re-gasification facilities over an area of 28 hectares on the coast.
The Bombay Stock Exchange has sought clarification from Indian Oil Corporation Limited with respect to recent news item captioned "IOC to buy GSPC''s stake in Mundra LNG terminal".
