Wednesday, June 21, 2006

IOC to formalise tie-up with Nagarjuna Oil


Indian Oil Corporation intends to enter into an agreement with Nagarjuna Oil Corporation Ltd for buying petro products from the 6-million-tonne refinery that Nagarjuna is putting up in Cuddalore, Tamil Nadu, reports Business Line.

However, the agreement will not bind IOC into a committed offtake. The PSU oil major will have the right of first refusal Nagarjuna will have to offer its products first to IOC, informed the company.

Nagarjuna Oil Corporation is putting up a 6-million-tonne refinery at a cost of Rs 47.5 billion at Cuddalore. The Tatas are taking 26% stake in the company.

The IOC board had okayed a Rs 23.7 billion budget for the marketing division of IOC, of which Rs 11 billion would go only towards putting up more retail outlets and doing up existing outlets.

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