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  " To be a world-class petrochemical company, with dominant Indian presence and a preferred choice of customers in terms of quality and value."  
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ONGC Petro additions Ltd. (OPaL) achieves Financial Closure



ONGC Petro Additions Limited (OPaL), a Joint Venture promoted by ONGC & GAIL, successfully achieved the financial closure. The Loan Documents for Term Loan Facility of Rs. 14,977 Cr. were signed on January 29, 2013 at a glittering ceremony in New Delhi.

The Company is implementing 1.1 MMTPA Petrochemicals Complex in Dahej SEZ, Gujarat. The project envisages using Ethane (C2), Propane (C3), Butane (C4), Aromatic Rich Naphtha (ARN) and Low Aromatic Naphtha (LAN) as feedstock to produce basic downstream petrochemical products HDPE, LLDPE and Polypropylene The C2+ fractions (C2, C3 and C4) would be sourced from ONGC's C2+ extraction plant at Dahej, in the vicinity of proposed project location while ARN and LAN would be sourced from ONGC's Gas processing complexes at Hazira and Uran respectively. The Project Cost of Rs 21,396 Cr. is proposed to be funded through Term Loan of Rs 14,977 Cr. and Equity of Rs 6,419 Cr.

SBI Capital Markets Ltd (SBICAP), acted as the sole financial advisor and arranger for the transaction. SBICAP launched the syndication exercise in mid 2012 and arranged the requisite term loan from 33 banks/ FIs. The Debt has been structured so as to contain two facilities viz. Long Term Loan (LTL) and Medium Term Loan (MTL).

The Term Loan facilities have been arranged on the Project Finance basis with the sponsors support provided by the promoters of the Project viz. ONGC & GAIL. Further, the Company is implementing the Project with the assistance of Engineers India Limited (EIL) as Project Management Consultant (PMC) under lump sum turnkey (LSTK)/ Multiple EPC Packages mode. The contracts for most of the units have already been awarded on LSTK basis to the contractors of international repute.

The implementation of the Project is in full swing and it has achieved overall progress of 74% as on Jan 2013. The Project is expected to be commissioned in early 2014.


And Dir-I/C OPaL Shri K.S. Jamestin addressing the assembly

CEO-OPaL, Dr. PSV Rao, addressing the assembly

 All dignitaries at the Dais and CFO, OPaL Shri S.P. Bandopadhyay addressing the Lenders' assemblage on 29th Jan 2013.

 Assembly present at the Lenders' Meet