The Hindu Business Line : HPCL to get equity stake in IOC Panipat refinery

HINDUSTAN Petroleum Corporation Ltd (HPCL) will get an equity stake in Indian Oil Corporation's 6-million-tonne Panipat refinery. The deal is part of a collaboration agreement signed by the two companies on Monday, which includes joint participation in exploration and production, refining, petrochemical projects and consultancy services.

A senior IOC official said the agreement has a "unique structure" comparable with the equity oil contracts where HPCL will invest capital and share refinery products while Indian Oil will operate the refinery. Details of the agreement are being worked out. The agreement does not extend to other IOC refinery projects, he said.

The two companies will also explore exploration and production opportunities in India and abroad. "The idea is to mitigate risks through pooling of resources and sharing of infrastructure," he said.

On Monday, both companies informed the stock exchanges about the agreement. The stock exchange notice described the memorandum of understanding as a "joint collaboration in various areas of mutual interests".

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