ONGC looks to sell 25% stake in OPaL

State-owned ONGC is talking to world's leading chemical firms, including Itochu Corp of Japan and the two UK-based companies -- Ineos and Lyondell Basel -- for a strategic partnership in the Rs 12,440-crore (Rs 124.40 billion) petrochemical plant, which one of its units is building at Dahej in Gujarat.

ONGC Petro-additions Ltd had initially spoken to seven to eight leading technology firms and chemical marketers for giving out up to 25 per cent stake in the proposed unit but has held second round of discussions with just three.

"We are looking for a strategic partner who can either bring in technology or has a strong marketing network. By the year end (December 2009) we may be able to finalise the strategic partner," OPaL CEO P K Johri said.

The company is looking at markets in China, Indian sub-continent (Pakistan, Sri Lanka and Bangladesh), Vietnam, the Philippines, Malaysia, some African countries and Israel for selling the products like propylene and benzene it will make at the petrochemical unit. These products are used as source materials in the plastics industry.

Ineos is the world's third largest chemical firm by sales.

The petrochemical complex, that would be built by December 2011, is being funded in 2.55:1 debt-equity ratio.