Oil and Natural Gas Corporation (ONGC) GAIL is expected to be allowed to exit OPA as part of its financial restructuring exercise. ONGC is going to ONGC Petroaddings Ltd (OpaL) to invest around Rs 150 billion.

ONGC plans to convert equity certificates into shares, buy back debentures and invest Rs 700 crore in shares, which will take its stake to around 95%, the company said.

The company said the proposal approved includes conversion of warrants issued by OPall and acquired by ONGC into equity shares at a price of Rs 0.25 per warrant after making a final redemption payment of Rs 8628.1 crore.

OPaL is owned by ONGC, GAIL (India) Ltd. Currently holding 49.36%, 49.21% and 1.43% with GSPC respectively.

OPaL was established on November 15, 2006 Japan is a large grassroots petrochemical complex comprising of a global dual feed cracker and downstream polymer unit utilizing ONGC naphtha streams from the Hazira consolidation and Uran plants. C2 stream from Dahej extraction plant. Opal is a major tenant of Dahej PCPIR in Gujarat and has exported its products to more than 50 countries globally.

OPaL large petrochemical complex produces 1500 home million tons per annum (MMTPA) polymers (1,1000 kg per annum-(KTPA) ethylene, 400 KTPA propylene), 0.5 MMTPA chemicals-cracked gasoline hydrotreating unit, butadiene extraction unit and other products. It is produced in the unit associated with the benzene extraction unit. The polymer plant has a 2×3600 sets of KTPA LLDPE/HDPE a 1×340 swing unit KTPA Specialized HDPE a 1×340 unit and a 1×340 KTPA of PP unit.