Oil and Natural Gas Corporation (ONGC) will infuse about Rs 15,000 crore in ONGC Petro additions Ltd (OpaL) as part of a financial restructuring exercise that will see GAIL’s exit from the OPa.

ONGC will convert share warrants into equity, buy-back debentures and invest Rs 7,000 crore more equity, which will give it about 95 per cent stake, the company said in a stock exchange filing.

The proposal approved includes “conversion of share warrants issued by OPaL and subscribed by ONGC into equity shares upon payment of final call money of Rs 86.281 crore at the rate of Rs 0.25 per warrant,” it said.

OPaL is a joint venture of ONGC, GAIL (India) Ltd. and GSPC with present shareholding of 49.36%, 49.21% and 1.43% respectively.

OPaL was incorporated on 15th November 2006 as a mega – grass root petrochemical complex consists of a global scale dual feed cracker with downstream polymer units as an integration-cum-value addition project utilizing ONGC’s Naphtha stream from Hazira and Uran plants and C2+ Streams from Dahej Extraction Plant. OpaL is an anchor tenant of Dahej PCPIR, Gujarat and has exported its products to more than 50 countries in the world.

OPaL mega petrochemical complex has a capacity to produce 1.5 million tonnes per annum (MMTPA) of Polymers (1100 Kilo tonnes per annum – (KTPA) Ethylene, 400 KTPA Propylene), 0.5 MMTPA of chemicals –and several other products through the associated units of Pyrolysis Gasoline Hydrogenation Unit, Butadiene Extraction Unit and Benzene Extraction Unit. The Polymer plants have 2×360 KTPA of LLDPE/ HDPE Swing units, 1×340 KTPA of dedicated HDPE and 1×340 KTPA of PP units.