Dilip Shanghvi’s Sun Petrochemicals may enter power generation business as the corporate is wanting to diversify its portfolio, Mint reported.
“While exploration and production are doing fine for us, development or generation of power is another segment we think we can have a significant presence in,” a Sun Petrochemicals govt instructed the paper.
The firm’s diversification plan may be easy owing to Sun Petrochemicals’, in addition to Shanghvi’s, community within the area of exploration and manufacturing.
Sun Petrochemicals, based in 1999, is into oil and fuel exploration and manufacturing actions in India by way of its affiliate Sun Oil and Natural Gas. The firm can also be in a partnership with Indian Petrochemicals Corporation, now a part of Reliance Industries (RIL), to manufacture acetylene carbon black utilized in batteries, semiconductive rubber, and different conductive functions.
The firm may even have some edge as Shanghvi holds a 19 % stake in Suzlon Energy, a number one wind turbine maker. The billionaire businessman entered the oil and fuel section in March 2015 after buying two oil and fuel fields in Gujarat, Baola, and Modhera, from Interlink Petroleum.
In addition, Sun Oil and Natural Gas has purchased stakes in 5 hydrocarbon blocks over the previous 4 years. In July, the corporate acquired 70 % and 30 % stake from RIL and BP India, respectively, in Gujarat’s Cambay Basin block for an undisclosed quantity.
In December 2016, it purchased a 33.three % stake in Hazira oil and fuel area from Canada’s Niko Resources and was in talks to purchase the remainder from Gujarat State Petroleum Corporation.
“Sun Oil and Natural Gas wants to be the operator in whichever block it is. That is the reason the firm has been acquiring a 100 percent stake in all the blocks. It is aware of the multiple approvals a company has to take in case of partnerships and it wants to avoid that situation which leads to delay in work in most cases,” one other Sun Petrochemicals govt instructed the paper.
Sun Oil and Natural Gas has additionally invited potential consumers to buy crude oil from the Cambay basin block, that it acquired three months in the past.
“Field is under transfer to Sun Petro and production is likely to commence from April. Crude oil production to start with maybe around 1,000 barrels of oil per day (bpd) and peak production maybe 3,000bpd. Sun Petro is operator of field with 100 percent participating interest,” Sun Oil and Natural Gas stated on its web site.
Disclaimer: Reliance Industries Ltd. is the only beneficiary of Independent Media Trust which controls Community18 Media & Investments Ltd.