BP to Spice up refinery
R. SURYAMURTHY
New Venture

New Delhi, March 24: BP will enter into a strategic agreement to supply crude oil to Spice Energy for the 5-million-tonne refinery at Haldia being set up by CALS Refineries. Spice Energy is the holding company of CALS.

Sources said officials of the two companies had finalised the memorandum of understanding and would strike the deal soon.

BP, formerly British Petroleum, will supply 2.5 million tonnes of heavy crude and a similar quantity of light crude to the Haldia refinery.

CALS Refineries will produce aviation turbine fuel, LPG and petroleum coke for the domestic market. It also plans to produce petrol and diesel for export, which BP is interested in buying out.