Bharat Oman Refineries (BORL), a joint venture between Bharat Petroleum Corporation (BPCL) and Oman Oil Co (OOC), has refinanced multiple loans worth R50bn (RO311mn), according to an Indian newspaper report.

A consortium of 12 banks re-financed BORL’s debt. These include State Bank of India (SBI), Bank of India, Exim Bank, Canara Bank, and Oriental Bank of Commerce, a Business Standard report said on Friday.

The tenure of the loan has been extended to 12 years from five years. The loan rate is 9.5 per cent.

For the nine months ending December 2014, the BORL-run Bina refinery posted a loss of R12bn and a gross refining margin of US$2.5 per barrel.

In the October-December quarter of last year, the refinery posted nil gross refining margins and a loss of R5.90bn owing to inventory losses. During the third quarter, BPCL posted an inventory loss of R25bn. Its net profit for the period stood at R5.51bn.

BORL – jointly owned by BPCL (49 per cent), OOC (26 per cent), and financial institutions which hold the remaining stake – was commissioned in May 2011.

Boilers at the refinery were not running continuously hindering its continuous run impacting the average margins. However, BPCL said these issues had been dealt with and the refinery was operating beyond 100 per cent, the report said.

In January, BPCL said it would raise the capacity of the Bina refinery from 6mn tonnes per annum (mtpa) to 7.8 mtpa at an estimated cost of R35bn.