ONGC shelves Rajasthan refinery plan; plans to sell oil to Reliance, Essar

05 Sep 2006

1

Mumbai: Oil and Natural Gas Corp (ONGC) and partner UK''s Cairn Energy Plc have shelved plans to build a Rs8,000 crore refinery in Rajasthan. The crude oil found in the state would, instead, go to Reliance Industries or Essar Oil.

ONGC will also get its subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) de-nominated as the authorised recipient of Cairn crude in Rajasthan.

"Building a refinery in landlocked state is uneconomical. With IOC''s Mathura and the expanded Panipat refinery in the region and HPCL building a nine million tonne per annum refinery at Bhatinda by 2010, there will be no market for the planned refinery at Barmer (Rajasthan)," an ONGC official said.

"We would like to sell the crude oil to public sector refineries first. But, due to the waxy nature of the Rajasthan crude, its best value can be realised only at the Jamnagar refinery (RPL) or the upcoming Vadinar refinery (Essar Oil)," he said.

ONGC-Cairn plans to build a crude oil transportation pipeline from Barmer to Jamnagar and build the cost in the field development. "Jamnagar has a port and we will have an option to ship the crude oil to MRPL," he said.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers