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ONGC withdraws from Kakinada projects?

Thursday, 05 Oct 2006
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Oil & Natural Gas Corporation has withdrawn from two major projects in Andhra Pradesh, according to unconfirmed reports. It is learnt that the oil major will not pursue the Kakinada SEZ project and the 7.5 million tpa export-oriented petroleum refinery in Andhra Pradesh, which were to be implemented by its subsidiary, Mangalore Refinery & Petrochemicals.

The two projects, together costing Rs.9,000 crore, have been withdrawn following a saturation of petroleum refining capacity on the east cost that has been brought about by expansion programmes of Indian Oil Corporation (Paradip, Orissa) and Hindustan Petroleum Corporation (Vizag, Andhra Pradesh), among others.

For ONGC, this is the second instance of withdrawing from petroleum refining projects. In September 2006, ONGC decided against pursuing the 7.5 million tpa Barmer petroleum refinery in Rajasthan that was supposed to be the first such project in the landlocked state.

Also See:

ONGC deserts Rajasthan refinery project (05-Sep-06)

Mega plans of ONGC (17-Apr-06)

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