ONGC approves revised configuration of Dahej Petrochemicals Project

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New Delhi, Feb 25 (UNI) State-owned explorer Oil and Natural Gas Corporation (ONGC) today said that the revised configuration of Dahej Petrochemicals Project has been approved by its Board and the project is expected to be completed by February 2012.

The project, being implemented by ONGC Petro-additions Ltd (OPAL), where ONGC has management control with 26 per cent equity holding, was initially configured with a SBR and a dedicated HDPE unit that have now been removed in view of current market demand-supply dynamics.

The Capex has come down from Rs 13,540 crore to 12,440 crore, with ONGC's equity contribution at Rs 970 crore. The IRR of the project works out to be 15.4 per cent.

Two other decisions taken in the board meeting which was notified to DGH include going for additional Participating Interest (PI) of 30 per cent in the development phase of Gulf-A in the Joint Venture block of CB-OS-1, at the northern-most end of Gulf of Cambay.

The ONGC's share (55.26 per cent) of Capex would be 57.209 million dollars. The other partners in this JV are Tata Petrodyne and HOEC.

The company will also augment the gas-processing capacity of its Hazira complex. The additional units would comprise of a gas-sweetening unit with 6.3 MMSCMD capacity, a gas-dehydration facility of 6.3 MMSCMD, Dew Point depression units of 5.6 MMSCMD and Utilities and Off -site facilities, cooling tower, sub-station and caustic soda ash unit.

The capacity augmentation will require an investment of Rs 370 Crore. EIL is the consultant for the project which is planned to be completed in 38 months.

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