Oil production in Barmer likely from next month

Barmer, June 9 (UNI): Oil and Natural Gas Corporation (ONGC) is preparing to start oil production in Barmer district from next month.

Till the refinery is set up here, ONGC will transport the unrefined oil to Mangalore refinery by truck and pipelines.

According to company sources, the production of unrefined oil is likely to commence from July amidst talks of setting up a refinery here due to the discovery of huge reserves of oil in the Thar region.

It is being hoped that the state government will earn Rs 70 crore through royalty and sale of the oil once the production begins.

Cairn Energy and ONGC has begun preparations to send the oil to Mangalore refinery after the Central government cleared the commercial production of unrefined oil.

The sources said the oil would be transported to Mehesana in Gujarat in tankers first and would be sent to Mangalore then through pipelines. Tenders have already been floated for tanker companies which will transport the oil to Gujarat.

The selection procession for tanker company is on and the price of oil is expected to be fixed this month.

Sources said around 2-3 thousand barrel oil is expected to be produced everyday till the refinery is set up. ONGC has acquired the rights to buy the oil after the sanction to set up a refinery in Thar. According to government sources, the state government is expected to earn a revenue of Rs 100 crore this financial year through the current plan.

There will be production of 5-6 million tonne oil once ONGC's Barmer refinery is set up and the government will earn a revenue of Rs 2,000 crore through it.

UNI XC RRT MP ND1812