Crude oil reserve capacity to reach 5MT by 2010: Srinivasan

New Delhi, Jan 5 (UNI) The government today said it expects to double its proposed strategic crude oil reserve capacity to five million tonnes by 2010 by making its oil PSUs more efficient.

In addition, the country will also be increasing its liquefied natural gas (LNG) imports to 20 million tonnes a year in next four to five years from the present nine million tonnes, Petroleum Secretary M S Srinivasn told reporters here in a conference.

On this occasion, Mr Srinivasan came harshly on state-run Oil and Natural Gas Corporation (ONGC), country's largest oil producer, for not doing enough for the energy security of the country.

He said that a letter has been issued to ONGC asking for low production of crude oil. If the company does not take any initiative in this direction, Government will come out with a directive.

''ONGC is maintaining a recovery rate at 28-30 per cent while global oil majors were reaching 40-45 per cent recovery from the fields. Norway is ready to attain a benchmark level of 65 per cent recovery from the fields,'' he said, adding that other oil marketing companies including IOC, BPCL and HPCL are building duplicate and unnecessary assets in the name of expansion.

There is tremendous scope for cost-cutting in state-owned oil companies, he added.

The secretary pointed out the oil companies are inefficient, which needs to be tackled. The oil companies should collaborate with companies abroad to acquire the modern equipments for oil production.

He also warned that about 60 per cent exploration will be exhausted by 2012 and the companies might witness considerable loss in its market share by 2010.

Emphasising on the scarcity of crude oil, the Secretary emphasised to diversify the crude oil basket by mergers and acquistions abroad.

''We want ONGC to focus on its core upstream business and operating it in more efficient and effective manner,'' Mr Srinivasan said.

UNI