ONGC scrips rise on unveiling of ambitious plans

Mumbai, June 18 (UNI) State run oil exploration major Oil and Natural Gas Corporation (ONGC) is keen on setting up a refinery at Kakinada in Karnataka, after receiving Cabinet approval to buy a 33 per cent stake in a deep-water gas field in Egypt from Royal Dutch Shell Plc.

Today, the company's scrip advanced by 0.31 per cent to settle at Rs 885.80 on the premier Bombay Stock Exchange (BSE).

Earlier, a 7.5-million-tonne (mt) refinery had been contemplated as part of the proposed special economic zone, but as it was found to be commercially unviable. The refinery capacity had to be doubled to achieve viability for the project. From the beginning, ONGC had always insisted on the economic viability of the project. Even in the memorandum of understanding (MoU) signed with the state government it is specifically stated, ONGC chairman and managing director R S Sharma said in a statement.

Discussions were on with the other partners, such as the Kakinada Seaports Ltd, to explore ways and means to achieve economic viability and make the project a reality, he revealed and pointed out that since 2001 the company had taken up as many as 26 projects in 15 countries.

Regarding the performance of the Rajahmundry asset comprising the Krishna-Godavari basin, he said tenders had been called for increasing the capacity of the Tatipaka mini refinery in the basin.

Its current capacity of 66,000 tonnes would be doubled, he said and disclosed that the Rajahmundry asset had produced 2,51,321 tonnes of crude and 1,525 MMSCM of natural gas during 2006-07.

''Our gas production has suffered as an Australian company, Cluff, had backed out of a venture in the region. But we are exploring ways and means to address the problem,'' he added.

UNI