Oil and Natural Gas Corp. (ONGC) may setup Oil refinery in barmer district of rajasthan as per initial reports from Petroleum minister Murli and media report. Earlier IOC has regretted its participation as equity partner in the proposed Barmer refinery due to the financial constraints faced by the corporation and now ONGC may brings some smile on face. Originally proposed in 2004-05, the project was declared economically unviable after the previous Vasundhara Raje government in Rajasthan did not agree to give fiscal incentive like interest free loan and sales tax exemption for the products to be produced at the 15 million tonnes a year unit. After Rajasthan chief minister Ashok Gehlot renewed the demand of setting up refinery project in the state last year, ONGC decided to do a feasibility study again considering the fiscal concession that the state government was willing to extend to the project.The refinery was proposed to turn the crude oil produced by Cairn India from its Barmer fields into products. However, considering the fact that the peak oil production from the Cairn’s Barmer field, where ONGC has 30% stake, was only 8.75 million tonnes, which may last a maximum of seven years, the refinery was considered unviable. AUnion petroleum minister Murli Deora said the state would surpass all records in the next few months in petro production and the revenue in the form of royalty is estimated to be to the tune of Rs 5,000 crore once the production achieves its peak in the next few years.
Rajasthan’s Barmer-Jaisalmer basin would be the largest source of petroleum reserves in the country contributing to 21% of the total domestic production, he said. With more and more discoveries, it has the potential to emerge as the petroleum hub, he said. The minister reiterated that the final decision on the demand for refinery would be taken after the S C Tripathi committee submits its report. He asked the government to be patient and the central government would take a decision at the earliest. This refinary will held industrial growth in rajasthan as well as employment opportunity.
Rajasthan’s Barmer-Jaisalmer basin would be the largest source of petroleum reserves in the country contributing to 21% of the total domestic production, he said. With more and more discoveries, it has the potential to emerge as the petroleum hub, he said. The minister reiterated that the final decision on the demand for refinery would be taken after the S C Tripathi committee submits its report. He asked the government to be patient and the central government would take a decision at the earliest. This refinary will held industrial growth in rajasthan as well as employment opportunity.
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