Power majors bid for MRPL project

Five global engineering and power equipment construction majors are in the race to bag the Rs 8,000 crore (Rs 80 billion) expansion work of the Mangalore Refinery and Petrochemicals, a subsidiary of the Oil and Natural Gas Corporation.

The bids for awarding the contract will open in August and the qualified bidders are Foster Wheeler, ABB Lumus, UOP, Axens and Shaw Stone Webster, said R Rajamani, managing director, MRPL.

MRPL is expanding its capacity from the existing 9.69 MMTPA (mega million tonnes per annum) to 15 MMTPA. The expansion would help the refinery produce high grade diesel and petrol, conforming to the higher emission standards like Euro IV. After the upgrade, the refinery would be able to process heavy and sour grades of crude, helping the refiner achieve higher margins.

On behalf of MRPL, Engineers India had invited global tenders for the project in a phased manner - in December 2006 and March 2007 - for the engineering, procurement, construction and commissioning (EPCC-1 package) for a 3 million TPA capacity crude and vacuum distillation unit, co-generation power plant, site grading, construction of roads, drains and compound wall.

"There are four licenses to be awarded, and in the first part, design and engineering work has to be completed. Then, fabrication and other works will begin and we hope to complete the expansion by 2010," said Rajamani.

During FY07, MRPL had a throughput of 12.531 MMTPA, up by 3.42 per cent from 12.117 MMT, with a capacity utilisation of 129 per cent. Its turnover stood at Rs 32,376 crore (Rs 323.76 billion), with a net profit of Rs 525 crore (RS 5.25 billion).

The refinery achieved the highest-ever safety performance of 1,247 reportable accident free days till May 10, 2007, surpassing its previous record of 706 days, said company sources.

ONGC acquired MRPL, a loss making entity, in 2002 by buying out the shares of Aditya Birla group, and turned the company around in a few years.