Oil and Natural Gas Corporation is weighing the possibility of merging Mangalore Refinery and Petrochemicals Ltd with itself even as it has laid out capex plans of over Rs 500 crore (Rs 5 billion) for the refinery, including product upgrade to meet the Euro III norms.
"We are weighing various options but are yet to take a final view on the merger of the refinery, which turned black after losses since its inception," ONGC chairman and managing director Subir Raha told newspersons in New Delhi.
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There are various views which are being considered, he said when asked if ONGC was considering the merger of the refinery with it.
There was no proposal for expanding the refinery capacity as there was surplus capacity in the country, but production would be increased through de-bottlenecking, Raha said, adding the refinery was operated at around 10 million metric tonnes (MMT) in 2003-04 against the rated capacity of 9.69 MMT.
In March 2004, the refinery processed about 1.04 MMT which is equivalent to the annualised capacity of 12.5 MMT, he said, adding the target for the current fiscal was to operate the refinery at about 11 MMT.
The crude processed by MRPL from the Mumbai High oilfields of ONGC would be doubled to 4.5 MMT in the current fiscal from 2.13 MMT in 2003-04, he said.
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