The Hindu Business Line : HPCL to take part in NELP next round

Mr M.B. Lal, Chairman and Managing Director, Hindustan Petroleum Corporation Ltd (right), and Mr D.S. Mathur, Director-Refineries, at a press conference in Mumbai. — Paul Noronha

Mumbai , Sept. 10

HINDUSTAN Petroleum Corporation Ltd will bid in the next NELP round and will also bid for ONGC's offshore marginal fields.

Mr M.B. Lal, Chairman and Managing Director, HPCL, told reporters that the oil marketing company would go ahead with its plans for expanding presence in exploration and production.

He said the company had received "no direct communication" from the Ministry of Petroleum asking oil companies to focus only on their core business.

The company is also planning to set up wind and bio-diesel-fired power projects. Mr Lal said HPCL continues to look for opportunities to pick up a stake in natural gas projects.

Although details on the company's "broad-based" agreement with Shell India remained hazy, Mr Lal stressed that HPCL was likely to pick up a stake in Indian Oil Corporation's Panipat refinery as part of its agreement with the corporation.

He said the company would not put up its own petrochemical project although a stake in IOC's 6 million-tonne Panipat refinery would ensure HPCL a presence through IOC's petrochemical project being set up at Panipat.

HPCL continues to talk to the Punjab Government for sops to set up its proposed 6 million tonne Bhatinda refinery.

Mr Lal also said HPCL will not sell its stake in Mangalore Refinery and Petrochemicals Ltd.

"We have set up the (MRPL) project. And, hold a stake in the Mangalore-Hasan-Bangalore pipeline project. We have synergies with MRPL, which supplies petroleum projects for the South Indian market. Also, the LPG import terminal at Mangalore is the largest in the country," Mr Lal said.

He said the Government might have to consider further duty cuts if the recent volatility in global crude oil prices continues.

He said refinery margins for the September quarter would roughly be lower at around $5 per barrel for its Trombay and Visakh refineries, mostly because of the first round of duty cuts announced by the Government last month.

HPCL will complete expansion of capacity at both its refineries from the present 12 million tonne to 16.2 million tonne by 2006.