The Hindu Business Line : ONGC's first parcel from Sakhalin to arrive in Nov

Addressing presspersons here after attending the 18th annual general meeting of Mangalore Refinery and Petrochemicals Ltd (MRPL) in Mangalore on Saturday, Mr R.S. Sharma, Chairman of MRPL and ONGC, said pilot production had begun at Sakhalin and commercial production would start soon.

Around 90,000 tonnes of crude parcel from Sakhalin will be brought to MRPL for processing in the second week of November.

"I have requested the Union Petroleum Minister to request the Prime Minister to be present to receive the crude at Mangalore during that time. The function will be conducted along with the foundation stone laying ceremony for the petrochemical complex of ONGC," he said.

An investment of $2.8 billion has been made in this project. "This is the single largest investment by any entity outside India. Now, we are getting the fruits of that investment," he said.

It may be mentioned here that the first overseas crude of ONGC from Sudan, was brought to Mangalore three years ago.

LNG TERMINAL

Asked about the progress in the establishment of LNG terminal in Mangalore Special Economic Zone, he said the company had made ambitious investment plans in the LNG terminal during the last AGM itself.

Stating that sourcing of LNG was a major factor in the current situation, he said: "We are aware of the constraints. But whatever may be there, I tell you that ONGC-MRPL management stands committed to work in this direction. We are making our own arrangements to bring LNG to Mangalore."

However, he did not give details on the arrangements "because of strategic reasons at this moment."

RETAIL PLANS

To a query on the MRPL's plans on retail foray, he said there has been unprecedented increase in the prices of oil after the company got licences for setting up retail outlets.

Stating that now oil prices are coming down, he said, "Retail outlet business will have growth potential. I will not like to give any categorical commitment at this stage." Though the management board has taken certain decisions, there are independent directors and government-nominated directors on the board.

"So without getting any consensus approach on this, I will not give any policy statement on this." However, he agreed that there is a potential for the oil retail business.

Earlier addressing the AGM, he said that in spite of oil refining industry in the country passing through very peculiar financial difficulties and formidable market challenges, the company has been able to earn a profit after tax of Rs 371.61 crore, without any extraordinary income.

Taking an overall prudent view, the directors of the company have decided to recommend a dividend of seven per cent on the equity shares, in the long-term interests of the company and its stakeholders, he said.

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ONGC's first parcel from Sakhalin to arrive in Nov