Kuthalam (TN), May 11

Following the Government’s decision to compensate only IndianOil, Hindustan Petroleum and Bharat Petroleum for under recoveries, the Oil and Natural Gas Corporation has put its retail outlet plans (under the brand OVAL) on the backburner, said Mr R.S. Sharma, Chairman and Managing Director.

Originally, ONGC was permitted to have 1,100 retail stations, while its subsidiary MRPL (Mangalore Refinery and Petrochemicals Ltd) was approved 500 outlets. Currently, ONGC has only one outlet, which is run on a trial basis at Mangalore.

“I do not expect (oil) prices to come down. The production is not able to keep pace with demand and so prices are under tremendous pressure,” Mr Sharma said, while talking to a group of media persons on the sidelines of the helium extraction plant unveiling ceremony here.

He said the under recoveries from sale of petroleum products could touch Rs 1.8 lakh crore for fiscal 2008-09. On the15 million tonne-a-year Kakinada refinery plans, Mr Sharma said, “We are yet to take a final call. We would come out with a definitive statement in a couple of weeks.”

However, admitting that ONGC is prepared for tie-ups, he said, “a project of this magnitude cannot happen without tie-ups”.

Essar, Hindujas and Reliance have expressed interest in picking up stake in the project.

Taken from Business Line

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