The buzz of consolidation in the oil and gas sector gets louder with several possibilities like potential de-listing of Hindustan Petroleum Corporation Ltd (HPCL) post-merger with Oil and Natural Gas Corporation (ONGC) or a possible merger of Mangalore Refinery and Petrochemicals Limited (MRPL) into HPCL.
In an interview to CNBC-TV18, MK Surana, CMD of HPCL spoke about the latest happenings in his company and sector.
“Merger of HPCL and MRPL brings a lot of synergies in the system because they are independent refining companies and we have got the shortage of the refining capacities. So that definitely makes a sense,” he said.
If there is a straight buyout, then HPCL and MRPL continue to function the way they are because the way of operations of the two companies is different, said Surana.
He further mentioned that growth is picking up as well as he expects the demand to pick up with the onset of the monsoon.
Pick up in two-wheeler segment augurs well for the oil industry, he added.
Speaking about gross refining margins (GRMs), he said that the crude prices are in a downtrend and if there is no volatility in the system and the low crude prices continues then the GRMs should be maintained at the last year’s level.
Things with respect to consolidation are yet to emerge, once it gets finalised then we will definitely let you know, he said.
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