India ONGC exits Kakinada refinery, chem project

23 June 2008 23:16  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Oil and Natural Gas Corporation (ONGC) and its subsidiary Mangalore Refinery & Petrochemicals Limited (MRPL) said on Monday they will exit the refinery and petrochemicals project at Kakinada in Andhra Pradesh State.

ONGC said various issues had affected the steering of the Kakinada Refinery & Petrochemicals Limited (KRPL) project and Kakinada Special Economic Zone (KSEZ).

ONGC and MRPL said “it will not be appropriate to continue as equity partners in these two projects”.

ONGC did not elaborate on these issues, which were called as “various hiccups” by MRPL in a separate statement.  

According to industry sources, ONGC had planned to set up 15m tonnes/year refinery at Kakinada in the first phase. The refinery was to utilise imported crude and export its products. Some of the refinery streams were to be used feedstock for petrochemical units in the second phase.

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By: Naresh Minocha
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