| In a separate proposal, Shell India Chairman Vikram Singh Mehta said the company was looking at setting up a petroleum refinery in the country. "Clearly, India is a priority. | |
| There is no reason to say we won't be looking at having a manufacturing asset either on our own or through a joint venture," Mehta told a conference today. | |
| ONGC has submitted its proposal for a refinery in Rajasthan along with the UK-based Cairn Energy which struck oil in block RJ/ON-90/1 in the Barmer district of the state. ONGC holds 30 per cent participatory interest in the block, which was originally leased to it prior to the launch of the new exploration and licensing policy. | |
| Petroleum ministry officials told Business Standard on the sidelines of an industry meet that the government had the right to lift crude oil from the block under a production-sharing agreement. | |
| Whoever was granted the right would be able to set up a refinery, they added. Till the time a refinery came up, ONGC-Cairn said it would set up a small distillation unit to process crude oil, the officials said. | |
| Cairn announced six oil discoveries in 2004 which included three northern fields of Mangala, Aishwariya and Bhagyam. Cairn has estimated total reserves in these three fields at 500 million barrels. Cairn Energy hopes to start crude oil production from its southern fields in the block by the middle of 2006. | |
| IOC and Hindustan Petroleum have submitted separate proposals. The three proposals are looking at setting up a refinery with an annual crude oil processing capacity of 4-5 million tonnes. This can translate into an investment of Rs 4,000-5,000 crore. | |
| In his presentation to a meeting of Petroleum Federation of India, Cairn Energy Director (Exploration) Mike Watts said in the last 18 months his company had drilled 79 wells in the Barmer area. | |
| The company will now focus on exploration in the foothills in Nepal and Bihar.
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