OIL says its acquisition of NRL shares will ensure energy security of India

GUWAHATI: (OIL) on Tuesday stated its acquisition of shares of Numaligarh Refinery Ltd (NRL) in Assam will be a synergy for mutual development, ensure energy security of the nation, moreover partially mitigating the impact of volatility of crude value cycle.

Bharat Petroleum Corporation Ltd on March 25 offered its whole 61.5 per cent stake in NRL to a consortium of OIL and Engineers India and the Assam authorities for Rs 9,876 crore. OIL purchased a 54.16 per cent stake to boost its shareholding within the refinery to 80.16 per cent.

Addressing a press convention right here, OIL CMD and NRL Chairman Sushil Chandra Mishra stated that for OIL, the bulk acquisition of shares of NRL shouldn’t be solely a strategic enterprise resolution however one of the defining moments of its journey as an exploration and production (E&P) firm searching for vertical integration within the oil and gasoline worth chain.

The acquisition is prone to partially mitigate the impact of volatility of crude value cycle as a consequence of diversification of money flows, cut back earnings volatility and improve shareholder worth, stated Mishra.

At the identical time, NRL additionally now has grow to be half of an built-in energy firm and OIL and NRL collectively can create an amazing synergy that will assist each the entities to consolidate their enterprise plans and obtain sustainable development and success in all their endeavours, he stated.

With the huge refining capability enhancement challenge of NRL and exploration plans of OIL in current and new hydrocarbon blocks within the Northeast, the mix will have the ability to contribute immensely in making certain energy security of India and obtain the targets set by the Ministry of Petroleum and Natural Gas underneath North East Hydrocarbon Vision 2030, he stated.

OIL produces round 7-8 million metric customary cubic meters per day (MMSCMD) of pure gasoline (NG) within the North East area and provides one MMSCMD of it to NRL, Mishra stated.

OIL is at the moment working the Naharkatiya-Barauni crude pipeline in addition to Numaligarh-Siliguri Product Pipeline, he stated.

“The central government and the state government have laid huge emphasis on Act East Policy with a focus on creating long lasting business relations with the neighbouring countries on the North Eastern frontiers of our country. We will be able to play a pivotal role in contributing towards fulfilling this vision,” Mishra stated.

NRL Managing Director S Ok Barua, who was additionally current on the press convention, stated that the refinery is executing a cross-country crude pipeline of 1,630 km in size which will traverse by means of 5 states – Odisha, West Bengal, Jharkhand, Bihar and Assam.

The firm has already ventured into upstream oil exploration partnering OIL because the operator in two oil blocks (Namrup and West Mechaki) earmarking an funding of round Rs 90 crore within the two blocks, Barua stated.

OIL and NRL are additionally the promoters, holding 20 per cent shares every in Indradhanush Gas Grid Limited (IGGL) which will arrange an NG pipeline connecting all of the state capitals of the Northeastern area, he added.

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