Tripathi committee recommended a 4.5-6 million tonne (mt) refinery in Barmen

Tripathi panel moots refinery in Rajasthan

The Tripathi committee, appointed by the Rajasthan Government to study
future prospects of oil and gas sector in the State, has recommended a
4.5-6 million tonne (mt) refinery in Barmen.

"The committee, headed by the former Petroleum Secretary, Mr S.C.
Tripathi, on Wednesday presented the report to the Chief Minister, Mr.
Ashok Gehlot, recommending a 4.5-6 mt refinery in the initial stage,
which can later be expanded to 9-12 mt," an official spokesperson
said.

The report, 'The utilisation of hydrocarbon resource in Rajasthan with
special emphasis to Rajasthan refinery project1, said that in the last
five years, the country's refining capacity has expanded considerably
and there is uncertainty about prices of crude and refinery products.

CONVERSION UNITS

Higher percentage of residue in Banner crude requires higher capacity
of conversion units, which increases capital as well as operating
costs.

"Because of these factors, the State Government should consider
supporting the promoter of refinery in Banner," the report said,
suggesting the Government to market tie-up with oil marketing
companies and equity participation to the extent of 26 per cent of the
project.

ASSESSMENT OF RESOURCES

"The committee studied the anticipated production profile of
Cairn/ONCG (Banner Block). The earlier estimate made by Cairn India
was 480 mt crude oil, which has now been increased to 900 mt, while
3-6 billion cubic metres gas is also available in the Banner block,"
the spokesperson said.

According to the report, 25 mt of heavy oil and 53 mt of bitumen have
been assessed in the Bikaner-Nagaur basin while the State's lignite
resources have been assessed at 4,909.9 mt in 46 locations.
Business Line, New Delhi, April 15, 2010