Saudi Aramco, the world's largest producer and exporter of crude, may invest about Rs 3,000 crore to pick up 10 percent stake in Indian Oil Corporation (IOC) upcoming refinery at Paradip. The Saudi Aramco-IOC deal may be clinched later this week during prime minister Manmohan Sing¬h's three-day visit to Saudi Arabia beginning this Saturday. Petroleum minister Murli Deora and top honchos from country's upstream and oil marketing companies will be part of prime minister's delegation.India will offer up to 10 per cent equity stake, amounting close to Rs 3,000 crore in the Paradip project to Saudi Arabia's national oil company, said a petroleum ministry official.
"We have already sent our proposal to them. The deal is likely to be sealed when petroleum minister visits the country next week," the official said. Saudi Aramco is interested in both refining and distribution of petroleum products. But India's offer would be limited to participation in refining sector, he added.Saudi Aramco did not respond to an e-mail query sent by Financial Chronicle seeking timelines for concluding the deal with IOC. S V Narasimhan, director (finance) of IOC did not respond to repeated calls made by FC.Sarthak Behuria, chairman at IOC had earlier said the Paradip refinery would be commissioned in March 2012. "Unless we commission it by March 2012, we will not be eligible for the tax holiday under government rules," Behuria added.
Saudi Aramco's participation in IOC project will be good for both not only from financing perspective, but it will enhance perspective for sourcing of products and equipment range, said Arvind Mahajan, executive director of KPMG.In addition, Aramco Overseas Company (AOC), the subsidiary of Saudi Aramco, has recently opened its office in Gurgaon. "It is primarily a regional sourcing office, with possible transformation into a full procurement office in future," said Sultan N Al-Ghadery, manager of purchasing, logistics & contracting for Europe and Far East at AOC."Saudi Aramco is conducting business with major Indian manufacturers for several years, mainly handled by our headquarters in Dhahran, Saudi Arabia," Al-Ghadery said.In addition, India will also offer participation in the proposed ONGC's petrochemical projects in Mangalore and Dahej.
Siddhartha P Saikia, New Delhi.....
Financial Chronicle | Mint | Hindustan Times |
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A one-day Human Resource Conclave-2010 was organised by Pipelines Division of IndianOil in Noida on February 20, 2010. The Conference was inaugurated by Mr. K.K. Jha, Director (Pipelines). Eminent HR practitioners of leading organisations in and around Noida participated in the Conclave. Delivering the inaugural address Mr. Jha, said that the Human Resource (HR) function around the world continues to change as it shifts its focus from enhancing internal operations to maximizing contribution to the organisation's business performance. IndianOil has been implementing some of the best HR practices disseminating it across the length and breadth of the nation.

Business Standard, Kolkata, February 24, 2010

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Budget takes on greenish hue
...The Railway Budget had a greenish hue as the Railway Minister, Ms Mamata Banerjee, announced a slew of measures to reduce the carbon footprint.The Railways proposes to install a GPS-based optimised driver guidance system on diesel locomotives, which will reduce fuel consumption by 8-10 per cent. "We will work closely with the Prime Minister's National Action Plan on Climate Change and the Bureau of Energy Efficiency," said Ms Banerjee.
Transportation is one of key areas that India will focus on, as the recently established expert committee under former Planning Commission member Mr Kirit Parikh charts a road map to lower the country's carbon emissions.There was a proposal to set up 10 Rail Eco-parks to conserve, protect and promote Railways' wetland and forest areas, Ms Banerjee said. An eco-park in Naopara, West Bengal, was recently inaugurated. Ms Banerjee said that the Railways also proposed to introduce at least 10 rakes with green toilets.It has already distributed 2.6 million compact fluorescent lamps as part of its initiatives to tackle climate change.

HINDU BUSINESS line NEWSPAPER. Bureau...New Delhi, Feb. 24

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Cairn's Barmer-Jamnagar pipeline to be commissioned in March

Cairn India's 670 km-long crude carrier pipeline, the longest in its category anywhere in the world, is nearing completion and will be commissioned next month, company sources said.

The pipeline will carry crude oil for refining from Banner in Rajasthan to Jamnagar in Gujarat, and beyond. Until now, Cairn India has been evacuating the Rajasthan crude using tankers.

In the first year, Reliance Industries Ltd (RIL) is expected to refine 1.4 million barrels of the Rajasthan crude received from Cairn, which is likely to increase daily production from 20,000 to 50,000 barrels. Earlier, Cairn India had sent nearly two lakh barrels to Mangalore Refinery and Petrochemicals Ltd (MRPL), via the sea route from Kandla Port.

New Deals

Having concluded commercial terms with RIL, MRPL and IndianOil, Cairn is likely to tie up with other refiners for additional off-take. Construction on the pipeline project, which envisaged evacuation of crude oil to refiners including RIL, MRPL and IndianOil, had commenced in July 2008. Of the total 670-km length of the pipeline from Mangala Processing Terminal (MPT) to Bhogat (Jamnagar), the 590-km stretch of the pipeline, up to Salaya, was completed in December 2009 and work on the remaining 80 km is expected to be completed in March, company sources told Business Line here on Tuesday.

Hydro-testing is in progress to facilitate completion and commissioning of the pipeline, sources added. The crude oil pipeline section from MPT to Radhanpur (Gujarat) is in advanced stages of commissioning.

Construction activity is also nearing completion at the Viramgam Terminal location, on all the 33, above - ground installation stations, and the Salaya distribution hub.

Unique Feature

The pipeline is capable of transporting the entire produce of Mangala oilfield, the largest onshore oil find in 20 years, discovered in January 2004, where Cairn now has around 50 wells. Together, the Mangala, Bhagyam and Aishwarya oilfields have recoverable oil reserves and resources of nearly one billion barrels.

The Rajasthan Government is set to earn a royalty of Rs 36,000.crore ($7.6.billion), over the life of the project. The unique feature of Cairn India's pipeline is that it is the world's longest, continuously heated and insulated pipeline to evacuate crude from the Mangala field. The export pipeline route from source at the MPT to Bhogat, passes through eight districts and more than 250 villages in Rajasthan and Gujarat. At present, the longest pipelines using this technology are in Russia (160 km) and Indonesia (115 km).

In order to ensure the flow of the Rajasthan crude, which is waxy in nature, temperature will have to be continuously maintained above 65 degrees centigrade.

This resulted in customising the existing heating technology into the Skin Effect Heat Management System (SEHMS), an innovative system by far the longest of its kind in the world today.

By Virendra Pandit , Business Line, New Delhi, February 24, 2010

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All profitable PSUs to be listed on bourses: Prez

The Government on Monday expressed its resolve to divest stake in PSUs and said that all profitable Public Sector Enterprises would be listed on the stock exchanges with at least 10 per cent public holding.

"For providing the common man an opportunity to share in the growth of the central public sector enterprises, the government has decided to list profitable companies on the stock exchanges through a public offer of at least 10 per cent of the equity," President Mrs. Pratibha Patil said in her address to the joint sitting of both the Houses of Parliament.

Until now, the UPA Government in its second term has listed two energy PSUs-NHPC and Oil India-on the stock exchanges. Along with listing profitable public sector companies, the Government has also decided to increase public holding in listed profitable companies to at least 10 per cent.

At present, the public holdings in these companies range from 0.67 per cent in MMTC to about 9.6 per cent in Engineers India.  The decision makes around 60 PSUs eligible for disinvestment.
Pioneer, New Delhi, February 23, 2010

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