Raha: Upbeat

Hyderabad, Sept. 3: The state-run ONGC will set up an export-oriented refinery at Kakinada special economic zone to exploit the oil and gas reserves in the KG basin. The proposed refinery, with a capacity of 7.5 million tonnes, will be set up at an investment of Rs 5,500 crore.

ONGC chairman Subir Raha and state chief minister Y.S. Rajasekhara Reddy today signed a memorandum of understanding to this effect.

The chief minister told reporters that Mangalore Refinery & Petrochemicals would hold a 26 per cent stake in the refinery project, ONGC would have a 20 per cent stake, Andhra Pradesh Industrial Infrastructure Corporation?s share would be 3 per cent and Infrastructure Leasing & Finance Services would invest in the remaining 51 per cent.

The shareholding pattern of the special economic zone is ? MRPL (20 per cent), ONGC (20 per cent), APIIC (3 per cent ), ILFS and Kakinada Sea Port Ltd split the remaining 57 per cent. ONGC chairman Subir Raha said he was trying to acquire a ready-built refinery from Europe to speed up its implementation. ?We have approached an energy consultancy firm Pepco to scout for the European firm for us,? he said. Raha said the ground-breaking work for the refinery would begin by the year-end and the project would be completed in another 40 months. He said ONGC has taken up large plantation of Jethropa on the east coast to promote bio-diesel and ethonol production.

?Kakinada will become a nodal on the east coast for ONGC?s all gas and oil finds in the KG basin,? Raha said. Raha informed that by April next year, ONGC would start production from their first deep water gas find in G-1-GS-50 well.

?This is the first gas well which will operate on digitised mechanism,? he said.