Hindustan Petroleum, OIL eye cooperation

Two of India’s state-owned oil and gas companies have signed a memorandum of understanding for cooperation in exploration and production, refining, pipelines, and other activities.

The companies are Hindustan Petroleum Corp. Ltd., which is mainly a refiner, and Oil India Ltd., which is mainly a producer.

HPCL, Mumbai, operates about 10% of India’s refining capacity with a 130,000-b/d refinery at Mumbai and a 166,000-b/d refinery at Vishakapatnam on India’s east coast. It holds a 16.95% interest in Mangalore Refinery & Petrochemicals Ltd., which is controlled by Oil & Natural Gas Corp., India’s dominant state-owned oil and gas company, and operates a 236,000 b/d at Mangalore on India’s southwestern coast.

A joint venture of HPCL and Mittal Energy Investments Pte. Ltd. of Singapore, is building the 180,000-b/d Guru Gobind Singh refinery near Bhatinda in the northern Indian state of Punjab, completion of which is due soon.

HPCL began expanding into upstream operations in 2005 and now holds exploratory interests in India, Australia, Oman, and Egypt.

OIL, based in Noida near New Delhi, produces about 72,000 b/d of oil, all in northeastern India, and 234 MMcfd of gas, mostly in the same region. It also operates 1,432 miles of crude oil pipeline in India and has non-Indian interests in Africa, South America, and the Middle East.

OIL also owns and operates 13 drilling rigs and 14 workover rigs and performs production and pipeline services.

OIL holds a 26% stake in the 60,000 b/d Numaligarth refinery in Assam, controlling interest of which is owned by state-owned Bharat Petroleum Corp. Ltd.

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