The chairman of India's state-owned Oil and Natural Gas Corp.(ONGC) Shashi Shanker said on Oct.8 his company would look to merge its two refining subsidiaries,Hindustan Petroleum Corp.Ltd.(HPCL) and Mangalore Refinery and Petrochemicals Ltd.(MRPL),sometime after next June.According to the ONGC chairman HPCL sells more fuels than it actually produces at its refineries,which have a combined capacity of 23.8MM mt/y(481K b/d),while MRPL just produces fuel,presenting a lot of potential synergies between the two firms as it would allow HPCL to source fuels from MRPL's 15.0MM mt/y(303K b/d) of refining capacity and not have to involve a third party.According to the ONGC chairman,"There are a lot of synergies in the merger of MRPL with HPCL.For one,it will balance the fuel marketed by HPCL with the refining capacity,eliminating the need to buy fuel from other companies."Other potential synergies include crude oil procurement as well optimizing refinery set-up.
展开▼
