North-East India's largest refiner Numaligarh Refinery Ltd on Thursday said it has firmed up plans to diversify into an exploration of crude oil within the next few months.
The Mini Ratna PSU's board has already given its nod for an initial investment of Rs 1.50 billion for the diversification and the company has sought approvals for commencing exploration in two blocks in Assam along with other partners.
"This is the first time NRL is getting into exploration. We have already received our board's approval for this and in view of initial risk involvement, they have earmarked Rs 1.50 billion for the initial exploration purposes," NRL Managing Director S K Barua told PTI in an interview here.
The company will pump in more money if the oil is found in the two blocks, he said. The company has identified Namrup block in Dibrugarh and Mesaki in Tinsukia districts for foraying into an exploration of crude. "By October this year, we are likely to get government approvals for the two blocks. Then by early next year, we will start exploration works," Barua said.
Asked about the other partners, he said Oil India has 70 percent stake in Namrup block, while NRL has 20 percent and private player Hindustan Oil Exploration Company (HOEC) owns 10 percent. "In Mesaki, Oil India holds 70 percent stake and NRL, Indian Oil Corporation (IOC) and Bharat Petroleum's wholly-owned subsidiary Bharat PetroResources Ltd (BPRL) own 10 percent each," Barua said.
Oil India will be the operator of the two blocks, he said adding that once oil is detected during the exploration process, drilling will be done. The NRL currently has one refinery in Golaghat district with an installed capacity of three million metric ton per annum (mmtpa) and is importing crude to make it fully operational due to a shortage of the raw material in Assam and northeast region.
The NRL is expanding its existing capacity to nine mmtpa at an investment of Rs 225.94 billion, which includes a 1,398 km crude oil pipeline from Paradip to Numaligarh and a 654 km product pipeline from Numaligarh to Siliguri.
