Indian business giants favoring the oil investments

Indian Oil Investment Oil & Natural Gas Corporation, an Indian oil giant, is planning to spend up to the equivolent of $4 billion USD on oil investments within the next few years.  In the succeeding years, the company will enhance the operation of power plant assets in Mehsana, Ahmadabad, Ankleshwar, Dahej and Hazira plants.  Anil Johari, the chief operating officer of Oil & Natural Gas Corporation, has asserted that oil investments will be used for revamping the production of oil & natural gas. Moreover, it will be utilized for ameliorating pipelines, expanding drilling operations, processing capacity and so on. Oil & Natural Gas Corporation has set up more than Rs 8,100 crore (India’s national currency, approx $2.1Bn USD ) for overhaul operations and is to be allocated for establishing pipelines over 200 kilometers. The largest crude oil producer of India would spend more than Rs 2,575 crore ($6.44Bn USD) for extracting value added products at Hazira and  focus to enhance their gas production capacities. It is also planning to lay a naphtha line to Dahej.

The Gujarat Maritime Board, controlled by the government of Gujarat, has signed a partnership & “understanding” agreement with several companies. In the Vibrant Gujarat Summit 2011, the understanding was signed and will cost  approximately Rs 110,000 crore ($27.5Bn USD), which would focus on fostering the cargo handling and the construction of shipyards. Gujarat Maritime Board signed more than 97 understandings with several companies to deal with liquefied natural gas, crude oil, petrochemicals, oil investment ventures, and the expansion and development of its Greenfield ports.  The vice chairperson and the chief operating officer of Gujarat Maritime Board, Pankaj Kumar, asserted that the ports under the Gujarat Maritime Board is operating heavy traffic, more than 270 million tons per year and the traffic is expected to reach more than 500 million tons by 2015.

Pankaj Kumar also mentioned that the shipbuilding and ship repairing yards have also attracted a great deal of investments from developers. The larger managers have planned to set up a magnificent project along the long coastal line of Gujarat.  Currently these ship building yards have attracted more than INR 31,000 crore ($7.75Bn USD) of memorandums of understanding and the investments are expected to increase down the road. The Adani Group, leading energy giant of India has invested more than 18,000 crore INR ($4.5Bn USD) for expanding the north and the south port of Mundra. Business behemoth Essar Group has signed a couple of memorandum of understanding dedicated to increasing the current deep water jetty at Hazira. This contract is expected to be worth around INR 8,100 crores.

- Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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