ONGC and BPCL to Invest Up to ₹1 Lakh Crore in New 12 MMTPA Refineries

ONGC and BPCL are both planning to establish their own 12 mmtpa oil refineries, with an estimated cost ranging from ₹70,000 crore to ₹1 lakh crore. BPCL has decided to build its refinery in Andhra Pradesh, while ONGC is considering either Gujarat or Prayagraj in Uttar Pradesh.

This marks the inaugural occurrence of ONGC, an oil exploration company, establishing a refinery. Engineers India is currently conducting a pre-feasibility study for the businesses. Both ONGC and BPCL, government-owned companies, are seeking overseas collaborators for their upcoming petroleum refineries.

There is an ongoing conversation with Saudi Arabia. The state-owned energy company of a country in West Asia, Saudi Aramco, had previously agreed to collaborate on a refinery project on the west coast of Maharashtra. However, the project has not started yet.

Earlier mentioned individuals reported that in the previous month, Pankaj Jain, the petroleum secretary, along with executives from ONGC and BPCL, had a meeting with Amin Nasser, Aramco's CEO, and Mohammed Al Qahtani, the president of downstream, at Aramco's headquarters in Dahran.

"The government wants state-run energy companies to set up refineries in three locations - Andhra Pradesh, Uttar Pradesh, and Gujarat. Since the investment will be humungous - to the tune of around ₹1 lakh crore each - companies will necessarily need an international partner," said an official aware of the discussions.