India is on its way to becoming the world's refiner - apparent by the unveiling of six deals-in-the-making in the last seven days as global players eye stake in India and domestic firms get invited overseas to set up refineries.
Investments needed for setting up refineries in India is much lower than most countries, as is the cost of operation. Cheap labour in India ensures competitive construction costs. India is logistically well placed for refineries as it is a major market for crude oil and petroleum products and is in close proximity to major demand centres such as China. On the supply side, crude oil from West Asia can easily be brought to refineries in India. Global oil majors are also keen on India because procedures to set up refineries in Europe and USA are getting more stringent due to environmental concerns
Saudi Aramco has expressed an interest in acquiring 265 stake in IOC's Paradeep refinery.
L N Mittal is reported to be in talks with Hindustan Petroleum Corporation (HPCL) to pick up a stake in the 9 million tpa upcoming refinery in Bhatinda.
HPCL is also likely to offer 50% in a new 9 million ton refinery in Vishakapatnam to French company Total, in collaboration with Kuwait Petroleum.
Kuwait Petroleum has also been offered equity participation in IOC's Paradeep refinery and the naphtha cracker plant in Panipat.
Venezuelan state-owned company Petroleos de Venezuela is also interested in a stake in Mangalore Refinery and Petrochemicals.
22-Jan-07 
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