ONGC to look at HPCL, MRPL merger post-June 2021

Team Udayavani, Oct 9, 2020, 6:46 PM IST

New Delhi: State-owned Oil and Natural Gas Corp (ONGC) is likely to look at merging its two oil refining subsidiaries, Hindustan Petroleum Corp Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL), post-June 2021, its chairman Shashi Shanker said on Friday.

ONGC, India’s biggest oil and gas producer, in 2018 completed the acquisition of HPCL for Rs 36,915 crore. After this takeover, it has two refining subsidiaries — HPCL and MRPL.

At a news conference post company’s annual general meeting, Shanker said HPCL sells more fuel than it actually produces at its refineries. On the other hand, MRPL is a pure oil refining company. “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,” he said.

But before this merger happens, ONGC is looking at merging ONGC Mangalore Petrochemicals Ltd (OMPL) with MRPL, he said. MRPL holds 51 percent stake in OMPL, while ONGC has 48.9 per cent. MRPL is to acquire ONGC’s shareholding in the company.

“We have received approval from the Petroleum Ministry for the merger and we hope to complete this by June 2021. Post that we will look at the merger of MRPL with HPCL,” he said. ONGC holds a 71.63 per cent stake in MRPL. It holds a 51.11 per cent stake in HPCL.

HPCL currently holds a 16.96 per cent stake in MRPL. “The first stage is the merger of OMPL with MRPL and the merger with HPCL will follow that,” he said.

HPCL Chairman and Managing Director Mukesh Kumar Surana have been since January 2018 talking of the synergy MRPL acquisition will bring to the company. For one, HPCL sells more petroleum products than it produces, and bringing MRPL’s 15 million tonnes a year refinery under the fold would help bridge the shortfall. Also, there can be synergies in crude oil procurement as well as in optimizing refinery set-up, he has been saying. MRPL is not a new company for HPCL. It was an HPCL company before ONGC in 2003 acquired joint venture partner A V Birla Group’s stake.

HPCL has 23.8 million tonnes of annual oil refining capacity. Together with 15 million tonnes refinery of MRPL, it will become India’s second-biggest state-owned oil refiner after Indian Oil Corp (IOC). Overall, it will become the third-biggest refiner behind IOC and Reliance Industries.

MRPL will be the third refinery of HPCL, which already has units at Mumbai and Visakhapatnam.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Dharwad: Sexual exploitation of students; FIR against Principal, college president, lecturer

Cong leader challenges BJP to name Yediyurappa as CM face

Duo arrested for selling tiger nails, 8 nails worth Rs.3.50 lakhs recovered

Common mobile chargers in India: Govt to set up expert groups to explore new changes

Sexual harassment of law student: Chargesheet against lawyer filed

Gyanvapi case: Petitioner’s husband gets threat calls from Pakistan

Suspicious boat with weapons found off Raigad coast in Maha

Related Articles More

Rupee falls 23 paise to 79.68 against US Dollar in early trade

Petrol, diesel demand to grow: India’s oil requirement to rise 7.7% in 2022, says OPEC

Chinese factories close as drought hurts hydropower

SBI launches its first dedicated branch for start-ups in Bengaluru

Amul, Mother Dairy to hike milk prices by Rs 2 per litre from Wednesday


NEWS BULLETIN 18-08-2022

Viral video at Shivamogga

protest against siddaramiah at kodagu

Why young men and women mostly become drug addicts?

NEWS BULLETIN 17-08-2022

Latest Additions

Puttur: Illegal transportation of cows; three arrested

Cong postpones mega rally against price rise in Delhi to Sep 4

UP: CM Adityanath expresses displeasure over delay in development projects

K’taka Waqf board demands permission to celebrate Eid Milad on lines of Ganesh festival in schools

SC orders status quo, says Delhi HC-appointed CoA will not take over affairs of IOA

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.