Oil India Limited now holds 80.16% stake in Numaligarh Refinery, often called Assam Accord Refinery as its establishment was one of the terms of the 1985 Assam Accord.
A ‘local’ oil exploration chief has acquired more than 80% of the stakes in the Assam refinery which sprouted in an anti-foreign movement more than 40 years ago.
The country’s second-largest public hydrocarbon exploration and production corporation Oil India Limited (OIL) said the acquisition of the majority shares of Numaligarh Refinery Limited (NRL) was a strategic business decision to mitigate the impact of volatility of the crude oil price cycle is.
On 25 March, OIL, a consortium of Engineers India Limited and the Government of Assam, bought the entire 61.5% stake of Bharat Petroleum Corporation Limited in NRL. The exploration head bought 54.16% bets to increase its stake in the refinery to 80.16%.
Formed in 1959, OIL is considered to be a ‘local’ organization as Duliajan in eastern Assam has sentiments attached to its base. Many in Assam are more passionate about the NRL, often referred to as the Assam Accord Refinery because it was one of the terms of the 1985 agreement to dismiss “illegal immigrants” from the state for six years. The Assam movement was ended.
Officials said that OIL’s takeover of NRL was displeased in Assam after the decision to disinvest BPCL two years ago. The decision was opposed by the All Assam Students Union, insisting that privatization of the NRL would be an insult to the 855 people who had lost their lives during the Assam Movement.
Sushil Chandra Mishra, chairman and managing director of OIL and president of NRL, told reporters that the majority acquisition of NRL is one of the defining moments of OIL’s corporate journey in search of vertical integration in the oil and gas value chain. The evening of 13 April.
“NRL has now become part of an integrated energy company and together OIL-NRL can create a tremendous synergy that will help both the institutions strengthen their business plans and achieve sustainable growth and success in all their endeavors.” They said.
ORL has been the primary source of crude oil for NRL, which supplies 67% of the requirement of the refinery. OIL also supplies 1 million metric cubic meters per day to the refinery, out of 7-8 MMSCMD of natural gas produced in the Northeast.
NRL managing director SK Barua said the refinery has opted for a “smart configuration” rather than a planned expansion of ₹ 28,000-crore to move petrochemical products.
“We are running a 1,630-km cross-country crude pipeline through Odisha, West Bengal, Jharkhand, Bihar and Assam. We have also worked to explore the development of value added food-grade waxes, food-grade hexane and other niche chemicals such as furfural alcohol and biodegradable plastics.
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