Government Signs MoU with Indian Oil Assigning Targets for 2007-08

Indian Oil Corporation Ltd. (IndianOil), the country's downstream oil major and a PSU under the Ministry of Petroleum and Natural Gas, has pressed the pedal on successful bidding for acquisition of E&P assets and crop plantation for Bio-diesel as part of its Memorandum of Understanding (MoU) with the Government of India for the year 2007-08. This is in line with its corporate objective of harnessing all viable opportunities, both national and international, to establish itself as a major player across the hydrocarbon value chain.

The MoU was signed here today by Shri M S Srinivasan, Secretary, Ministry of Petroleum and Natural Gas, on behalf of the Government of India, and Shri Sarthak Behuria, Chairman, IndianOil. In a manifestation of consistent outstanding performance according to laid-down criteria, IndianOil has been earning "Excellent" rating for the last 17 consecutive years. This year's MoU saw introduction of several other new key parameters such as city gas distribution in eastern sector, 10% increase in ethanol blending programme by volume, besides renewed focus on human resource development.

While financial performance (including gross sales, gross margin, net profit/net worth & gross profit/capital employed) and throughput of refinerie and product pipelines continue to be the key parameters, project implementation has been given due weightage in the context of the large capital investments planned by IndianOil. Five major projects to be monitored as part of the MoU are Panipat Refinery expansion from 12 to 15 million metric tonnes per annum (MMTPA), Naphtha Cracker at Panipat Refinery, augmentation of Mundra-Panipat crude oil pipeline to 9 MMTPA, Panipat-Jalandhar LPG pipeline, and the Hydrocracker project at Haldia Refinery.

Assessment of customer (direct, reseller, LPG and aviation) satisfaction has been targeted to maintain the Corporation's market leadership. In R&D, the focus will be on development and commercialization of product formulations. The major research projects to be monitored under the MoU include optimisation of Hydrogen-CNG blend ratio for best performance in automotive vehicles. Quality, safety and environment protection has been recognised as a key performance area.

The MoU also gives weightage to the performance of IndianOil subsidiaries -CPCL, BRPL and IBP.

Source : Press Information Bureau

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