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Essar Oil to expand its exploration and production facilities

12 Jul 2011 Evaluate

Essar Oil is planning to expand its exploration and production facilities. The company is mulling to increase the existing capacity of Vadinar refinery from 280,000 barrels per day (bpd) to 360,000 bpd. The company is investing $1.8 billion in the first phase of expansion at its Vadinar refinery which processed 3.62 million tonnes of crude oil in the first quarter. Post-revamp and expansion, the refinery's capacity would rise to 18 million tonnes per annum (mtpa) from 14 mtpa at present.

The company is also looking to acquire coal-bed methane (CBM) gas blocks both in India and abroad. The company is keen to farm-in with PSUs operating in the CBM arena in India while, it has kept two CBM blocks in Indonesia on its radar.

Essar was one of the three companies in race to pick up a significant stake in state-run ONGC's CBM blocks in Raniganj, Bokaro and Jharkhand. The company is waiting for approval from Environment Ministry to begin commercial production at Raniganj as supporting infrastructure for delivery of gas to customers has been completed.

Peers
Company Name CMP
Reliance Industries 1388.15
Indian Oil Corp. 140.35
BPCL 294.55
HPCL 377.65
MRPL 160.50
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