NEW DELHI: The ongoing unrest in Bangladesh has not slowed down the expansion process of Numaligarh Refinery Limited, said Ranjit Rath, Chairman and managing director of Oil India Limited (OIL).
Speaking to the press after the Annual General Meeting (AGM), Rath also said that there are no payment issues with Bangladesh regarding the refined oil the company exports to the country.
“I am very happy to report that there is no disruption at all,” Rath said.
“There is no disruption of movement in the protocol water. The India-Bangladesh Friendship Pipeline, laid from Siliguri to Parbatipur in Bangladesh, is functioning smoothly. We are pushing diesel utilising that particular pipeline.” Numaligarh Refinery Limited, a subsidiary of Oil India Limited, has been supplying petroleum products to Bangladesh since 2015, initially through rail and later through the pipeline.
The pipeline is crucial for Numaligarh Refinery’s expansion, with Bangladesh being the most suitable market for offtake.
The 3 million tonnes per annum (MTPA) refinery of Numaligarh, in Upper Assam is undergoing a major capacity augmentation to 9 MTPA by installing a 6 MTPA capacity refinery and associated crude oil terminals and pipelines, considering processing of Arab Light (AL) and Arab Heavy (AH) crude oil.
The project includes a 1,635 km crude oil trunk line from the Paradip port in Odisha to Numaligarh in Upper Assam, to transport 5.5 million tonne of crude, Rath said. Full-scale production is expected in financial year 2026-27.
Meanwhile, the 130-km-long Indo-Bangla Friendship Pipeline (IBFPL) continues to carry high-speed diesel from Numaligarh Refinery Limited in Golaghat district of Assam to Bangladesh.
Currently, only 4,000-odd tonne of crude are moving through the 1 million tonne capacity pipeline, the chairman & MD said.
Oil India Limited targets drilling over 75 wells in financial year 2024-25 as part of its new drilling programme. The company drilled 38, 45, and 61 wells in the last three years, respectively.
“From 45 to 61 wells, it represents a 35% annual growth,” Rath said. “This represents not only the number of wells but also deeper and more complex wells.” OIL currently aims to produce 4 million tonne of crude oil per year. OIL is the only player in the region, which has been doing a near-surface exploration programme within the petroleum mining lease.
Plans processing Arab Light, Arab Heavy crude
The 3 million tonne per annum (MTPA) refinery of Numaligarh, in Upper Assam is undergoing a major capacity augmentation to 9 MTPA by installing a 6 MTPA capacity refinery and associated crude oil terminals and pipelines, considering processing of Arab Light (AL) and Arab Heavy (AH) crude oil