Business

Thursday July 26, 2007

Oil projects in India on course, says Mittal



NEW DELHI: Billionaire Lakshmi Mittal said his personally funded energy ventures in India are on course with no delays or cost overruns.

A refinery being built in northern India jointly with Hindustan Petroleum Corp, India's second biggest state refiner, was on schedule, Mittal told reporters in New Delhi.

Construction of the plant is expected to be completed by September 2010, Hindustan Petroleum said on Nov 22.

Mittal, the world's fifth richest person and chief executive officer of the world's largest steel producer Arcelor Mittal, sought the stake to participate in the oil business in India, where economic growth is boosting demand.

Lakshmi Mittal - AP
“We have had four foundation stone laying ceremonies for the refinery project, we want it now to take off,'' Mittal said. “Going by the speed at which the project is being pursued, there should not be any delay in implementing it, or any increase in the cost.''

Hindustan Petroleum's expansion is part of a US$20bil spending plan by Indian refiners to raise capacity by 2010, according to a Bloomberg News compilation of expansion projects announced by companies such as Reliance Industries Ltd and Indian Oil Corp.

Mittal may invest in more projects along with Hindustan Petroleum, especially in refineries and gas processing facilities overseas, former chairman M.B. Lal said on Feb 20.

Mittal's first venture with an Indian oil company began in July 2005. Oil & Natural Gas Corp, India's largest oil explorer, and Mittal set up two companies to acquire oil and gas assets overseas and boost the country's energy security. – Bloomberg


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