ONGC and IOC fight over land in Mangalore

Vol 8, PW 14 (06 Oct 04) News in Brief

ONGC and Indian Oil are fighting over a patch of land next to ONGCs Mangalore Refineries.

IOC wants the land to set up a government-mandated strategic crude oil storage facility but ONGC wants it to add refining facilities. On 24th September, IOC asked for the oil ministrys immediate intervention to resolve the row.

In response ONGC wrote to the ministry pointing out at least five alternative locations in Mangalore within 30-km of the refinery where IOC could set up a crude storage facility. We fail to understand why IOC is insisting on this land, a senior ONGC official tells us.

ONGC claims expansion of its Mangalore Refinery can only be carried out on land adjacent to the refinery but that IOCs crude storage facility can be put up anywhere. IOC denies ONGCs accusation.

This is no ordinary project, says an IOC source. It is linked to the energy security of the country.