Two oil refinery companies of the public sector Oil and Natural Gas Corporation (ONGC) – Hindustan Petroleum Corporation Ltd. (HPCL) and Mangalore Refinery and Petrochemicals Ltd. (MRPL) is about to merge. ONGC will consider the merger after June 2021, according to news agency PTI. Confirming this, ONGC Chairman Shashi Shankar said that the company would look into the merger of its two oil refinery companies after June 2021.
HPCL acquired in 2018
In fact, the country’s largest oil and gas producer ONGC completed the acquisition of HPCL in 2018 for Rs 36,915 crore. After the acquisition, it has two units related to its refinery business – HPCL and MRPL. ONGC holds 71.63 per cent in MRPL and 51.11 per cent in HPCL. If you talk about HPCL, MRPL currently holds 16.96 percent.
ONGC Chairman Shashi Shankar said that HPCL sells more fuel than it produces in its refineries. MRPL on the other hand is a fully refining company. He said, “MRPL’s merger with HPCL is rational. This will help HPCL to balance the marketing of fuel. HPCL will not need to take fuel from other companies.
However, ONGC, ONGC Mangalore Petrochemicals Ltd. before the merger of OMPL with MRPL . (OMPL) is considering a merger with MRPL. MRPL holds a 51 percent stake in OMPL, while ONGC holds a 48.9 percent stake. MRPL will also acquire ONGC stake. He said, “We have got merger approval from the Petroleum Ministry. We are hoping to complete it by June 2021. After that we will consider merger of MRPL and HPL. ”