India oil product exports may double in 3 years: Secy.

Where India’s consumption of petrol and LPG is rising at the rate of over 10% and that of diesel at over 7% per annum, Oil Secretary S Sundareshansays while we have an approximate requirement of 145 million tonne, our refining capacity stands at 185 million tonne. “The country exports approximately 40 million tonne of petroleum products now, which is set to reach 80-90 million tonne a year over the next two to three years,” he says.

There has been a visible increase in production and effective management of oil production in the last one year, which he says has resulted in an over 80% rise in daily natural gas production. “By financial year 2011, natural gas production around the country will use pool pricing which will mean uniform pricing of gas."

The government plans to sell 10% in Indian Oil Corporation (IOC) followed by 5% stake in Oil and Natural Gas Corporation (ONGC) through the follow-on public offer by end of financial year. The ministry has given its in-principle nod for the same, Sundareshan says. “The ministry has also given its nod for an additional 10% fresh issue.” However these proposals are awaiting cabinet nod.

On Cairn-Vedanta deal

The government is yet to take a decision on the Cairn-Vedanta deal, as it is awaiting Cairn’s approval to push the Vedanta deal. The deal involves change in ownership through share sale along with ten production-sharing contracts (PSCs) with the government of India and other players.

The ministry he says is only concerned with approvals with respect to PSCs and, “we will examine the merits of requests and then decide”.

The transfer of shares as part of the Vedanta deal is a SEBI matter, and the ministry has kept SEBI informed of its requirements with respect to the deal.

Source : moneycontrol.com