The poor recovery of state-owned Oil Marketing Companies (OMCs),, due to the sale of fuel at reduced prices could cross Rs2 lakh crore this fiscal year if oil prices at current levels, the Petroleum Secretary said S Sundareshan Wednesday.

“The low recovery of oil marketing companies rose to Rs78, 000 crore in 2010-11. With the rising price of crude oil and runs about $ 120 per barrel, lower recoveries this year could be the region of Rs2 lakh crore, “he told reporters in Ahmedabad.

Sundareshan however added that it was only the beginning of the year, and there was no reason to be so pessimistic. He also said that the JI has been compensated by the government and upstream oil companies, made profits.

Sundareshan was in town to attend a program organized to mark 50 years of ONGC Ahmedabad Asset.

When asked about the significant drop in gas production from block D6 of Reliance Industries’ in KG Basin, Oil Secretary said, “The current production of D6 basin surrounded 50-52000000 metric standard cubic meters per day (MMSCMD) rather than projected 58-60 MMSCMD.

The Board of Directors and Director General of Hydrocarbons (DGH) has studied the causes of the decline in gas production. ”

He added that differences in production over the forecast could happen in any field.

Sundareshan also said that refining capacity of crude oil in the country is expected to grow in the next year or two.

“The total refining capacity of crude oil in the country is 188 million tonnes (Mt), increasing to 240 million tonnes in March 2012. As a result, exports of petrochemicals in the country also will increase from 40 million tons to 90 million tonnes, “he said.

According Sundareshan is the improvement of refining capacity for crude oil will rise to an investment of Rs60 from 0.000 to 65, 000 crore.

Beena refiner BPCL, HPCL Bhatinda refinery, IOCL Paradip refinery in Cuddalore and Nagarjuna refinery expected to begin next year.

The expansion of Mangalore Refinery and Petrochemicals Limited is also likely to be completed by March.

In response to a question on ONGC FPO, Sundareshan said, “French Polynesia ONGC is likely to occur in June or July. Government water down 5% stake and travel around RS11, 000 crore by the issue. ”

The petroleum secretary also praised the performance of ONGC Videsh Limited (OVL), which is engaged in oil exploration and production in 15 countries.

“OVL produced 9000000 tons of oil equivalent 2010-1911, representing 20% ​​of national production. ONGC has pumped 13 billion U.S. dollars OVL, but the company has already paid 50% of the assets of its parent company,” said .
He said the government is distributing LPG cylinders to 50% of its population, and targeted to provide LPG to 75% of the population in 2015.

If the gas is mainly provided in the present western and northern India, the gas distribution also begin in the south and east of India in 2012, Sundareshan said.