MRPL, HPCL merger in FY'19 : Surana

HPCL is keen to takeover Mangalore Refinery and Petrochemicals Ltd (MRPL) before the end of 2018-19 financial year as there are a lot of synergies arising from the merger, Chairman and Managing Director Mukesh Kumar Surana said today.

Oil and Natural Gas Corp (ONGC), India's biggest oil and gas producer, earlier this year completed the acquisition of HPCL for Rs 36,915 crore.

After this takeover, ONGC has two oil refining subsidiaries - Hindustan Petroleum Corp Ltd (HPCL) and MRPL. A move is afoot to bring the two refining units under one umbrella.

Surana said standalone refineries, like MRPL with no marketing infrastructure, do not make big business sense.

For one, HPCL sells more petroleum product than it produces and bringing MRPL's 15 million tonne per annum (MTPA) refinery under the fold would help bridge the shortfall. It currently buys the shortfall in the product from other refineries, including MRPL.

"Having MRPL as part of HPCL will bring efficiencies," he said. "In principle it makes sense but modalities have to be worked out."