03-04-2008, 09:25 PM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Strategic crude oil reserve</b>
Tuesday, March 04, 2008
The Government has decided in September, 2005 to set up strategic storage of crude oil of 5 Million Metric Tonne(MMT) capacity at 3 locations viz, Vizag (1.0 MMT), Mangalore (1.5 MMT) and Padur, Udipi (2.5 MMT).
The estimated capital cost (as per September 2005 prices) was Rs.2397 crore and the crude filling cost Rs.8870 crore (based on the then crude price of $ 55 per barrel).
OIDB will finance the cost of building the strategic storage. To meet the cost of crude, the Government could consider a temporary increase in the cess on domestic crude and/or customs duty on imported crude, if necessary.
The completion targets for establishing the strategic crude oil reserves are mentioned below:
Visakhapatnam :   January 31, 2011
Mangalore     :   July 15, 2011
Padur        :   December 31, 2011
The above information was given by the Minister of State for Petroleum & Natural Gas Shri Dinsha Patel in a written reply in the Rajya Sabha today.<!--QuoteEnd--><!--QuoteEEnd-->
A step in the right direction to prevent shortage of crude oil in the nation during times of crisis in the middle east(major supplier of crude oil to India) or during times of war.
Tuesday, March 04, 2008
The Government has decided in September, 2005 to set up strategic storage of crude oil of 5 Million Metric Tonne(MMT) capacity at 3 locations viz, Vizag (1.0 MMT), Mangalore (1.5 MMT) and Padur, Udipi (2.5 MMT).
The estimated capital cost (as per September 2005 prices) was Rs.2397 crore and the crude filling cost Rs.8870 crore (based on the then crude price of $ 55 per barrel).
OIDB will finance the cost of building the strategic storage. To meet the cost of crude, the Government could consider a temporary increase in the cess on domestic crude and/or customs duty on imported crude, if necessary.
The completion targets for establishing the strategic crude oil reserves are mentioned below:
Visakhapatnam :   January 31, 2011
Mangalore     :   July 15, 2011
Padur        :   December 31, 2011
The above information was given by the Minister of State for Petroleum & Natural Gas Shri Dinsha Patel in a written reply in the Rajya Sabha today.<!--QuoteEnd--><!--QuoteEEnd-->
A step in the right direction to prevent shortage of crude oil in the nation during times of crisis in the middle east(major supplier of crude oil to India) or during times of war.