The volatility that has gripped global oil markets has caused India's biggest oil marketing company Indian Oil Corporation to put major overseas projects on hold.
IOC has decided to put its 15 million tonne refinery project in Turkey, which is to be executed along with Turkish firm Calik, and a pipeline project on the backburner. Both these projects were worth $8 billion.
The company has also put on hold its plans of picking up stake in Nigerian refinery.
“The impact of economy crisis is still on and our Turkey refinery and pipeline project are on the backburner. Also the MoU with Nigeria has not taken off,” said B M Bansal, director (planning & business development) at IOC.
Instead, the company will not focus on local projects like the much delayed Paradip Refinery.
“The Paradip refinery would be ready by 2012. We expect the government to compensate through oil bonds worth Rs 7000 crore,” said Bansal.
Certainly the times are not good for the oil marketing companies especially IOC which witnessed a tragic fire accident in Jaipur which could dent its balance sheet by about Rs 300 crore.