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Rajasthan to set up petroleum corporation

Special Correspondent

It will harness the newfound oil and natural gases in the State

JAIPUR: Rajasthan has set up a petroleum corporation to harness the newfound oil and natural gases in the State and make tie-ups with MNCs, PSUs and private entrepreneurs for their processing and distribution.

Initially, the State plans to make an investment ranging from Rs.5 crores to Rs.50 crores in the corporation, which will also create a special purpose vehicle (SPV) for developing infrastructure for the petroleum sector and generation of revenue as well as jobs.

The decision on the creation of "Rajasthan State Petroleum Corporation Limited" was taken at a Cabinet meeting presided over by Chief Minister Vasundhara Raje here on Monday.

Briefing journalists on the Cabinet meeting, Parliamentary Affairs Minister Rajendra Singh Rathore and Minister for Petroleum Laxminarain Dave said the latest assessments indicated the availability of 480 million tonne crude and between 3 to 6 billion cubic metre gases in the Barmer-Sanchore basin. Till January this year as many as 20 oil/gas fields had been identified after digging 130 wells, they informed.

Quality gas

Jaisalmer basin, yet another major area under exploration, also held high promises in quality gas.

The gas found in the basin-- which has the presence of 88 to 91 per cent hydrocarbon-- could be equated in quality with the gas of Swan and Mianon fields in adjoining Pakistan.

Pilot project

Mr. Dave said a pilot project had been started for exploration and processing estimated 14.62 million tonne heavy oil and 33.2 million tonne bitumen found available in the State.

The process of allocating blocs in the Barmer-Sanchore basin for exploitation of the cold bed methane (CBM)-- available at a depth of 500-1000 metres-- and lignite deposits, found at a depth of 200-500 metres, had been started, he informed.

"The corporation will collaborate with MNCs, PSUs, State-level public as well as private companies in exploration, production, processing, storage, marketing, transportation and distribution of petroleum and natural gas," Mr.Rathore informed.

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