State oil unions begin indefinite strike

NEW DELHI (Reuters) - Officials at state-run oil firms will begin an indefinite strike on Wednesday demanding higher wages, a union leader said, a move that may hit operations of at least three of the companies' 17 refineries.

Oil Sector Officers Association President Amit Kumar said the strike would begin at 6 a.m. local time (0030 GMT) and that ONGC's Hazira natural gas processing plant, which processes 40 million cubic metres a day and produces some naphtha, was being shut down.

He said the strike -- one of several in recent years, none of which have lasted very long or affected significant energy operations -- would involve 55,000 employees.

On Tuesday Petroleum Secretary R.S. Pandey had said crude oil output of Oil and Natural Gas Corp (ONGC) and Oil India Ltd would not be hit but operations at three refineries may be partly affected by the agitation.

A senior official at Indian Oil Corp, who did not want to be named, said the strike would hit its 260,000 barrel per day (bpd) Koyali refinery, the 240,000 bpd Panipat refinery, the 160,000 bpd Mathura refinery and the 120,000 bpd Haldia refinery.

Unions at state-run oil firms often call strikes, but in recent years they have withdrawn the agitation before any dent in energy supplies.

Private refiners Reliance Industries and Essar Oil are expected to continue normal operations and officials say the government may turn to them for supplies if needed.

The impact of any supply disruption would be partly offset by weaker demand for diesel as tens of thousands of truckers have been on a nationwide strike since Monday.