Page 6 - AsianOil Week 32

AsianOil SOUTH ASIA AsianOil
IOC to invest $15bn in Paradip refinery expansion
FINANCE & INVESTMENT
STATE-RUN re ner Indian Oil Corp. (IOC) intends to invest INR1tn ($14.03bn) in expand- ing its Paradip re nery from 15mn tonnes per year (300,000 barrels per day) to 25mn tpy (500,000 bpd).
e company also intends to set up a 1.2mn tpy PX purified terephthalic acid (PX-PTA) complex at a cost of INR91.36bn ($1.28bn). e company will use 4,200 acres (17 square km) of government and privately owned land to expand the facility, with construction anticipated to cre- ate 6,000 new jobs.
IOC will partner with Industrial Develop- ment Corporation of Odisha, which is owned by the local government, to carry out the expansion.
e company, India’s largest re ner and oil marketer, operates 11 re neries in India with a combined capacity of 80.7mn tpy (1.62mn bpd). e original Paradip re nery, which is located in Odisha State, cost INR350bn ($4.9bn). Its expan- sion is part of the company’s increasing focus on petrochemicals to boost pro tability.
IOC chairman Sanjiv Singh told sharehold- ers at the end of July that the company would invest INR2tn ($28.06bn) over the next ve to seven years to evolve IOC into a “future-ready” company. Capital expenditure for nancial year 2019-2020 will be INR250.83bn ($3.52bn), down from the INR282bn ($3.96bn) spent in nancial year 2018-2019.
Turnover in the last scal period amounted to INR6.06tn ($85bn), while net profit was INR168.94bn (2.37bn).
e company’s e orts to expand its petro- chemicals capacity at Paradip have not been without issue, however. e New Indian Express reported last week that hundreds of families were staging a sit-in protest at the project site. e paper reported that the families, who had been displaced during the land acquisition for the existing re nery, were demanding employment from the company.
Union president Jadumani Pradhan said the re ner had neglected those who had parted with 3,345 acres (13.54 square km) of land. Pradhan added that the central government’s policy to train unskilled and semi-skilled workers had not been implemented at the re nery.
Business Standard reported in July that IOC had not managed to secure the privately held land it needs to expand the re nery. “Only 800 acres [3.24 square km] have been acquired in the vicin- ity of IOC re nery at Paradip. e balance of the land needs to be acquired from private owners,” an unnamed sourced was quoted as saying.™
Pertamina’s H1 oil imports drop 35%
SOUTHEAST ASIA
PERFORMANCE
INDONESIAN major Pertamina’s crude oil imports dropped by 35% year on year in the rst six months of 2019 to 220,000 bpd, thanks to a government policy requiring oil eld contractors to sell production to the state-owned company. Pertamina imported an average of 339,000 bpd in 2018.
The company revealed that it had signed contracts with 39 oil and gas contractors to buy 123,600 bpd of oil as of August 2. Pertam- ina’s vice-president for corporate communica- tion, Fajriyah Usman, said domestic crude and
condensate purchases had risen significantly compared to 2018.
“From the total volume, we will optimise supplies in accordance with the need, type and volume as well as the business agreements that we have reached,” she said.
Usman added that delivery schedules for crude oil and condensate would be determined separately and that even crude oil grades would be di erentiated based on re nery requirements.
“With the import of crude oil reach- ing 220,000 bpd, the ratio of imported oil to
P6
w w w . N E W S B A S E . c o m Week 32 14•August•2019