BHARAT PETRO FO­CUS ON LO­CAL EX­PAN­SION

Resource Digest - - EXPANSION -

Bharat Petroleum Cor­po­ra­tion (BPCL) plans to ex­pand in the do­mes­tic oil and gas space, fol­low­ing an im­prove­ment in its fi­nan­cials be­cause of soft crude prices and de-reg­u­la­tion of fuel rates.

The com­pany will be in­vest­ing Rs 1 lakh crore over the next five years in re­fin­ing and mar­ket­ing, be­sides city gas dis­tri­bu­tion busi­ness and the up­stream seg­ment.

Dur­ing the an­nual gen­eral meet­ing, chair­man S. Varadara­jan said around Rs 40,000 crore would go into re­fin­ing, which would take BPCL's ca­pac­ity to one mil­lion bar­rels per day.

At present, its re­fin­ing ca­pac­ity is around 30 mil­lion tonnes spread across the Mum­bai, Kochi, Bina and Nu­ma­li­garh re­finer­ies.

"Over the next few years, BPCL pro­poses to un­der­take sev­eral sig­nif­i­cant projects in the re­finer­ies that will add tremen­dous value in terms of qual­ity and higher through­put,’’ he told the share­hold­ers.

The com­pany is en­gaged in an in­te­grated re­fin­ery ex­pan­sion project at its Kochi re­fin­ery. The project en­vis­ages its ca­pac­ity ex­pan­sion by 6 mil­lion tonnes and mod­erni­sa­tion of pro­cess­ing fa­cil­i­ties. The re­finer is spend­ing Rs 16,504 crore for this project.

BPCL's ex­pan­sion plan is based on a strate­gic vi­sion called Sankalp. Un­der this, around Rs 25,000 crore will go into the ex­plo­ration and pro­duc­tion seg­ment.

The re­finer's E&P ac­tiv­i­ties are be­ing un­der­taken by its wholly owned sub­sidiary Bharat PetroRe­sources, which has par­tic­i­pat­ing in­ter­est in 17 blocks. One such block where a huge up­side is seen is in Mozam­bique.

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