BHARAT PETRO FOCUS ON LOCAL 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.