The Hindu Business Line : Indian Oil plans retail foray into South Africa

AFTER establishing its presence in the petroleum retail markets of Sri Lanka and Mauritius, Indian Oil Corporation is now evaluating opportunities to enter South Africa. The company is also in talks for setting up a retail joint venture with Nepal Oil Corporation.

"Although our efforts have not yet come to fruition, we are trying to make inroads in the South African market. Also, we are in talks for a joint venture to set up petrol stations in Nepal," Dr N.G. Kannan, Director (Marketing), told Business Line.

Efforts for clearing the way for Indian companies, especially oil majors IOC and ONGC, have been on since late last year with the Indian Government trying to enter a bilateral agreement with South Africa for cooperation in the hydrocarbons sector.

South Africa has the second largest refining capacity in Africa, with a total refining capacity of 48,547 bpd and multinational companies like BP, Petronas, ChevronTexaco, Shell and Total already have a significant presence in South Africa's downstream petroleum markets.

In the case of Nepal, Indian Oil, which has announced ambitions to become a trans-national major, has already established its presence in this market through sale of lubricants and bitumen. Nepal is deregulating its oil market and needs about 0.75 mm tonnes of petroleum products, including 70,000 tonnes of cooking gas a year.

IOC is also planning to expand its presence in Mauritius where it has set up an 18,000-tonne products storage terminal. ``By this month-end, we will commission the first of IOC's proposed 25 retail outlets in Mauritius,'' Dr Kannan said. IOC plans to invest $18 million in Mauritius through its subsidiary Indian Oil Mauritius Ltd.

IOC, which controls more than 50 per cent of India's retail petroleum business through 11,000-odd petrol pumps between itself and subsidiary IBP Ltd, is also looking for opportunities in Thailand and Indonesia, Dr Kannan said.