The Hindu Business Line : IndianOil plans to import 40.9 mt crude oil in '06-07

Oil plans
The company proposes to process 10.642 mt indigenous crude and 31.708 mt imported crude during 2006-07 in its refineries.
It has planned an investment of about Rs 20,400 crore by 2011-12 in the refining segment.

New Delhi , June 3

Indian Oil Corporation Ltd (IndianOil) proposes to import 40.9 million tonnes of crude oil during the current fiscal (2006-07) to feed its seven refineries and subsidiaries. According to company sources, out of this 40.9 mt, almost 25 mt would be imported on term contract basis and the rest on spot basis.

The company is looking at Saudi Arabia, Nigeria, Malaysia and Kuwait among others for the purchase of crude oil. The sources, however, declined to comment on the price range for imports.

There is a competition between the domestic oil refining and marketing companies to source crude from cheaper destinations, given the high international prices.

IndianOil had imported approximately 38 mt of crude oil last year and four mt of petroleum products such as liquefied petroleum gas, naphtha, fuel oil, high-speed diesel, motor spirit and kerosene.

According to company sources, indigenous crude was not enough to fully meet the requirements of its refineries.

They told Business Line that the company proposes to process 10,642 TMT (10.642 million tonne) indigenous crude and 31,708 TMT (31.708 million tonne) imported crude during 2006-07 in its refineries.

Crude throughput

The seven IndianOil refineries closed the year 2005-06 with a combined crude throughput of 38.5 mt.

The company's pervious best was 37.7 mt in 2003-04. The combined capacity utilisation of the refineries was at 93.1 per cent during the year.

The company's present refining capacity has gone up to 47.35 mt per annum from 41.35 mt after the commissioning of 6 million tonnes per annum (MTPA) Panipat refinery expansion project recently. It has doubled the refinery's capacity to 12 MTPA.

IndianOil has planned an investment of about Rs 20,400 crore by 2011-12 in the refining segment.

The ongoing investment in the segment is expected to be close to Rs 6,500 crore.

India's oil import bill

India's crude oil import bill has risen from Rs 83,528 crore in 2003-04 to Rs 1,71,702 crore in 2005-06.

Import of petroleum products has jumped from Rs 9,723 crore in 2003-04 to Rs 25,575 crore in 2005-06. Export of petroleum products has also increased from Rs 16,781 crore in 2003-04 to Rs 46,785 crore in 2005-06.

As per estimates, the net export of petroleum products in 2005-06 rose 48 per cent in terms of quantity and 200 per cent in terms of value compared to 2003-04, resulting in reduction in net oil import bill.