|IOC chief B Ashok|
STATE-owned oil retailing major Indian Oil Corporation (IOC)'s turnover is all set to cross the Rs 5,00,000-crore mark in the current fiscal for the first time, reveals chairman B Ashok, while addressing the company's 56th annual general meeting.
In 2013-14, the PSU's turnover grew 10.3 percent to Rs 4,57,553 crore. However, the PSU's domestic volumes fell.
In the current fiscal, the India's largest...company's revenues could be hit following drop in crude prices, which may in turn bring down prices of fuel products like petrol and diesel.
The fuel sales volume growth is also likely to rise at slower pace is the economy is still in a recovery mode. IOC's borrowing have sharply fallen to Rs 61,900 crore from Rs 86,263 crore in March.
This would help the company's profitability in current fiscal.
Bringing Paradip refinery on stream has become the top most priority of the state-owned refiner. Once the Paradip refinery comes on stream, all other refineries will see at least $1/barrel of jump in gross refinery margins.
The 300,000-barrels-per-day Paradip refinery whose commissioning is delayed several times is likely to start crude processing in December. The proposed project would cost around Rs 30,000 crore in the first phase. IOCL has already invested Rs 22,000 crore. The total investment of the project is around Rs 2,80,000 crore is expected out of which committed investment is of the tune of Rs 29,777 crore.
IOC has many old refineries with small capacities. When being asked if there was any plan to phase out these refineries, Singh stressed that the company had no plans to shut any of its old refineries.
Apart from Paradip, the company has been planning to set up a refinery on west coast and have shortlisted around three sites after studying 12 probable site.
IOCL is planing a 15 million metric tonnes per annum green field refinery on the west coast. Total investment in the refinery could be at Rs 35,000-40,000 crore. IOC controls 10 of India’s 22 refineries.
On the exploration and production front, the company said though it is not a major player in exploration and production, its investment in Canada's field will give it gas for its own projects.
"We don't expect our selves to become a major E&P player. It is only to take care of the company's needs," said Ashok.
In March IOCL bought 10 percent in Canada-based Petronas' natural gas fields.
Petronas will give IOCL the right to 1.2 million metric tons of liquefied natural gas per year for two decades.
IOCL's overseas E&P portfolio includes nine blocks spanning Libya, Iran, Gabon, Nigeria, Timor-Leste, Yemen and Venezuela.The company said in terms of investment, it would do whatever needs to be done for expanding its city gas distribution network. "Regarding procurement plans, we are already sourcing natural gas through Petornet LNG at both, Dahej as well as Kochi. Gas sourcing is not an issue," said Ashok.