Page 156 - CW E-Magazine (21-11-2023)

Hydrocarbons Hydrocarbons

CAPACITY EXPANSION FINANCIAL PERFORMANCE

HPCL to stop buying diesel from other companies ONGC posts net profi t of Rs. 16,553-crore in second

next year quarter

Hindustan Petroleum Corporation once the residue upgradation facility State-run Oil and Natural Gas Discovery update JV partner. The shutdown resulted in a
Ltd. (HPCL) will stop buying diesel (RUF) is commissioned, it will go up Commission (ONGC) has reported a The company declared a total of fi ve temporary loss of production, it added.
from companies like Reliance Indus- to 15-mtpa. 142.4% y-o-y growth in its consoli- discoveries (2 on land and 3 offshore)
tries Ltd. and Nayara Energy once it dated net profi t at Rs. 16,553-crore in during FY24 in its operated acreages. Another factor impacting produc-
completes expansion of its Visakhapatnam The Rajasthan refi nery, he said, is the July-September quarter of FY24. Out of these, 3 are prospects (Offshore) tion was Cyclone Biparjoy, which
refi nery and builds a new one in 72% complete, and commissioning will However, the exploration and produc- and 2 on land are New Pools. ONGC struck in June 2023, and disrupted off-
Rajasthan next fi nancial year, company start in phases in the next calendar year. tion major’s consolidated total income has monetised two discoveries till date shore and onshore operations. Further,
offi cials said. fell to Rs. 1.49-lakh-crore in Q2 FY24 during FY24, Gopavaram-21 (FY24) oil production of a Southern asset was
HPCL Director (Finance) Rajneesh from Rs. 1.66-lakh-crore in Q1 FY214 and Karugorumilli-1 (FY23). hampered due to stoppage caused by
HPCL owns almost a quarter of Chairman, Mr. Pushp Kumar Joshi said. Narang said the company’s Mumbai and Rs. 1.71-lakh-crore in Q2 FY23. the cessation of crude oil receipts by
petrol pumps in the country, but does Besides, it is building a new 9-mtpa and Visakhapatnam refi neries currently ONGC said the reduction in output a refi nery, following a leak in its pipe-
not have commensurate oil refi ning refi nery and petrochemical complex provide 43% of the petrol and 47% On a standalone basis, the com- can primarily be attributed to a decline line. ONGC, however, acted swiftly
capacity. To make up for this, it buys at Barmer in Rajasthan. of diesel the fi rm sells. HPCL-Mittal pany’s realisation from crude oil pro- in some of the matured fi elds and mar- and devised an alternate method for
products from Mangalore Refi nery and Energy Ltd., a joint venture with steel duced from nominated fi elds fell to ginal fi elds. To counter this, ONGC is the evacuation of crude oil through
Petrochemicals Ltd. (MRPL), Reliance Project updates tycoon Lakshmi Mittal, gives 24% of $84.84 per barrel in Q2 FY24 from taking proactive steps by implementing tankers, thus resuming production.
Jamanagar and Nayara’s Vadinar refi nery. At the Visakhapatnam refi nery ex- petrol and 31% of diesel. The remain- $95.50 a year ago. The realisation of well interventions and advancing new The current decline in production from
pansion project, Mr. Joshi said a 3.05- ing 34% of petrol and 21% of diesel is crude oil produced from joint ventures well-drilling activities. Furthermore, matured fi elds will be compensated
The company has already expanded mtpa full conversion hydrocracker unit sourced from other companies. “Once (JVs) also declined to $79.41 per barrel in a bid to bolster evacuation capaci- in upcoming quarters with the com-
its Mumbai refi nery capacity to 9.5- (FCHCU) has been commissioned, the Rajasthan refi nery comes up, the from $94.96. ONGC’s crude oil pro- ties and modernise offshore facilities, mencement of additional production
mtpa from 7.5-mtpa and would com- which will increase distillate yield (pet- entire diesel requirement will be met duction fell by 2.1% y-o-y to 5.249-mt. a shutdown was undertaken in Panna- from upcoming projects, which are
plete the expansion of Visakhapatnam rol and diesel). The refi nery is already from HPCL’s own and joint venture Gas production fell by 2.8% y-o-y to Mukta for the commissioning of a new under various stages of development,
unit to 15-mtpa next year, HPCL’s operating at 13.7-mtpa capacity and refi neries,” he added. 5.2-bn cubic metres (bcm). crude oil pipeline, post taking over from the company said.
PROJECT UPDATE
India saves $2.7-bn by buying discounted Russian oil
BPCL-Kochi Refi nery to get Brahmapuram land
India saved approximately $2.7-bn
in the fi rst nine months of 2023 by for CBG plant
importing discounted Russian oil,
Reuters reported on Nov. 8, citing Kerala-based BPCL-Kochi Refi nery The public sector oil company is set sector companies have earmarked
Indian Government data. India replaced will get 20-acres of land at Brahmapuram to fl oat the bid for the Kochi project in investments worth Rs. 3,500-crore in
Europe as the main buyer of Russian from the Kochi Corporation for setting up a few weeks. The project may be up and the sector, he said.
seaborne crude, following the inva- its compressed biogas (CBG) plant. The running by the end of 2024, the Min-
sion of Ukraine. India imported almost company had identifi ed the land consider- ister said, adding that BPCL has also The oil companies are venturing
70-mt of Russian oil from January to ing its proximity to the refi nery project at evinced interest in setting up a CBG into CBG and other energy projects as
September, an equivalent to 1.85-mn Ambalamugal. project in Thiruvananthapuram. part of their national mandate to pro-
barrels per day, the country’s Com- duce alternative energy sources. It will
merce Ministry data shows. The com- $564.46 for the January-September supplies at a reduced cost. However, The decision comes in the wake of The government had held prelimi- be zero-investment projects for the
parably cheaper average price of Russian period, Reuters noted. By replacing Iraq October saw the level of Indian imports the petroleum company moving ahead nary discussions with Gas Authority State Government as the companies
supplies for that period – $526 per with Russia as the leading oil source, decrease somewhat, as the discount levels with the project. The State Government of India Ltd. (GAIL), which came for- will fund the projects, install equip-
metric tonne, including shipping and India saved around $2.7-bn for the began to even with other suppliers. had recently formally cleared the detailed ward to set up three CBG plants in the ment and run them. The State Govern-
insurance – allowed New Delhi to fi rst nine months of this year, the news project report (DPR) for the 150-tonnes State, including one in Thrissur. GAIL ment will have to ensure regular sup-
decrease imports from the Middle East. agency’s calculations show. Following Oil prices are expected to rise as per day capacity plant. According to has been asked to prepare the DPR ply of waste. The civic bodies, which
Western sanctions on Russian oil, Russia and Saudi Arabia, another major State Industries Minister, Mr. P. Rajeev, for its Thrissur plant, he said. ONGC, are struggling to manage bio-waste,
For example, the price of Iraqi oil of Moscow has been shifting focus to exporter, said they will restrict their the foundation stone for the Kochi pro- too, has evinced interest in setting up will be the biggest benefi ciaries of
comparable quality averaged at around other markets like India, offering its crude output until the end of the year. ject is likely to be laid in January. similar units in the State. All the public the project, he said.

156 Chemical Weekly November 21, 2023 Chemical Weekly November 21, 2023 157

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