Highlight of the meet

• The company is envisaging increasing the Kochi refinery capacity from 9.5 MMTPA to 15.5 MMTPA and modernizing the facilities to produce fuels confirming to Euro IV/V specifications. Total capex would be around Rs 14225 crore. The project is expected to be complete by December 2015

• BPCL plans to enter petrochemical complex business using the raw material to be produced at Kochi after the expansion of the refinery capacity. BPCL has signed an MOU with LG Chem, Korea. The JV shall produce propylene based niche petrochemicals that are being currently imported into the country. Total capex would be around Rs 5000-6000 crore.

• BPCL is also looking at low cost expansion of newly commissioned refinery at Bina from 6 MMTPA to 8.5-9 MMTPA in Madhya Pradesh at a capex of Rs 2000 crore.

• Mozambique natural gas discovery is currently estimated at 30 to 60 trillion cubic feet of recoverable resources. The consortium is working towards reserve certification and a final investment decision in FY'13

• In Mozambique steps are being taken to achieve early magnetization of gas finds, with plans for putting up a two train LNG plant of 5 MMTPA capacity each.

• BPRL (Bharat PetroResources), wholly owned subsidiary of BPCL, global portfolio consists of 28 blocks, of which 13 are located in India. BPRL also has presence in Australia, Brazil, East Timor, Indonesia, Mozambique and the United Kingdom.

• High crude oil prices, rupee depreciation and falling natural gas productions are major challenges confronting the companies in this sector. In case of PSU OMC there is additional burden of coping with rising under recoveries on the sale of sensitive petroleum products.

• The government recently announced series of measures to provide relief to the oil companies. The price of diesel increased by Rs 5 per litre, which includes Rs 1.5 per litre towards the excise duty. The number of subsidized LPG cylinders for every household was capped at six per year. The excise duty on petrol also reduced by Rs 5.3 per litre.

• The company has planned capex of Rs 40000-45000 crore for its upstream activities, refinery expansion and other infrastructural activities in next 4-5 years.