Major Capacity Expansion For Numaligarh Refinery 8955 Crores Earmarked For 12th Plan Period

abarrelfullabarrelfull wrote on 11 Sep 2012 08:01
Tags: asia india numaligarh refinery


The 19th Annual General Meeting of shareholders of NRL was held at Hotel Brahmaputra Ashok, Guwahati on Friday, the 7th of September, 2012. A dividend of 10% (`.1.00 per equity share of ` 10.00 each) for the year 2011-12 on the paid up share capital was declared. The Meeting was presided over by Sri R.K.Singh, Chairman and Managing Director Bharat Petroleum Corporation Limited (BPCL) and Chairman, NRL and was attended by Mr. Dipak Chakravarty, Managing Director, NRL and other members of the NRL Board. During the year 2011-12, the refinery processed highest ever quantity of crude oil of 2825 TMT against 2250 TMT in the previous year, achieving an increase of 25.6 %. Total sales volume of NRL grew by 27.7% to 2728 TMT compared to 2137 TMT in the previous year.

The Company’s net worth as on 31st March, 2012 stands at ` 2699.26 crores compared to ` 2601.06 crores at the end of the previous year. NRL, during 2011-12 recorded the highest ever sales turnover of ` 14,027.75 crores recording a growth of 56.4% over previous year’s turnover of `. 8,972.19 crores. However, profitability was affected primarily due to the negative impact of duty restructuring in June 2011. The Company’s Profit Before Tax (PBT) was recorded at ` 287.46 crores and Net profit at ` 183.70 crores.

The Gross Refining Margin (GRM) during 2011-12 was $11.97 per bbl against previous year’s GRM of $ 15.39. The total dividend to be paid by NRL for the FY 2011-12 to its shareholders, namely M/s BPCL, M/s OIL and Govt of Assam would amount to `. 73.56 crores. Govt. of Assam shall receive ` 9.08 crores as dividend for its equity of 12.35% in NRL. During the year, NRL contributed ` 859.60 crores to the Central Exchequer while contribution to the Assam Govt. Exchequer was to the tune of ` 555.92 crores . On the physical front, NRL achieved its best ever physical performance during the year. Besides highest ever processing of 2825 TMT crude against 2250 TMT in the previous year, the distillate yield (yield of high value liquid petroleum products) of NRL during the year was recorded at 91.52%, which was the highest in the Indian refining industry.

The refinery’s Specific Energy Consumption, a measure of energy efficiency in operation, during 2011-12 was recorded at 59.7 MBN. During 2011-12, natural gas utilisation facilities at the Hydrogen Unit were successfully commissioned. Utilisation of natural gas has not only contributed in improving distillate yield but has also reduced operating costs. On the safety front, the refinery recorded 18.27 million LTA free man-hours (10 years 01 month) as on 31st March, 2012. On retail marketing front, NRL’s per pump throughput (PPT) during 2011-12 was 277 KL per month in the North East against 270 KL per month in the previous year. PPT for ROs outside the North East was 275 KL per month compared to 252 KL per month in the previous year.

However, due to unsustainable continued retail marketing under-recovery, NRL’s Retail Network is being handed over to its holding Company Bharat Petroleum Corporation Ltd. NRL faces several challenges like sub-economic size of the refinery, inadequate availability of crude oil in North East, locational disadvantage considering its location in a product surplus zone.

Realizing the need for long term sustenance and growth, NRL has planned for expansion of refining capacity from 3.0 MMTPA to 8.0/9.0 MMTPA together with the option of sourcing and transporting the additional crude oil through a pipeline. NRL is also exploring possibilities for diversification into sectors with promising potential such as power generation, pipelines, exploration and production. The refinery’s location in close proximity to countries like Bangladesh, Bhutan and Myanmar presents another opportunity of natural markets for its products. For all such project activities an amount of ` 8,955 crores have already been provided in the 12th Five Year Plan Outlay.

The Company is also pursuing a broad array of growth opportunities by way of implementing several value added projects. The ` 577 crores Wax project envisages production of high value low volume Paraffin and Micro-Crystalline Wax utilizing inherent properties of North East Crude. The project is scheduled for completion by December 2013. The Naphtha Splitter Project involving a project cost ` 87 crores has been taken up for production of 160 TMT annually of petrochemical grade Naphtha, which would be supplied as feedstock to the Assam Gas Cracker Project. The project is targeted for completion in third quarter of 2012-13. Besides these, NRL has 10 % equity participation in the joint venture company Brahmaputra Cracker and Polymer Ltd. which is implementing the Assam Gas Cracker Project and 26 % equity participation in DNP Limited which has commissioned a pipeline from Duliajan to Numaligarh.

In its pursuit to be a technology savvy company, NRL has successfully implemented B2B (Business to Business) process with Oil India Limited for purchase of crude oil and sale of products. This initiative has resulted in savings in time, effort and money. This is the first event of B2B implementation between an upstream company and a downstream company in the oil industry. Product exchange process between NRL and Other Oil Marketing Companies viz. HPCL and IOCL has also been successfully automated through B2B transactions over ERP systems during 2011-12. In its quest for environmental excellence and continual improvement, the refinery has taken up several initiatives employing state-of-art technologies. During 2011-12 NRL was re-certified against ISO 14001 under environment management systems. During the year, 100% treated effluents were reused ensuring zero discharge of effluents from the refinery as well as from the township- thereby ensuring a cleaner, greener environment. NRL’s commitment towards the environment has been aptly rewarded when the Company received the Greentech Environment Award 2011 under gold category. Also, the CIDC Viswakarma Award 2011 under best project category was received by NRL for implementation of the Diesel Quality Upgradation Project.

While NRL continues to march ahead towards progress and growth, its commitment for promoting socio-economic development of the region has been growing stronger with time. The Company continues to implement definitive measures for improving the lives of the people in neighboring areas of the refinery as well as in Nort East through innovative and people friendly programmes.


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