IOC plans Rs 43,250 cr capex in next five years

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Mumbai, Sep 24: Petroleum major Indian Oil Corporation (IOC) is likely to invest Rs 43,250 crore over the next five-year period in its integration and diversification projects, besides refining and pipeline capacity augmentation, product quality upgradation and expansion of marketing infrastructure, S Behuria, chairman, IOC said here at the company’s annual general meeting (AGM).

According to him, IOC is gearing itself to take on the impending challenges with investments of Rs 43,250 crore over the next five years. Of this, Rs 30,000 crore will go into downstream integration.

The company has set its sight to reach $60 billion revenues by the year 2011-12 from current earnings of $51 billion. The road map to attain this milestone has been laid through vertical integration - forward into petrochemicals and backwards into exploration & production of oil - and diversification into natural gas business, besides globalisation of its marketing operations.

The government-owned company controls 10 out of India's 19 refineries and accounts for 40.4% share of national refining capacity. It has 60.2 million metric tonnes per annum (mmtpa) refining capacity.

Behuria said the naphtha cracker project in Panipat in Haryana is slated for commissioning in 2009. In this, IOC would like to have partners but has not yet roped in any.

In petrochemicals, IndianOil is currently implementing a master plan envisaging Rs 30,000 crore ($6.8 billion) investment by the year 2011-12. Through the world-scale linear alkyl benzene (LAB) plant set up for detergents manufacture at the Gujarat Refinery, the company has already captured a significant market share in India besides exporting the product to Indonesia, Turkey, Thailand, Vietnam, Norway and Oman.

An integrated paraxylene/purified terephthalic acid plant for polyester intermediates is already in operation at Panipat, while a naphtha cracker with downstream polymer units is coming up at Panipat. IndianOil's refinery-cum-petrochemicals complex at Paradip on the east coast of India is proposed to be completed by 2011-12 and is expected to strengthen its presence in the sector.