| New Fiscal Year Message - Director (Refineries) |
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| April 2010 |
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Dear Colleagues,
“You can dream anything you want to,
That is the beauty of the human mind.
You can do anything you want to,
That is the strength of the human will.
Trust yourself, test the limits,
That is the courage to succeed."
Dreams help us set soaring targets and our indomitable will makes us realise those into reality. This has been the mantra for the progress and prosperity of humankind for all times. IndianOilPeople too have time and again displayed the inherent strength of their will, strong determination and unified might to transform IndianOil’s vision of progress into reality.
During the Golden Jubilee year of our dedicated service to the nation, our teams, as always have helped us in consolidating and further strengthening IndianOil’s capabilities. For the first time in IndianOil’s history, not only mega projects worth more than Rs. 60,000 crore are concurrently being implemented, but also have progressed well as desired..
We had proclaimed the year 2009-10 as the “Year of Commissioning”; it is therefore a matter of great satisfaction that fighting all odds, we have been able to commission important Units and facilities in 2009-10. It was a landmark event when the Corporation's first and India's largest Naphtha Cracker Unit at Panipat went on-stream in March recently. Built at an estimated cost of Rs.14, 439 crore, the cracker complex will produce LDPE, HDPE, Polypropylene and MEG besides other products. Naphtha Cracker will surely go a long way in heralding IndianOil as a dominant and respected petrochemicals player in the times to come.
The golden year also witnessed the commissioning of the all important Hydrocracker Unit at Haldia Refinery, enabling the refinery to produce Euro-IV grade High Speed Diesel, apart from improving the refinery margins. MS quality upgradation projects at Panipat and Mathura Refineries were also commissioned successfully in January and February respectively. These refineries have completely switched over to the production and supply of Euro-IV grade Motor Spirit and HSD. Residue Upgradation Project at Gujarat Refinery is also in an advanced stage of completion. Continuing with the success saga, Haldia Refinery completed its capacity enhancement task as well in January 2010, taking its crude processing capacity from 6 to 7.5 MMTPA.
This stellar performance by the Refineries Division strengthens our resolve to do better for the country and the organisation in the times to come. I congratulate each one of you for adding yet another accolade to the IndianOil scroll of honour. In these times of intense competition and adverse business conditions – at home and across the globe, this hard earned success tastes sweeter and exhilarating.
As regards the Paradip Refinery Project, it is now time to stretch the envelope and set better than the best benchmarks. Let us pool our positive energies, employ innovative practices and strive to achieve these stringent targets so that we are able to complete the coveted project in the next two years. I know the task is stupendous, but I have full faith in the immense potential and talent of Team Refineries.
On the operations front, our Division garnered a crude throughput of 50.7 Million Metric Tonnes during the year 2009-10. The overall capacity utilization at 102% was more than 100% for the third consecutive year despite major revamps and maintenance shut downs for implementation of new projects in all the refineries in the current year. We also achieved the highest combined distillate yield of 75.2 wt% for the second consecutive year.
In the business of refining, we continuously encounter a host of challenges that may impact our refinery margins and profitability. These include the fluctuating global crude oil price, changing demand pattern, increasingly stringent environment norms and global warming issues. Adopting the latest technologies can act as the remedy that will help us retain the competitive edge in the future.
Our refineries have adopted several new innovative systems, strategies and technologies aimed at improving our refinery margins and profitability. Practices like stream sharing, processing cheaper or indigenous crude oil varieties, employing new operational strategies and increasing production of value added products are being pursued aggressively.
Refineries Division notched up encouraging results in its march towards greater sustainable growth. IndianOil refineries achieved the lowest ever overall specific energy consumption of 62 MBN during 2009-10 against the earlier best of 64 in 2008-09. Let us continue the good work on this front. For the first time this year, Sustainable Development has been included as a parameter in the MOU signed by IndianOil with the Government. We will thus need to further align our operations with the elements of sustainable growth.
We have been actively pursuing Clean Development Mechanism (CDM) projects for the last few years. During the year too, Barauni and Gujarat refineries registered two projects earning 36154 Certified Emission Reductions (CERs).
The dynamic nature of the business of oil and the geo-political implications across the globe, coupled with the meager availability of the natural resource in India has ensured that we are never short of challenges at any point in time. After a brief hiatus following the economic downturn, crude oil is again on a rise. We’ll also need to redefine and intensify our focus on reducing energy usage and cost reduction in each and every facet of our operation to earn tangible results. The challenge for us therefore is to complete the ongoing capacity revamp, the remaining fuel quality upgradation projects, the grassroots refinery at Paradip and other projects within the stipulated schedule and cost.
Friends! I have been stressing time and again, the important aspect of safety. Let us do a serious rethink on our attitude towards safety and ensure that each one of us will follow the defined procedures to ensure safety at all times and will also encourage our team members to do so.
There are no limits to growth, because the human capacity for intelligence, imagination and creativity is boundless. I firmly believe that the immense talent, dedication and innovative spirit of our IOCians too is limitless. With this unparalleled resource, we will surely take the impending obstacles in our stride and reach the highest pinnacle of growth and prosperity.
Let us gear up in right earnest and take up the challenges and targets set for this new fiscal year with renewed vigour and zeal. I look forward to hearing from you on bettering our performance in various spheres of operations and emerge triumphant. You may write to me at bankapurbn@iocl.co.in
Best wishes for fruitful and eventful times ahead.
B. N. Bankapur |
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| Board of Directors |
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B M Bansal
Chairman & Director (Planning & Business Development and HR) |
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S V Narasimhan
Director (Finance) |
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G C Daga
Director (Marketing) |
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B N Bankapur
Director (Refineries) |
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K K Jha
Director (Pipelines) |
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Dr. R K Malhotra
Director ( Research & Development)
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