|Striking the Goal of 21 MMTPA Capacity by 2021|
P P Upadhya
Managing Director, Mangalore Refinery and Petrochemicals Limited (MRPL)
|MRPL, a subsidiary of ONGC, is a state-of-the-art grassroots refinery located in Mangalore. The refinery has got a versatile design with high flexibility to process crudes of various API and with high degree of automation. P P Upadhya, Managing Director, Mangalore Refinery and Petrochemicals Limited (MRPL), talks to Offshore World about the refineryís expansion plans, its profit margins and many more. Excerpts:|
Please apprise us the capacity MRPL is utilising at the
moment and the sources of crude?
MRPLís name plate capacity today is 15 MMTPA. MRPL will be utilising near to 100 per cent of its capacity in the financial year 2013-14. MRPL capacity will be ramped up after stabilisation of secondary processing units of the new expansion project. MRPL sources its crude mainly from Middle East viz Iran, Saudi Arabia, Kuwait, UAE, West African countries and is looking forward to source crudes from Latin American countries in future, once secondary units are fully stabilised.
MRPL Phase III Expansion, which is nearing completion except poly propylene unit. Can you share the detailed approach in order to enhance the capacity expansion and commissioning activity of MRPL?
MRPL has taken up huge expansion plans at the cost of around Rs15,000 Cr which include:
Amid high volatility in the crude prices and substantial rupee depreciation against the dollar, MRPL is able to register the highestever gross revenue of Rs 68,834 cr in fiscal 2012-13, 19 per cent higher than previous year. How has MRPL been sustained the multi-pronged growth strategy?
The revenue of the refinery is based on the crude and product prices prevailing in the international markets where refineries do not have any control. The higher revenue in the year 2012-13 was mainly on the account of increased processing crude rate viz 14.4 MMTPA vis-ŗ-vis 12.82 MMTPA in FY 2011-12 and as well as increase in the international prices of petroleum products.
As the biggest buyer of Iran Crude, how is MRPL looking into the recent Iranís truce with world powers will impact the long-standing payment crisis for Indian oil companies for Iran crude, Indian energy insurance pool for covering refineriesí risk and Brent crude price?
MRPL Refinery has been processing Iran mix from the inception. Though MRPL has processed several grades of crude, Iran mix crude is proven to be more suitable considering the design configuration and product mix. Once phase -III units are fully on-stream MRPL has the advantage to process other opportunity crude.
Due to sanctions, MRPL reduced only its impor ts from Iran and future plans depend on how the things shape up with recent relaxation in place. MRPL is paying 45 per cent of its payment in Rupees and balance payment will be made once the payment channels are made operational. MRPL is following regularly with MOP&NG and GOI with respect to creation of the Energy Insurance Pool.