Tanzania Oil companies want fuel testing Galp wants ... - ErpecNews

should India regulate petrol prices again?
In order to help the Oil Marketing Companies
(OMCs) erase some of their losses,
the Indian government deregulated petrol
prices in June 2010. However the government
still compensates the OMCs for selling
diesel, kerosene and liquefied petroleum
gas at government-fixed prices. In-spite of
deregulation, OMCs like Oil India, HPCL
and BPCL still have to get the government’s
approval to raise petrol prices. As a result
Petron acquires esso Malaysia
Petron Oil & Gas International Sdn Bhd
(Petron International), an offshore affiliate
of oil refiner Petron Corp., has offered to buy
an additional 35 percent of Esso Malaysia
Berhad for 3.50 malaysian ringgit a share.
Petron International under a “mandatory
takeover” offered to purchase 94.5 million
shares held by other stockholders of Esso
Malaysia. “The mandatory takeover offer was
due to elections the OMCs have been unable
to raise petrol prices for the past 4 months.
OMCs last raised petrol prices in December
2011. Price of Brent crude has increased by
11.06 percent since 1st January, 2012 which
has resulted in significant losses for the
OMCs. According to the oil ministry, OMCs
are losing around 4.86 billion rupee a day
on account of selling petroleum products at
government-mandated prices.
triggered by Petron International’s acquisition
of 175 500 000 Esso Malaysia Berhad (EMB)
shares, representing 65 percent of the voting
shares of EMB”, Petron said in a disclosure
to the Philippine Stock Exchange. Petron
said the tender offer marked its entry “into
the highly-attractive and dynamic Malaysian
market and is a strategic opportunity for the
company to increase its presence in Asia”.
Leading downstream company by 2016
ENGEN Ghana limited is targeting to become
the leading downstream company in the sub-
Saharan region by 2016. ENGEN is focusing
on the downstream refined petroleum products
market and related businesses. The company’s
core functions are the refining of crude oil, the
marketing of refined petroleum products and
the provision of convenience services via an
extensive retail network. ENGEN has pres-
ence in 18 countries in sub-Saharan Africa.
Managing Director, Engen Ghana, Henry
Akoboah said “The vision of the company is to
become the number one downstream company
in sub-Saharan Africa. This means that we
are going to increase our market share and
our presence. That is the reason why we also
acquired Chevron’s assets in seven countries
to expand our operations in the sub-region”.
south Korea expands ‘bargain’ gas stations
South Korea plans to open more “bargain” gas
stations throughout the country to help control
inflationary pressure and lighten living costs
for ordinary citizens. At an economic policymakers
meeting aimed at stabilizing consumer
prices, the finance ministry said up to 433
bargain gas station will be set up increasing
from 385 the number currently in operation.
The bargain gas stations sell fuel products
at lower prices than their conventional rivals.
These stations can undercut rivals because
they receive their fuel directly from state-run
agencies at cheaper prices. The government
said the presence of such stations helps lower
gasoline and diesel fuel prices across the board
through open market competition.
zambia shortlists 14 fuel supply companies
Fourteen foreign firms among them Dalbit
Petroleum and Kuwait’s Independent Petroleum
Group (IPG) have been shortlisted for the
two-year supply of diesel and unleaded petrol
to Zambia. And nine foreign firms have been
shortlisted for the supply of 1.4 million tonnes
of petroleum feedstock to Indeni Petroleum
Refinery over two years. The country is currently
looking for firms to supply diesel and
unleaded petrol side by side with the firm to
supply 1.4 million tonnes of petroleum feedstock
over two years. The tender constitutes
for supply of finished petroleum comprising
15 to 20 percent of the diesel and petrol that
the country consumes. Sources said prominent
bidders included Dalbit Petroleum of Kenya,
Agipol Africa, Addax Oryxl, Trafigula, IPG
and Kenol Kobil.
sanctions boost business for Iranian tanker company
Iranian oil stored at sea is building up due to sanc -
tions which are proving a boon to its tanker oper-
ator. Half of the large crude carriers owned by
NITC are now storing oil instead of exporting it.
latest news, events, jobs online – www.PetrolPlaza.com
News – MIddLe eAsT, AFrICA & AsIA
Local fuel retailers interested
in Caltex assets
Local players are flexing their muscles to
acquire downstream assets of Chevron Corp.
as the American oil marketing company
(OMC) is considering disinvesting from Egypt,
Pakistan and Australia, industry officials
and analysts said. Chevron (Caltex brand)
has recently announced it wants to sell off
its downstream assets consisting of refining,
marketing and retail sales outlets. Chevron
(Caltex) has an extensive presence in Pakistan
with a nationwide retail network consisting
of 538 fuel outlets. Industry officials say Attock
Petroleum (APL) and Byco appear to be
the key contenders among existing players.
Fauji Faoundation’s Fauji Fertilisers (FFC)
is also considering acquiring Caltex operations
in Pakistan as the company is actively
pursuing its business diversification plan and
has already ventured in the energy sector.
essar Oil to produce
euro-v grade diesel
Essar Oil Ltd has commissioned a unit that
will produce Euro-V grade diesel at its Vadinar
refinery in Gujarat. The 4 million tons a year
Diesel Hydrotreater Unit-I (DHDT-I) will
upgrade diesel quality by treating the sour
diesel streams, achieving reduction in sulphur
as well as an improvement in the cetane index.
The project will enhance the refinery’s
capacity to 18 million tons per annum from
current 14 million. The new unit will ensure
that the diesel produced will be capable of
meeting Euro V specifications. Essar Oil
has already commissioned the Isomerisation
Unit, which was the first expansion unit to
be commissioned, that gives the refinery the
capability to produce gasoline of high octane
rating and almost zero sulphur content.
Nigeria imports of 4.8
billion litres of fuel
The Petroleum Products Pricing Regulatory
Agency (PPPRA) has issued 42 petroleum
product marketers, permits to import a
total of 4.8 billion litres of petrol in the
second quarter this year. This will be the
first open tender announcement since the
partial removal of subsidy in January. Experts
estimate that the country consumes
between 20 and 25 million litres of petrol
every day. Before the issuance of these
permits, the country relied on exchanges
of crude oil for petrol and other products.
Oil majors like ExxonMobil and TOTAL
as well as state-owned Nigerian National
Petroleum Corporation (NNPC) are among
the companies approved to sell petrol in the
country, the PPPRA said in a statement.
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