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SPA News Autumn 2012 - Shell UK

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FEATURE ARTIcLE<br />

Ah! bOmbAy<br />

Colin Morsley recalls life in India in the early 1970s, including ingenious in-house<br />

recycling, 36-hour shifts and three-day biryanis …<br />

Taj Mahal<br />

I had been working at the Stanlow<br />

Refinery for nearly three years, since<br />

graduation, when in 1972 I was offered<br />

a two-year assignment to Burmah-<strong>Shell</strong><br />

Refineries in Bombay. My mother was<br />

born in Calcutta (as it then was) and had<br />

lived briefly in Bombay in the late 1920s,<br />

so there was a tenuous family connection.<br />

As Burmah-<strong>Shell</strong> in India was almost fully<br />

‘Indianised’ it wouldn’t be the usual<br />

‘expat experience’ and, professionally,<br />

would be quite a challenge, I thought.<br />

The Burmah-<strong>Shell</strong> Oil Storage and<br />

Distribution Company had been<br />

operating in India since before World<br />

War I. After the Second World War and<br />

Indian independence, the need for India<br />

to have its own refining capacity was<br />

recognised and several major oil<br />

companies signed refining agreements<br />

with the Indian government.<br />

Burmah-<strong>Shell</strong> Refineries was set up as a<br />

rupee subsidiary, and then started<br />

operations in 1955 in Trombay, about<br />

15 miles from the centre of Bombay, and<br />

next door to an Esso plant. It was one<br />

of a series of similar refineries built by<br />

<strong>Shell</strong> during that period, and the<br />

company had a long-term crude supply<br />

agreement to provide light Iranian crude<br />

to the refinery.<br />

By the time I arrived as a young engineer<br />

18 | <strong>SPA</strong> NEWS<br />

in September 1972, I was the only expat<br />

in the refinery apart from the MD. Many<br />

of my Indian colleagues had been<br />

recruited before start-up and had trained<br />

in the <strong>UK</strong> and Dutch refineries. Not<br />

‘we began to appreciate<br />

the huge diversity of<br />

Indian culture and cuisine’<br />

surprisingly, <strong>Shell</strong> had recruited some of<br />

the best engineers from across the<br />

diverse Indian nation and they developed<br />

considerable knowledge of the plant and<br />

its operating history. Most of the refinery<br />

equipment was, naturally, British, Dutch<br />

or US in origin; however, among other<br />

Bombay street<br />

achievements, the refinery had been<br />

ingeniously ‘debottlenecked’ and a<br />

bottling system for domestic gas was<br />

designed and built locally.<br />

By 1972 the business was being severely<br />

challenged by a pincer movement of<br />

rising crude prices (a harbinger of the<br />

first oil shock) and the negative attitude<br />

of the government (led by Mrs Indira<br />

Ghandi) to foreign-owned businesses.<br />

The government took the view that it was<br />

paying too much for crude, and limited<br />

the amount of foreign exchange<br />

proportionately. Thus we processed<br />

progressively less crude as the months<br />

went by, operating well below capacity.<br />

There was also a rigid licensing system<br />

for importing spare parts, which was<br />

partly counteracted by an impressive<br />

‘indigenous development’ programme<br />

of locally-manufactured spares, which<br />

used in-house engineering expertise to<br />

coach local suppliers. All sorts of<br />

techniques were used to recover and<br />

reuse parts as much as possible, and as<br />

I was working in refinery maintenance,<br />

this made life extremely interesting.<br />

Having negotiated an inter-government<br />

deal with Iran for crude (at a higher price<br />

than <strong>Shell</strong> was paying!), the Indian<br />

government subsequently found that the<br />

state-owned Indianoil refineries, largely<br />

based on Russian technology, were<br />

unable to cope and so asked Burmah-<br />

<strong>Shell</strong> and the other foreign companies<br />

to process some of their crude. This<br />

meant a switch from barely ticking over<br />

to running flat-out for extended periods

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