Total, IOC sign agreement for fuel quality improvement

French oil major will provide Indian Oil Corp with clean fuel technology.

French oil major Total and Indian Oil Corporation (IOC) have signed a fuel quality improvement pact whereby the former will cater to the IOC's requirement of 1,000-tonne of friction-modified fire additives for 2005-06.

Total had recently introduced the fuel system cleanliness and friction busters in around 15,000 outlets in Belgium, Netherlands, Germany, France and Spain.

Talking about the tie-up, IOC Marketing Director N G Kannan said, "Wherever there is a competition at the international level, we will either compete or collaborate."

Friction busters reduce friction and act as detergents for the automobile fuel system, and are anti corrosion agents. They will be added to the branded petrol being sold by IOC under the brand name XtraPremium.

"We have customised the fuel for IOC," directeur, Total France, Patrice Bres said. As part of the venture, Total will use IOC's research and development facility in India. IOC claims to have 37.6 per cent market share with Xtra Premium in the branded petrol segment.

The two oil majors already have a partnership for marketing ADON P and ADON D. They will also collaborate on cost-effective sulphur reduction technologies for diesel and on the improvement in the Cetane diesel number.

The other areas of collaboration will include improvement in MFA packages to reduce diesel engine auxiliary system energy loss, optimisation the marine engine fuel and development of cost-effective challenges for future emission standards.