Public sector oil refining companies would soon import and refine more heavy crude oil, or Dubai crude oil, procured from West Asian countries.
According to official sources, many refineries would introduce the 'bottom upgrade’ technology in refineries, through which they would be able process more heavy crude oil. Currently, most refineries use the coker, slurry or delayed coker technologies to process heavy crude, which has a high amount of sulphur.
The officials added the bottom-upgrade technology would help Indian companies procure less soft crude oil. Heavy crude oil is cheaper compared to soft crude oil procured at the benchmark Brent crude rate. Through the past one year, the difference between Brent crude oil and the Dubai variety has narrowed from $6 a barrel to $2.32 a barrel.
| VIEW OF THINGS TO COME |
|
About 60 per cent of crude oil required for domestic demand is imported. Currently, the industry average ratio of procurement of heavy crude oil to soft crude oil is 47:63, with Brent crude oil accounting for the rest. Soft crude is easier to process, since it has low sulphur.
According to officials, Hindustan Petroleum Corporation has started upgrading its Visakhapatnam and Rajasthan refineries. Currently, it is examining the slurry technology for bottom upgrade, said official sources. Mangalore Refinery and Petrochemicals has also started upgrading its 3.3-mt Mangalore refinery, where coker technology would be operational by the year-end. Bharat Petroleum Corporation has also started upgrading its refineries with coker technology. Officials said in the medium term, procurement of heavy crude oil would be more than imports of Brent crude oil.
The proportion of imports of Dubai variety to low-sulphur crude oil (Brent) may rise from the current 33:67 to 50-50. Indian Oil Corporation has already completed the revamp of its refinery and is procuring more heavy crude.
