research q40 0nwards

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Research q40 0nwards

41

When asked about the steps the organizations had taken towards cluster based development NRC did

not give any response while Caltex maintained that the company played role as the middle man so it

wasnt possible.

Byco however realizes its importance and plans to build its own shipping point- SPM Single Point

Mooring (refer to report).

PSO plans to develop that by reducing costs, increase security, steps to minimize risk level in view of

current law and order situation

Shell- by transferring of best practices across countries

42PRODUCTS PRODUCED and MARKETED:

LPG: NRL, Byco and PSO

Gasoline: ALL 5

Naphtha: NRL and Byco

Kerosene: NRL, Byco, PSO, shell

Jet fuel: all 5

Diesel fuel: all 5

Fuel oils: all except Caltex

Lubricating oil all except Byco

Paraffin Wax: NRL, PSOAsphalt: NRL, PSO

Tar: NRL, PSO

Petroleum Coke: NRL, PSO Caltex

Others by NRL: Rubber Process Oil, Spindle Oil, Waxes, High Sulphur/ Low Sulphur Furnace Oil

43

The reasons they provided for not producing them were

y mainly technical problems-50% (lack of technology, handling requirements)y Govt regulations and prohibitions they faced. (25%)y Shell gave the absence of demand reason (25%) and said it did not market these products in

Pakistan.


2/5

44

PLANS TO EXPAND CURRENT PRODUCT LINES

45

THEY PLAN TO EXPAND BY:

BYCO: Start producing Jet Fuel and more gasoline through isomerisation plant (pg. 20 Annual report)

PSO: by introducing new product, development of LPG stations like CNG stations

Caltex: Advanced Fuels will be introduced in short to medium term

46:

Of the two refinery companies we researched on NRL had all mentioned process units available while

Byco had only 6 of them. (Desalter Unit, Liquefied Gas Storage Units, Storage Tank, lug Catcher, Utility

Units (Cooling Towers, Boiler Plants, Pneumatically Operated Control Valves, and an Electrical

Substation)

CALTEX?

47 and 48:

INFLUENCE ON OIL PRICES

All four companies except NRL maintained that they had no influence at all on pricing because

expand current

range of

products (60%)

no plans to

expand

product lines

(40%)

01

2

3

4

5

6

Oil producing

companies-

12.5%

International

prices- 25%

Oil and Gas

authorities-

62.5%


3/5

y govt influence is greaty Announced by as per GDP approved formula. Just announced by OGRA

NRL said it had considerable influence because recently prices of LPG & Furnace Oil were De-Regulated.

It was under their control.

49

Does govt help obtaining crude oil from foreign and local sources?

Byco said No

Caltex and NRL said yes

CALTEX?

50

60% of them agreed to fact that govt helped them in finding and negotiating with foreign sources of

refining technology, machinery and equipment. 40% or 2 of them refused to the fact.

Out of three who agreed however, are govt held institutions, NRL and PSO.

51

Govt help and support in other areas

PSO said it helped in

y policies/carrying out business affairsy resolving issues of industry or even PSOy

resolving payment receivable from WAPDA/PPP

52

TAX HOLIDAYS

NONE to any of the 5

53

0

1

2

3

4

5

None Some


4/5

OPERATIONS UNDER STRICT GOVT MONITORING

All agreed except for NRL

54

INSTANCES OF GOVT INTERVENTION

55

PROBLEMS DUE TO GOVT INTERVENTION

y Mainly all agreed to having price related problems because of being forced by the Govtsometimes to lower/ increase the prices, it wasnt kept at competitive levels,and the margin is

fixed.

y PSO also said competitors try to get undue advantage, being the private sector.

56All 5 Agreed that the undertaking of projects in future to meet the increasing oil demand of Pakistan

have effects on company

How?

y More competitors, more competitiony Already expanding the refining capacity and the value additiony In process of developing pipeline/road transport, storage with help to cater future increasing

demand of oil of Pakistan

y Commissioning of refineries, new oil pipelines will have impact on our business. It will or canintroduce new players in the market. They can have certain advantages which might be

detrimental for our business. This can change the supply scenario which will have impact on ourbusiness.

57

What should be Govt policies to benefit the industry?

y Set up more refineries and oil marketing companies.

occasionally

always and evry

stage of

business


5/5

y To lessen the importy It should be deregulated and market conditions should dictate the prices.y creation of level playing field viz-a-viz HSE (Health, Safety, Environment) and operating

standards

y increase in margins of companies and retailer, this will help in injection of new investment in thecountry and will also curb mal practices across the industry;

y enforcement of minimum standardsy Caltex thought that that govt should increase storage locationsy PSO suggested that it should compel OMCs (other) to develop storage/maintain stock level in

country as per their license

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