Mumbai: Bharat Petroleum Corp. (BPCL) plans to spend around Rs3,000 crore in the current fiscal to fund drilling operations in some exploration blocks, upgradation of refineries and for building a product pipeline.
“Our capex for the current year is Rs3,000 crore. Of this, Rs 1,000 crore would be spent for upstream operations (of Bharat PetroResources Ltd). We plan to drill 8-9 wells in some blocks,” BPCL chairman and managing director Ashok Sinha told reporters.
Bharat PetroResources Ltd (BPRL), a wholly-owned subsidiary of BPCL, has participating interest in 27 exploration blocks in India and overseas.
Besides, the company would invest around Rs450-500 crore for setting up 500 petrol stations pan-India, he said.
The PSU refiner currently operates around 8,500 petrol pumps in the country.
“The remaining amount will be spent for upgradation of the Mumbai and Kochi refineries,” Sinha said.
In the Mumbai and Kochi refineries, BPCL has taken up the fuel quality upgrade project for improving the quality of petrol and diesel for Euro IV specifications.
“We are also building a (multi-product) pipeline connecting our Bina refinery to Kota (in Rajasthan). A dispatch terminal at Bina with storage facilities is also under construction,” Sinha said.
Bharat Oman Refinery Ltd, an equal joint venture between BPCL and the Oman Oil Company is building a six-million tonnes per annum (1,20,000 barrels per day) refinery at Bina in Madhya Pradesh.
The refinery is 94.5% complete and is expected to be commissioned by March 2010, Sinha said.
The Bina refinery will help BPCL meet requirements of key markets in central and northern India.
The oil PSU has undertaken expansion to 9.5 mmtpa and modernisation of the Kochi refinery at a cost of Rs3,941 crore, which is due for completion in December.
After completion of the Bina and Kochi refineries, the refining capacity of the BPCL group, including the three-million tonne Numaligarh Refinery, will be 30.5 mmtpa.