Endeavour is to increase throughput, utilisation within safety mandates: Bharat Petroleum chief

Our endeavour is to constantly increase the throughput and refinery utilisation with safety parameters in mind, Sanjiv Khanna, Chairman and Managing Director of Bharat Petroleum told The Hindu in an interaction at the sidelines of the India Energy Week in Goa last week.

The state-owned refiner crude oil throughput in the December-end quarter spurred nearly 10.2% on a year-over-year basis to 10.51 million metric tons (MMT). Further, standalone net profit during the same period rose 62.3% on a year-over-year basis to ₹7,545.27 crore.

Importantly, the company gross refining margin (GRM), which is the primary indicator of profitability for a refiner, stood at $13.25 for every barrel in the December-end quarter, The Hindu learnt separately from company officials.

“Our endeavour is to increase [throughput and utilisation],” said Mr. Khanna, adding, “Within the safe operating region whatever maximisation can be done, we always try for it.” Mr. Khanna also pointed to Bharat Petroleum having amongst the highest capacity utilisation in the domestic industry – at 115% as on today.

‘Any crude oil procurement must make techno-commercial sense’

Responding to a query about the rationale behind Bharat Petroleum doubling the quantum for procurement from Brazil’s Petrobras, Mr. Khanna stated the strategy for procurement from any geography hinges on assessing its “techno-commercial” feasibility.

“Our objective is very simple. When I am going to the market, we see which is the most techno-economical crude for me,” he stated, further explaining, “Some crude [oil] may be very economical, but the refineries may not be able to process it. Therefore, depending on the techno-economical evaluation, we pick up the crude.”