Refining NEWS

Prices of petrol and diesel are market-determined in India and domestic refiners are expected to revise fuel prices daily in line with changes in the international rates.

SINGAPORE :China's annual crude oil imports slid 5.4per cent in 2021, dropping for the first time since 2001, as Beijing clamped down on the refining sector to curb excess domestic fuel production while refiners drew down massive inventories. China has been the global oil demand driver for the last decade, accounting for 44per cent of worldwide growth in oil imports since 2015, when Beijing started issuing import quotas to independent refiners. Benchmark Brent crude oil weakened slightly to $84.40 per barrel in the wake of the data release.

Despite all the external challenges like the coronavirus pandemic and the U.S. sanctions, the Iranian oil and gas sector has been developing at a fast pace and the country is passing new milestones in this industry every day. Various sectors of Iran’s oil and gas industry including exploration, production, processing, and distribution are all among the world’s top charts and the country is taking new steps to develop the industry even further. Among different sectors of this industry, refining is a major one being seriously paid attention for development. In a visit to Tehran Refinery on Friday, Iran’s new Oil Minister Javad Oji said that the country’s oil refining capacity will be increased by 1.5 folds by the end of the current government’s incumbency (in four years).

Fitch Ratings-Hong Kong/Shanghai-25 August 2021: China’s oil and gas industry saw a growth recovery in upstream production, rebounding refining utilisation and a fast rise in gas consumption and imports during 1H21. The oil price rally will support upstream operations’ revenue and profitability, but press refining and gas margins in 2H21, says Fitch Ratings. Fitch expects national oil companies’ (NOC) 2H21 production to stay steady on higher upstream capex and segment profitability, which should improve with higher volume and prices. China’s gas production rose by 11.1% yoy during 1H21, while oil production was up by 2.2% yoy, as NOCs accelerated exploration and production.

PDVSA-owned Citgo Petroleum Corp yesterday registered a 76.2% rise in profit for 3Q2019. Citgo recorded an increase of 14.3% in the total refinery throughput to 825,000 barrels per day (bpd) from the preceding quarter, with utilizing rate of 94%. The net income for the eighth-largest U.S. refiner by capacity rose to $215 million in the third quarter, compared to $122 million in the 2Q2019.

BP has reported a sharp decline in profit in Q3. Its revenue was hurt the most by a fall in oil prices. Although strong refining operations have helped BP perform better than expected by the market. The firm has taken one-off charge of $2.6 billion linked to large asset sales. "BP delivered strong operating cash flow and underlying earnings in a quarter that saw significant hurricane impacts", informed it's CEO.

Oil major ADNOC is planning to partner with Eni and OMV to diversify its refining capacity. The company wants to take the refining capacity to 1.5 million barrels per day. The energy company has decided to double its refining capacity and triple petrochemicals output potential by 2025. In January, OMV and Eni decided to pay a combined $5.8 billion in order to buy stakes in refining business of ADNOC.

Mississippi-based Ergon Chemicals has acquired thermoplastic resins and polymer manufacturer, Resinall and its subsidiaries. The acquisition is in line with Ergon’s commitment to becoming a leader in the refining and marketing of specialty products. Resinall tends to customers of adhesive, tire, ink, and specialty markets around the world. KeyBanc provided Resinall with exclusive sell-side advice on the transaction.

ADNOC and Chinese state-owned CNPC are believed to be closing in on a deal pertaining to a major investment into upstream and downstream businesses. The UAE oil major is putting into execution its plans to almost double its refining capacity and triple petrochemicals output potential by 2025. ADNOC has diverted its focus on the expansion of its downstream division to capture new growth markets.