FraNKLIN 12 LateSt NewS, eveNtS, JobS oNLINe – www.PetroLPLaza.CoM
emarat shares its retail experience with a delegation from adNoC A delegation from the ADNOC Distribution Company visited Emirates General Petroleum Corporation “Emarat” to observe the procedures and processes adopted by the Corporation in the fields of service stations management, in addition to the best practices followed regarding environment protection, safety, health and maintenance. Mr. Abdulla Hassan Al Noman, Manager, Retail Sales Private fuel retailers to make positive margin on sales after deregulation in India Essar Oil, Reliance Industries, Shell Petroleum and state-run Mangalore Refineries and Petrochemicals have, at present, one wish in common – making positive margins on the sale of auto fuel and to scale up their fuel retail outlets. These companies are waiting for the government to take a final decision on deregulation of fuel prices, which would not only allow them to regain their market share in fuel retailing but also help them make a gross margin of 1 000 rupees per kilolitre. At present, the gross margin on sale of every litre of auto fuel is zero. Post deregulation, it would be a rupee per litre. Net margin would be 40 paise on each litre sold. Essar Oil, which has 1 341 outlets operational, is selling petrol and diesel at 4 rupees and 2.50 rupees a litre, respectively, in all states, except Gujarat and Karnataka. The company plans to scale up its retail outlets to 1 700 by March 2011. But, if the prices are deregulated, the company says it might be able to achieve the target by this December. “We had recommended that there should be total freeing of petrol prices, while in diesel, we welcome total decontrol, in a phased manner. The outcome of the next meeting (of the empowered group of ministers) will decide the pace of our ramp-up. Private players are not in the market due to government’s fuel News from South america EnergíaPetrobras’ Argentinean subsidiary announced that it has agreed to sell 110 million dollars worth of its refining and distribution assets to Oil Combustibles Energía Petrobras, a Brazilian state oil company, began its negotiations with Oil Combustibles, a part of Grupo Indalo, which includes a food production and commercialization group, was created in 2001 to offer operation services and administration for oil operations companies. According to a Petrobras executive, the board Operations at Emarat, welcomed the dele - gation, expressing that Emarat is open to cooperate and to share its experience in establishing and managing service stations, in addition to quality control systems implemented at the corporation. Emarat is committed to the highest quality standards and criteria of service, health and safety, in addition to environment protection. pricing policy. A level playing field will help firm up their market presence”, said an Essar Oil official. It has two percent market share in the retail fuel segment. Analysts say the proposed price deregulation of auto fuels, if implemented, would be positive for Reliance and Essar. “Fuel price deregulation could lead to nil under-recoveries on auto fuels, as the entire burden would shift to the consumers. While deregulation of the petrol prices is a possibility, chances of deregulation of diesel prices are less, considering its impact on inflation and given that 15 percent of the total diesel consumption is for agricultural purposes”, said a Mumbai-based Analyst. Sector analysts say Reliance in particular, could ramp up its retail operations at a much faster pace. “Reliance might take only a couple of quarters to regain its lost market share, as in the past, in a matter of less than four years, the company was able to ramp up its share in the diesel segment to 14 percent”, said an analyst who tracks Reliance closely. Reliance, in its fourth quarter results, said it had over 650 retail outlets operational. It has 1 400odd retail fuel stations across the country and today has less than one per cent of retail market share. Shell India, which has 40 of its total 80 retail outlets operational, might also look at re-opening the balance outlets. brazil’s Petrobras to sell assets in argentina of directors for Energía Petrobras approved the terms and conditions of the sale agreement with Oil Combustibles for its refining business, which is located in San Lorenzo, Santa Fe, as well as the reverie unit and marketing network which consist of 360 fuel retail outlets and customers partners linked to the refinery. The sale deadline is estimated to take 90 days to finalize, and is subject to obtaining the administrative permits required by Argentinean law. LateSt NewS, eveNtS, JobS oNLINe – www.PetroLPLaza.CoM NewS – MIddLe eaSt, aFrICa & aSIa KSS enters austra lasian markets KSS Ltd, the provider of pricing software, analytics and consulting services to fuels retailers and wholesalers, announced that it has received orders for its PriceNet retail fuels pricing system for Australia and New Zealand, under its global agreement with a multinational fuels supplier and marketer. In addition to significantly expanding the footprint of PriceNet usage within the aforementioned customer, this latest development in KSS business will provide a platform for the company to serve the pricing and performance management needs of fuels retailers and wholesalers in the Asia-Pacific region. PetroaSSISt installs SMartFLeX pipes in angola’s largest site PETROASSIST (Portugal) has recently completed the biggest service station in Angola using SMARTFLEX pipe and fitting system. The station is located in its capital city Luanda and is owned by the oil company SONANGOL. Nupigeco was on site to follow the training of installers and the installation. NUPI Group has also announced that it is producing PE pipes in China together with its joint venture GECO Shanghai. PE pipe from Ø 20 to Ø 400 will be produced according to the production program of composite pipes in China. a day without fuel subsidies in brunei On one day last month, motorists in Brunei paid the commercial market rates when purchasing petrol from filling stations, as the government retracted its fuel subsidies for just one day. The one-day taste of life without fuel subsidies is one of the campaigns which the Energy Division at the Prime Minister’s Office came up with to mark Energy Day. A senior officer from the Energy Division informed that the campaign hoped to “open the eyes” of Bruneians to the importance of energy subsidies to the community and garner greater public appreciation for such resources. In 2008, the government subsidised a total of US $ 340 million in fuel for vehicles, including diesel, Regular 84, Super 92 and Premium 97. The previous year, Brunei spent US $ 202 million on fuel subsidies, a marked increase from the US $ 50 million spent in 2004. 13