european edition - ErpecNews

NEwS – MIddLE EaST, aFRIca & aSIa
8
discount station opens
in Korea
Korea’s first independent discount gas
station has opened amongst controversy
over state intervention in petrol prices.
The much-touted outlet is a by-product
of the government’s ambitious drive to
contain sky-high fuel prices and take
apart four major refiners’ tight control
over domestic petrol supplies. Prices at
the new station are significantly lower.
“Since this outlet is based on the concept
of social contribution, our profit margin
is just enough to pay five employees and
keep the business sustainable”, Eric Choi,
Managing Director of Kyung Dong’s new
business promotion unit said. To maintain
low price tags, the government teamed
up with two state-run firms to buy petrol
in bulk from refiners and resupply it to
other vendors. It aims to supply about
1 300 discount gas stations nationwide,
or 10 percent of outlets by 2015.
will caltex abandon
refining in australia?
Another profit downgrade by Caltex has
fuelled speculation the company might
exit the oil refining business in Australia,
leaving it a convenience retailer. Caltex
forecast an after-tax operating profit, on
a replacement cost of sales basis and including
significant items, in the range of
$ 180 million to $ 200 million for the 2011
calendar year. The guidance compares with
a result of $ 302 million in 2010 Replacement
cost of sales excluded the impact of
fluctuations in oil prices and presented a
clearer picture of the company’s underlying
business performance, Caltex said. Caltex
explained the fall was largely attributable
to challenging external factors, including
a high Australian dollar and operational
disruptions this calendar year.
Boustead keen on Exxon Malaysia assets
Boustead Holdings Bhd., a Malaysian plantations,
engineering and financial services group,
is interested in buying ExxonMobil Corp.’s
oil and gas assets in the Southeast Asian
nation if San Miguel Corp. (SMC) planned
acquisition fails. Exxon has agreed to sell its
entire 65 percent stake in Esso Malaysia Bhd.
to the Philippine beer-maker for US $ 610
million. This would give SMC control over a
Phoenix Petroleum to build 100 outlets in 2012
Independent fuel retailer Phoenix Petroleum
Philippines Inc. is embarking on an
aggressive expansion plan that will see the
construction of around 100 petrol stations
in 2012. Phoenix Petroleum AVP Raymond
T. Zorrilla said the company would spend
roughly 500 million peso to put up around
40 petrol stations in Luzon next year; 20 in
the Visayas; and 40 more in Mindanao, in
Smuggling Iranian petrol cannot be stopped
Customs officials in Quetta, Pakistan have
admitted that smuggling of Iranian petrol
and diesel through borders cannot be stopped
due to extreme pressure of influential mafias
and powerful gangs in Balochistan for which
policy measures such as a legalisation on
import of diesel / petrol from Iran and joint
check posts of all law enforcement agencies
along the coastal belt of Balochistan and
Pak-Iran border land routes are needed.
Railway land could earn billions
In a historic development and on a unique
idea, the Pakistan Railways and Pakistan
State Oil are planning to enter into a joint
venture for establishing petrol filling stations
on the Railways’ land. Pakistan State Oil
(PSO) has already identified the plots in major
cities to establish the state-of-the-art filling
stations. However, the legal process is yet to
LaTEST NEwS, EvENTS, JoBS oNLINE – www.PETRoLPLaza.coM
chain of gasoline stations and a refinery with
a capacity of 88 000 barrels a day. SMC also
agreed to purchase all of unlisted Exxon Mobil
Malaysia Sdn. and ExxonMobil Borneo Sdn. for
a combined US $ 403 million. The takeovers
would provide the Manila-based company
with downstream interests including seven
fuel distribution terminals and a network of
560 service stations.
a bid “to formalize our claim to be the leading
independent player. We have a vision
to become the leading independent player
both in terms of network share and market
share”, Zorrilla explained. Should all the 100
stations be completed within 2012, Phoenix
Petroleum would have a total of 320 outlets
by the end of next year, from an estimated
retail network count of 220 stations in 2011.
Sources say that the Federal Board of Revenue
(FBR) has received a comprehensive
report on smuggling of Iranian petrol / diesel
from Model Customs Collectorate (MCC)
Quetta which has exposed all those involved
in smuggling including influential and powerful
mafias of Balochistan who pressurised
the customs in the province not to hinder
non-stop smuggling of POL products through
Pakistan-Iran border.
be completed and a Pakistan Railways (PR)
official – related to the development – stated
that the deal would be made after discussing
all aspects of the agreement. An official has
stated that thousands of acres of the PR land
could be used to earn billions of rupees annually.
“It is the need of the hour that PR should
scientifically develop the land it has”, he said.