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.
LaTEST NEwS, EvENTS, JoBS oNLINE – www.PETRoLPLaza.coM NEwS – MIddLE EaST, aFRIca & aSIa 9