BPCL buys crude from every place including Russia based on viability: CMD

A senior official of the Department of Petroleum and Natural Gas replying to a query on the crude imports from Russia said those decisions are not taken at country level but at company level

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State-owned BPCL has said its crude procurement is based on techno-commercial viability for its refineries and it buys from every geography including Russia.

BPCL Chairman and Managing Director Sanjay Khanna said that currently preparation of Detailed Feasibility Report (DFR) is underway for the company's proposed Greenfield Refinery and Petrochemical Complex near Ramayapatnam Port in Nellore district, Andhra Pradesh and obtaining necessary environmental clearances.

"We buy oil from every geography and the oil which is most techno-commercially viable for the refinery, not only me (BPCL), every refiner goes for it. So that is the stand, be it Russian oil or any oil for that matter. That is how we go for it. Whichever is giving us the highest value for the company ensures the reliable operations," Khanna told PTI.

A senior official of the Department of Petroleum and Natural Gas replying to a query on the crude imports from Russia on Tuesday said those decisions are not taken at the country level but at respective company level.

"Companies decide what the most economical oil is and in compliance with the law," the official told PTI.

The official further said there was no direction for the government to any crude importers whether to buy or not to buy from Russia.

Khanna further said in line with the PM's vision of net zero for the country by 2070, BPCL has chalked out a detailed plan of net zero by 2040. As part of that plan, one of the key components was improving the energy efficiencies of BPCL's refineries.

"And I am very happy to say that all my three refineries are working in this direction," he said.

Khanna said BPCL's biofuel complex at Bargarh, comprising 1G and 2G plants, is progressing well, with the 2G unit expected to be commissioned by December.

BPCL and OIL have signed a non-binding MoU to explore collaboration in developing BPCL's upcoming Greenfield Refinery and Petrochemical Complex in AP.

The proposed facility, with a refining capacity of 912 Million Metric Tons Per Annum (MMTPA) and an estimated investment of Rs 1 lakh crore ($11 billion), will be a cornerstone of India's downstream expansion.

Under the MoU, the companies will evaluate opportunities for collaboration, including the possibility of OIL taking a minority equity stake in the proposed joint venture.