Tuesday 19 August 2014

IOC to hike processing of cheaper crude to 30% by 2017-18

 Indian Oil Corp (IOC), the nation's largest oil firm, plans to raise processing of cheaper crude oil varieties to 30 per cent by 2017-18 as part of its efforts to improve margins.

In 2013-14, IOC, which owns 30 per cent of the nation's oil refining capacity, turned 54.65 million tons of crude oil into fuel. Of the crude oil processed, 16.1 per cent was heavy and high TAN (total acid number) crude. 

Heavy crudes, like the one produced in Latin America, are cheaper than most of the varieties available from the Middle-East as they have high concentration of sulphur and several metals, particularly nickel and vanadium, which require higher grade refineries for processing. Same goes for high acid crudes or high TAN crudes. 

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