Byco refinery set to maximise crude oil import from Iran

ISLAMABAD: pre-empting the removal of US and EU sanctions from Tehran, Byco Refinery is all set to maximize the crude oil imports from Iran at cheaper rates and refine them to make the finished products to be used in Pakistan.
In a hit chat with a select group of journalists here on Monday, Asad Siddiqui, Chief Financial Officer of the country’s largest oil refinery, said Byco company that possesses the biggest to refine 155,000 barrels per day can capitalize at the maximum the benefit from removal of international sanctions against Tehran as other refineries are embroiled in long term crude supply contracts.
Since other refineries, he argued, are entrenched in long term crude supply agreements owing to which they are unable to switch over to importing crude from Iran. However, Byco has the potential to quickly take advantage of this emerging opportunity. Expressing the optimism, he said the Iran would, after the economic curbs are over, come up with discounts on crude oil to make inroads in Pakistan’s market.
“Byco had completed one of the two new projects for isomerization and desulphurization and it had relatively short term crude supply agreements that provide flexibility for Iranian crude,” he said adding that in the past Byco experienced of refining Iranian crude prior to Iran was exposed to international sanctions.
Siddiqui said the Byco’s refining capacity had now increased to 155,000 barrels per day after its second unit of 120,000 barrels per day was completed, makingit the country’s largest refinery. Previously, Parco had the largest refining capacity of 90,000 barrels per day, followed by 68,000 barrels of National Refinery, 48,000 barrels of Pakistan Refinery Limited and 45,000 barrels of Attock Refinery.
He said that now Byco has come up with new innovation under which its products will not be transposed through tankers and some of the unscrupulous tanker owners commit the mis-declaration on the way showing that they are carrying the Iranian products. To address this very issue, Byco’s top management has decided to transport its petroleum products up to Port Qasim through ship wherein the refined oil will be injected in the white oil pipeline up to Kot Addu.
To a question he said the focus of Byco’s marketing has been on furnace oil sales and we have been able to secure furnace oil business from Nishat Chunia, K-Electric, Tapal, Liberty and Hub Power Company.
Highlighting the tax problems, he said that Byco was facing problems because of the issue of turn over tax but explaining that refinery was set up under tax-holiday for seven years when there was no turn over tax which was imposed subsequently and the government had agreed to do away with it.
He said the completion of its isomerization and desulpherization plants into a couple of months would convert its entire Naphtha production into motor spirit that would almost double its production from 12,500 barrels per day to cut costs.
He said the government had appreciated the cooperation extended by the Byco in controlling petrol crisis early this year and now looked forward to take benefit of its location and infrastructure. He said the company could directly provide furnace oil to Hubco next door while Pakistan State Oil was also taking full advantage of Byco’s strength of its own port facility in the shape of single point mooring.