Research q40 0nwards

41

When asked about the steps the organizations had taken towards cluster based development NRC did
not give any response while Caltex maintained that the company played role as the middle man so it
wasn’t possible.

Byco however realizes its importance and plans to build its own shipping point- SPM Single Point
Mooring (refer to report).

PSO plans to develop that by reducing costs, increase security, steps to minimize risk level in view of
current law and order situation
Shell- by transferring of best practices across countries

42
PRODUCTS PRODUCED and MARKETED:
LPG: NRL, Byco and PSO
Gasoline: ALL 5
Naphtha: NRL and Byco
Kerosene: NRL, Byco, PSO, shell
Jet fuel: all 5
Diesel fuel: all 5
Fuel oils: all except Caltex
Lubricating oil all except Byco
Paraffin Wax: NRL, PSO
Asphalt: NRL, PSO
Tar: NRL, PSO
Petroleum Coke: NRL, PSO Caltex
Others by NRL: Rubber Process Oil, Spindle Oil, Waxes, High Sulphur/ Low Sulphur Furnace Oil

43
The reasons they provided for not producing them were
 mainly technical problems-50% (lack of technology, handling requirements)
 Govt regulations and prohibitions they faced. (25%)
 Shell gave the absence of demand reason (25%) and said it did not market these products in
Pakistan.
44
PLANS TO EXPAND CURRENT PRODUCT LINES

expand current
range of
products (60%)
no plans to
expand product
lines (40%)

45
THEY PLAN TO EXPAND BY:

BYCO: Start producing Jet Fuel and more gasoline through isomerisation plant (pg. 20 Annual report)
PSO: by introducing new product, development of LPG stations like CNG stations
Caltex: Advanced Fuels will be introduced in short to medium term

46:
Of the two refinery companies we researched on NRL had all mentioned process units available while
Byco had only 6 of them. (Desalter Unit, Liquefied Gas Storage Units, Storage Tank, lug Catcher, Utility
Units (Cooling Towers, Boiler Plants, Pneumatically Operated Control Valves, and an Electrical
Substation)
CALTEX?

47 and 48:
INFLUENCE ON OIL PRICES
6
4
2
0

All four companies except NRL maintained that they had no influence at all on pricing because
  govt influence is great
 Announced by as per GDP approved formula. Just announced by OGRA
NRL said it had considerable influence because recently prices of LPG & Furnace Oil were ‘De-Regulated’.
It was under their control.

49
Does govt help obtaining crude oil from foreign and local sources?
Byco said No
Caltex and NRL said yes
CALTEX?

50
60% of them agreed to fact that govt helped them in finding and negotiating with foreign sources of
refining technology, machinery and equipment. 40% or 2 of them refused to the fact.
Out of three who agreed however, are govt held institutions, NRL and PSO.

51
Govt help and support in other areas

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
None Some

PSO said it helped in

 policies/carrying out business affairs
 resolving issues of industry or even PSO
 resolving payment receivable from WAPDA/PPP

52
TAX HOLIDAYS
NONE to any of the 5

53
OPERATIONS UNDER STRICT GOVT MONITORING
All agreed except for NRL

54
INSTANCES OF GOVT INTERVENTION

occasionally
always and evry
stage of
business

55
PROBLEMS DUE TO GOVT INTERVENTION
 Mainly all agreed to having price related problems because of being forced by the Govt
sometimes to lower/ increase the prices, it wasn’t kept at competitive levels, and the margin is
fixed.
 PSO also said competitors try to get undue advantage, being the private sector.

56
All 5 Agreed that the undertaking of projects in future to meet the increasing oil demand of Pakistan
have effects on company
How?
 More competitors, more competition
 Already expanding the refining capacity and the value addition
 In process of developing pipeline/road transport, storage with help to cater future increasing
demand of oil of Pakistan
 Commissioning of refineries, new oil pipelines will have impact on our business. It will or can
introduce new players in the market. They can have certain advantages which might be
detrimental for our business. This can change the supply scenario which will have impact on our
business.

57
What should be Govt policies to benefit the industry?

 Set up more refineries and oil marketing companies.

 To lessen the import
 It should be deregulated and market conditions should dictate the prices.
 creation of level playing field viz-a-viz HSE (Health, Safety, Environment) and operating
standards
 increase in margins of companies and retailer, this will help in injection of new investment in the
country and will also curb mal practices across the industry;
 enforcement of minimum standards
 Caltex thought that that govt should increase storage locations
 PSO suggested that it should compel OMCs (other) to develop storage/maintain stock level in
country as per their license