Byco is now ahead of all refineries in Pakistan following the completion of its second unit, as its crude oil refining capacity has gone up to 155,000 barrels per day from 35,000 barrels per day.
Asad Siddiqui, Byco Chief Financial Officer (CFO) of the complex, talking to a select group of journalists here on Monday said the second unit of the refinery has completed, enhancing its refining capacity by 120,000 barrels per day, making it the country's largest refinery. He said that Byco has crossed Pak Arab Refining Company (PARCO) which has the 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.
Replying to a question regarding expected removal of international sanctions against Iran, he said that if the sanctions are lifted Byco Refinery is all set to take the advantage of expected crude oil imports from Iran at discounted rates.
Byco CFO said that his company was well placed to benefit from removal of international sanctions against Tehran unlike the country's other refineries which had long term crude supply contracts.
"It is comparatively difficult for other refineries to switch over because of their long term agreements" but Byco has the potential to quickly take advantage of the emerging opportunity.
He said perhaps Iran would also offer discount on crude oil to open up its market and it would be a good omen for Pakistan.
He said 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 the Byco also had past experience of refining Iranian crude before its supply had suspended due to international sanctions.
He said because of consolidated business model, the company would be declaring profit for the first time for the quarter ending June 30, 2015 that would set the direction for its improved financial position in future.
He said the Byco management had decided to consolidate its refining business before going into expansion of retail outlets, adding that so far Byco was operating 250 petrol pumps across the country.
"The focus of our 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", he maintained.
He said Byco was facing problems because of the issue of turn over tax, but the authorities had not only understood the tax anomaly but was committed to issue an enabling clarification. He explained 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 about 95 per cent of the oil pricing was based on crude price which meant that turn over tax could simply eat away the entire profit.
He said that due to the completion of isomerization and desulphurization of within plants into a couple of months it 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 co-operation 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.
Siddiqui said all major oil marketing companies including PSO, Hescol, Caltex and Shell in that order and other smaller companies were lifting products from Byco refinery.
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