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MRPL to export furnace oil to Singapore

Archana Chaudhary

MUMBAI, Oct. 27

MANGALORE Refinery and Petrochemicals Ltd (MRPL) will ship a furnace oil export parcel of 80,000 tonnes to Singapore at a price of $180 per tonne early next month.

The company also plans to export more than 25,000 tonnes of naphtha in November, Mr Ravi Kastia, Managing Director, told Business Line. It also has plans to export motor spirit, he said.

The company completed its first-ever export of 60,000 tonnes of furnace oil this month.

As part of the crude import strategy, the nine million tonne joint venture between the Aditya Birla group and Hindustan Petroleum Corporation Ltd has also approached the Reserve Bank of India for permission to hedge in the international market.

The company had sought consultancy from international giants Chevron and Texaco for spot buying and hedging of oil. ``We don't have the expertise as yet and are also in talks with many others such as Chase and the Citibank group,'' he said.

The company has suggested `more than one' large authorised dealers for futures trading. ``We have submitted the names to the RBI and also details of the company's board-approved risk management manual,'' he said.

The company recently completed expansion of its three million tonne refinery to nine million tonnes per annum. ``We have been buying crude on f.o.b. basis from markets as far as West Africa, Nigeria and even Far-East Asia,'' Mr Kastia said.