Indian Oil Corporation (IOC) is reportedly in talks to set up a crude storage facility in Mauritius with a planned capacity of 140 million tonnes. Since the storage facility involves huge investment and risk, the project will be a joint venture with IOC as the lead partner along with Mangalore Refinery and Petrochemicals Limited (MRPL) and the Mauritius government owned State Trading Corporation (STC).
Furthermore, the storage unit will open up the possibility of a refinery in the region.
This represents a great market opportunity as there is actually no refinery in the region except one in Madagascar, which is non-functional, and another in South Africa that barely meets the country’s requirement, leave alone the rest of the continent.
“It is a significant opportunity for us… we are looking at all the options,” a senior IOC official said.
“The facility would remove the uncertainties associated with crude availability. Further, Mauritius can become a sourcing point for the neighbouring islands that do not have large storage,” he added.
However, plans for the facility are said to be at the initial stage.
IOC would have to go through a period of assessment should it decide to take up the project for building a refinery on the island, which will require major investment.
In addition, Mauritius will reportedly set up the storage facility before assessing the possibilities of building a refinery on the island.
Indian Oil Corporation Ltd is present in Mauritius through a wholly owned subsidiary company Indian Oil (Mauritius) Ltd (IOML), which happens to be the third largest petroleum company in Mauritius.
Registered on October 24, 2001, and commencing marketing operations in January 2004, IOML holds an overall market share of 24 per cent, with a major presence in the industrial and commercial market sectors.
Furthermore, IOML has set up a state-of-the-art 24,000 metric tonnes storage facility at the capital city of Port-Louis comprising eight tanks with various storage capacities for different products.
Finally, IOML commands a dominant share of 42% in the aviation fuel business and supplies jet fuel to many renowned airlines. It also has a 25 per cent equity stake in the new petroleum terminal at the Sir Seewoosagur Ramgoolam International Airport, created by a consortium with a cumulative investment of USD 16 million.
Image (Processing Magazine): This represents a great market opportunity as there is actually no refinery in the region except one in Madagascar, which is non-functional, and another in South Africa that barely meets the country’s requirement, leave alone the rest of the continent.
Source: The Telegraph
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