IOC may upgrade, expand Barauni, Mathura refineries

After Panipat, Koyali and Haldia, IndianOil has set its sight on upgradation-expansion of Barauni (six million tonnes) and Mathura refineries (mt) in Bihar and Uttar Pradesh respectively.

Set up in 1964 for use of light sweet Assam crude, the six-mt Barauni refinery is today run on low sulphur Nigerian crude resulting in high operational cost. Sweet light Nigerian crude is generally costlier by $3-4 a barrel over and above the heavy sour Middle East crude.

"We are planning a low-cost select process upgradation requiring an investment of Rs 1,000-1,500 crore so that the refinery can use 40-50 per cent of high sulphur crude. This will enhance the refining margin by $2-3 a barrel," a senior company official said.