Bangchak Petroleum to increase refining capacity

In 2015 and 2016, Thailand’s Bangchak Petroleum PCL is planning to invest approximately US$610 million, mainly in exploration and production, as part of a six-year plan to boost its business. Around 60% of the two-year budget will be spent on upstream exploration, with the rest used in its renewable energy division.

A number of oil refiners have suffered from the plunge in oil prices, and are diversifying into biofuel and solar power to minimise the risk from the refinery sector. According to local reports, Bangchak Petroleum is keen to join bidding for petroleum concessions in Thailand and is in talks to buy petroleum fields in the Gulf of Thailand and South China Sea, which are expected to conclude later this year. Meanwhile, it plans to raise the capacity of its renewable power plants by 300 MW over the next two years, while more than doubling its bio-diesel production capacity to 810 000 l/d.

The company's refinery, which has a designed production capacity of 120 000 bpd, had an average crude run of 86 480 bpd in 2014 (down from 99 340 bpd in 2013) due to annual maintenance. Bangchak Petroleum plans to raise its refining capacity to 105 000 bpd in 2015 with an estimated average refining margin at approximately US$6 – 7/bbl.

Edited from various sources by Rosalie Starling

Sources: Reuters, The Edge Markets, Business Recorder

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