OREANDA-NEWS. Essar Oil Ltd. (EOL) has registered a rise of 32% in its net profit at Rs25.05 crore (USD 5.72 million) for the year ended March 31, 2000, compared to Rs189.2 crore (USD 4.32 million) for the corresponding period of last year. The EBIDTA is higher by 37% at Rs685.0 crore (USD 15.64 million) compared to Rs499.6 crore (USD 11.40 million) in the last year.

The company’s total income has risen marginally by 6.85% at Rs2619.0 crore (USD 59.78 million) [Rs2451.0 crore (USD 55.95 million) for the last year]. After providing for depreciation of Rs222.9 crore (USD 4.80 million) [Rs210.3 crore (USD 4.80 million)], and interest of Rs151.6 crore (USD 4.32 million) [Rs79.1 crore (USD 1.81 million)], the company has posted a net profit of Rs250.5 crore (USD 5.72 million) [Rs189.2 crore (USD 4.32 million)].

Oil & Gas — exploration

EOL completed Phase I of exploration covering seismic studies during the last financial year in three exploration blocks awarded to it in the Fifth Round, contracts for which were signed on October 30, 1996. The relevant blocks are RJ-ON-90/4 and 90/5 onshore Rajasthan, and offshore block BB-OS/5, located south of the island of Diu off the Saurashtra coast.

In the Rajasthan blocks RJ-ON-90/4 & 90/5 the company undertook a seismic acquisition, processing and interpretation program covering over 1,400km, in partnership with Polish Oil & Gas Company. EOL and POGC have progressed to Phase II of exploration in block 90/5, which will involve drilling an exploratory well during the next financial year 2000-01.

During the financial year 1999-00, the company began the negotiation of Production Sharing Contract for proven medium size developed field Ratna & R-series. The contract is expected to be signed shortly.

Refinery project

The financing arrangement for the 10.5 million ton per annum (MMTPA) refinery at Vadinar (Jamnagar), Gujarat is progressing. The refinery is expected to go on stream in the last quarter of 2001. The company has so far spent Rs46.05 billion for the implementation of the project.

The refinery will focus on maximizing the production of middle distillates like Superior Kerosene Oil and High-speed Diesel, which constitute over 60 per cent of the Indian demand. It will also produce LPG, lead-free motor gasoline of various octane levels needed for the domestic markets, as well as high-octane lead-free gasoline for export.

Government guidelines on deregulation of the oil industry, which allows free import of crude oil to actual users and duty protection and permits retail marketing of petroleum products. This would lend a great boost to the viability of the project and open fresh business opportunities in terms of crude sourcing and marketing.

Drilling operations

The drilling division continues to be a major player in the Middle East land rig market and is currently operating seven rigs in Oman, one in Qatar. The total value of contract on hand is USD 75 million.

For the first time, the Company has entered the Saudi Arabian market. It has won a drilling contract from Saudi Aramco for three years valued at USD 15 million. This contract has been won against stiff competition from international majors including Nabors of USA, Sante Fe of USA, Sedco of France etc.