IOC to foray into Bangladesh, Myanmar and others

In a strategy that may work in tandem with the Look East policy of India, state-run Indian Oil Corporation is set to foray into retail, pipeline and refinery sectors in Bangladesh, Myanmar, Vietnam and Nepal.

While the company is looking to enter into Bangladesh and Myanmar in segments like fuel retail and LPG marketing, in Vietnam, the focus would be on refining opportunities. “We have already submitted bids for fuel trade in Myanmar. On the other hand, in Vietnam, we are already co-ordinating with the local company to train their refinery staff and the company is looking at investment options in refining,” said B Ashok, chairman.

This comes at a time when the firm has shown interest for an offer by Myanmar Petroleum Products Enterprise to cooperate for import, storage, distribution and sale of all petroleum products except liquefied petroleum gas and liquefied natural gas. The tie-up will be for 30-year period and will be in the form of a joint venture. Currently, IOC has marketing subsidiaries in Sri Lanka, Mauritius and West Asia. “We are adding 1,000 retail outlets to our kitty on an annual basis in India only.”

IOC on Tuesday posted a 29 per cent jump in its third quarter net profit on the back of higher refinery margins and inventory gains. Following the government diktat to pay additional dividend to make up for shortfall in disinvestment proceeds, the board of IOC declared an interim dividend of 135 per cent (Rs13.5 per share).

Indian Oil Corporation