Global petroleum refining technology-provider KBR is upbeat about its prospects in India and says consistent policies for ammonia processing, besides technology upgrade because of BS4 (Bharat Stage-emission standards) and BS5 norms, offer significant potential. In India since 1972, the company has licence associations with leading oil majors such as Reliance, BPCL, HPCL and IOCL.

For 2013, KBR Group clocked $7.3 billion revenues, of which KBR Technology accounted for 5 per cent. Its Indian operations contribute 11 per cent (₹250 crore) of the Tech division.

In a chat with BusinessLine , Douglas N Kelly, Vice-President, Refining Technology, KBR, outlined his assessment of India’s potential. He also commented on how environment standards have raised the bar for refiners, and rising feedstock prices, shrinking margins and intense competition.

What is the purpose of your visit to India?

We were having a technology workshop with our clients on our refining and petrochemical technologies.

We have a partnership with BP, which has the bottom-of-the-barrel technology and upgrades. We also have an alliance with Shell Global Solutions for its hydro-processing technology.

Hydro-processing is required to meet environment regulations. The process is to lower the sulphur content in diesel and gasoline. It is very important for India, as parts of country are on BS4 (Bharat Stage 4), and by 2017, will shift totally to BS4 and then to BS5 by 2020. This will require some investments in technology.

I think, most refiners can comply with BS4. However, BS5 calls for 10 ppm (parts per million) which is very small. Some refiners can do that with their existing equipment with some revamp and change in catalysts. Others need to take up capital projects to meet the standards.

The bottom-of-the-barrel technology, as the name suggests, relates to refining crude that is heavy and found at the bottom of the barrel.

As a percentage, it depends on the crude. Right now, Indian refiners have medium and heavy crude. The heavier components are metals, asphalt and pitch, which can be refined up to 95 per cent.

What are the opportunities you see for KBR in India…

I am very optimistic and bullish on investments coming in.

The environment regulation is going to drive a certain number of hydro-processing projects.

Coal gasification technology helps produce syngas (or synthesis gas), which can be used to produce hydrogen, which can be utilised for hydro-processing projects. We also have technology for ammonia processing. We are looking for a consistent policy, which will open up opportunities here.

I think companies need to have a clear indication of pricing and market to make the investments.

Moreover, we see the ammonia processing business tied to the growing population — food grain production for which urea is required.

About KBR businesses outside India…

We are in Russia, China, North America, Latin America and Asia Pacific, and we rely heavily on our Indian operations to serve them.

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