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Business Times (Malaysia): Shell unit sees double-digit sales growth

By Kamarul Yunus
[email protected]

December 20 2006

KUALA LUMPUR-based Shell Global Solutions (SGS), a unit of oil giant the Royal Dutch Shell, expects its Malaysian operations to register a double-digit growth in sales next year.

However, the company declined to reveal any financial details.

SGS provides business and operational consultancy, technical services and research and development expertise to energy and processing industries worldwide.

For instance, it could help oil refineries to cut costs and improve their processes, which in turn would help them boost their profits.

Yesterday, it bagged a contract to serve four major Indian refineries.

The contract, which is a three-year integrated business improvement programme, was awarded following a two-year benchmarking review on all 15 Indian public sector refineries.

The four identified refineries are the Mathura refinery owned by India Oil Corp Ltd, Manali refinery (Chennai Petroleum Corp Ltd), Visakh refinery (Hindustan Petroleum Corp Ltd) and Kochi refinery (Bharat Petroleum Corp Ltd).

SGS vice-president of sales, marketing and consultancy Wayne Hutchinson said SGS hoped to expand the contract to the other 11 refineries.

“But it is entirely dependent on our performance in carrying out our task to improve the margin of the four selected refineries. If we perform, we get good compensation (extending the programme to other refineries),” he said.

He was speaking to newsmen after the signing of the contract between SGS and India’s Centre for High Technology (CHT) in Kuala Lumpur yesterday.

Meanwhile, CHT executive director Dr KS Balaraman said the Indian Government expects refining capacity to reach 200 million metric tonnes by 2012 from the present 130 million tonnes.

“The business improvement programme is part of our effort to increase the production capacity of refined oil. There is also plan to set up two more refineries to boost production capacity,” he said.

Established about four years ago, the Kuala Lumpur office is one of SGS’ hubs in the Asian region. Besides Kuala Lumpur, the other hubs in Asia are located in Tokyo, Beijing and Dubai.

The company has more than 4,900 staff across an extensive network of offices around the world, supported by primary commercial and world-class technical centres operating in the US, Europe and Asia Pacific.

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