During the quarter, RPL surpassed several significant milestones, including completion of engineering, procurement and contracting activities, near completion of equipment deliveries and rapid progress on equipment installations at site. The significant milestones achieved during the quarter include the following:
Overall procurement progress at 99%; Activity in the close-out mode already.
Deliveries and installation of over dimensional cargos (ODC) and super ODCs completed.
Overall construction progress nearing 80% mark for the complex.
Start-up planning and operations preparedness activities gained significant momentum.
The quarter witnessed successful completion of project engineering activities with only residual engineering activities continuing to support ongoing construction at site.
RPL has achieved rapid progress on the procurement front as well. Procurement and contracting activities for all required equipments and bulk materials have been completed. Deliveries of key equipments and their installations gained significant momentum during the quarter. RPL has received 5,350 equipments, including several over dimensional cargos (ODCs) and super heavy equipments from vendors across the world. With this, 93% of equipments are already at site. Deliveries of bulk materials, including pipes, fittings as well as electrical and instrumentation bulks matched the pace of equipment deliveries and their installation at site. With near completion of deliveries of equipments and bulk materials, focus has shifted towards achieving a close-out and vendor follow-up for residual deliveries.
The civil construction is nearly complete with nearly 2.0 million cubic meters of concreting works done at site. Over 4,000 equipments, including several super heavy equipments, have already been installed and are at various stages of completion and testing at site. Over 95% of structural steel fabrication work, 74% of structural erection and 94% of underground piping works are complete now. Substantial progress is achieved in the areas of above-ground pipe fabrication and erection as well. The construction activities are at peak and RPL is fully geared to sustain construction on fast track even in the coming quarters. Simultaneously, RPL has made considerable progress on the start-up planning and operations preparedness activities to support early commissioning of the refinery.
Meanwhile, the global industry fundamentals have remained strong with robust demand, tight product supplies and slow growth in new capacities. The industry has withstood the pressures of high oil prices and perceived threat of slower economic expansion, led by the US. With global refining system remaining stretched and continuing delays in new capacities, outlook for refining margins remain positive. Complex refiners will gain further from expected wide light-heavy differentials even in the medium term. RPL is well positioned to reap benefits of its large scale, higher complexity, lower capital costs and faster schedule to generate significant value in the refining sector.
Commenting on the project progress Shri. Mukesh D Ambani, Chairman of Reliance Petroleum Ltd said "I am pleased with the remarkable progress achieved by RPL so far and the team's preparedness for completing the refinery ahead of schedule. We are well on our way to create a new benchmark for project implementation in the global refining sector RPL is poised to benefit from emerging opportunities in the sector to create superior value for its shareholders."