Bangchak may cut runs by 10%

Thailand’s Bangchak Petroleum P.L.C. (BCP), a majority state-owned oil refiner, may need to reduce its refining capacity by 10%, reflecting an expected 10% fall in oil demand in world markets. The company’s projection assumes crude prices will stay within the range of between US$50 and US$55 per barrel this year. However, company officials said they are hoping for a best-case scenario where only a 3% demand reduction is expected. Meanwhile, in the retail business, BCP plans to lift its market share through sales promotions. The company also plans to attract more industrial customers through longer credit terms and insurance contracts. It plans to increase exports to Laos, Cambodia and Burma as well. (March 7, 2009)