Shell Refining to be selective on crude to process

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SUBANG JAYA (June 30): Shell Refining Company (FOM) Bhd will be more selective on the type of crude oil to process to help improve its margin. Chairman Iain John Lo said the company would also focus on operational efficiency and the cost of doing work. Speaking to the media after the company's annual general meeting, he said: "The challenge we face in the refining environment is that, there is a lot of capacity coming into the market, and which needs to be sold. "The oil price is also quite high driven by events in the Middle East, and therefore, our margin is being squeezed," he told the media after Shell Refining's annual general meeting here today. He said with the appointment of Amir Hamzah Abu Bakar as managing director, Shell Refining hoped to return to being cash positive and lessen its debt. The key petroleum products supplier to Shell downstream businesses in Malaysia, posted an after-tax loss of RM156 million for the financial year 2013. This is 65 per cent higher than the RM95 million after-tax loss registered a year ago. When asked if the company would be implementing the usage of cleaner diesel, Iain said it had received the mandate from the government for implementation of the Euro 4. "We are now is discussions with the government on when exactly to implement it in the market," he added.