Indian Oil Sector a Perspective

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Indian Oil Sector a Perspective
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• A THOUGHT AT THE RISING INDUSTRY

PREPARED BY ANKUR AGGARWAL
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ORGANISATION INDIA'S POWER ,OIL GAS SECTOR
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Legend
1 IOC Indian Oil Corporation 12 ONGC Oil Natural Gas Corporation
2 GAIL Gas Authority of India Ltd 13 PCIL Power Grid Corporation India
3 HPCL Hindustan Petroleum Corporation Ltd 14 PFC Power Finance Corporation
4 IREDA India Renewable Energy Development Agency 15 PTCI Power Trading Corporation India
5 IBP Indo Burma Petroleum Company 16 REC Rural Electricity Corpoaration
6 MRL Madras Refineries Limited 17 BPCL Bharat Petroleum Corporation Ltd
7 MRPL Mangalore Refinery Petrochemicals Limited 18 BEF Bureau of Energy Efficiency
8 MHPC National Hydroelectric Power Corporation 19 BRPL Bangoigoon Refinery Petrochemicals Ltd
9 NTPC National Thermal Power Coprporation 20 CRL Cochin Refineries Ltd
10 OCC Oil Coordination Commitee 21 CERC Central Electricity Regulatory Authority
11 OIL Oil India Limited 22 CEA Central Electricity Authority
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(No Transcript)
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G.O.I Holdings
I Oil Companies in which Government of India
have a share holding (as on 01.04.2002).
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Fuel Consumption in India (Year - 2000)
1 QUAD 2.52 x 1014 K .CAL
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Sectoral Consumption (Year 2000)
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Sectoral Consumption(Year 2000)
The industrial sector is the largest consumer of
energy, consuming about half of the total
commercial energy consumption in 1999/2000 . Coal
and lignite meet over half of industrial
commercial energy requirements. The transport
sector is the next biggest consumer at 22 of
total commercial energy consumption.
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PETROLEUM PRODUCTS - HISTORICAL DEMAND GROWTH

• Consumption grew at a CAGR of 3.4 p.a. over the
  last 5 years
• Production registered a CAGR of 12.5 p.a. during
  the same period

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PETROLEUM PRODUCTS DEMANDGOING FORWARD

• Demand expected to grow at a CAGR of 3.7 p.a.
  during X Plan period
• Demand registered over 5 growth during FY2003

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Key Facts

• Total Consumption of Energy 3 of Worlds
  Total.
• Ranking 6th in Terms of Overall Consumption
  Rank.
• Major Demand Drivers

• Continued Economic Development
• Fast Population Growth

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Total Primary Energy Production VS Total Primary
Energy Consumption
1 QUAD 2.52 x 1014 K .CAL
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THE OIL UPSTREAM SECTOR
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CRUDE SELF SUFFICIENCY LEVELS

• Self sufficiency levels have declined over the
  years

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Oil Estimate

• Crude Oil Reserves 4.7 Billion Barrels
• Offshore Basin Area 380,000 Square Kilometers
• Onshore Basin Area 1.34 million Square
  Kilometers
• Total Area Explored Less Than 25
• Estimated Reserves 30 Billion Tons

1 Barrel 0.159 Tons
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NELP

• The government in order to increase exploration
  activity, approved the New Exploration Licensing
  Policy (NELP) in March 1997 which would level the
  playing field in the upstream sector between
  private and public sector companies  in all
  fiscal, financial and contractual matters.  

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Salient Features - NELP 

• 1) No mandatory state participation
• 2) The two public sector upstream companies
  would compete for petroleum exploration licenses,
  instead of the existing system of granting of
  licenses on nomination basis. The public sector
  Companies will also be able to avail of the
  fiscal and contract benefits available to private
  companies. 

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Salient Features - NELP

• 3)  Open availability of exploration acreage
• to provide a continuous window of
• opportunity to companies.   4) Freedom
  to the contractors for the
• marketing of crude oil and gas in the
• domestic market.  5) Royalty payments
  encouragement in
• Deep Water Exploration

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Numbers - NELP

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Share of Blocks awarded to Various Players in 2002
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Exploration New Discoveries(2002-03)

• Major Areas
• Cambay Basin
• K-G Basin
• North East India

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Major Finds
National Oil Companies

• ONGC and OIL, made 9 significant hydrocarbon in
  year 2002 discoveries of which 6 are onland and 3
  offshore.
• Onland Discoveries in Upper Assam like Baghjan ,
  Banamali Rajastan Basin at Chinnewala Tibba
• Offshore Wells in K G Basin Vasai West

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Private / JV Companies

• Players Involved
• Reliance Industries.
• Cairn Energy
• Niko Resources
• Essar-POGC consortium
• Three major areas
• Krishna-Godavari offshore,
• Gulf of Cambay
• Onland Rajasthan.

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• Apart from Cairn Energy Pty. Ltd. (CEIL) The
  consortium of Reliance Industries Ltd. (RIL) and
  Niko Resources Ltd., made a spectacular series of
  gas discoveries in their deep water block
  KG-DWN-98/3 through the drilling and testing of
  Dhirubhai wells 1,2,3 and 4. In fact, the
  Dhirubhai-1 discovery was the worlds largest gas
  discovery in 2002.
• Gulf of Cambay block CB-OS/2, operated by Cairn
  Energy,
• In block CB-ONN-2000/2 of on land Cambay basin,
  Niko Resources
• In the Rajasthan on land block RJ-ON-90/1 in the
  Barmer-Sanchor basin, Operated by Cairn. In block
  RJ-ON-90/5 of the Bikaner-Nagaur basin, Nanuwala
  Well No.1, by the Essar-POGC consortium.

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THE OIL UPSTREAM SECTOR
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Petroleum Production Vs Consumption in India
(1995 2001)
Unit Thousand b/d
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Crude Production Vs Refining Capacity

• The gap being met through imports

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The Refinery Network

• Major Players
• IOCL
• Reliance

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Annual Refinery Output
Refining Capacity 114.7 MMT
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Indias Refinery Output

• Present Out Put 121.68 million Tons
• Estimated Demand 163.8 million Tons
• Major Items Imported

• Kerosene
• Distillate Fuel Oil

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Future Projection

• Major Proposed Refiniries include
• Proposed by IOCL at Paradip (Orissa)
• Essar Group at Vandinar ( Gujarat)
• Bharat Oman Refinery Limited by BPCL (Bina )
• IOCL Kuwait Petroleum Corporation at (Abahya
  Chandrapur, Orissa)
• BPCL - SHELL in Madya Pradesh
• Punjab Refinery Project ( Bhatinda)

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Approved Private Investments
Sl No Name Capacity Place
1 M/s International Petroleum SA (BVI), Switzerland 5.00 MMTPA West Coast of Gujarat
2 M/s Black Gold, Andhra Pradesh 2.5 MMTPA Visakhaptnam A.P.
3 M/s Petro Energy, Pondicherry 4.8 MMTPA Pondi- cherry
4 M/s Jindal Ferro, Andhra Pradesh 6.00 MMTPA Andhra Pradesh
5 M/s Aban Lloyd , 3.00 MMTPA Tamilnadu
6 M/s Moplac Udyog, Haldia West Bengal 3.00 MMTPA Haldia
7 PRA Petrochemicals Ltd 9 MMTPA Srikakulam
8 M/s Sterlite Industries (India) Ltd 3 MMTPA Tuticorin Tamilnadu
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Expansions
Total of five expansion projects are underway of
the Public Sector Undertaking (PSU) refineries
during the Ninth Five Year Plan. These include
Indian Oil Corporation Ltd. (IOCL),  Koyali
(Gujarat)- 4.20 million metric tonnes (MMT)
Hindustan Petroleum Corporation Ltd.,
Visakhapatnam (Andhra Pradesh) - 3.00 MMT IOCL
Barauni (Bihar) - 2.70 MMT IOCL Haldia (West
Bengal) - 2.25 MMT IOCL Mathura (U.P.) - 0.50
MMT.     Further three expansion programmes of
PSU refineries are under implementation for
commissioning in the Tenth Five Year Plan. These
are IOCL Panipat (Haryana) 6.00 MMT Bharat
petroleum Corporation Ltd., Mumbai -5.10 MMT
Chennai Petroleum Corporation Ltd., Chennai
3.00 MMT.    
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INFRASTRUCTURE

• The Pipeline Network
• LNG Terminals
• LPG Terminals

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The Pipelines

• Major Players
• OIL
• ONGC
• PETRONET India Ltd ( IOCL BPCLHPCL OTHER
  PRIVATE PLAYERS)

The Oil Pipeline Network
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Pipeline Over-View
Product Pipelines 49.79 MMT
Crude Pipelines 28.5 MMT
IOC is the only downstream company that owns
crude pipelines
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SUMMARY
Oil India Ltd. (OIL) transports all crude oil
produced in northeast India to five refineries
(Digboi, Numaligarh, Guwahati, Bongaigaon, and
Baurani) via a 1,157 kilometer pipeline. The Oil
and Natural Gas Corporation Ltd. (ONGC) has a
7,900 kilometer onshore pipeline network, while
its offshore activities include a 3,200 kilometer
pipeline network. India transports just 45 of
its petroleum products via pipeline. Petronet
India Ltd. (PIL) was created by in 1998 under a
directive of the Government of India with the
objective to constructing additional product
pipelines. PIL is owned by three of India's oil
refining companies (IOCL, BPCL, and HPCL) and
other outside investors (including Gaz de
France)
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FUTURE PROJECTIONS
PIL is building pipelines that are expected to
add 500,000 b/d to India's present 325,000 b/d of
pipeline capacity for the transportation of
refined oil products. Of its eight projects, two
are in operation (the Vadinar Kandla pipeline in
Gujarat and the Kochi Karur pipeline in Kerala
and Tamil Nadu states), two others are under
construction (the Mangalore Bangalore pipeline in
Karnataka and the Chennai Madurai pipeline in
Tamil Nadu), two more have been approved (the
Bina Kanpur pipeline in Madhya Pradesh, the
Paradip Rourkela pipeline in Orissa, with one
more in planning (the Bhatinda Pathankot pipeline
in Punjab).
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Gas Pipeline Network

• Major Player
• GAIL

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Gas Transmission

• The Gas Authority of India Ltd. (GAIL) is the
  largest gas transmission and marketing company in
  the country
• TOTAL SHARE 95
• Pipeline network 4400 KM.
• Major Pipelines
• 2300 KM H.B.J Pipeline
• Worlds Longest LPG Pipeline 1250 KM ( Gujarat
  Rajastan Delhi)

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GAS DEMAND
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ENERGY SCENARIOGOING FORWARD

• Gas to replace the demand for oil and is expected
  to constitute 20 of the energy supply by 2025

Source Hydrocarbon Vision 2025
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SUPPLY VS DEMAND INDIA
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MAJOR MARKET DRIVERS
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The Future Projections(Cross Country)
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The Future Projections(Within - Country)
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LNG Market
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LNG Terminals

• India is investing heavily in LNG infrastructure
  importing up to 50 million metric tons per year
  (mmt/y) of LNG. These terminals would be located
  at Jamnagar, Dahej, Hazira, Pipavav, Trombay,
  Dabhol, Mangalore, Kochi, Ennore, Kakinada,
  Gopalpur, and Paradeep. PIL will be the largest
  player in their construction and operation .
• The first of these that will come into operation
  will be at Dahej in Gujarat state, which may come
  online in early 2004. Petronet is now
  constructing it, and has plans to build another
  at Kochi in Kerala state. RasGas of Qatar has
  contracted to supply the Dahej and Kochi
  terminals with 7.5 million tons of LNG per year
  for 25 years. Reliance Industries is involved
  with terminals at Hazira and Janmagar which will
  be able to handle 5 mmt/y. Shell is involved in
  the 2.5 mmt/y Hazira terminal for which Oman is
  scheduled to provide the natural gas

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LPG Bottling Plants

• Main Players
• IOC
• SHV
• SPIC-CALTEX
• Shri Shakti
• Bharat Shell
• HALPG
• GCTPCL

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LPG Consumption India
(000 Tonnes) (000 Tonnes) (000 Tonnes)
Period Consumption increase annually
1980-81 405  
1985-86 1241 41
1990-91 2415 19
1992-93 2866 9
1994-95 3434 6
1995-96 3849 12
1996-97 4198 9
1997-98 4660 11
1998-99 5027 8
1999-2000 5902 17
2000-01 6500 10
2001-02 7300 12
2006-07 10148 8
2010-2011 12325 5
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Proposed Terminals India
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Product Storage Infrastructure

IOC IBP Others TOTAL

• LPG bottling capacity (TMT) 3321
  0 3040 6361
• Lube Blending Capacity (TMT) 583
  50 390 1023
• Depots/Terminals (Nos.)
  176 15 220 411
• LPG Bottling Plants(Nos.)
  79 0 80 159
• Aviation fuel stations (Nos.)
  93 0 29 122

IOC has a dominant share in marketing
infrastructure with over 50 share in all segments
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Appendices
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Resources on Internet

• http//www.indiainfoline.com
• http//www.tradepartners.gov.uk/oilandgas
• http//www.indiacore.com/oilgas.html
• http//petroleum.nic.in
• http//www.teriin.org/energy/energy.htm
• http//www.eia.doe.gov/emeu/cabs/india.html
• http//www.asiatradehub.com/india/oil.asp
• http//www.petrochemnext.com/htmlfiles/refineries.
  htm
• http//www.indialpg.com/html/india.htm
• http//www.dghindia.org./index.html
• http//www.ficci.com/ficci/india-profile/home2.htm
  
• http//www.ril.com/eportal/VirtualPageView.jsp?pag
  e_id1620
• http//www.fe.doe.gov/international/india.html
• http//www.odci.gov/cia/publications/factbook/geos
  /in.html

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Websites of Indian Petroleum Companies
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Conversions
Main Conversions used in Petroleum
Industry/Products
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Main Conversions used in Petroleum
Industry/Products
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Commercial energy balance (million tonnes of oil
equivalent) 1999/2000
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Commercial energy balance (million tonnes of oil
equivalent) 1999/2000
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• The End

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