PROPRIETARY AND CONFIDENTIAL 1

Petrotech 2016

HPCL-MITTAL ENERGY LIMITED

PROPRIETARY AND CONFIDENTIAL 2

Refining de-licensed in June 1998. Refineries have come up on

commercial consideration. Capacity has grown from 62

MMTPA in 1998 to 230 MMTPA in2016. ( Almost 4 times)

Demand has grown from 90MMTPA in 1998 to 183 MMTPA in2016. (More than doubled)

0 100 200 300

Apr'16

April'14

April '13

April '12

April '11

April '10

April '04

April '98

230

215

215

213

193

184

123

62

Refining Capacity: IndiaMMTPA

Apr'16April'14April '13April '12April '11April '10April '04April '98

0

100

200

90112

138141 148

154 157165 183

Demand of Refined Products: IndiaMMTPA

Petroleum Demand v/s Refining Capacity

Source: PPAC 2016

PROPRIETARY AND CONFIDENTIAL 3

Indian Refining: Past & Present

Source: PPAC 2016

Oil Consumption, Production & Refining (2015-16) Petroleum Product Consumption: 183 MMT (up 11% y/y)

Total Refinery Crude Throughput : 233 MMT (up 4.3% y/y)

• Crude Imports: 202.9 MMT (up 7.1%y/y)

• Domestic Crude Production: 36.9 MMT (down 1.6%)

Net Product Exports: 32.2 MMT (down 26%y/y)

6.5%9.7%

6.5% 6.4%

14.0%

5.0%

0.0%

20.0%

LPG MS ATF Diesel Petcoke Overall

India: 10 year historical CAGR%

Historical Growth Rates

32%

14%25%

29%

Region-wise demand for Product products

North

East

West

South

Northern IndiaProduct demand: 59 MMT

Refining capacity: 32 MMT

Regional Demand-Supply Balance (2015-16)

North accounts for 32% of the total demand

Demand was 59MMTPA in 2015-16

Refining Capacity in North is just 32MMTPA

PROPRIETARY AND CONFIDENTIAL

Source of Investment into Refining

Majority of investment in the Indian refining sector has come fromprivate players in India, Indian Public Sector Units (PSUs) and theirJoint Ventures (JVs).

International Oil Companies (IOCs) & National Oil Companies(NOCs) have largely refrained from investing in Indianrefining, possibly because of their concerns on the following issues:• Concern 1: It is difficult to set up a refinery in India/ Low ease of

doing business: Regulatory Issues

• Concern 2: It is difficult to get access to funds for projects in India

• Concern 3: The Indian Oil & Gas Industry underestimates capitalcosts

• Concern 4: PPP projects have had limited success

• Concern 5: Indian Oil Demand Growth will slow down/ India has anOvercapacity in Refining

PROPRIETARY AND CONFIDENTIAL 5

The HMEL Story

PROPRIETARY AND CONFIDENTIAL

HMEL: A Unique Public Private Partnership

~49% ~49%

HPCL Mittal EnergyInvestment

~2%

Indian Financial Institutions

HMEL

Largest FDI in Refining and second largest FDI in Oil and Gas Sector in theCountry.

Investment of around USD 5 billion. Largest investment in Punjab.

PROPRIETARY AND CONFIDENTIAL 7

Single Point Mooring: For

handling VLCCs 7 km in the

sea.

Large Crude Oil Terminal:

Stores 1.5 times India’s daily

oil demand.

Crude Pipeline: 1017 km

underground pipeline from

Mundra to Bathinda.

Complex Refinery: Best in

class 180 kbpd refinery

located at Bathinda.

Captive Power Plant:

Power plant with gross

capacity of 165 MW.

Petchem. Complex: PP unit

with a capacity of 440 KT/

annum (5 grades).

Township: Housing facility

at Bathinda equipped with

recreational facilities.

Gujarat

Rajasthan

Punjab

12

3

4

Seven key project components

Competitive cost of project of such magnitude & complexity.

On-time completion

within 48 months setting

a global benchmark.

A Unique Refining & Petrochemical Asset

Largest FDI in refining.

Largest investment in Punjab.

Investment of around US$ 5 billion.

6

1

2

3

4

5

7

6 75

PROPRIETARY AND CONFIDENTIAL

Salient Features

Adopted the Best in Class Global Technologies : Axens, Stone &Webster, Lummus, Novolen

Highly Complex Refinery: Producing environmental friendly (EuroIV/V) and value added products (Petrol/Diesel/LPG/Kerosene/ATF/Polypropylene)

Configured to Process all types of crudes: Low cost, heavy &acidic.

An array of World Class processing units:CDU/VDU, FCCU, DCU, DHDT, VGO-HDT, SRU, HGU, PPU, ETP, CPPmaximising operational performance

Cutting Edge Technology: Entire refinery & pipeline operations areon unique ERP platform MES, SAP, OTS, SCADA

PROPRIETARY AND CONFIDENTIAL

HMEL’s Journey: In March 2008

PROPRIETARY AND CONFIDENTIAL

Dedication of HMEL’s Refinery to the Nation

PROPRIETARY AND CONFIDENTIAL

Fully Functional in April 2012

PROPRIETARY AND CONFIDENTIAL 12

It is difficult to set up a refinery in India/Low ease of doing business: RegulatoryIssues

Concern 1

PROPRIETARY AND CONFIDENTIAL 13

It is difficult to get access to funds forprojects in India

Concern 2

PROPRIETARY AND CONFIDENTIAL 14

The Indian Oil & Gas Industryunderestimates capital costs

Concern 3

PROPRIETARY AND CONFIDENTIAL 15

PPP projects have had limited success

Concern 4

PROPRIETARY AND CONFIDENTIAL 16

Indian Oil Demand Growth will slow down/India has an Overcapacity in Refining

Concern 5

PROPRIETARY AND CONFIDENTIAL 17

Looking Ahead

The Indian refining industry has come a long way since its inceptionmore than 100 years ago at Digboi in Assam.

It now accounts around 6% of the total refinery throughput in theworld.

The country has recently overtaken Japan to become the 3rdlargest oil consumer after U.S. and China.

Not investing in the Indian growth story would be a greatopportunity missed for any player in the industry.

Looking ahead to greater participation in the industry by IOCs andNOCs.

PROPRIETARY AND CONFIDENTIAL 18

Thank you.