indian oil sector a perspective “a thought at the rising industry” prepared by: ankur aggarwal...
TRANSCRIPT
Indian Oil Sector a Perspective
“A THOUGHT AT THE RISING INDUSTRY”
PREPARED BY: ANKUR AGGARWAL
Click on to Continue
ORGANISATION INDIA'S POWER ,OIL & GAS SECTOR
C E R C
P TC I
P lan n in g C om m iss ion
C E A
R E C
B E F
N TP C
N H P C
P F C
N P TI
P C IL
M in is try o f P ow er
O N G C O IL
O C C IO C
G A IL B P C L
IB P H P C L
M R L C R L
B R P L M R P L
M in is try o f P e tro leu m & N atu ra l G as
G O V E R M E N T O F IN D IA
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
LegendLegend
G .O .I HOLDINGS IN OIL & GAS SECTOR
0102030405060708090
100
OTHERGOVT
G.O.I Holdings
I Oil Companies in which Government of India have
a share holding (as on 01.04.2002).
0
1
2
3
4
5
6
7
Consumption (Quads)
CoalPetroleum
N.Gas
HydroElec
Nuclear
Renewables
Fuel Type
Fuel Consumption in India (Year - 2000)
1 QUAD = 2.52 x 1014 K .CAL
Sectoral Consumption (Year 2000)
Sectoral energy consumption by fuel (%): 1999/2000
Sector Coal Natural gas Petroleum products
Power Total
Agriculture 0 1.3 9.5 89.2 100
Industry 73.1 2.4 13.6 10.9 100
Transport 0 0 98.5 1.5 100
Residential 0 1.1 71.3 27.6 100
Others 0 33.9 60.9 5.2 100
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.
Sectoral Consumption(Year 2000)
91
68
9783
100 100 99104 104109
0
20
40
60
80
100
120
MM
TP
A
FY1999 FY2000 FY2001 FY2002 FY2003
Consumption Production
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
PETROLEUM PRODUCTS DEMAND
GOING FORWARD
Demand expected to grow at a CAGR of 3.7% p.a. during X Plan period
Demand registered over 5% growth during FY2003
104 109 111
129114
137119
137124
136
020406080
100120140
MM
T
FY2003 FY2004 FY2005 FY2006 FY2007
Demand Supply
Key Facts
• Total Consumption of Energy = 3 % of World’s Total.
• Ranking = 6th in Terms of Overall Consumption Rank.
• Major Demand Drivers
•Continued Economic Development•Fast Population Growth
Total Primary Energy Production VS Total Primary Energy Consumption
0
2
4
6
8
10
12
14
Unit in Quads
1995 1996 1997 1998 1999 2000 2001
TPEPTPEC
1 QUAD = 2.52 x 1014 K .CAL
THE OIL UPSTREAM SECTOR
CRUDE SELF SUFFICIENCY LEVELS
4439
3835
32 31 31 31
20
25
30
35
40
45
50
(%)
FY 9
6
FY 9
7
FY 9
8
FY 9
9
FY 0
0
FY 0
1
FY 0
2
FY 0
3
Self sufficiency levels have declined over the years
Oil EstimateOil 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
NELPNELP
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.
Salient Features - NELPSalient 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.
Salient Features - NELPSalient 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
Numbers - NELPNumbers - NELP
25 25
27
24
25
26
27
Blocks
2000 2001 2003
Year
Share of Blocks awarded to Various Players in 2002
ONGC
HARDY OIL + RELIANCE
OTHERS
Exploration & New Discoveries(2002-03)Exploration & New Discoveries(2002-03)
Major Areas:1. Cambay Basin2. K-G Basin3. North East
India
Major FindsMajor Finds
ONGC and OIL, made 9 significant hydrocarbon in year 2002 discoveries of which 6 are onland and 3 offshore.
1. Onland Discoveries in Upper Assam like Baghjan , Banamali & Rajastan Basin at Chinnewala Tibba
2. Offshore Wells in K G Basin & Vasai West
National Oil Companies
Players Involved
• Reliance Industries.• Cairn Energy• Niko Resources• Essar-POGC consortium
Three major areas :
• Krishna-Godavari offshore, • Gulf of Cambay• Onland Rajasthan.
Private / JV Companies
• 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 world’s 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.
THE OIL UPSTREAM
SECTOR
Petroleum Production Vs Consumption in India (1995 – 2001)
0
500
1000
1500
2000
2500
Consumption
1995 1996 1997 1998 1999 2000 2001
Year
Production
Production (Crude Oil)
Consumption
Unit :Thousand b/d
Crude Production Vs Refining Capacity
35.2
56.4
32.8
62.2
31.9
112.0
32.4
112.5
32.1
114.7
33.1
114.7
0
20
40
60
80
100
120
MM
T
FY95 FY99 FY00 FY01 FY02 FY03
Crude Production Refining Capacity
The gap being met through imports
The Refinery Network
Major Players
• IOCL
• Reliance
Annual Refinery Output
RPL24%
MRPL8%
BPCL15%
HPCL11%
IOC42%
ONGC0.1%
Refining Capacity 114.7 MMT
India’s Refinery Output
• Present Out Put : 121.68 million Tons
• Estimated Demand : 163.8 million Tons
• Major Items Imported:
• Kerosene
• Distillate Fuel Oil
Future ProjectionMajor 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)
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
Approved Private Investments
ExpansionsExpansionsTotal 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.
INFRASTRUCTUREINFRASTRUCTURE
The Pipeline Network
LNG Terminals LPG Terminals
The PipelinesThe Pipelines
The Oil Pipeline Network
Major Players•OIL
•ONGC
•PETRONET India Ltd ( IOCL+ BPCL+HPCL & OTHER PRIVATE PLAYERS)
Pipeline Over-View
IOC48%
HPCL20%
BPCL9%
PIL23%
Product Pipelines 49.79 MMT
Crude Pipelines 28.5 MMT
IOC100%
IOC is the only downstream company that owns crude pipelines
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);
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).
Major Player
• GAIL
Gas Pipeline Network
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 KMPipeline network – 4400 KM.
Major Pipelines1. 2300 KM H.B.J Pipeline
2. World’s Longest LPG Pipeline 1250 KM ( Gujarat – Rajastan – Delhi)
GAS DEMAND
ENERGY SCENARIO
GOING FORWARD
33.8
10.4
52.1
2.5
1.2
35.8
10.2
49.3
3.2
1.5
33.7
10.1
50.3
3.4
2.5
25
20
50
2
3
FY 2002 FY 2007 FY 2012 FY 2025
Share of Future Energy Supply (%)
Oil Gas Coal Hydel Nuclear
Source: Hydrocarbon Vision 2025
Gas to replace the demand for oil and is expected to constitute 20% of the energy supply by 2025
SUPPLY VS DEMAND INDIA
MAJOR MARKET DRIVERS
The Future Projections(Cross – Country)
The Future Projections(Within - Country)
LNG Market
LNG TerminalsIndia 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
LPG Bottling Plants
Main Players
•IOC
•SHV
•SPIC-CALTEX
•Shri Shakti
•Bharat Shell
•HALPG
•GCTPCL
LPG Consumption India(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
Proposed Terminals India
IOC has a dominant share in marketing infrastructure with over 50% share in all segments
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
Appendices
Resources on Internethttp://www.indiainfoline.com
http://www.tradepartners.gov.uk/oilandgas
http://www.indiacore.com/oil&gas.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?page_id=1620
http://www.fe.doe.gov/international/india.html
http://www.odci.gov/cia/publications/factbook/geos/in.html
Websites of Indian Petroleum Companies
Slno Name Of the Company Website1 Kochi Refineries http://www.kochirefineries.com2 Indian Petroleum Corporation limited http://www.ipcl.co.in/ipcl/about/index.htm3 Oil & Natural Gas Corporation Limited http://www.ongcindia.com4 Hindustan Petroleum Corpotration Limited http://www.hindpetro.com 5 Bharat Petroleum Corporation limited http://www.bharatpetroleum.com6 Essar Pvt Limited http://www.essar.com7 Gujarat Gas http://www.gujaratgas.com8 Chennai Petroleum Corporation limited http://www.cpcl.co.in9 MRPL http://www.adityabirla.com/companies/index.html 10 Gas Authority of India Limited http://www.gail.nic.in
http://www.indianoilweb.comhttp://www.indianoilcorp.comhttp://www.iocl.com
12 Reliance Industries http://www.ril.com13 Bongaigaon Refinery & Petrochemicals www.brplindia.com14 Engineers India Limited www.engineersindia.com15 Lubrizol India Limited http://petroleum.nic.in/lil.htm16 Numaligarh Refinery Limited http://petroleum.nic.in/nrl.htm
Indian Oil Corporation limited11
ConversionsMain Conversions used in Petroleum Industry/Products
Main Conversions used in Petroleum Industry/Products
Commercial energy balance (million tonnes of oil equivalent): 1999/2000
Commercial energy balance (million tonnes of oil equivalent): 1999/2000
The End
You Can Contact Me at [email protected]