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energy consumer
Fourth-largest
consumer of oil and
petroleum products
Sixth-largest LNG
importer in 2011
Indias energy demand is expected to double to 1,464 mtoe by 2035 from 559 mtoe in
2011. Moreover, the countrys share in global primary energy consumption would increase
twofold by 2035
Oil consumption is estimated to reach 4.0 mbpd by FY16, expanding at a CAGR of 3.2 per
cent during FY08FY16F
LNG imports accounted for about one-fourth of total gas demand. India's gas demand is
estimated to more than double over the next five years
Source: US Energy Information Administration (EIA); Ministry of Petroleum & Natural Gas; Aranca Research
Notes: mtoe Million Tonnes of Oil Equivalent; mbpd Million Barrels Per Day, F - Forecast
Growingdemand
demand
Growing
FY08
Oil
demand:
3.1 mbpd;
Gas
demand:
31.5 bcm
Skilled workforce
FY16F
Oil
demand:
4.0 mbpd;
Gas
demand:
165.2 bcm
Advantage
India
Policy support
Source: Business Monitor International (BMI); World Oil Outlook 2012; Ministry of Petroleum & Natural Gas; Aranca Research
Notes: mbpd Million Barrels Per Day; bcm Billion Cubic Meters
Midstream
segment
Storage and
transportation
Downstream
segment
Refining,
processing and
marketing
Reliance launched Indias first privately owned refinery in 1999 and has
gained a considerable market share (28 per cent)
Upstream
segment Exploration and
production
Source: US Energy Information Administration, Ministry of Petroleum & Natural Gas; Aranca Research
Notes: bcm Billion Cubic Meters; tcf Trillion Cubic Feet; mbpd Million Barrels Per Day; mmscmd Million Metric Standard Cubic Meter Per Day,
ONGC Oil & Natural Gas Corporation of India; IOCL Indian Oil Corporation Ltd
5,800
4.1
3.9
4.0
3.2
3.0
4.3
3.7
3.9
4.0
3.5
3.1
5,700
5,600
5,500
5,400
5,300
2.0
5,200
5,100
1.0
5,000
4,900
0.0
4,800
FY08 FY09 FY10 FY11 FY12* FY13F FY14F FY15F FY16F
Source: Ministry of Oil & Natural Gas; BMI forecasts; Aranca Research
Notes: F Forecast; CAGR Compound Annual Growth Rate;
mbpd Million Barrels Per Day; mn bbl Million Barrels; * - Provisional
4.5
4.0
3.5
3.0
2.5
2.0
3.3
3.4
3.7
3.2
0.8
0.8
0.8
2.5
2.7
0.7
0.7
0.7
FY08
FY09
FY10
2.7
2.9
3.0
1.0
1.0
1.0
1.5
1.0
0.5
0.0
FY11 FY12* FY13* FY14F FY15F FY16F
Source: Ministry of Oil & Natural Gas; BMI forecasts; Aranca Research
Notes: F Forecast; mbpd Million Barrels Per Day; * - Provisional
800
1,330
1,330
1,330
1,330
1,330
1,149
1,115
1,000
1,278
1,200
1,330
1,400
1,090
175
150
137
40
46
51
200
47
400
165
600
32
31
0
FY08 FY09 FY10 FY11 FY12* FY13* FY14F FY15F FY16F FY17F
Gas Consumption
56
48
12
32
12
12
13
23
47
52
48
41
32
32
44
47
11
33
51
64
FY08 FY09 FY10 FY11 FY12 FY13* FY14F FY15F FY16F FY17F
Gas Production
Gas Imports
40
35
30
25
4.8
3.1
4.6
3.2
5.1
3.1
4.7
3.5
9.7
10.5
11.6
3.6
3.6
3.8
3.7
5.3
20
15
10
24.4
26.1
25.9
25.4
24.9
24.4
23.7
22.6
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
5
0
ONGC
OIL
Private/JV
26.8
22.0
21.6
14.5
7.7
2.3
8.1
2.3
2.4
2.4
2.6
2.6
22.3
22.5
23.1
23.1
23.3
23.5
FY08
FY09
FY10
FY11
FY12
FY13
ONGC
OIL
Private/JV
During FY12, 1,631,000 meters of wells were explored and developed in India
During the same period, 756 wells were drilled in the country
Most upstream drilling and exploration work is undertaken by state-owned oil companies
ONGC is the leader in the upstream segment and accounts for 62 per cent of total crude oil output in India
129
295
62
87
740
467
409
198
Wells
Onshore
Metreage
Offshore
Wells
Metreage
Onshore
Offshore
India has a network of 9,537 km of crude pipeline having a capacity of 138.3 mmtpa
In terms of length, IOCL accounts for 45.9 per cent (4,376 km) of Indias crude pipeline network; moreover, the company
has the countrys longest pipelines, namely the Salaya-Mathura-Panipat Pipeline (1,870 km) and the Haldia-Barauni /
Paradip-Barauni Pipeline (1302 km)
In terms of capacity, ONGC leads the pack with a share of 47.4 per cent (65.5 mmtpa), followed by IOCL at 29.2 per cent
(40.4 mmtpa)
6.1%
12.5%
OIL
11.9%
45.9%
OIL
29.2%
ONGC
ONGC
IOCL
47.4%
IOCL
Of the 11,274 km of refined products pipeline network (capacity of 70.7 mmtpa) in India, Indian Oil Corporation (IOC)
accounts for 54 per cent (6,127 km)
Gas Authority of India Limited (GAIL) has largest share (88 per cent or 2,038 km) of the countrys LPG pipeline network
(2,312 km)
3%
6%
3%
12%
HPCL
15%
IOC
BPCL
54%
GAIL
OIL
PCCK
19%
PMHB
88%
80.7
90.7
112.2
112.1
FY09
FY10
43.6
48.6
112.5
FY08
Public Sector
49.1
55.5
115.3
120.9
126.2
FY11
FY12
FY13
Private Sector
Total crude throughput rose from 130.1 mmt in FY06 to 181.7 mmt in FY13*
In FY13, the sectors total installed refinery capacity was 215.06 mmt
In FY13, IOC emerged as the largest domestic refiner with a capacity of 54.2 mmt
IOC
200
9%
HPCL
25%
78
80
135
135
FY12
FY13
150
BPCL
13%
100
CPCL
NRL
7%
MRPL
11%
1% 5%
RPL
50
0
Public Sector
13%
Private/JV Sector
EOL
Source: Ministry of Petroleum & Natural Gas; PPAC; Aranca Research
Notes: mmt Million Metric Tonne; * - Provisional, HPCL - Hindustan Petroleum Corporation Ltd, BPCL - Bharat Petroleum Corporation Ltd,
OIL - Oil India Limited, ONGC - Oil and Natural Gas Corporation, IOCL - Indian Oil Corporation Ltd, CPCL - Chennai Petroleum Corporation Limited,
NRL - Numaligarh Refinery Limited, MRPL - Mangalore Refinery and Petrochemicals Limited, RPL - Renegade Petroleum Ltd, EOL - Essar Oil Ltd
2.2
35
35
94
100
103
35
23
28
26
2.2
80
32
38
40
40
51
55
58
FY06
FY07
FY08
FY09
FY10
FY11
FY12*
Middle Distillates
2.1
2.1
77
Light Distillates
2.2
30
71
64
2.2
2.2
Heavy Ends
FY06
FY07
FY08
FY09
FY10
FY11
FY12*
LPG
Source: Ministry of Petroleum & Natural Gas; Aranca Research
Notes: mmt Million Metric Tonne; * - Provisional
150,000
50,000
100,000
0
FY06
FY07
FY08
Product Pipeline
Pipeline
FY09
LPG Pipeline
FY10
FY11
FY12*
Crude Pipeline
Capacity (mmtpa)
Length (km)
As of April 1, 2012 As of April 1, 2012
Product Pipeline
76.3
11,218
LPG Pipeline
3.9
2,312
Crude Pipeline
138.3
8,528
Total
218.5
22,057
5%
Coal
8%
Petroleum
41%
Solid biomass &
waste
23%
Natural gas
23%
Coal
8%
11%
Petroleum
42%
Solid biomass &
waste
15%
Natural gas
24%
Company
Ownership
(per cent)
FY13 Turnover
(USD billion)
84.7
Reliance Industries
Public Listed
73.0
Bharat Petroleum
Corporation Limited
44.5
Hindustan Petroleum
Corporation Limited
39.7
ONGC
29.7
9.4
1.8
Company
Ownership
(per cent)
Global Turnover
(USD billion)
Private Sector
1.5 (H114)
Shell
Private Sector
341.9
(Nine months 2013)
BG Group
Private Sector
13.7
(Nine months 2013)
BP
Private Sector
285.4
(Nine Months 2013)
Government approved the CBM policy in 1997 to boost the development of clean and
renewable energy resources
CBM is an eco-friendly natural gas (methane), which is absorbed in coal and lignite seams
CBM policy was designed to be liberal and investor friendly; the first commercial
production of CBM was initiated in July 2007 at about 72,000 cubic metres per day
Underground Coal
Gasification (UCG)
The technology was first widely used in the US in the 1800s, and in India (Kolkata and
Mumbai) in the early 1900s
UCG is currently the only feasible technology available to harness energy from deep un
mineable coal seams economically in an eco-friendly manner
Reduces capital outlay, operating costs and output gas expenses by 2550 per cent, vis-vis surface gasification
The government initiated the National Gas Hydrate Programme (NGHP), a consortium of
national E&P companies and research institutions, to map gas hydrates for use as an
alternate source of energy
Bio-fuels (bio-ethanol and bio-diesel) are alternate sources of energy from domestic
renewable resources; these have lower emissions compared to petroleum or diesel
Installed capacity,
as of April 2012 (mt)
Gujarat
91.7
104.8
Maharashtra
18.5
20.9
Haryana
15.0
15.5
Karnataka
15.0
12.8
Tamil Nadu
11.5
10.6
Kerala
9.5
9.5
Andhra Pradesh
8.4
8.8
Uttar Pradesh
8.0
8.2
West Bengal
7.5
8.1
Assam
7.0
6.7
Bihar
6.0
5.7
Punjab
9.0
Madhya Pradesh
6.0
213.1
211.4
State
Total
Growing demand
Growing
demand
India is fourth
largest energy
consumer
Rise in
population and
economic growth
to fuel demand
Increasing
industrialisation
and usage of gas
Increasing investments
Policy support
Supportive FDI
policies
Inviting
Promoting of
investments in the
sector
Cumulative# FDIs
in oil & gas totalled
USD5.4 billion
Introducing
policies such as
CBM and NELP
Huge investments
planned under
Eleventh Plan
Robust domestic
market; expected to
expand
Several industries are increasing the usage of natural gas in operations; this has boosted
natural gas demand in India
Some of the main industries that use natural gas pulp and paper, metals, chemicals,
glass, plastic and food processing
The nation has large coal, crude oil and natural gas reserves
Oil reserves amounted to 5.47 billion barrels in FY13
Natural gas proved reserves stood at 1.24 tcm in FY13
Favourable policies
100 per cent FDI allowed in E&P projects/companies; 49 per cent allowed in refining under
the automatic route from earlier approval route
Policies to promote investments in the industry such as New Exploration Licensing Policy
(NELP) and Coal Bed Methane (CBM)
Huge investments
Investments worth USD75 billion is expected across the oil & gas value chain under the
12th Plan (201217)
Since April 2000-September 2013, FDI worth USD5.4 billion has been invested in Indias
petroleum and natural gas sector
Skilled labour
The nation offers abundant skilled labour at much competitive wages compared to other
countries
The University of Petroleum and Energy Studies in Dehradun, Uttarakhand, is Asias first
and only energy university
Several domestic companies (such as ONGC, Reliance and Gujarat State Petroleum)
have reportedly found natural gas in deep waters
This offers significant expansion opportunity for the next decade
Integrated Energy
Policy (IEP), 2006
Petroleum and Natural
Gas Regulatory Board
(PNGRB) Act, 2006
NELP, 1999
Outlines goals for dealing with challenges faced by Indias energy sector
To provide a roadmap to comply with various vehicular emission norms and corresponding
fuel quality upgrading requirements over a period of time
To promote bio-fuel usage, the GoI has provided a 16 per cent concession on the excise
duty on bio-ethanol and exempted bio-diesel from excise duty
To compensate public sector Oil Marketing Companies (OMCs) on the freight incurred to
distribute subsidised products in far-flung areas
To provide a contract framework for E&P of hydrocarbons; licenses for exploration are
awarded through a competitive bidding system; nine rounds of bidding completed till 2011
Source: Ministry of Petroleum & Natural Gas; Aranca Research
Note: NELP - New Exploration Licensing Policy
The E&P segments FDI limit is 100 per cent, and the refining segments limit is 49 per
cent
Provisions for regulations governing pollution, safety, and other operating standards
An act establishing a board to develop the oil industry and levy excise duty on crude and
natural gas
Acquisition of users rights by the government of India on land demarcated for laying
pipelines to transport petroleum and other minerals from one area to another
Regulates the grant of petroleum and natural gas exploration licenses and mining leases,
which belong to the government
FDI Policies
Oil Industry
(Development) Act,
1974
Cumulative FDI inflows during April 2000 September 2013 in Indias petroleum and natural gas sector stood at USD5.41
billion (2.6 per cent of total FDIs)
Across sectors, cumulative FDI inflows during April 2000 - September 2013 was USD204.8 billion, with the services sector
accounting for the largest share (18.8 per cent), followed by construction development (11.12 per cent) and
telecommunication (6.3 per cent)
35.1
31.4
2,030.0
30
25.8
24.6
22.4
21.4
16.8
20
1,427.0
12.5
10
556.0
412.0
14.0
FY06
89.0
FY07
266.0
FY08
FY09
FY10
FY07
FY11
FY12*
FY08
FY09
FY10
FY11
FY12
FY13 FY14**
Date announced
Acquirer name
Target name
Oct 2013
529
Jun 2013
2640
Nov 2012
ONGC Videsh
5000.0
Nov 2012
Inpex Corp
Not disclosed
Sep 2012
ONGC Videsh
1000.0
Apr 2012
130.0
Apr 2011
1492.0
Feb 2011
BP PLC
9,000.0
Aug 2010
BPRL
EP413
13.4
Aug 2010
1,180.8
Aug 2010
6,568.5
Aug 2010
391.6
Jun 2010
Apr 2010
1,026.7Aranca Research
Source: Thomson Banker;
17.8
Date announced
Acquirer name
Target name
Apr 2010
339.0
Mar 2010
Investor Group
573.3
Mar 2010
11.8
Feb 2010
Investor Group
Republic of Venezuela-Carabobo
4,848.0
15.3
13.0
Highest
reserve
accretion
in the last
ONGC
two
registered
decades
highest 83.5
ever oil
million
production
toe
ONGC
reported net
Domestic
profit of
crude
USD3.9
production billion in
up 2.1 per 2011
cent
Highestever
dividend
payout of
USD1.6
billion
14.2
15.3
15.9
15.2
13.1
ONGC
recorded
net profit of
USD3.6
billion in
2013
FY07
FY08
FY09
FY10
FY11
FY12
FY13
Reliance Industries is a leading company in the petrochemical, refining and oil & gas industry
The company was ranked 99th in the Fortune Global 500 list 2012
It contributes 14 per cent to India's exports (Mar 2011) and 4.6 per cent of total market capitalisation in the country
FY12
FY13
Turnover
USD66.8 billion
USD68.4 billion
EBITDA
USD7.3 billion
USD7.1 billion
Net Profit
USD3.9 billion
USD3.9 billion
Reliance Industries has entered into JVs with various companies across segments to align growth opportunities; it signed JVs
with Atlas, Pioneer, Carrizo SIBUR, and D.E. Shaw as well as entered into a strategic alliance with BP recently.
Source: Company Reports; Aranca Research
Upstream segment
Midstream segment
Downstream segment
of gas pipelines
LNG
Development
of
unconventional
resources: CBM fields in the deep sea
imports
have
increased
significantly;
this
provides
an
opportunity to boost production
capacity
producing techniques
Increased demand for skilled labour
To
construct
new
refineries
considering advantages such as low
operation costs, lesser freight charges
and favourable policies
basin in the country), spread across 20,000 gross square miles with a prospective area of 1,940 square miles
It is estimated that the Krishna Godavari (KG) basin encloses a series of organically rich shales, containing around 27 tcf of
technically recoverable gas. KG basin, located in Eastern India, holds the countrys largest shale gas reserves, extending
over 7,800 gross square miles with a prospective area of around 4,340 square miles
India is likely to launch bidding for shale gas exploration toward the end of 2013
In April 2012, the Directorate General of Hydrocarbons (DGH) submitted its draft policy on exploitation of shale gas to the
Name
Address
Petroleum Conservation
Research Association
(PCRA)
Contact person
Telephone
Mr T S Balasubramanian,
Financial Adviser and Chief
Accounts Officer
91-11- 23413298
91-11- 23414692
oidb@hotmail.com
Mr Arun Kumar, ED
91-11- 26198799
Ext.301
pcra@pcra.org
Bureau of Energy
Efficiency (BEE)
91-11- 26178316,
91-11- 26179699
dg-bee@nic.in,
amathur@beenet.in
Mr J B Verma, ED
91-11- 23316798
verma.jb@gov.in
Dr Basudev Mohanty,
Director
91-11- 24362501,
91-11- 24361380
Directorate General of
Hydrocarbons
Mr S K Srivastava, Director
General
0120 - 4029401
dg@dghindia.org
Year
Year
2004-05
44.95
2005
45.55
2005-06
44.28
2006
44.34
2006-07
45.28
2007
39.45
2007-08
40.24
2008
49.21
2008-09
45.91
2009
46.76
2009-10
47.41
2010
45.32
2010-11
45.57
2011
45.64
2011-12
47.94
2012
54.69
2012-13
54.31
2013
57.72
2013-14
59.23
Average for the year
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