• India’s energy demand is expected to double to 1,464 Mtoe by 2035 from 559 Mtoe in World’s fourth-largest 2011. Moreover, the country’s share in global primary energy consumption would increase energy consumer twofold by 2035
Fourth-largest • Oil consumption is estimated to reach 4.0 mbpd by FY16, expanding at a CAGR of 3.2 per consumer of oil and cent during FY08–FY16F petroleum products
Sixth-largest LNG • LNG imports accounted for about one-fourth of total gas demand. India's gas demand is importer in 2011 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 FY08 GrowingGrowing demand demand Skilled workforce FY16F • India is the world’s fourth-largest • About 139,068 people were Oil energy consumer; oil and gas employed in the petroleum Oil demand: account for 37.3 per cent of total industry at the end of FY12 demand: 3.1 mbpd; energy consumption 4.0 mbpd; Gas • The University of Petroleum and Gas demand: • Buoyant economic growth is the Energy Studies in Dehradun, demand: 31.5 bcm main factor driving the country’s Uttarakhand, is Asia’s first and 165.2 bcm energy requirements only energy university Advantage India Supportive FDI guidelines Policy support • The engineering sector is delicensed; • 100 per cent Foreign Direct • Government100 per cent FDI has is enactedallowed invarious the Investment (FDI) is allowed in policiessector such as the New upstream and private sector Exploration Licensing Policy (NELP) refining projects • andDue toCoal policy Bed support, Methane there (CBM) was policycumulative to encourage FDI of USD14.0 investments billion into • The FDI limit for public sector acrossthe sector the over industry’s April 2000 value – February chain refining projects has been raised 2012, making up 8.6 per cent of total to 49 per cent FDI into the country in that period
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 India is the world’s fourth-largest energy consumer
The country has 5.6 billion barrels of proven oil reserves, with an average oil production of 0.8 mbpd (2012)
India has 1,330 bcm of gas reserves and produced 47.6 bcm of gas in 2012
Upstream • The upstream segment is dominated by the state-owned ONGC
segment - • It is the largest upstream company in the exploration and production (E&P) Exploration and segment, accounting for approximately 62 per cent of the country’s total oil production output
Midstream • IOCL operates a 11,163 km network of crude, gas and product pipelines, Indian oil and gas segment – with a capacity of 1.6 mbpd sector Storage and transportation • This is around 30 per cent of the nation’s total pipeline network
Downstream • IOCL is the largest company, operating 10 out of 22 Indian refineries segment –
Refining, • Reliance launched India’s first privately owned refinery in 1999 and has processing and gained a considerable market share (28 per cent) marketing
Source: BP Statistical Review, June 2012; Ministry of Petroleum & Natural Gas; Aranca Research Notes: bcm – Billion Cubic Meters; mbpd – Million Barrels Per Day; ONGC – Oil & Natural Gas Corporation of India; IOCL – Indian Oil Corporation Ltd Oil consumption is estimated to expand at a CAGR of 3.4 Oil consumption in India and current reserves per cent during FY2008–16F to 4.0 mbpd by 2016 5.0 6,000 4.3 4.1 Owing to this strong expected growth in demand, India’s 3.9 3.5 3.9 4.0 4.0 3.7 dependency on oil imports is expected to increase further 5,700 3.1 3.2 3.0 5,400 2.0
5,100 1.0
0.0 4,800
FY08 FY09 FY10 FY11
FY12*
FY13F FY14F FY15F FY16F Oil Consumption (mbpd) - LHS Proven Oil Reserves (mn bbl) - RHS
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 In FY12, imports accounted for approximately 81 per cent of Imports and domestic oil production in India the country’s total oil demand
Backed by new oil fields, domestic oil output is anticipated to grow to 1.0 mbpd by FY16
3.3 3.5 2.9 3.0 3.2 2.5 2.7 2.5 2.7
0.7 0.7 0.7 0.8 0.8 1.0 1.0 1.0 1.0
FY08 FY09 FY10 FY11 FY12* FY13F FY14F FY15F FY16F Oil Production (mbpd) Oil Imports (mbpd)
Source: Ministry of Oil & Natural Gas; BMI forecasts; Aranca Research Notes: F – Forecast; mbpd – Million Barrels Per Day; * – Provisional With India developing gas-fired power stations, Proven reserves and total gas consumption in the consumption is up more than 160 per cent since 1995 country (bcm)
Demand is not likely to simmer down any time soon, given
strong economic growth and rising urbanisation; during
1,330 1,330 1,330 1,330 1,330 FY2008–17F, gas consumption is likely to expand at a 1,330
CAGR of 21.0 per cent 1,278
1,149
1,115
1,090
175
165
109
150
137
51
47 46
32
31
FY08 FY09 FY10 FY11
FY12*
FY13F FY14F FY15F FY16F FY17F Gas Consumption Proven Gas Reserves
Source: Ministry of Oil & Natural Gas; Aranca Research Notes: F – Forecast; bcm – Billion Cubic Meters; CAGR – Compound Annual Growth Rate; * – Provisional Domestic production accounts for more than three-quarters Domestic gas production and imports (bcm) of total gas consumption in the country
Imports constitute the rest; in 2012, the share of imports was 22.0 per cent 56 India increasingly relies on imported LNG; the country was 48 the sixth-largest LNG importer in 2011 and accounted for 32 32 12 12 13 23 5.3 per cent of global imports 12 11 64 47 52 48 43 44 47 51 India’s LNG imports are forecast to increase at a CAGR of 32 33
33 per cent during 2012–17
FY08 FY09 FY10 FY11
FY12*
FY13F FY14F FY15F FY16F FY17F Gas Production Gas Imports
Source: Ministry of Oil & Natural Gas; Aranca Research Notes: F – Forecast; bcm – Billion Cubic Meters; * – Provisional Total crude oil production was 38.0 mmt during FY12 Crude oil production (mmt)
ONGC accounted for 62 per cent of total crude oil production in India 9.7 4.8 5.1 10.5 4.6 4.7 5.3 3.1 3.1 3.5 3.2 3.6 3.6 3.8
24.4 26.1 25.9 25.4 24.9 24.4 23.7
FY06 FY07 FY08 FY09 FY10 FY11 FY12* ONGC OIL Private/JV
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: mmt – Million Metric Tonne; * – Provisional; JV – Joint Venture Total gas production was 47.6 bcm during FY12 Annual gas production (bcm)
The contribution from Private/JV has drastically increased over the last couple of years, following the development of the Reliance - Krishna Godavari (KG) basin
26.8 22.0 21.6
7.4 7.0 7.7 8.1 2.3 2.3 2.3 2.3 2.4 2.4 2.6
22.6 22.4 22.3 22.5 23.1 23.1 23.3
FY06 FY07 FY08 FY09 FY10 FY11 FY12* ONGC OIL Private/JV
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: mmt – Million Metric Tonne; * – Provisional; JV – Joint Venture 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
Exploration activities (FY12*) (‘000 meters) Development drilling activities (FY12*) (‘000 meters)
129 295
62 740 87 467 409 198
Wells Metreage Wells Metreage Onshore Offshore Onshore Offshore
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: * – Provisional 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 India’s crude pipeline network; moreover, the company has the country’s longest pipelines, namely the Salaya-Mathura-Panipat Pipeline (1870 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)
Shares in crude pipeline network by length Shares in crude pipeline network by capacity (out of 9,537 km ) (out of 138.3 mmtpa)
12.5% 6.1%
OIL OIL 29.2%
11.9% ONGC ONGC
45.9% IOCL IOCL 47.4%
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: km – Kilometre; mmtpa – Million Metric Tonnes Per Annum Of the 11,218 km of refined products pipeline network (capacity of 76.3 mmtpa) in India, Indian Oil Corporation (IOC) accounts for 55 per cent (6,127 km)
Gas Authority of India Limited (GAIL) has largest share (88 per cent or 2,038 km) of the country’s LPG pipeline network (2,312 km)
Shares in product pipeline network by length Shares in LPG pipeline network by length (out of 11,218 km ) – FY12 (out of 2,312 km ) – FY12
3%0% 2% 12% 6% IOC IOC HPCL 15% BPCL GAIL 55% OIL PCCK 19% PMHB
88%
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: km – Kilometre; mmtpa – Million Metric Tonnes Per Annum, LPG - Liquefied Petroleum Gas, IOC - Indian Oil Corporation, HPCL - Hindustan Petroleum Corporation Ltd, BPCL - Bharat Petroleum Corporation Ltd, OIL - Oil India Limited, PMHB - Mangalore Hasan Bangalore, PCCK - Cochin-Coimbatore-Karur State-controlled entities dominate the downstream segment Refinery crude throughput (mmt) as well
India has 19 refineries in the public sector and 3 in the private sector
90.7 90.5 80.7 In FY12, public sector refineries accounted for 57 per cent 43.6 48.6 of total refinery crude throughput 38.4 34.3 33.2
112.5 112.2 112.1 115.3 120.9 93.1 96.9 108.2
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12* Public Sector Private Sector
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: * – Provisional; mmt – Million Metric Tonne Total crude throughput rose from 130.1 mmt in FY06 to 211.4 mmt in FY12*
In FY12, the sector’s total installed capacity was 213.1 mmt, up 13.7 per cent from the previous fiscal year
In FY12, Reliance emerged as the largest domestic refiner with a capacity of 60 mmt (Jamnagar Refinery)
Shares in India's total refining capacity Total installed capacity (mmt) (FY 2012)
IOC 7.0% BPCL 9.0% 26.0% HPCL 78 71 CPCL NRL
28.0% MRPL 135 10.0% 117 RPL 7.0% EOL 7.0% 6.0% JV FY11 FY12 1.0% Public Sector Private Sector
Source: Ministry of Petroleum & Natural Gas; 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 During FY12, 198.8 mmt of petroleum products (including 2.2 mmt of LPG from natural gas) were produced
Petroleum products derived from crude oil include light distillates such as LPG, naphtha; middle distillates such as kerosene; and heavy ends such as furnace and lube oils, bitumen, petroleum coke, paraffin wax
The production of petroleum products is expected to reach 1199.7 mmt during the 12th Plan period (2012–17)
Petroleum products from crude oil (mmt) Petroleum products from natural gas (mmt)
2.2
2.2 2.2 35 35 35 2.2 2.2 28 30 26 2.1 23 100 103 94 2.1 71 77 80 64
51 55 58 32 38 40 40
FY06 FY07 FY08 FY09 FY10 FY11 FY12* FY06 FY07 FY08 FY09 FY10 FY11 FY12* Light Distillates Middle Distillates Heavy Ends LPG
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: mmt – Million Metric Tonne; * – Provisional In FY12*, total sales of petroleum products by companies Downstream distribution statistics (‘000 tonnes) was 148.0 mmt, up 4.9 per cent from the previous fiscal year 200,000
The total number of retail outlets of public sector oil 150,000 marketing companies (OMCs) increased to 42,138 in April 2012 from 38,964 in April 2011 100,000
IOC owns the maximum number of retail outlets in the 50,000 country (48.8 per cent of total), followed by HPCL (26.7 per cent) and BPCL (24.5 per cent); the remaining outlets are 0 owned by private firms FY06 FY07 FY08 FY09 FY10 FY11 FY12* Product Pipeline LPG Pipeline Crude Pipeline As of April 1, 2012, there were 11,489 LPG distributors in India Length (km) Capacity (mmtpa) Pipeline As of April 1, As of April 1, 2012 2012
Product Pipeline 76.3 11,218
LPG Pipeline 3.9 2,312
Crude Pipeline 138.3 8,528 Total 218.5 22,057
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: mmt – Million Metric Tonne; mmtpa – Million Metric Tonnes Per Annum; * – Provisional In 2011, coal accounted for 41 per cent of total primary Energy consumption pattern in 2011 energy demand
Energy demand in the Asia-Pacific region is expected to 5% Coal reach 5,627 Mtoe by 2020 and 6,861 Mtoe by 2035 8%
Petroleum India’s energy demand is expected to double by 2035 41% 23% Solid biomass & waste
Natural gas
Nuclear & other 23% renewables
Source: US Energy Information Administration (EIA); Asia-Pacific Economic Cooperation (APEC); Aranca Research Notes: Mtoe – Million Tonne of Oil Equivalent Over the next few years, the dependence on gas, hydro Consumption pattern expected in 2035 power and nuclear power is expected to increase relative to oil and coal
8% Coal The government aims to quadruple India’s nuclear power generation capacity to 20 GW by 2020; currently, seven 11% nuclear power reactors of 4,890 MWe capacity are under Petroleum construction 42% Solid biomass & 15% waste
Natural gas
Nuclear & other 24% renewables
Source: International Energy Agency (IEA); 12th Five-Year Plan; Aranca Research Ownership FY13 Turnover Company (per cent) (USD billion)
Indian Oil Corporation 78.9 per cent state- 84.7 Limited owned
Reliance Industries Public Listed 73.0
Bharat Petroleum 54.9 per cent state- 44.5 Corporation Limited owned Hindustan Petroleum 51.1 per cent state- 39.7 Corporation Limited owned 69.2 per cent state- ONGC 29.7 owned
57.3 per cent state- GAIL India Limited 9.4 owned
68.4 per cent state- Oil India Limited 1.8 owned
Source: Bloomberg; Aranca Research Notes: FY – Indian Financial Year, April–March Ownership Global Turnover Company (per cent) (USD billion)
Cairn Energy India Pvt Private Sector 3.2 (FY13) Ltd
Shell Private Sector 460.0 (1Q2013)
BG Group Private Sector 20.8 (1Q2013)
BP Private Sector 370.9 (1Q2013)
Source: Bloomberg; Aranca Research Notes: FY – Indian Financial Year, April–March • Government approved the CBM policy in 1997 to boost the development of clean and renewable energy resources Coal bed methane • CBM is an eco-friendly natural gas (methane), which is absorbed in coal and lignite seams (CBM) • 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
• The technology was first widely used in the US in the 1800s, and in India (Kolkata and Mumbai) in the early 1900s Underground coal • UCG is currently the only feasible technology available to harness energy from deep gasification (UCG) unmineable coal seams economically in an eco-friendly manner • Reduces capital outlay, operating costs and output gas expenses by 25–50 per cent, vis- à-vis surface gasification
• The government initiated the National Gas Hydrate Programme (NGHP), a consortium of Gas hydrates and bio- national E&P companies and research institutions, to map gas hydrates for use as an alternate source of energy fuels • 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, Crude throughput for State as of April 2012 (mt) 2011–12 (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 - Source: Ministry of Petroleum & Natural Gas; Aranca Research Total 213.1 211.4 Notes: mt – Million Tonne GrowingGrowing demanddemand Policy support Increasing investments
India is fourth Supportive FDI FDI in FY1* was largest energy policies USD2.03 billion consumer Inviting Resulting in
Rise in Promoting of Cumulative# FDIs population and investments in the in oil & gas totalled economic growth sector USD5.4 billion to fuel demand
Increasing Introducing Huge investments industrialisation policies such as planned under and usage of gas CBM and NELP Eleventh Plan
Source: Ministry of Petroleum & Natural Gas; Aranca Research Notes: * – Provisional; # – April 2000–February 2013 Robust domestic • India is the world’s fourth-largest energy consumer market; expected to • Oil consumption is expected to rise 42.5 per cent during 2010–20 expand • The country accounted for 10.3 per cent of total demand for gas in Asia-Pacific in 2011
• Several industries are increasing the usage of natural gas in operations; this has boosted Increasing demand for natural gas demand in India natural gas • 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 Abundant raw material • Oil reserves amounted to 5.6 billion barrels in FY12 • Natural gas reserves stood at 1.3 tcm in FY12
• 100 per cent FDI allowed in E&P projects/companies; 49 per cent allowed in refining Favourable policies • Policies to promote investments in the industry such as New Exploraton Licensing Policy (NELP) and Coal Bed Methane (CBM)
Source: Ministry of Petroleum & Natural Gas; BP Statistical Review of World Energy, June 2012; BMI; Aranca Research, Note: TCM - Trillion Cubic Meters, E&P - Exploration and Production • Investments worth USD75 billion is expected across the oil & gas value chain under the 12th Plan (2012–17) Huge investments • Since April 2000, FDI worth USD5.4 billion has been invested in India’s petroleum and natural gas sectors
• The nation offers abundant skilled labour at much competitive wages compared to other countries Skilled labour • The University of Petroleum and Energy Studies in Dehradun, Uttarakhand, is Asia’s first and only energy university
• Several domestic companies (such as ONGC, Reliance and Gujarat State Petroleum) Natural gas discoveries have reportedly found natural gas in deep waters • This offers significant expansion opportunity for the next decade
Source: Ministry of Petroleum & Natural Gas; BMI; Aranca Research Integrated Energy • Outlines goals for dealing with challenges faced by India’s energy sector Policy (IEP), 2006
Petroleum and Natural Gas Regulatory Board • To regulate refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas (PNGRB) Act, 2006
• To provide a roadmap to comply with various vehicular emission norms and corresponding Auto Fuel Policy, 2003 fuel quality upgrading requirements over a period of time
National Biofuel Policy, • To promote bio-fuel usage, the GoI has provided a 16 per cent concession on the excise 2002 duty on bio-ethanol and exempted bio-diesel from excise duty
Freight Subsidy (for far- • To compensate public sector Oil Marketing Companies (OMCs) on the freight incurred to flung areas) Scheme, distribute subsidised products in far-flung areas 2002
• To provide a contract framework for E&P of hydrocarbons; licenses for exploration are NELP, 1999 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 FDI Policies • The E&P segment’s FDI limit is 100 per cent, and the refining segment’s limit is 49 per cent
Coal Bed Methane • To encourage exploration and production of CBM gas as a new eco-friendly source of (CBM) Policy, 1997 energy
Petroleum Rules, 1976 • Provisions for regulations governing pollution, safety, and other operating standards
Oil Industry • An act establishing a board to develop the oil industry and levy excise duty on crude and (Development) Act, natural gas 1974
Petroleum and Minerals • Acquisition of user’s rights by the government of India on land demarcated for laying Pipelines Act, 1962 pipelines to transport petroleum and other minerals from one area to another
Petroleum and Natural • Regulates the grant of petroleum and natural gas exploration licenses and mining leases, Gas Rule, 1959 which belong to the government
Source: Ministry of Petroleum & Natural Gas; Aranca Research Oil Field (Regulation and Development) Act, • An act to regulate oilfields and develop mineral oil resources 1948
Source: Ministry of Petroleum & Natural Gas; Aranca Research Cumulative FDI inflows during April 2000–February 2013 in India’s petroleum and natural gas sector stood at USD5.4 billion (2.8 per cent of total FDIs)
Across sectors, cumulative FDI inflows during April 2000–February 2013 was USD191.9 billion, with the services sector accounting for the largest share (19.4 per cent), followed by construction development (11.5 per cent) and telecommunication (6.6 per cent)
FDI inflows into petroleum and natural gas FDI inflows into India (USD billion) (USD million)
35.1 2,030.0 31.4
24.6 25.8 1,427.0 21.4 22.4
12.5 556.0 412.0 5.5 266.0 89.0 14.0
FY06 FY07 FY08 FY09 FY10 FY11 FY12* FY06 FY07 FY08 FY09 FY10 FY11 FY12* FY13*
Source: Department of Industrial Policy & Promotion; Aranca Research Notes: * – Provisional Date Announced Acquirer Name Target Name Value of Deal (USD million)
Nov 2012 ONGC Videsh ConocoPhillips (Kashagan Field) 5000.0
Oil and Natural Gas Corp’s exploration block Nov 2012 Inpex Corp Not disclosed KG-DWN-2004/6
Sep 2012 ONGC Videsh Hess Corp (Azrei oilfield) 1000.0
Apr 2012 Trafigura Pte Ltd Nagarjuna Oil Co Ltd 130.0
Feb 2011 BP PLC Reliance Industries Ltd 9,000.0
Aug 2010 BPRL EP413 13.4
Aug 2010 Sesa Goa Ltd Cairn India Ltd 1,180.8
Aug 2010 Vedanta Resources PLC Cairn India Ltd 6,568.5
Aug 2010 Reliance Industries Ltd Marcellus Shale Natural Gas 391.6
Jun 2010 Reliance Industries Ltd Infotel Broadband Svcs Ltd 1,026.7
Apr 2010 Sim Siang Choon Hardware Interlink Petroleum Ltd 17.8
Source: Thomson Banker; Aranca Research Date Announced Acquirer Name Target Name Value of Deal (USD million)
Apr 2010 Reliance Industries Ltd Atlas Energy Inc-Marcellus 339.0
Mar 2010 Investor Group Gulfsands Petroleum PLC 573.3
Mar 2010 Natural Power Venture Pvt Ltd Great Offshore Ltd 11.8
Feb 2010 Investor Group Republic of Venezuela-Carabobo 4,848.0
Source: Thomson Banker; Aranca Research ONGC revenue growth (USD billion)
15.9 15.3 15.3 15.2 14.2 13.0 13.1
• ONGC recorded • ONGC highest-ever reported net net profit of • Domestic profit of USD5.2 crude USD3.9 billion in • Highest productio billion in 2012 n up 2.1 2011 reserve FY07 FY08 FY09 FY10 FY11 FY12 FY13 accretion per cent in the last • Highest- • ONGC two ever registered ONGC’s position in the Indian market decades dividend highest- – 83.5 payout of ever oil • ONGC is the largest upstream oil company million USD1.6 production toe billion • ONGC accounts for 62 per cent of India’s total crude oil output and 49 per cent of total gas production
Source: Company Reports; BMI, Aranca Research Notes: TOE – Tonne of Oil Equivalent 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 increased by 9.2 per cent in FY13
• Exports increased by 15 per USD66.8 billion USD68.4 billion cent to USD44.1 billion Turnover
• Record crude throughput at 68.5 million tonnes EBITDA USD7.3 billion USD7.1 billion • US shale: FY13 revenue and EBITDA at USD616 million and USD483 million respectively 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
• Locating new fields for exploration: 78 • Expansion in the transmission network • Development in city gas distribution per cent of the country’s sedimentary of gas pipelines (CGD) networks, which are similar to area is yet to be explored Delhi and Mumbai’s CGDs • LNG imports have increased • Development of unconventional significantly; this provides an • To construct new refineries resources: CBM fields in the deep sea opportunity to boost production considering advantages such as low capacity operation costs, lesser freight charges • Opportunities for secondary/tertiary oil and favourable policies producing techniques • In light of mounting LNG production, huge opportunity lies for LNG terminal • Expansion of the country’s petroleum • Increased demand for skilled labour operation, engineering, procurement product distribution network and oilfield services and equipment and construction services • India has 63 tcf of recoverable shale gas reserves
• The Cambay, Krishna Godavari, Cauvery, and the Damodar Valley are the most prospective sedimentary basins for carrying out shale gas activities in the country
• Around 20 tcf of gas has been classified as technically recoverable reserves in the Cambay basin in Gujarat (the largest 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 country’s 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 Ministry of Petroleum and Natural Gas
Source: E&Y; Aranca Research Notes: tcf – Trillion Cubic Feet Name Address Contact person Telephone E-mail
Mr T S Balasubramanian, Oil Industry Development 301, World Trade Centre, Babar 91-11- 23413298 Financial Adviser and Chief [email protected] Board (OIDB) Road, New Delhi – 110001 91-11- 23414692 Accounts Officer Petroleum Conservation Sanrakshan Bhavan, 10 Bhikaji 91-11- 26198799 Research Association Cama Place, New Delhi – Mr Arun Kumar, ED [email protected] Ext.301 (PCRA) 110066
Ministry of Power, 4th floor, Bureau of Energy Dr Ajay Mathur, Director 91-11- 26178316, [email protected], SEWA Bhawan, RK Puram, Efficiency (BEE) General 91-11- 26179699 [email protected] New Delhi – 110066
Ministry of Petroleum & Natural Oil Industry Safety Gas, 7th floor, “New Delhi Mr J B Verma, ED 91-11- 23316798 [email protected] Directorate House”, 27 Barakhamba Road, New Delhi – 110001
Ministry of Petroleum & Natural Gas, 2nd floor, Core-8, SCOPE Petroleum Planning and Dr Basudev Mohanty, 91-11- 24362501, Complex, 7 Institutional Area, - Analysis Cell (PPAC) Director 91-11- 24361380 Lodhi Road, New Delhi – 110003
Ministry of Petroleum & Natural Directorate General of Mr S K Srivastava, Director Gas, C-139, Sector 63, Noida – 0120 - 4029401 [email protected] Hydrocarbons General 201301 B/D (or bpd): Barrels Per Day
MBPD (or mbpd): Million Barrels Per Day
BCM (or bcm): Billion Cubic Metres
CBM: Coal Bed Methane
CGD: City Gas Distribution
E&P: Exploration and Production
FDI: Foreign Direct Investment
FY: Indian financial year (April to March)
So FY12 implies April 2011 to March 2012
GoI: Government of India
INR: Indian Rupee
LNG: Liquefied Natural Gas
MMT (or mmt): Million Metric Tonne
MMTPA (or mmtpa): Million Metric Tonnes Per Annum
EBITDA: Earning Before Interest Taxes Depreciation Amortisation
NRL: Numaligarh Refinery Limited
CPCL: Chennai Petroleum Corporation Limited
HPCL: Hindustan Petroleum Corporation Limited
BPCL: Bharat Petroleum Corporation Limited
IOC: Indian Oil Corporation Ltd
EOL: Essar Oil Ltd
RPL: Reliance Petroleum Limited
MRPL: Mangalore Refinery and Petrochemicals Limited
PCCK: Petronet Cochin-Coimbatore-Karur
PMHB: Petronet Mangalore-Hassan-Bangalore NELP: New Exploration Licensing Policy
TOE (or toe): Tonnes of Oil Equivalent
USD: US Dollar
ONGC: Oil and Natural Gas Corporation of India
IOCL: Indian Oil Corporation Limited mn bbl: Million Barrels
CAGR: Compound Annual Growth Rate
JV: Joint Venture
UCG: Underground Coal Gasification
NGL: Natural Gas Liquids
OMCs: Oil Marketing Companies
NHGP: National Gas Hydrate Programme
Wherever applicable, numbers have been rounded off to the nearest whole number Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR equivalent of one USD Year INR equivalent of one USD
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 54.45
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