Edelweiss India Conference 14th March, 2008, Mumbai AdAgenda
Reflections
Oil Industry Overview
Company Overview
Review of Operations
Financial Overview
Strategic Initiatives
Group Companies
11 Reflections
FY 07:
z Crude oil market remained highly volatile: ¾ touched all time high of USD 78/bbl in Aug 06 mainly due to geopolitical disturbances and strong global demand ¾ softened upto USD 50/bbl levels in Jan 07 mainly due to unusually warm winter in the Northern Hemisphere and huge fund liquidation in the paper market ¾ started rising again due to growing demand and touched a level of USD 69/bbl in March 07
z Rupee appreciated sharply after initial depreciation due to huge inflows
z Continued under realization by downstream oil companies
FY 08 (till Feb 08)
z Crude Oil Prices firming up ¾ reached an all time high of three digits in Jan - Feb 08; mainly due to strong demand, cold weather in US, geo-political disturbances, speculative activity and also dollar weakness
z Rupee in appreciation mode except for recent volatility
z Under recoveries continue for downstream oil companies 22 RfltiReflections
During FY 07, IndianOil…
z Achieved highest ever Turnover of Rs. 220,779 crore
z Achieved highest ever Net Profit of Rs. 7,499 crore
z IBP merged on 2nd May 07 w.e.f. 31st March 07
z Expansion of Panipat refinery from 6 to 12 MMTPA in Aug 06
z Commissioning of Px/PTA plant at Panipat refinery in Aug 06
z BRPL merger approved by the Board in Nov 06
During FY 08, IndianOil….
z Till Dec 07 achieved
¾ Turnover of Rs. 177,223 crore ; up 7% from corresponding period
¾ Net Profit of Rs. 7,377 crore; up 23% from corresponding period
z BRPL merger approved by shareholders/ creditors; Govt approval awaited 33 Agenda
Reflections
Oil Industry Overview
Company Overview
Review of Operations
Financial Overview
Strategic Initiatives
Group Companies
44 Oil Industry Overview: India
Oil & Natural Gas Corporation Ltd. UPSTREAM (Exploration & ONGC Videsh Ltd. Production) Oil India Ltd. Reliance, Cairn Energy, HOEC, Premier Oil Indian Oil Corporation Ltd.
. Chennai Petroleum Corporation Ltd. (Pure Refining)
DOWNSTREAM Bongaigaon Refinery & Petrochemicals Ltd. (Refining, Marketing & Hindustan Petroleum Corporation Ltd. Pipelines) Manggyalore Refinery & Petrochemicals Ltd.* Bharat Petroleum Corporation Ltd.
Numaligarh Refinery Ltd. (Pure Refining)
Reliance Industries Ltd./ EssarOil Ltd./ Shell (Gas Transport & Distribution) GAIL (India) Ltd. * Subsidiary of ONGC
55 Demand For Petroleum Products: India 150
14 0
12 4 12 5 12 3 12 1 113 112 118 MMT 10 9 10 8 10 4 10 0
75 FY03 FY04 FY05 FY06 FY07 C onsumpt ion Production
Over the last 4 years, consumption and production have grown at CAGRs of 3.77% and 6.55% respectively
Source: Consump tion &Pdti& Production from PtlPetroleum Plann ing &AliCllMiit& Analysis Cell, Ministry o fPtlf Petroleum &Nt& Natura lGl Gas, GtfIdiGovt. of India Consumption figures excluding Gas 66 Oil I nd ust ry – RtDlRecent Developmen ts
Dr Rangarajan committee report on Pricing & Taxation implemented partially
z Rationalization of duties
z Pricing of products at Trade Parity (MS / HSD)
z Periodic revision in prices
Continuation of under recovery sharing by
z Upstream companies
z Subsidy from Government
z Special Oil Bonds – Rs 24,121 crore of Special Oil Bonds issued during FYE 07, IOC received Rs 13,943 crore (During FY 08 till Dec 07 Provision of Special Oil Bonds worth Rs 20, 333 crore; IOC’s share Rs 11461 crore)
Petroleum Regulatory Board commenced functioning
FDI in PSU refining sector raised to 49% from 26%
Relaxation of compulsory disinvestment of 26% equity within 5 years for trading and marketing of petroleum products for foreign firms investing through 100% FDI route
77 AdAgenda
Introduction
Reflections
Oil Industry Overview
Company Overview
Review of Operations
Financial Overview
Strategic Initiatives
Group Companies
88 OiOfOtiSttOverview Of Operating Structure
99 Company Overview
India’s largest commercial enterprise with leading market shares in downstream segment of Oil business
Highest ranked Indian corporate in Fortune’s list of World’s 500 Largest Companies (#135)
20th largest petroleum company in the world – Fortune Global 500
Local Currency Rating of A1+ (short-term) & LAA+ (long-term) from ICRA
Foreign Currency Rating of Baa2 from Moody’s, BBB- from S&P and Fitch Ratings
India’s ‘No. 1 Corporate’ in annual listing of Business Standard (BS 1000), Business India (BI Super 100) and Economic Times (ET 500)
India’s Most Trusted Fuel Pump Brand (ET Brand Equity – AC Neilsen Survey 2007)
Winner of prestigious awards : ¾ National Award for “Innovations in Implementing Business Continuity for SAP R/3 Environment ” from Govt of India ¾ SAP certification to IOC’s Customer Competence Center ¾ IndianOil Chairman chosen to receive "SCOPE Award for Excellence and Outstanding Contribution to Public Sector MtManagement – IdiidlCtIndividual Category" "f for 2006-07
1010 Role in Nation Building
Major Supplier to Defense Forces, Railways, STUs
96% 100% 90% 87% 84%
Army Navy Airforce STUs Railways
Contribution to Exchequer during FY 07
¾ Central : Rs. 26,659 crore
¾ Stat e : R s. 27 ,730 crore
Only oil company operating in every part of India
¾ North East : Along, Passighat, Ziro
¾ Himalayas : Leh, Kargil, Lahaul Spiti
¾ Island: Andaman, Nicobar, Lakshadweep
1111 Ubiquitous Presence Pipelines 9273 KMs Refining Pipelines 10 Refineries; (d&(crude & MktiMarketing refining share product) Mkt share of of 40% 45%; 55% of Industry infrastructure Int’l Ops Growing presence in downstream PetroPetro-- marketing chemicals Operational Lab & Px/PTA Gas E&P Plants Sourcing & Forays in Key: Marketing LAB – Linear Alkyl India & Benzene overseas PTA – Purified All figures as on March 31, 2007 Terephthalic Acid PX – Paraxylene Leadership in all spheres of downstream operations 1212 DtDiDownstream Dominance
Refining Product Pipelines 148. 97 MMT 57. 67 MMT Essar 7% PIL 30% HPCL RIL 16% 22% IndianOil 40%
BPCL ONGC 7% 7% HPCL IndianOil 9% BPCL 47% 15% Market Size 121 MMT*
Others 20% HPCL 16% Key: BPCL – Bharat Petroleum Corporation Limited HPCL – Hindustan Petroleum BPCL Corporation Limited 19% IndianOil ONGC – Oil and Natural Gas 45% Corporation Limited Note: Numbers indicate total domestic market size in each of the segments for IndianOil Group PIL – Petronet India Limited All figures as on March 31, 2007 RIL – Reliance Industries Limited * Excluding gas 1313 Share holdi ng P att ern*
Insurance Companies Others # 7.54% 3.18% ONGC 8.93%
GOI # Others include: 80.35% Institutions Mutual Funds, FIs , Banks etc : 3. 21% Non-Institutions:
Individuals : 2.68% * As on 31st Dec 2007 Others : 1.65% It is the Government’s stated intention to maintain a majority shareholding in IOC due to its strategic importance to India’s energy and socio -economic development
1414 AdAgenda
Reflections
Oil Industry Overview
Company Overview
Review of Operations
Financial Overview
Strategic Initiatives
Group Companies
1515 Refining: Overview
Key Facts
Bhatinda Controls 10 refineries with Digboi 60.20 MMT capacity - 40% of Panipat India’s total refining capacity Bongaigaon Mathura Numaligarh 56% of total capacity caters to Barauni Northern/Western regions – Guwahati high demand & growth areas Jamnagar Bina Koyali All refineries linked by crude Haldia pipelines - Low Transportation Paradeep Mumbai IndianOil cost (Crude oil pipelines of Vizag Existing 3987 KM with 34.50 MMT capacity) Proposed Tatipaka All refineries linked by product Subsidiary Cos. pipelines - Most cost effective Mangalore Chennai Other Companies evacuation system Existing Cochin Narimanam Potential for brown field Proposed expansions in least amount of time As of March 31, 2007
1616 Refining: Annual Operating Highlights
46 98.34 44 44.00 100 73 95 93.15 72.50 42 73 72.00 40 38.52 90 72
3638 85 72 80 34 71 75 32 71 30 70 70 FY06 FY07 FY06 FY07 FY06 FY07
Refinery Throughput Capacity Utilization Distillate Yield (MMT) (%) (%)
Strategic inland refinery locations with most effective supply and evacuation system through pipelines All refineries meet product specification requirements in line with environmental regulations
1717 Refining: April - Dec 07 Highlights
36 35.13 98.93 100 96. 7979 73.50 76 34 95 71.90 32.19 72 90 32 68 30 85 64 80 28 60 75 56 26 70 52 Apr-Dec 06 Apr- Dec 07 Apr-Dec 06 Apr-Dec 07 Apr-Dec 06 Apr-Dec 07
Refinery Throughput Capacity Utilization Distillate Yield (MMT) (%) (%)
Surpassing Performance Continues
1818 Refining Performance
Key Facts
Gross Refining Margins $/bbl Record high crude oil througgphput of 44.00 10 MMT in FYE 2007 9.1 9
Annual Capacity utilization of 98.34%; 8
highest in the last 7 years 7 6.2
6 5.3 Refineries accounted for about 35% of 464.6 5 4.1 IndianOil’s earnings for FYE 2007 4.2 4 3.6 Margin enhancement opportunities through 3 stream sharing and improving crude/supply 2
logistics 1
Improvement in margins during Apr-Dec 07 0 FY03 FY04 FY05 FY06 FY07 Apr- Apr- Dec 06 Dec 07
1919 Pipe lines: O vervi ew
Key Facts
Jalandhar Ambala Bhatinda 9,273 kilometres Of crude / Roorkee Sangrur Najibabad product pipelines with a total Panipat Meerut Tinsukia Rewari Delhi capacity of 61.72 MMT Sanganer Mathura Ajmer Siliguri Bongaigaon Jodhpur Tundla Lucknow Chaksu Digboi Guwahati Owns approximately 67% of Kot Kanpur Barauni Chittaurgarh India’s total throughput Sidhpur Ahmedabad Rajbandh Kandla Ratlam Mundra Navagam Budge capacity (downstream) Vadinar Koyali Maurigram Budge Dahej Haldia Provides low cost crude
Paradip transportation to all of the IOC’ s Pipelines (Existing)
Product Company’ s refineries Crude Oil Bangalore Low cost evacuation systems Chennai IOC’ s Pipelines (On- going) Product linked to all refineries Sankari Asanur Crude Oil TiTrich y Two Single Point Mooring*
Madurai near Vadinar
As of March 31, 2007 * Cru de o il is transpor te d from s hips to the s hore us ing a s ing le po in t moor ing, w hic h res ides in the sea an d has su bmar ine pipelines connected to it 2020 Pipe lines: A nnua l O perati ng Hi ghli ght s
93.27 51.69 94 52 45.35 48 90 44 86 19.26 40 82 76.31 31 36 18.01 01 78 32 74 28 70 32.43 24 27.34 34 66 20 62 16 FY06 FY07 FY0 6 FY0 7
Crude Product
Pipelines Throughput Capacity Utilization (MMT) (%)
Highest ever throughput achieved by IndianOil’s pipelines in FYE 2007
2121 Pipe lines: A pril - D07HihlihtDec 07 Highlights
94.46 96 48 42.26 90.50 44 37.85 92 40 88 36 15.80 84 32 14.08 28 80 24 26.46 23.77 77 76 20 16 72 Apr-Dec 06 Apr- Dec 07 Apr - Dec 06 Apr - Dec 07 Crude Product
Pipelines Throughput Capacity Utilization (MMT) (%)
Surpassing Performance Continues
2222 MktiIfMarketing Infrast ruct ure
LPG Bottling Retail Outlets, Plants 17,114 (47%) 89 (50%)
Consumer Pumps 7,033 (88%)
Aviation Fuel Stations LPG 101(74%) Distributorships Terminals/Depots SKO/LDO 4,987 (53%) 168 (45%) Dealerships 3,960 (60%)
IndianOil Group: 33,452 marketing touch points 55% share of industry
As of Dec 31, 2007 Figures in ( ) indicate % share in industry 2323 MktiAMarketing: Annua lOl Operati tiHihlihtng Highlights Inland Export
57.97 54.05 3.13 2.09
(IN MMT) 51 96.96 54.84
FY 06 FY 07
Fueling the booming Economy
Figures include Gas
2424 MktiAilMarketing: April - D07HihlihtDec 07 Highlights Inland Export
46. 02 43.02 2.59 2.45
(IN MMT) 43.43 40 57.57
Apr-Dec 06 Apr-Dec 07
Surpassing Performance Continues
Figures include Gas
2525 Research and Development Center
A premier R&D Institute in India with a focus on:
z Commercializing the developed technologies
z Initiating research in new frontiers such as petrochemicals, residue gasification, coal- to-liquid, gas-to-liquid, alternative fuels, synthetic lubricants, nano-technology etc.
Commercialization of in-house technology during FYE 07 :
z INDMAX : Technology selected for 4 MMTPA unit as a part of 15 MMTPA Paradip Refinery and also for Bongaigaon Refinery
Diesel Hydro treating technology: licensed to Paradip & Bongaigaon Refineries
JV with InterCat of USA for manufacture of FCC Catalyst and Additives
Development & deployment of a 12-inch instrumented ‘pig’ for use in gauging cross- country pipelines in collaboration with Bhabha Atomic Research Center
During FYE 07, 180 new & cost effective product formulations developed; 164 commercialized (till FYE 07, 2300 formulations developed, 604 commercial grades available)
Commissioned India’s first Hydrogen-CNG dispensing station
Indalin+ technology for conversion of Naphtha / condensate to LPG / MS 2626 Agenda
Reflections
Oil Industry Overview
Company Overview
Review of Operations
Financial Overview
Strategic Initiatives
Group Companies
2727 SBlShtSummary Balance Sheet
Rs / Crore 31.03.06 31.03.07* 30.12.2007*
Sources of Funds
Shareholders’ Funds 29,303 34,857 42,233
Loan Funds 26,404 27,083 28,834
Deferred Tax Liability 4,423 5,380 5,509
Total 60,130 67,320 76,576
Application of Funds
NtFidANet Fixed Asset s 34, 740 37, 814 40, 192
Investments 14,526 19,998 14,026
Working Capital 10,864 9,508 22,358
Total 60,130 67,320 76,576
*I* Inc lu de ersthiltwhile IBP
2828 Financi al Hi g hlight s
Parameter Unit 2005-06 2006-07* Apr-Dec 06* Apr-Dec 07*
Turnover Rs / cr 183,172 220,779 165,613 177,223
PAT Rs / cr 4,915 7,499 5,997 7,377
EPS Rs 42.08 62.90 50.29 61.87
Dividend Rs / cr 1,460 2,251 - - % 125 190
D/E Ratio 0.90:1 0.78:1 - -
* Include erstwhile IBP
2929 Under Recovery – Sharing Mechanism Rs./C/ Crore 30,034 28,024
23,881
13,943 11,461 6,992
- 2,939 563
8,946 7,193 11,882 882
1,102 1,384
5,373 1,456 6,515 2,190 190
2005-06 2006-07 Apr - Dec 07
Net Under Realization Subsidy from the GOI
Discount from Upstream CompaniesDiscount from Refiners
Oil Bonds
3030 Borrowings & Net Worth Levels
40000 34857
32000 29303
25985 23047 27083 Rs./cr 24000 26404 18928
16000 17320 14495 12178 8000 M-03 M-04 M-05 M-06 M-07
Borrowings Net Worth Debt/Equity 0.77 0.53 0.67 0.90 0.78
M-07 include erstwhile IBP
3131 Borrowing Pattern
Particulars FY’05 FY’06 FY’07 31st Dec 07
Borrowings (Rs / cr)* 17320 26404 27083 28834
Short t erm /L ong t erm R ati o* 60: 40 56: 44 60: 40 64:36
FE/Rupee Ratio* 50:50 41:59 46:54 40:60
Relationship banks (No.) 39 41 44 45
* Figures include erstwhile IBPfromFY2007IBP from FY 2007
3232 Hidden Treasure
Strategic equity investments in ONGC and GAIL A hidden rese rve o f Rs . 16,059 c ro re o n t hese equi ty inv estm en ts
No. of Shares Holding Purchase Value Market Value* Particulars ()(crore) (%) (Rs /cr ) (Rs /cr )
ONGC 16.45 7.69 1,780 17,093
GAIL 2.04 2.41 123 869
Total 1,903 17,962
Successfully sold 2.04 crore shares of GAIL on 2nd March’06 at Rs.275/- per share & 2.74 crore shares of ONGC on 27th April’06 at Rs. 1,340/- per share through bulk deal, realising Rs. 561 crore & Rs. 3,670 crore respectively.
*As on Feb, 28th 2008
3333 Special Oil Bonds
z Oil bonds are issued periodically to compensate for pricing controls ¾ Rs. 11,500 crore worth of bonds issued in FY 2006 - IndianOil received Rs 6,992 crore ¾ During FY 2007, Rs. 24,121 crore worth of bonds issued - IndianOil received Rs . 13, 943 crore ¾ During FY 2008 till Dec 07, Provision of Special Oil Bonds worth Rs 20,333 crore; IOC’s share Rs 11,461 crore
z The compensati tiithfon in the form of filbdi oil bonds issued dbthG by the Government ti is dependent on the extent of under realization suffered by the OMCs on the sale of SKO (PDS), LPG (D), MS and HSD
z Timi ng of i ssuance of th ese b ond s i s d et ermi ned b y th e G overnment
z These bonds can be sold freely in the open market ¾ Till Feb 2008, IndianOil has liquidated Rs. 15,702 crore worth of oil Key: bonds SKO : Superior Kerosene Oil (PDS) – Public Distribution System LPG : Liquified Petroleum Gas (D) – Domestic MS – Motor Spirit HSD – High Speed Diesel 3434 Shareholder’s Returns : Periodic sharing of reserves to reward shareholders
BONUS 1981-82 1994-95 1999-00 2003-04
1:2 2:1 1:1 1:2
210 210 193 190 180
145 150 125 DIVIDEND (%) 120
90
60
30 2002-03* 2003-04 2004-05 2005-06 2006-07
Consistent dividend payment for over 40 years *290% pre bonus of 1:2
3535 Capital Expenditure 2006-07 Rs / crore Other** 292
Petchem Refining * 1,726 1,732
R&D 10
Pipelines 383 Marketing1,274
TOTAL CAPEX : Rs. 5,417 Crore
* Includes refineries’ capacity additions, yield and quality improvement ** Other involves other diversifications such as LNG and E&P initiatives
3636 Capital Outlay 2007-08 Rs / crore Other** 315
Petchem Refining* ,028 2,201 2
R&D 27 Pipelines 408 Marketing 1,589
TOTAL CAPEX OUTLAY: Rs. 6,568 Crore
* Includes refineries’ capacity additions, yield and quality improvement ** Other involves other diversifications such as LNG and E&P initiatives
3737 Capital Outlay (Estimated) XI Plan - April 2007 to March 2012 Rs / crore
Other** 3,275 Petchem 11,870 R&D 300
Marketing Refining* 7,250 26,907 Pipelines 1,428
TOTAL CAPEX OUTLAY: Rs. 51,030 Crore
* Includes refineries’ cappyacity addition ,y, yield and q ualit ypy improvement ** Other involves other diversifications such as LNG and E&P initiative
3838 Capital Expenditure Major Projects Planned
PROJECTS ESTIMATED COST COMPLETION (Rs. in Crore) SCHEDULE
Paradip – Haldia crude oil pipeline – 11 MMTPA 1178 Mar’08
Panipat – Jalandhar LPG pipeline – 0.70 MMTPA 158 Aug’08
Koyali-Ratlam product pipeline – 2 MMTPA 194 Oct’08
Augmentation of Mundra – Panipat crude oil pipeline from 6 to 9 MMTPA 165 Dec’08
Dadri – Panipat R-LNG spur line – 6.72 MMSCMD 298 Jan’09
Chennai- Bangalore product pipeline - 1.45 MMTPA 232 Jul’09
Naphtha Cracker at Panipat 14,439 Nov’09
Expansion of Panipat Refinery from 12 to 15 MMTPA 1,008 Dec,09
MS Quality Upgradation at Panipat 1,131 Dec’09
Installation of facilities for improvemnet in Diesel Quality and Distillates Yield 2,869 Dec’09 (Hydro-cracker) Project at Haldia Refinery FCC Gaso line Desu lp hur isat ion Un it at Mat hura 348 D’09Dec’09
Residue Upgradation and MS/ HSD quality improvement project at Gujarat 5,693 Jan’10 Refinery 15 MMTPA Paradip Integrated Refinery Project 25,646 Oct’11
3939 Agenda
Reflections
Oil Industry Overview
Company Overview
Review of Operations
Financial Overview
Strategic Initiatives
Group Companies
4040 Initiatives: Refining
78 77.91 77 97.97 65 61 61 77 60 50 53 76 55 52 75 50 74.55 74 68.68 45 74 45 73 72.98 39 72.50 40 72 72.00 35 71
30 70 05-06 06-07 07-08 08-09 09-10 10-11 11-12 05-06 06-07 07-08 08-09 09-10 10-11 11-12
High Sulphur (HS) Crude % Maximization Distillate Yield %
Projected incremental yield despite increase in HS composition
4141 Initi ati ves: R efi ni ng
Capacity Addition Increase in Margins (GRMs)
PLANS CRUDE INPUT COST REDUCTION Panipat (+) 3.0 MMTPA (from 12 to 15 Enhancing HS crude processing MMTPA) capability Haldia (+) 1. 5 MMTPA (from 6 .0 to 7. 5 MMTPA) Product Mix Improvement / Value Paradip 15 MMTPA grassroot refinery Addition with petrochemicals complex Distillate yield improvement LPG maximization FURTHER OPPORTUNITIES Panipat (+) 6.0 MMTPA (from 15 to 21 MMTPA) Math ura (+) 3 .0 MMTPA (f rom 8 t o11 MMTPA) Gujarat (+) 4.3 MMTPA (from 13.7 to 18 MMTPA)
4242 Initi a tives: Pipe line I nf rast ruct ure D evel opment
z Commissioned 2006-07: 1,472 KM
¾ KliKoyali-DhjPDahej Prod uct tPili Pipeline 103 KM
¾ Mundra-Panipat Crude Pipeline 1,100 KM (Conversion from Product Pipeline)
¾ Koyali Sanganer Product Pipeline
Kot – Salawas Section 111 KM
Lasariya – Chittaurgarh Section 158 KM
z Under implementation: 1,321 KM
¾ Paradip-Haldia Crude Oil Pipeline 350 KM
¾ Koyali-Ratlam Product Pipeline 274 KM
¾ DdiDadri-PitRPanipat R-LNG 132 KM
¾ Panipat-Jalandhar LPG Pipeline 275 KM
¾ Chennai – Bangalore Product Pipeline 290 KM
4343 Initiatives: Retailing
z Creating Unique Selling Points (“USP”) in all customer segments (consumer and retail)
z Exploring new markets, including penetrating the largely untapped rural markets through Kisan Seva Kendras1
z Positioning products to end consumers
z Introducing branded fuels and other branded products to maintain its position as a market leader
¾ XTRAMILE Diesel : 57.5% Share2; 9807 outlets
¾ XTRAPREMIUM P et rol : 44 .4% Sh are2; 6354 ou tle ts
¾ Autogas : 44.4% Share2; 114 outlets
z Marketing of alternate fuels and maintaining product differentiation
z Expanding the non-fuel business to improve the Company’s bottom line
1 Kisan Seva Kendras are the retail outlets aimed at catering to the needs of the farmers and other rural segments of the country; 2 Dec 31 , 2007
4444 Initi ati ves: F orward I nt egrati on i nt o P et roch emi cal s
Completed Projects
z Linear Alk yl B enzene at G uj arat commi ssi oned i n A ugust 2004 –world’s largest single train Kerosene-to-LAB plant
¾ Plant operated at 102% Capacity1
¾ Domestic market share of approximately 38%1
¾ Exports to several countries in Southeast Asia and Europe
z Integgprated PX/PTA complex commissioned and fully ypg operational in August 2006 at Panipat
z Haldia Petrochemicals Ltd. – 10% equity stake acquired Planned P roj ect s
z Naphtha Cracker and downstream Polymer complex under implementation at Panipat and expected to be commissioned by 2009
z Integrated refinery and petrochemicals complex at Paradip: Approved in- principle; expected to be commissioned by 2011-12
1 During FY 2007
4545 Initi ati ves: B ack ward I nt egrati on i nt o E&P
Domestic Exploration Blocks
z NELP-I, II III & VI
¾ 8 blocks with ONGC/OIL/GAIL/GSPC/Petrogas/ HPCL
¾ 15 – 30% participating interests
z Coal Bed Methane
¾ 2 blocks with ONGC with a 20% participating interest
z Farm-in
¾ 2 blocks with HOEC / Premier Oil; 35 – 43% participating interest
z Exploration at various stages of progress International Exploration Blocks
z Nigeria, Yemen, Gabon, Libya and others
4646 Initi ati ves: G as
z Sourcing – Agreements with… ¾ Petronet: 1.5 MMTPA plus additional 0.75 MMTPA re-gassified LNG by end 2009 Contract of 0.50 MMTPA for sale to RGPPL z Marketing Efforts ¾ Sold 1.50 million tons re-gassified LNG, including captive consumption at Gujarat and Mathura refineries; spot LNG sold to fertilizer and power sectors z City Gas Distribution ¾ Green Gas Ltd. – JV with GAIL for Agra and Lucknow for CNG distribution with four stations at Lucknow and three at Agra ¾ MoU with Great Eastern Energy Corporation for distribution of CBM gas In West Bengal
¾ MoU with GAIL for city gas distribution in West Bengal
z LNG at Doorstep ¾ Technology innovation for the country by distribution & marketing of LNG throu gh Cr y ogenic tankers for cons umers of NG aw ay from Pipeline
4747 Initiatives: Globalization
z Sri Lanka ¾ Lanka IOC Ltd. began retailing operations in February 2003 ¾ Largest pri vat e sect or company i n S ri L ank a, with a 20% mark et sh are1 ¾ 35% share in ‘Common Storage JV Company’ ¾ First Grassroot A-site retail outlet commissioned at Trincomalee z Mauritius ¾ IndianOil Mauritius Ltd. incorporated in October 2001 ¾ Commissioned the first ISO-9001 certified ppgyroduct testing laboratory in Mauritius ¾ Greenfield port terminal with 18 TMT tankage setup ¾ 16% market share1 z Dubai ¾ Toll Blending of SERVO lubricants commenced in June 2004
¾ Wholly-owned subsidiary IOC Middle East FZE, incorporated in April 2006, actively pursuing lubricant business in Middle East and Africa
1 During FY 2007 4848 AdAgenda
Reflections
Oil Industry Overview
Company Overview
Review of Operations
Financi al O vervi ew
Significant Initiatives
Group Companies
4949 Subsidiaries And Joint Ventures Indian Oil Corporation Ltd.
JointJoint Ventures Ventures SubsidiariesSubsidiaries
Indian Oiltanking Ltd. Bongaigaon Refinery (to be merged)
(50:50 JV with Oiltanking GmbH, Germany) (Holds 74.46%) Chennai Petroleum Corp. Limited Lubrizol India Pvt. Ltd. Chennai Petroleum Corp. Limited (Holds 51.88%) (50:50 JV with Lubrizol Corp, USA) IndianOil Technologies Limited IndianOil Petronas Pvt. Ltd. (Who lly Owned Sub sidi ary) (50:50 JV with Petronas, Malaysia) Lanka IOC Ltd., Sri Lanka AVI-OIL India Pvt. Ltd. (Holds 75.11%) (JV with Balmer Lawrie (25%) and NYCO SA (50%)) IndianOil Mauritius Ltd., Mauritius Petronet LNG Ltd. (Wholly Owned Subsidiary) (JV with BPCL, GAIL, ONGC (12.5% each), Gaz de France IOC Middle East FZE, Dubai (10%), ADB (5.2%), Public (34.8%)) IOC Middle East FZE, Dubai Indo Cat Pvt. Ltd. (Wholly Owned Subsidiary)
(50:50 JV with InterCat. Inc, USA) Green Gas Ltd.
(22.5% interest) IndianOil Sky Tanking Ltd. (33.3% interest) 5050 Financials : Subsidiaries
Rs / crore
Turnover Profit After Tax Subsidiary (Incl. Excise Duty) 2005-06 2006-07 2005-06 2006-07
BRPL 6,289 6,426 175 185
CPCL 25,408 29,349 481 565
LkIOC*Lanka IOC * 1, 639 1, 406 (75) (27)
IOML * 302 427 6 8
* In Equivalent INR
5151 Financials : JV Companies
Rs / crore
Turnover Profit After Tax Joint Venture (Incl. Excise Duty) 2005-06 2006-07 2005-06 2006-07
Petronet LNG 3,837 5,501 195 313
Avi-Oil India 36 36 3 3
IOTL 240 418 18 21
Lubrizol 409 482 29 14
Indian Oil Petronas 175 236 21 13
GGGreen Gas - 11 - (1)
5252 Thank You