1. Oil & Gas Sector in India
PREPARED BY: SUBMITED TO:
DIVYARAJSINH CHUDASAMA(16MCL001) DR.DEBASIS SARKAR
MATANGI DAVE (16MCL002)

2. Content
 Introduction
Oil & Gas sector in India
 Segments of sectors
 Exploration & Distillation Process
 Energy Consumption
 Supply & Demand
 Strategies & Growth drivers
 Policies
 FDI
 Advantage India
 Opportunities
 12th five year plan
 Glimpse of few oil & gas compnies

3. Introduction
 India produces 4 fuels, 11 metallic, 52 non-metallic and 22 minor minerals.
 Which includes Coal ,Iron ore ,Mica ,Bauxite ,Chromite ,Natural Gas ,Diamonds
,Limestone etc. found in various regions of india.
 India's oil reserves, found in Bombay High off the coast
of Maharashtra, Gujarat, Rajasthan and in eastern Assam meet 25% of the country's
demand.
 Oil & Gas are used as fuel, Lubricant , Asphalt ,Synthetic Fibre , Chemicals etc in Daily
Life.

4. Oil Sector in India
 India had about 750 Million metric tonne of proven oil reserves as April 2014 or 5.62
billion barrels which is the second-largest amount in the Asia-Pacific region behind China.
 Most of India's crude oil reserves are located in the western coast (Mumbai High) and in
the northeastern parts of the country, although considerable undeveloped reserves are
also located in the offshore Bay of Bengal and in the state of Rajasthan.
 In 2010, India produced an average of about 33.69 million metric tonne of crude oil as on
April 2010 or 877 thousand barrels per day.

5.  India has 1,437 billion cubic metre of confirmed natural gas reserves as of April 2010.
 A huge mass of India's natural gas production comes from the western offshore regions,
particularly the Mumbai High complex.
 The onshore fields in Assam, Andhra Pradesh, and Gujarat states are also major
producers of natural gas.
Gas Sector in India

6. Segments of Oil & Gas
India has become the 3rd energy consumer in2015
 Up Stream Segment
 exploration And production
 State-owned ONGC
dominate the upstream
segment
 It is the largest upstream
company in the Exploration
and Production (E&P)
segment, accounting for
approximately 59.43 per
cent of the country’s total
oil output (FY15)
 Mid Stream Segment
 storage and
transportation
 IOCL operates a 11,214 km
network of crude, gas and
product pipelines, with a
capacity of 1.6 mbpd of oil
and 10 mmscmd of gas
 Downstream Segment:
 Refining, Processing and
Marketing
 IOCL is the largest company,
control 10 out of 22 Indian
refineries, with a combined
capacity of 1.31 mbpd.
 Reliance and Essar (Vadinar)
refineries consider 30% & 10%
market share respectively of total
refining capacity.

7. Oil & Gas Exploration

8. Distillation Process

9. India’s Energy consumption
 In 2014, coal accounted for 56.47 per cent of total primary energy demand.
 India’s energy demand is projected to double to 48.7 quadrillion by 2035.
 Over the next few years, dependence on gas, hydro power and nuclear power is
expected to increase relative to oil and coal.
(Source:IEA)

10. Oil Supply & Demand
 In June 2015, total crude oil imports
were valued at USD8.7 billion. In FY14,
imports accounted for more than 80 per
cent of the country’s total oil demand.
 Despite being a net importer of crude
oil, India has become a net exporter of
petroleum products by investing in
refineries designed for export,
particularly in Gujarat.
(Source: Ministry of Oil & Gas,BMI Forecast)

11. Gas Supply & Demand
 India had 1.4 trillion cubic meters of proven natural gas reserves at the beginning of 2014.
Approximately 34 % of total reserves are located onshore, while 66 % are offshore.
 Domestic production accounts for more than three-quarter of the country’s total gas
consumption.
 India increasingly relies on imported LNG; the country was the fourth-largest LNG importer in
2014, accounting for 5.68 % of global imports.
(Source: Ministry of Oil & Gas,BMI Forecast)

12. Company
Ownership
(percent) as on
FY14-15
FY16* turnover
(USD billion)
Indian Oil
Corporation Limited
68.57%
state-owned 30.58
Reliance Industries Public Listed 25.91
Bharat Petroleum
Corporation Limited
54.93 %
state-owned 4.19
Hindustan Petroleum
Corporation Limited
51.1 %
state-owned 15.35
ONGC
68.94 %
state-owned 11.27
GAIL IndiaLimited
56.11 %
state-owned 43.78
Oil India Limited
67.64 %
state-owned 1.00
Domestic oil & Gas company
(Source: Ministry of Oil & Gas,BMI Forecast)

13. State
Balance recoverable
reserves
of crude oil, 2015 ( MMT)
Assam 169.42
Gujarat 138.49
Rajasthan 37.33
Andhra Pradesh 1.63
Tamil Nadu 10.80
Arunachal Pradesh 1.63
Nagaland 2.69
Tripura 0.07
Total Onshore 373.61
Western Offshore 333.42
Eastern Offshore 56.42
Total Offshore 389.86
State wise crude reserve
(Source: Ministry of Oil & Gas,BMI Forecast)

14. Crude pipe line network
 India has a network of 9,573 km of crude pipeline having a capacity of 947.04 mmtpa.
 In terms of length, IOCL accounts for 46.47 per cent (4,448 km) of India’s crude pipeline
network. Moreover, the company has the country’s longest pipelines: Salaya-Mathura-
Panipat Pipeline (1,870 km) and Haldia-Barauni/Paradip-Barauni Pipeline (1,302 km)
(Source: Ministry of Oil & Gas,BMI Forecast)

15. Strategies Adopted
 Expansion:
They are forming JVs and strategic tie ups with foreign companies to increase their
technical know-how and knowledge base.
 Diversification:
 Oil India Ltd is planning to build and operate refineries, while Indian Oil is planning
to enter oil & gas exploration.
 Companies are diversifying into alternative energies such as wind power, solar and
bio- fuels.

16.  Investment to increase production
 Increase recovery rates of hydrocarbon from oil wells; ONGC in Mumbai High achieved
success in implementing.
 Focus on R & D of gasification technology to enhance production
 More focus on small Companies
 Major discoveries in the Barmer basin in Rajasthan and the offshore Krishna-Godavari
basin by smaller companies such as the Gujarat State Petroleum Corporation and Andhra
Pradesh Gas Infrastructure Corporation hold some potential to diversify the country’s
production.
 Focus On city gas network
 Providing Gas in house using pipelines.

17. Growth Drivers
(Source: Ministry of Oil & Gas,BMI Forecast)
 Robust & Domestic Market
 Oil consumption is expected to rise by 42.5 per cent during 2010–20
 4th largest Consumer in world
 Increase Demand for natural gas
 Main industries that use natural gas are pulp and paper, metals, chemicals,glass,
plastic and food processing.
 Abundant Raw Material
 oil reserve 763.476 MMT in fy15
 large crude oil & coal reserve

18.  Favorable policies
 100% FDI in exploration and production
 49% FDI in refining
 Huge Investment
 USD 75 Billion according to 12th five year plan
 Skilled Labors
 Uni of petroleum & energy studies trained skilled labors
 offer more wages
 Massive gas pipe line
 17,241 km in 2015
 Expansion upto 30,000km according to 12th five year plan

19. Policies
 Pricing of CNG & PNG (2013)
 Shale oil & gas Exploration policy
 National biofuel policy (2009): exempted 12.36% duty from biofuel
 Domestic Natural gas policy (2014)
 Integrated energy policy (2006): outline goals with various energy sources
 Auto fuel Policy (2003): Vehicular emission norms

20. FDI in oil & Gas sector
 Cumulative FDI inflows in India’s
petroleum and natural gas sector
stood at USD6.6 billion (2.5 per cent
of total FDIs) during April 2000–
September 2015.
 Between FY10 and FY16*, FDI
inflows into petroleum and natural
gas grew at 16.06 per cent.
(Source: Department of industries policy & promotion)

21. (Source: Ministry of Oil & Gas, Business Monitor International world Outlook 2012)

22. Opportunities
 Upstream Segment
 Locating new fields for exploration: 78 per cent of the country’s sedimentary area is yet to
be explored
 Higher demand for skilled labour and oilfield services and equipment
 Development of unconventional resources: CBM fields in the deep sea
 Midstream Segment
 Expansion in the transmission network of gas pipelines
 In light of mounting LNG production, huge opportunity lies for LNG terminal operation,
engineering, procurement and construction services

23.  Down stream segment
 India is already a refining hub with 21 refineries and expansions planned for tapping foreign
investment in export-oriented infrastructure, including product pipelines and export
terminals.
 Development of City Gas Distribution (CGD) networks, which are similar to Delhi and
Mumbai’s CGDs
 Expansion of the country’s petroleum product distribution network

24. 12th five year plan (2012-17)
 Petroleum
 Demand is Increasing by 4.7% per Year.
 Consumption of petroleum product
147.98 MMT in 11th five Year plan (2007-12)
186.21 MMT in 12th Five Year plan (2012-17)

27.  Gas Sector
 Demand is increasing BY 19.2% per year.
 Target to cover 300 cities under city gas distribution with in 12th five year Plan.

28.  Focus on R &D
 Spend 6326 Crores
 focus on
I. Producing wax Crude
II. 4D Seismic mapping
III. Long heated insulation pipes
IV. Exploration of unconventional energy sources

29. Glimpse
of oil & gas
companies in
India

30. IOCL: flagship of Indian refining
 Indian Oil Group of Companies owns and operates 10 of India’s 22 refineries with a capacity of
1.30 mbpd.
 In 2015, Its network of crude oil and product pipelines runs to about 11081 Km.
 Second largest petro chemical player in india.
 Turn over of 30.21 billion USD & profit of 1 Billion USD in Fy’16.
(Source: Company reports)

31. Reliance industries
 India’s largest petrochemical complex refining in the world.
 It contributes 14 per cent to India's exports and is going to invest around USD30 billion to
improve its businesses in the next three years
 Turn over 25.91 billion USD & 2.12 billon USD Profit In Fy’16.
 Reliance industry has refining plant in Jamnagar and petrochemical plant in hazira.
(Source: Company reports)

32. Bombay High aka Mumbai High
Region: Gulf Of khambhat
Location: 176 kms from the shores of Mumbai
Operator : ONGC
Discovery : 1965
Start production : 1974
Production : 347,197 Barrels/day

33.  Bombay High has three blocks separated by east-west trending faults, all three with
different gas-oil contacts but approximately 1355 m deep.
Crude oil produced from Bombay High is of very good quality as compared to crudes produced
in middle east.
Bombay High crude has more than 60% paraffinic content while light Arabian crude has only
25% paraffin

34. Reference
 Ministry of petroleum & Natural gas
 12th five year plan (2012-17) Economic sector Part-2
 IBEF Indian Brand equity foundation (www.ibef.org)