This document summarizes various sources of finance available to oil, gas, and petroleum companies. It discusses internal sources like profits, customers, and suppliers. It also outlines various external sources of equity and debt finance, including short, medium, and long-term debt options like bank loans, debentures, leasing, etc. Finally, it provides details on important financial items that would be present on the balance sheets of oil companies, such as share capital, long-term borrowings, types of debentures, loans from development boards, and external commercial borrowings.
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Sources of finance for Oil,Gas and Petroleum companies.
1. SOURCES OF FINANCE
FOR OIL, GAS & PETROLEUM COMPANIES
BY:
M.HARISH-2B4-15
A.SAI KUMAR-2B4-1
SAI SARATH
SRI SUDHA
VARSHA
SWAPNA
2. INTERNAL SOURCES OF FUNDS
There are three sources of funding within your business – profits, customers and
suppliers.
Profits
Profit management and distribution is the first internal funding source. When a
business makes a profit, the owners have two choices. They can either take the
money out of the business or leave it in the business. Money taken out reduces the
capital or equity of the business. However, if the owner chooses to leave the profits
in the business, the capital increases and can be used to finance the expansion of
the business. Even more important, in inflationary times, these retained profits
canbe used to offset the increased replacement costs of both current and fixed
assets.
Profits are like the interest on a savings account. If you take the interest out of
your savings account every year, the balance of the account will grow only if you
add more money. However, if you leave the interest in the account, then it starts to
compound and your account balance grows faster.
As an internal source of finance, assets and liability management must also be
carefully watched. If an item is stock is a slow mover, you may wish to sell it at a
discount and stop ordering it. You might also consider selling some of your fixed
assets in favor of a less costly alternative in order to generate cash. For example,
it might be cheaper to reimburse your employees for the use of their personal cars
rather than buy or lease vehicles for the business.
For an example of liability management see details under the heading “Suppliers
Credit.
Customers
You can raise money from your customers by expediting your collections from
them. If you can get money moving into your business faster, you will have more
available for your needs. For instance, if your customers pay you quickly, you will
have the cash necessary to take advantage of cash or quantity discounts. These
discounts can reduce the cost of your merchandise and thereby increase your
profits. You can increase customer collections in two ways. Firstly, you can
encourage partial payments on long term projects where appropriate. Secondly,
you can put an aggressive credit collection policy into effect. This should reduce
the number of bad debts that you might acquire as well as encourage your
customers to pay their debts quickly. Both of these methods will increase your
cash-flow.
3. Suppliers’ credit
This is an excellent source of low –or no-cost money. Suppliers may be willing to
extend interest free credit on purchases of goods or services to well established
customers. This means that you may be able to order, obtain delivery, and sell an
item before you have to pay for it. This is the same as an interest free loan. To keep
this source available to you, however, it is essential that you build and safeguard
your relationships with your suppliers carefully
EXTERNAL SOURCES OF FUNDS
Equity
Equity is one of the two external funding sources available to you. Equity funds are
those generated by the invested capital of a firm. The best source of start-up funds
is equity and if you do not have the funds available personally, you should look to
other sources such as partners, co members in a close corporation, or coshareholders in a private company. Of course, if you want to “go it alone” or
cannot find willing investors, you may need to resort to borrowing (debt).
Remember, however, that you will encourage financial backing from outsiders if
you show that you are making an adequate financial contribution yourself. One of
the causes of applications for finance being rejected is the failure by the owners of
the business to make an adequate personal capital contribution. Your potential
financial backer may regard this as lack of commitment.
Borrowing (debt)
The prospects of a small business depend almost entirely on the ability, energy and
character of the person in charge. Whoever supplies the business with debt finance
is in fact risking his capital on the accuracy of his judgment of the personal
capacity of the owner of the business.
Thus, however good the small business manager may be, only those who have had
the opportunity to become closely acquainted with him are likely to have the
necessary confidence to entrust him with their money.
The amount of cash required by you is likely to be raised in direct proportion to
your financier‟s willingness to invest based on his assessment of your training,
experience, expertise, etc. Every Financier will have his own individual approach
to the client, but if one takes the average bank Manager as an example, one thing
is certain: the banker regards his relationship with his client as a Partnership and,
like all good partners, he is trying to be as difficult as possible or to make the
Maximum amount of money out of his customer.
4. The banker knows that success is dependent upon the success of his client and the
building of along term relationship between the bank and the client and the
building of a long term relationship between the bank and the client. With this in
mind, the relationship with your banker should be one of complete honesty. Always
keep your bank manager informed – if things are going wrong, tell him; if things
are going right, also tell him! In this way both parties will be better equipped to
make progress into the future.
SHORT –TERM SOURCES OF DEBT FINANCE
The most common forms are:
Bank overdraft
This is probably the most available and appropriate source of short-term
borrowings. Subsequently to negotiation, the bank allows the borrower to
overdraw his account up to a specified limit, which is reviewed on a regular basis,
normally annually. This gives the entrepreneur the flexibility of altering his
financing requirements from day to day according to his cash flow.
With overdrafts, interest is calculated on the daily outstanding balance. This
means that no interest is paid on any unutilized portion of the facility. Interest
rates charged fluctuate with the prime rate and this facility is generally used for
financing increases in working capital. However, it is also useful when bridging
finance is required where a gap exists between a long-term debt and the long-term
Source of finance becoming available. It is important to realize that bank
overdrafts are repayable on demand.
Factoring
Factoring is a term referring to the raising of funds by the sale or assignment of
book debts to a third person i.e. a factor. The sale is normally with recourse to the
“seller” for uncollectable debts. It may include all or some of the debts sold. The
system may require the debtor to pay direct to the factor or via the original
creditor as an agent for the factor, and completes the transaction as agent of the
factor. This latter method has the advantage of maintaining the confidentiality of
the arrangement between the seller and the factoring house.
Factoring is a very convenient method of financing shortages in working capital
and is frequently an attractive proposition to a new business faced with a
substantial growth in sales which need to be financed. However, one needs to
ensure that gross income margins generated by these sales can satisfactory absorb
the costs of the factoring procedure.
An additional advantage of factoring accrues to the seller by the possible savings
in staff and paperwork associated with maintaining accounts and monitoring
5. debtors. Furthermore, cash isreceived immediately and the seller is not obliged to
include a discount for prompt payment. Mostbanks have factoring divisions.
Shippers finance
A shipper (or customer) is a financial institution which provides finance and a host
of other services to its clients.Today, the functions of the confirming houses take
the following basic forms:
· Providing working capital:The confirmer provides facilities to clients, to create
additional working capital and enable the client to finance his stock and
receivables.
Sophisticated forms of finance are provided which can briefly be summarized into
three broad
Categories:
· An overseas purchase facility.
· A local purchase facility.
· The discounting of customers‟ bills.
· Providing services:The confirmer attends to the physical handling of the goods
and the documentation relative thereto, and provides specialized services in order
to expedite receipt and reduce the cost of imports into South Africa.
· Providing backing, assistance and financial expertise:The confirmer backs and
assists the client with the technical and credit expertise that the confirming house‟s
management possesses, thereby increasing profitability and thus helping
companies to grow from small to large organizations.
MEDIUM-TERM SOURCES OF DEBT FINANCE
In financial language, „medium-term‟ can be thought of as constituting a broad
and ill-defined border between short-term and long-term. As a result, this type of
finance has a variety of applications such as financing additional working capital,
acquisition of fixed assets, etc.
Medium-term loans
A common form of finance is the “medium-term loan” which normally provides
finance for up to five years and in accordance with a strict set of conditions
outlined in a term loan letter of offer by the financial institution and accepted by
the client.
Generally the lender will require security for the loan and seek to entrench the
safety of the loan by imposing certain restrictions on the borrower, such as
maximum permissible equity to debt and working capital ratios, and limitations on
the sale or pledge of assets and payment of dividends.
6. Term loans are normally tailored to meet the particular cash flow requirements of
a business. They are used for the finance of both current assets and fixed assets.
Installment sale
Previously known as Hire Purchase, the most common application is to finance the
acquisition of vehicles or equipment. In terms of the regulations in the Credit
Agreements Act, a deposit is normally required and, depending on the acquisition,
the period for payment is fixed. The goods purchased are registered in the owner‟s
name and are always taken as prime security for the debt.
Leasing
Leasing is a method of reducing capital funding requirements. Instead of acquiring
finance to purchase fixed assets, the process is cut short by obtaining the use but
not ownership of the required assets in return for a periodic lease payment.
Leasing, based on the principle that income is earned from the use of an asset, not
the ownership, provides the following advantages:
Cash resources may be released for more profitable trading and for the provision
of working capital.
Maintenance costs are reduced to a minimum by immediate replacement with new
equipment at the end of the lease period.
Plant and equipment are financed over a period directly related to their productive
capacity and useful life.
Budgeting is simplified, as the monthly cash flows are known, as is the date when
the equipment must be replaced.
Rental payments are deducted in full for tax purposes. These payments are a
charge against profits before tax, whereas Installment sale payments are paid out
of income after tax.
LONG-TERM SOURCES OF FINANCE
Long-term debt finance
Into this category building societies and insurance companies. Insurance company
policy holders can, under certain conditions, borrow money against the surrender
value of their policies and this may be one way of raising capital for the new
venture of your choice. Building societies, on the other hand, may be open to
entertaining your proposal for long-term loan against the security of your private
residence. These funds could then be injected into your business.
7. Participation bonds
Bond finance for up to 20 years can be arranged for the erection
ofcommercial/industrial property or against commercial/industrial premises
owned by you. No capital (i.e. interest only) is repaid for the first five years.
Thereafter the loan is repaid in annual installments. For bond purposes the value
of the property is based on its revenue-producing potential and not on the
replacement or intrinsic value of the property.
The long-term sources of finances can be raised from the following sources:
· Share capital or Equity Share.
· Preference shares.
· Retained earnings.
· Debentures/Bonds of different types.
· Loans from financial institutions.
· Loan from State Financial Corporation.
· Loans from commercial banks.
· Venture capital funding.
· Asset securitization
IMPORTANT ITEMS IN ALL OF THE OILCOMPANIES:
Share capital:
The amount of share capital a company reports on its balance sheet only accounts
for the initial amount for which the original shareholders purchased the shares
from the issuing company. Any price differences arising from price
appreciation/depreciation as a result of transactions in the secondary market are
not included.
For example, suppose ABC Inc. raised $2 billion from its initial public offering.
Over the next year, the total value of its shares increases to $5 billion. In this case,
the value of the share capital is still only $2 billion because ABC Inc. had received
only $2 billion from the sale of its securities to the investing public.
Long-term Borrowings:
Debentures:
Debentures have no collateral. Bond buyers generally purchase debentures based
on the belief that the bond issuer is unlikely to default on the repayment. An
8. example of a government debenture would be any government-issued Treasury
bond (T-bond) or Treasury bill (T-bill). T-bonds and T-bills are generally
considered risk free because governments, at worst, can print off more money or
raise taxes to pay these type of debts.
Non-convertible Debentures:
Debentures are long-term financial instruments which acknowledge a debt
obligation towards the issuer. Some debentures have a feature of convertibility into
shares after a certain point of time at the discretion of the owner. The debentures
which can't be converted into shares or equities are called non-convertible
debentures (or NCDs).
Description:
Non-convertible debentures are used as tools to raise long-term funds by
companies through a public issue. To compensate for this drawback of nonconvertibility, lenders are usually given a higher rate of return compared to
convertible debentures.
Besides, NCDs offer various other benefits to the owner such as high liquidity
through stock market listing, tax exemptions at source and safety since they can be
issued by companies which have a good credit rating as specified in the norms laid
down by RBI for the issue of NCDs. In India, usually these have to be issued of a
minimum maturity of 90 days.
Loan from oil industry development board:
The OID Board determines the terms and conditions governing the loans from
time to time on the basis of national importance of the project(s) being undertaken
by the Oil PSUs and also the current market scenario for determining the rates of
interest on OIDB loans. An independent Project Appraisal Cell has been formed
to determine the eligibility of OIDB loan assistance.
The OID Board has constituted a Standing Committee for review of the
interest rates on OIDB loans for different tenors after taking into account the
interest rates prevailing in the market and giving its recommendations to the
Board. The Committee meets once in every quarter to review the interest rates on
9. OIDB loans. The formulation for charging interest rates on OIDB loans is as
follows :
a) The month-end interest rates for Government Securities having different
residual maturities as per the latest available RBI's monthly bulletin is taken as
the benchmark rates for computing interest rates on OIDB loans for different
tenures.
b) 50% of the Corresponding month-end margins of AAA rated Bond on
Government securities available in page INCORP (Quote AAA INBMK) is added
to the benchmark rate.
External commercial borrowing:
An external commercial borrowing (ECB) is an instrument used in India to
facilitate the access to foreign money by Indian corporations and PSUs (public
sector undertakings). ECBs include commercial bank loans, buyers' credit,
suppliers' credit, securitized instruments such as floating rate notes and fixed rate
bonds etc., credit from official export credit agencies and commercial borrowings
from the private sector window of multilateral financial Institutions such
as International Finance Corporation (Washington), ADB, AFIC, CDC, etc. ECBs
cannot be used for investment in stock market or speculation in real estate. The
DEA (Department of Economic Affairs), Ministry of Finance, Government of
India along with Reserve Bank of India, monitors and regulates ECB guidelines
and policies. For infrastructure and greenfield projects, funding up to 50%
(through ECB) is allowed. In telecom sector too, up to 50% funding through ECBs
is allowed. Recently Government of India has increased limits on RBI to up to $40
billions and allowed borrowings in Chinese currency yuan.
International bond:
International bonds include eurobonds, foreign bonds and global bonds. A
different type of international bond is the Brady bond, which is issued in U.S.
currency. Brady bonds are issued in order to help developing countries better
manage their international debt. International bonds are also private corporate
bonds issued by companies in foreign countries, and many mutual funds in the
United States hold these bonds.
10. Inter-corporate deposit:
Inter-corporate deposits are deposits made by one company with another
company, and usually carry a term of six months. The three types of intercorporate deposits are: three month deposits, six month deposits, and call
deposits.
Three month deposits are the most popular type of inter-corporate deposits. These
deposits are generally considered by the borrowers to solve problems of short-term
capital inadequacy. This type of short-term cash problem may develop due to
various issues, including tax payment, excessive raw material import, breakdown
in production, payment of dividends, delay in collection, and excessive expenditure
of capital.
The annual rate of interest given for three month deposits is 12%. Six month
deposits are usually made with first class borrowers, and the term for such
deposits is six months.
Deferred tax liability:
An account on a company's balance sheet that is a result of temporary differences
between the company's accounting and tax carrying values, the anticipated and
enacted income tax rate, and estimated taxes payable for the current year. This
liability may or may not be realized during any given year, which makes the
deferred status appropriate.
Because there are differences between what a company can deduct for tax and
accounting purposes, there will be a difference between a company's taxable
income and income before tax. A deferred tax liability records the fact that the
company will, in the future, pay more income tax because of a transaction that
took place during the current period, such as an installment sale receivable.
Other long term liabilities:
Earnest money deposits:
An earnest money deposit shows the seller that a buyer is serious about purchasing
a property. When the transaction is finalized, the funds are put toward the buyer's
down payment. If the deal falls through, the buyer may not be able to reclaim the
deposit. Typically, if the seller terminates the deal, the earnest money will be
returned to the buyer. When the buyer is responsible for retracting the offer, the
seller will usually be awarded the money.
11. Long-term provisions:
Contingent liability:
A potential obligation that may be incurred depending on the outcome of a future
event. A contingent liability is one where the outcome of an existing situation is
uncertain, and this uncertainty will be resolved by a future event. A contingent
liability is recorded in the books of accounts only if the contingency is probable
and the amount of the liability can be estimated.
Outstanding lawsuits and product warranties are common examples of contingent
liabilities.
For example, a company may be facing a lawsuit from a rival firm for patent
infringement. If the company's legal department thinks that the rival firm has a
strong case, and the company estimates that the damages payable if the rival firm
wins the case are $2 million, it would book a contingent liability of this amount on
its balance sheet. If, on the other hand, the company's legal department is of the
opinion that the lawsuit is frivolous and very unlikely to be won by the rival
company, no contingent liability would be necessary.
Provision for employee benefits:
Provision is made in the financial statements for all employee benefits, including
on-costs. In relation to industry-based long service leave funds, the Group‟s
liability, including obligations for funding shortfalls, is determined after deducting
the fair value of dedicated assets of such funds.
SHORT TERM BORROWINGS:
Working capital loan:
A loan whose purpose is to finance everyday operations of a company.
A working capital loan is not used to buy long term assets or investments. Instead
it's used to clear up accounts payable, wages, etc.
12. Term loan:
A loan from a bank for a specific amount that has a specified repayment schedule
and a floating interest rate. Term loans almost always mature between one and 10
years.
For example many banks have term-loan programs that can offer small businesses
the cash they need to operate from month to month. Often a small business will use
the cash from a term loan to purchase fixed assets such as equipment used in its
production process.
Collateralized Borrowing and Lending Obligation:
A money market instrument that represents an obligation between a borrower and
a lender as to the terms and conditions of the loan. Collateralized borrowing and
lending obligations (CBLOs) are used by those who have been phased out of or
heavily restricted in the interbank call money market.
CBLOs were developed by the Clearing Corporation of India (CCIL) and Reserve
Bank of India (RBI). The details of the CBLO include an obligation for the
borrower to repay the debt at a specified future date and an expectation of the
lender to receive the money on that future date, and they have a charge on the
security that is held by the CCIL.
Foreign Currency Swap
An agreement to make a currency exchange between two foreign parties. The
agreement consists of swapping principal and interest payments on a loan made in
one currency for principal and interest payments of a loan of equal value in
another currency. The Federal Reserve System offered this type of swap to several
developing countries in 2008.
The World Bank first introduced currency swaps in 1981 in an effort to obtain
German marks and Swiss francs. This type of swap can be done on loans with
maturities as long as 10 years. They differ from interest rate swaps because they
also involve principal.
Commercial Paper
An unsecured, short-term debt instrument issued by a corporation, typically for the
financing of accounts receivable, inventories and meeting short-term liabilities.
13. Maturities on commercial paper rarely range any longer than 270 days. The debt
is usually issued at a discount, reflecting prevailing market interest rates.
Commercial paper is not usually backed by any form of collateral, so only firms
with high-quality debt ratings will easily find buyers without having to offer a
substantial discount (higher cost) for the debt issue.
A major benefit of commercial paper is that it does not need to be registered with
the Securities and Exchange Commission (SEC) as long as it matures before nine
months (270 days), making it a very cost-effective means of financing. The
proceeds from this type of financing can only be used on current assets
(inventories) and are not allowed to be used on fixed assets, such as a new plant,
without SEC involvement.
Trade payables:
A trade payable is an amount billed to a company by its suppliers for goods
delivered to or services consumed by the company in the ordinary course of
business. These billed amounts, if paid on credit, are entered in the accounts
payable module of a company's accounting software, after which they appear in
the accounts payable aging report until they are paid. Any amounts owed to
suppliers that are immediately paid in cash are not considered to be trade
payables, since they are no longer a liability.
OTHER CURRENT LIABILITIES:
Unclaimed dividend:
Dividend declared at an annual general meeting is required to be paid within 30
days from the date of declaration of the said dividend. Companies are required to
deposit the balance amount lying in the dividend account to an unclaimed dividend
account within 37 days from the date of declaration. Any amount lying in the said
account is termed as unclaimed dividend amount.
Dividends not encashed or claimed, within seven years from the date of its transfer
to the unclaimed dividend account, will, in terms of the provisions of section 205A
of the Companies Act, 1956, be transferred to the Investor Education and
Protection Fund (IEPF), established by the Central Government . In terms of the
provisions of Section 205C of the Companies Act, 1956, no claim shall lie against
the Corporation or the IEPF after the said transfer.
14. Sales tax:
A tax imposed by the government at the point of sale on retail goods and services.
It is collected by the retailer and passed on to the state.
It is based on a percentage of the selling prices of the goods and services and set
by the state.
Excise tax:
Excise taxes are considered an indirect form of taxation because the government
does not directly apply the tax. An intermediary, either the producer or merchant,
is charged and then must pay the tax to the government. These taxes can be
categorized in two ways:
- Ad Valorem: A fixed percentage is charged on a particular good.
- Specific: A fixed dollar amount dependent upon the quantity purchased is
charged.
2. Here are some examples of situations in which excises taxes are charged on
transactions in retirement accounts:
- A 6% excise tax applies to excess IRA contributions that are not corrected by the
applicable deadline.
- A 10% excise tax applies to distributions from an IRA, qualified plan or 403(b)
accounts that occur before the participant reaches age 59.5.
- A 50% excise tax applies to required minimum distribution amounts not
withdrawn by the applicable deadline (referred to as an excess-accumulation
penalty).
Contractual obligation:
the legal duty to take a specific course of action, as imposed by a
commercial contract or a contract of employment
Advance from customer: A liability account used to record an amount received
from a customer before a service has been provided or before goods have been
shipped. This account is referred to as a deferred revenue account and could be
entitled Customer Deposits or Unearned Revenues.
15. Accrued Interest
A term used to describe an accrual accounting method when interest that is either
payable or receivable has been recognized, but not yet paid or received. Accrued
interest occurs as a result of the difference in timing of cash flows and the
measurement of these cash flows.
The interest that has accumulated on a bond since the last interest payment up to,
but not including, the settlement date.
For example, accrued interest receivable occurs when interest on an outstanding
receivable has been earned by the company, but has not yet been received. A loan
to a customer for goods sold would result in interest being charged on the loan. If
the loan is extended on October 1 and the lending company's year ends on
December 31, there will be two months of accrued interest receivable recorded as
interest revenue in the company's financial statements for the year.
2. Accrued interest is added to the contract price of a bond transaction. Accrued
interest is that which has been earned since the last coupon payment. Because the
bond hasn't expired or the next payment is not yet due, the owner of the bond
hasn't officially received the money. If he or she sells the bond, accrued interest is
added to the sale price.
Customer deposits:
Customer deposits refer to the money received by a company before providing the
product or service to the customer. It is also known as unearned revenueor
prepaid income. In a balance sheet, customer deposit appears on the liability
side as current liabilities.
16. Customer deposits are usually created when the company wants the customer to
deposit a certainpercentage of the price of the product or service to be deposited
with them when the order is placed. The customer deposits are opened when a
contract or an agreement is signed by the way company and the customer. This
deposit may or may not be refundable depending upon the purpose of that deposit.
Container deposit legislation
Container-deposit legislation (CDL) is any law that requires collection of a
monetary deposit on soft-drink, juice, milk, water, alcoholic-beverage, and/or
other containers at the point of sale. When the container is returned to an
authorized redemption center, or to the original seller in some jurisdictions, the
deposit is partly or fully refunded to the redeemer (presumed to be the original
purchaser).
Capital reserve:
A type of account on a municipality's or company's balance sheet that is reserved
for long-term capital investment projects or any other large and anticipated
expense(s) that will be incurred in the future. This type of reserve fund is set aside
to ensure that the company or municipality has adequate funding to at least
partially finance theproject.
Contributions to the capital reserve account can be made from government
subsidies, donated funds, or can be set aside from the firm's or municipality's
regular revenue-generating operations. Once recorded on the reporting entity's
balance sheet, these funds are only to be spent on the capital expenditure projects
for which they were initially intended, excluding any unforeseen circumstances.
17. Debenture Redemption Reserve
A provision that was added to the Indian Companies Act of 1956 during an
amendment in the year 2000. The provision states that any Indian company that
issues debentures must create a debenture redemption service to protect investors
against the possibility of default by the company.
Under the provision, debenture redemption reserves will be funded by company
profits every year until debentures are to be redeemed. If a company does not
create a reserve within 12 months of issuing the debentures, they will be required
to pay 2% interest in penalty to the debenture holders. Only debentures that were
issued after the amendment in 2000 are subject to the debenture redemption
service.
General reserve:
Any retained earnings from a company's profits. General reserves can be divided
into either specific, general or legal. Specific reserves can include a reassignment
of dividends to shareholders; general reserves are saved
to offset potential future losses; legal reserves can includemoney set aside
for litigation or revaluation.
18. • Essar Group was incorporated as a Public Limited Company under the
Companies Act, 1956 in the year 1969, with the main objective to provide
Development, Exploration, and Production and related Services in the oil &
gas sector.
• Essar Oil Ltd. Subsidiary of Essar group was founded in 1992
Ravi Ruia, Chairman
Lalit Gupta, MD,CEO
PRODUCTS
• Petroleum
• Fuels
• Natural Gas and
• Other Petro Chemicals
SOURCES OF FUNDS
(all amounts in crores)
19. ONGC was formed in 1956 with the vision of great leaders to make our country
energy-sufficient. Since then, the companyhas taken every step to fulfill this
promise. Over the years, the company has discovered 6 of the 7 producing basins
inIndia and added 6.4 billion tons of Oil and Gas reserves. Today, according to
Platt‟s Top 250 Global Energy Ranking, ONGC is the no. 1 E&P Company in the
world. The company is ready to touch new horizons of growth by resolutely
focusingon its Oil & Gas production capabilities.
SOURCES OF FUNDS
20. Oil India Limited (OIL) is the second largest hydrocarbon exploration &
production (E&P) Indian public sector Company and operational headquarters
in Duliajan, Assam, India under the administrativecontrol of the Ministry of
Petroleum and Natural Gasof the Government of India. However, Company's
corporate office located in Noidain New-Delhi-NCR region.OIL is engaged in the
business of exploration, development and production of crude oil and natural gas,
transportation of crude oil and production of liquid petroleum gas. The story of Oil
India Limited (OIL) traces and symbolizes the development and growth of the
Indian petroleum industry.
SOURCES OF FUNDS
21. Hindustan Petroleum Corporation Limited (HPCL)
(BSE: 500104, NSE: HINDPETRO) is an Indian state-owned oiland natural
gas company with its headquarters at Mumbai, Maharashtra and
with Navratna status. HPCL has been ranked 260th in the Fortune Global
500 rankings of the world's biggest corporations (2013) and 4th among India's
Companies for the year 2012.HPCL has about 20% marketing share in India
among PSUs and a strong marketing infrastructure. The President of India
owns 51.11%shares in HPCL.
SOURCES OF FUNDS
22. Bharat Petroleum Corporation Limited (BPCL) is an Indian state
controlled oil and gas company headquartered in Mumbai, Maharashtra. BPCL
has been ranked 225th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
Bharat Petroleum owns Mumbai Refinery and Kochi Refinerieswith a capacity of
12 and 9.5 million metric tones‟ per year.
CHAIRMAN AND MD: S. Varadarajan.
SOURCES OF FUNDS
23. GAIL (India) Limited is the largest state-owned natural gas processing and
distribution company headquartered in New Delhi, India. It has following business
segments: Natural Gas, Liquid Hydrocarbon, Liquefied petroleum gas
Transmission, Petrochemical, City Gas Distribution, Exploration and Production,
GAILTEL and Electricity Generation. GAIL has been conferred with the
Maharatna status on 1 Feb 2013, by the Government of India. Currently only six
other Public Sector Enterprises (PSEs) enjoy this coveted status amongst all
central CPSEs.
SOURCES OF FUNDS