OIL REFINING INDUSTRIES HISTORY
GLOBAL BUISNESS BECAUSE CRUDE OILS.
CAN BE TRASPORTED AT RELATIVELY LOW COST BY SEA AND PIPELINE
WORLDWIDE DEMAND FOR SUCH PRODUCT
PRINCIPLE FACTORS AFFECTING REFINING MARGINS
• The demand for and prices of refined petroleum products relative to the supply.
• The cost of crude oils and other feedstock’s .
• The configuration.
• The capacity.
• The utilization rates of refineries.
QUALITY OF REFINED PETROLEUM PRODUCTS PRODUCED BY ANY GIVEN REFINERY
• depends on the types of crude oil used as feedstock and
• the configuration of the refinery.
LIGHT AND SWEET CRUDE OILS ARE
• more expensive and
• generate greater yields of higher value refined petroleum products, such as
2. AVIATION FUELS
HEAVIER AND SOURER CRUDE OILS ARE
• less expensive
• generate greater yields of lower value petroleum products, such as
1. FUEL OILS.
2. CONFIGURATION OF CERTAIN REFINERIES
3. NORTH AMERICA - production of gasoline
4. OTHER REGIONS - production of middle distillates, such as diesel and
5. aviation fuels.
6. SPECIALTY PRODUCTS - such as base oils, naphthenics and bitumen.
7. OIL REFINERIES CAN GENERALLY BE DIVIDED INTO TWO PRINCIPAL
9. SIMPLE HYDROSKIMMING REFINERIES
10. Primarily carry out the distillation process while complex refineries carry out two additionaL
11. functions, conversion of hydrocarbon fractions produced in the crude distillation process to other
12. products and the treatment of intermediate products to create higher value added products.
13. COMPLEX REFINERIES
14. Refineries for any given mix of crude oil feedstock’s.
PURPOSE TO SET UP
• Greenfield Petroleum Refinery And Polypropylene Plant (The “Project”).
• Location Special Economic Zone In Jamnagar In The State Of Gujarat In Western India. Adjacent To The Existing Refinery And Petrochemicals RIL.
• Complex Promoter, of Reliance Industries Limited (“Ril”), The Largest Private Sector Company By Market Capitalisation In India With Assets Of Rs. 806 Billion (Approximately US$ 18 Billion) As Of March 31, 2005. RIL Is The Only Private Sector Company From India To Feature In The Fortune Global 500. We Will Be 80% Owned Subsidiary Of RIL After The Issue.
• Plans to construct A refinery with A complexity of 14.0, as measured using the nelson Complexity index.
• Refinery will have a total atmospheric distillation capacity of approximately 580 kilo Barrels per stream day (“kbpsd”).
• Polypropylene plant will have a capacity to produce 0.9 million metric tonnes per
• Our intention is to complete construction and commission the refinery and the
Polypropylene plant in, or around, december 2008.
We have entered into agreements with Bechtel France S.A.S (“Bechtel”) to license the technology for the major process units of the refinery and polypropylene plant.
REVIEW OF INDIAN MARKET-OIL SECTOR
DEMAND OF PETROLEUM PRODUCT
DEMAND ENERGY REQUIREMENT OF
COUNTRY FUNCTION LEVEL OF ECONOMIC
ACTIVITY AS MEASURE BY GDP
IS MAIN SECTOR
LEADS TO DEVELOPMENT INCREASE IN DEMEND
OF NEW PRODUCT 80 MILLION TONES TO 155