Brief Study of the Oil & Gas Industry in India & Indonesia
India was the fifth largest consumer of oil in the world during 2006 and 2007 (According to EIA estimates). According to Oil & Gas Journal (OGJ), India had 5.6 billion barrels of proven oil reserves as of January 2007, the second-largest amount in the Asia-Pacific region (behind China).
Much of India’s crude oil reserves are located off the western coast (Mumbai High) and in the northeast of the country, although substantial undeveloped reserves are located in the offshore Bay of Bengal and in Rajasthan state. EIA estimates that India registered oil demand growth of 100,000 bbl/d during 2006. EIA forecasts suggest the country will experience similar gains during 2008. Market Description
India’s oil sector is dominated by state-owned enterprises, although the government has taken steps in recent years to deregulate the hydrocarbons industry and encourage greater foreign involvement. Major Players
Upstream: India’s state-owned Oil and Natural Gas Corporation (ONGC) is the dominant player in India’s upstream sector, accounting for roughly three-fourths of the country’s oil output during 2006, according to Indian government estimates. Downstream: The Indian Oil Corporation (IOC) is the largest state-owned company in the downstream sector, operating 10 of India’s 17 refineries and controlling about three-quarters of the domestic oil transportation network. Reliance Industries, a private Indian firm, opened India’s first privately-owned refinery in 1999, and has gained a considerable market share in India’s oil sector.
According to OGJ, India had 38 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2007. The bulk of India’s natural gas production comes from the western offshore regions, especially the Mumbai High complex. The onshore fields in Assam, Andhra Pradesh, and Gujarat states are...