Oil Refinery in India

Topics: Petroleum, Oil and gas companies of India, Oil refinery Pages: 6 (1694 words) Published: March 7, 2008
Oil Refinery in India

An Industry Overview

Table of Contents

India the world's seventh largest country and the second most populace nation has been a destination of unrealized potential. In the recent past it has seen as stir of economic activity changing the prim face of the nation. The country has had breath taking reforms bringing in foreign direct investments and foreign institutional investments into the country at a brisk pace. Today India is one of the most exciting emerging markets in the world to be in. A new economic freedom is sweeping every industry in the nation. And one the industries to see a plethora of changes is the "Oil Refining Industry". This industry is of paramount importance as oil is of the key energy source on which other industries are dependent on. What is Oil Refining?

"Oil refining is an industrial process where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, and asphalt base, heating oil, kerosene, and liquefied petroleum gas." It's black...& it's not gold!

Having to stare at 15% of the world population with only 0.5% of world oil reserves has been giving the Indian ministry sleepless nights. India's consumption is about 5.9% compounded annually. This sector had long been controlled by the public sector companies and is seeing the savor of private players and competitive growth. New discoveries in the Krishna-Godavari basin and in the Mahanadi Basin are already attracting a lot of foreign attention. Global deals in the oil and gas sector stood at a whopping $291 billion. Some of the major developments seen during the year are BPCL's takeover of KRL, Cairn's pre-IPO placement and ONGC-Cairn's Rajasthan oilfield. Considering the international attention these companies are receiving, it seems that oil is on its way of divorcing its ‘unsustainable burden' status soon. Global View on Refining

There is global shortage in the refining industry. The supply has not kept pace with the demand. Just for example USA has not had a new refinery since 1976 because of environmental concerns. It is estimated that the world's energy needs will be 50% higher in 2030, with 55-60% of demand from conventional oil and gas. Worldwide, refining capacity has increased by less than 2mbpd while consumption has risen by almost 4mbpd in the past couple of years. Global Refining Capacity 2007

Industry Overview
Indian Oil Industry Structure

India has observed a tremendous growth in this sector, in 1947 after independence India had just one oil refinery at Digboi with a capacity of 0.27 MMTPA and as of 2007 India has 19 active refineries. 17 of which were in the public sector. Refining Capacity of India 2007

1Indian Oil Corporation Limited, Digboi0.65
2Indian Oil Corporation Limited, Guwahati1
3Indian Oil Corporation Limited, Koyali13.7
4Indian Oil Corporation Limited, Barauni6
5Indian Oil Corporation Limited, Haldia6
6Indian Oil Corporation Limited, Mathura8
7Indian Oil Corporation Limited, Panipat12
8Hindustan Petroleum Corporation Limited, Mumbai5.5
9Hindustan Petroleum Corporation Limited, Visakh7.5
10Bharat Petroleum Corporation Limited, Mumbai12
11Kochi Refineries Limited, Kochi7.5
12Chennai Petroleum Corporation Limited, Chennai9.5
13Chennai Petroleum Corporation Limited, Nagapatinam1
14Bongaigaon Refinery & Petrochemicals Limited, Bongaigaon2.35 15Numaligarh Refinery Limited, Numaligarh3
16Oil & Natural Gas Corporation Limited, Tatipaka0.078
17Mangalore Refinery & Petrochemicals Limited, Mangalore9.69 TOTAL PUBLIC SECTOR105.468
18Reliance Petroleum Limited, Jamnagar33
19Essar Oil...

References: 1) Indian Ministry for Petroleum and Natural Gas – http://petroleum.nic.in/oil.htm
2) Indian Brand Equity Foundation
3) New Exploration Licensing Policy - http://www.petrodril.com/nelprounds.htm
4) Bloomberg Terminal
5) Indian Ministry for Commerce and Industry - http://commerce.nic.in
6) http://www.wikipedia.com
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