Indian Oil Coorporation

INDIAN OIL COORPORATION
CHAPTER 1
OIL & NATURAL GAS INDUSTRY ANALYSIS
[1.1] Introduction
Oil and natural gas touch our lives in countless ways every day. Together, they supply more than 60
percent of our nations energy. They fuel our cars, heat our homes and cook our food. They help generate the
electricity that powers our daily lives, the crude oil supplies the building blocks for everything from dentresistant car fenders to soft drink bottles to camping equipment. Roiled by global economic turmoil, untamed
competition, and mind-numbing price swings, energy companies must be bold about transforming their
business models.
[1.2] Global Analysis of Oil and Gas Industry

Global economic weakness (in particular, slower growth in China and continuing financial woes in
Europe); tougher fuel economy regulations; more viable forms of alternative energy; and the development of
extraordinarily efficient engines on equipment as varied as cars, earthmovers, and power plants have all
combined to dramatically curtail the need for oil. Meanwhile, robust new reserves, especially of shale oil, in
numerous regions around the world are glutting the market. The increase in the supply of petroleum and other
liquid fuels was twice that of consumption.
Little surprise, then, that the U.S. Energy Information Administration estimates that in 2014 the
increase in the global supply of petroleum and other liquid fuels was almost twice the increase in
consumption. That was a recipe for lower prices and shrinking profits. And it presents a troubling outlook for
oil giants such as ExxonMobil, BP, Total, Chevron, and Shell that invested tens of billions of dollars in oil
exploration when prices were high but did not enjoy a concomitant boost in production or profit margins.
Though theyve slimmed down by shedding unprofitable units and cutting back on investment more recently,
these companies still face increased competition from an array of state-owned oil companies and
independents.
SMS CUSAT
Fortunately, the picture is a little bit brighter in the gas sector: Global demand for natural gas is
expected to have risen by 2.2 percent per year by the end of 2019, according to the International Energy
Agency. Yet although natural gas will likely continue to represent an increased share of the global energy mix,
a share growing by 2.4 percent annually until 2018, analysts expect production to exceed demand in the short
term.
The industry has demonstrated the ability to be innovative and to lower costs when necessary.
Producers and refiners have harnessed new technological advances, such as digitization, robotics, and
analytics, to squeeze out higher volumes with less investment. But these digital breakthroughs have not often
extended to above the ground parts of the operation. For example, the logistics of water and waste
management in shale oil fields are far from best in class, and lean manufacturing techniques are seldom used
by upstream operators.
Additionally, oil and gas producers need to carefully evaluate their portfolios, field by field, to ensure
that each operation is a good fit for the companys core strengths, customer demographics, and preferences
and skill sets. Only a few companies will successfully shore up demand and improve margins by
consolidating their strongest assets.
For downstream players, guaranteeing a buyer for their product is everything.The need to confront
demand challenges head-on cannot be underestimated. North American and European markets are shrinking
to the point where they can no longer absorb all of the oil and gas refined in the region (the U.S. now exports
more than 1 million barrels per day of energy products). Increasingly, refiners must look beyond their borders
for customers. But what they inevitably find in global markets is fierce competition from the Middle East and
other longtime exporters that have built large modern refineries hoping to serve Asian demand. To compete
effectively in this environment, downstream companies must either secure more robust and long-term
relationships with established and new customers or seek out smaller niche markets to avoid head-to-head
rivalries that have the potential to destroy their profit margins.
The biggest mistake that oil and gas companies can make in this difficult business landscape is to
focus solely on reducing costs (either operating or general and administrative) and spending. This strategy is
effective only in a very narrow range of market conditions and rarely effective enough to make businesses
successful over the long term.
Rather, companies should carefully consider the supply of assets, analyze the logistics of accessing
available markets, and ensure a long-term presence in these markets without getting into a bidding war.
SMS CUSAT
Oversupply and lower prices represent a real challenge to the industry, but that doesnt mean the future is all
gloom. It just means that producers and refiners need to be prepared and adopt strategies that take advantage
of the new reality.
[1.3] Oil and Gas Industry Analysis of India

The oil and gas sector is one of the six core industries in India. It is of strategic importance and plays a
pivotal role in influencing decisions across other important spheres of the economy.
In 199798, the New Exploration Licensing Policy (NELP) was envisioned to deal with the evergrowing gap between demand and supply of gas in India. As per a recent report, the oil and gas industry in
India is anticipated to be worth US$ 139,814.7 million by 2015. With Indias economic growth closely linked
to energy demand, the need for oil and gas is projected to grow further, rendering the sector a fertile ground
for investment.
To cater to the increasing demand, the Government of India has adopted several policies, including
allowing 100 per cent foreign direct investment (FDI) in many segments of the sector, such as natural gas,
petroleum products, and refineries, among others. The governments participation has made the oil and gas
sector in the country a better target of investment. Today, it attracts both domestic and foreign investment, as
attested by the presence of Reliance Industries Ltd (RIL) and Cairn India.
India is the fourth-largest energy consumer (2013) in the world. Oil and gas account for 37 per cent of
total energy consumption. Oil consumption is estimated to reach four million barrels per day (MBPD) by
FY16, expanding at a compound annual growth rate (CAGR) of 3.2 per cent during FY08-16.
Domestic production accounts for more than three quarters of the country's total gas consumption.
Total crude oil production in FY14 stood at 37.9 million metric tonnes (MMT). ONGC accounted for 59 per
cent of total crude oil production in India. Total gas production was 35.4 billion cubic metres (BCM) in FY14.
India has a network of 9,785 km of crude pipeline having a capacity of 139.25 million metric tonnes
per annum (MMTPA). In terms of length, IOCL accounts for 45.5 per cent of Indias crude pipeline network.
In terms of capacity, ONGC accounts for 47.4 per cent followed by IOCL at 29.2 per cent.
The Government of India has initiated the National Gas Hydrate Programme (NGHP), a consortium of
national E&P companies and research institutions, to map gas hydrates for use as an alternate source of
SMS CUSAT
energy. It has allowed 100 per cent foreign direct investment (FDI) in E&P projects/companies and 49 per
cent in refining under the automatic route.
In light of mounting LNG production, huge opportunity lies for LNG terminal operation, engineering,
procurement and construction services.
OIL CONSUMPTION
OIL CONSUMPTION
Oil consumption in India
Market Size
SMS CUSAT
Backed by new oil fields, domestic oil output is anticipated to grow to 1 MBPD by FY16. With India
developing gas-fired power stations, consumption is up more than 160 per cent since 1995. Gas consumption
is likely to expand at a CAGR of 21 per cent during FY0817.
Domestic production accounts for more than three-quarters of the countrys total gas consumption.
India increasingly relies on imported LNG; the country was the fifth-largest LNG importer in 2013,
accounting for 5.5 per cent of global imports. Indias LNG imports are forecasted to increase at a CAGR of 33
per cent during 201217.
State-owned ONGC dominates the upstream segment (exploration and production), accounting for
approximately 60 per cent of the countrys total oil output (FY13).
IOCL operates 11,214 km network of crude, gas and product pipelines, with a capacity of 1.6 MBPD
of oil and 10 million metric standard cubic metre per day (MMSCMD) of gas. This is around 30 per cent of
the nations total pipeline network. IOCL is the largest company, operating 10 out of 22 Indian refineries, with
a combined capacity of 1.3 MBPD.
Investment
According to data released by the Department of Industrial Policy and Promotion (DIPP), the
petroleum and natural gas sector attracted foreign direct investment (FDI) worth US$ 6,519.53 million
between April 2000 and January 2015.
Following are some of the major investments and developments in the oil and gas sector:
Kirloskar Oil Engines Ltd (KOEL) and MTU Friedrichshafen, GmbH have signed a memorandum of
understanding (MoU). The MoU lays down exclusive cooperation on the building and commissioning
of emergency diesel gensets (EDG).
CDP Bharat Forge GmbH has acquired 100 per cent equity shares of Mcanique Gnrale Langroise
(MGL) for 11.8 million (US$ 12.91 million). The acquisition would consolidate Bharat Forges
position in the oil and gas sector by enhancing service offerings and geographical reach.
Technip has won a 100 million (US$ 109.37 million) contract from Oil and Natural Gas Corporation
(ONGC) to build an onshore oil and gas terminal in Andhra Pradesh.
Essar Oil Ltd has signed a deal with Russia-based OAO Rosneft to import 10 million tonnes (MT) of
crude oil per year for 10 years.
SMS CUSAT
The oil marketing companies have reduced the price of non-subsidised liquefied petroleum cooking
gas (LPG) by Rs 43.5 (US$ 0.69) per cylinder. The companies have also reduced jet fuel rates by 12.5
per cent, the sixth straight reduction in prices since August 2014.
Reliance Industries Ltd (RIL) and Mexican state-owned company Petroleos Mexicanos (Pemex) have
entered into a memorandum of understanding (MoU) for cooperation in the oil and gas sector.
GAIL Global USA LNG LLC (GGULL) has signed an agreement with the US-based WGL Midstream
Inc for sourcing gas required to produce 2.5 MT of liquefied natural gas (LNG) a year at the Cove
Point Terminal in Maryland, US.
Shares In Crude Pipeline Network By Length

Percentage Share
IOCL
SMS CUSAT
ONGC
OTHERS
In terms of length, IOCL accounts for 45.5 per cent (4,448 km) of India's crude pipeline network.
Government Initiatives
Two landmark initiatives for energy efficiency Design Guidelines for Energy Efficient Multi-Storey
Residential Buildings and Star Ratings for Diesel Gensets and for Hospital Buildings were launched by Mr
Dharmendra Pradhan, Minister of State with Independent Charge for Petroleum and Natural Gas, Government
of India.
Some of the major initiatives taken by the Government of India to promote oil and gas sector are:
India and Norway have discussed bilateral relationship between the two countries in the field of oil
and natural gas and decided to extend cooperation in hydrocarbon exploration.
To strengthen the country`s energy security, oil diplomacy initiatives have been intensified through
meaningful engagements with hydrocarbon rich countries.
PAHAL - Direct Benefit Transfer for LPG consumer (DBTL) scheme launched in 54 districts on
November 11, 2014 and expanded to rest of the country on January 1, 2015 will cover 15.3 crore
active LPG consumers of the country.
24 x 7 LPG service via web launched to provide LPG consumers an integrated solution to carry out all
services at one place, through MyLPG.in, from the comfort of their home.
Special dispensation for North East Region: For incentivising exploration and production in North
East Region, 40 per cent subsidy on gas price has been extended to private companies operating in the
region, along with ONGC and OIL.
SMS CUSAT
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Mr Narendra Modi,
has approved a mechanism for procurement of Ethanol by Public Sector Oil Marketing Companies
(OMCs) to carry out the Ethanol Blended Petrol (EBP) Program.
By 2015-16, Indias demand for gas is set to touch 124 MTPA against a domestic supply of 33 MTPA and
higher imports of 47.2 MTPA, leaving a shortage of 44 MTPA, as per projections by the Petroleum and
Natural Gas Ministry of India. Moreover, Business Monitor International (BMI) predicts that India will
account for 12.4 per cent of Asia-Pacific regional oil demand by 2015. Exchange Rate Used: INR 1 = US$
0.016 as on March 24, 2015
CHAPTER 2
INDIAN OIL CORPORATION PROFILE
[2.1] Introduction
Indian Oil Corporation Limited, or Indian Oil, is an Indian state-owned oil and gas corporation with its
headquarters in New Delhi, India. It is the world's 88th largest corporation, according to the Fortune Global
500 list, and the 2nd largest public corporation in India when ranked by revenue.
Indian Oil and its subsidiaries account for a 49% share in the petroleum products market, 31% share in
refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of companies
owns and operates 10 of India's 22 refineries with a combined refining capacity of 65.7 million metric tonnes
per year. In FY 2012 IOCL sold 75.66 million tonnes of petroleum products and reported a PBT of 37.54
billion, and the Government of India earned an excise duty of 232.53 billion and tax of 10.68 billion.
The company is mainly controlled by Government of India which owns approximately 69% shares in
the company. It is one of the seven Maharatna status companies of India, apart from Coal India Limited,
NTPC Limited, Oil and Natural Gas Corporation, Steel Authority of India Limited, Bharat Heavy Electricals
Limited and Gas Authority of India Limited.
[2.2] Corporate Logo

SMS CUSAT
Essential Elements of the logo

A saffron coloured circle/globe. Enclosed by a dark blue coloured outer ring and a dark blue coloured band
across on which is written the name Indian Oil in Devanagri script. The saffron circle represents energy as a
derivative of the Sun, connoting life and the future. The dark blue outer ring and the horizontal band
symbolize technology for harnessing this energy. However, whenever the logo is not accompanied by the full
name "Indian Oil Corporation Limited", the lettering "Indian Oil" in two colours may be incorporated under
the logo. The word "Indian Oil" when incorporated in running matter should continue to be used as one word
with the letter "I" and "O" in capitals as shown. It should be in single colour (Dark Blue) and not in two
colours.
Proportions of the logo
SMS CUSAT
[2.3] History
Indian Oil began operations in 1958 as Indian Oil Company Ltd. The Indian Oil Corporation was
formed
in
1964,
with
the
merger
of
Indian
Refineries
Ltd.
Recently Indian Oil Corp (IOC) has raised $500 million by selling 10-year dollar-denominated bonds, its
fourth such issue overseas in the last three and a half years. In 2003, its Gujarat Refinery was awarded the
"Best of all" Rajiv Gandhi National Quality Award.
[2.4] Vision of IOCL

A major diversified, transnational, integrated energy company, with national leadership and a strong
environment conscience, playing a national role in oil security & public distribution.
SMS CUSAT
10
IOCL Group
IOCL Group consists of Indian Oil Corporation Ltd. and the following subsidiaries:
Lanka IOC Ltd

Indian Oil (Mauritius) Ltd.
IOCL Middle East FZE
Indian Oil Technologies Ltd
[2.6] Values of IOCL

SMS CUSAT
11
Values exist in all organizations and are an integral part of any it. Indian Oil nurtures a set of core
values:
Care
Innovation
Passion
Trust
[2.7] Mission of IOCL

IOCL has the following mission:
To achieve international standards of excellence in all aspects of energy and diversified business with
focus on customer delight through value of products and services and cost reduction.
To maximize creation of wealth, value and satisfaction for the stakeholders.
To attain leadership in developing, adopting and assimilating state-of- the-art technology for
competitive advantage.
To provide technology and services through sustained Research and Development.
To foster a culture of participation and innovation for employee growth and
To cultivate high standards of business ethics and Total Quality Management for a strong corporate
contribution.
identity and brand equity.
To help enrich the quality of life of the community and preserve ecological balance and heritage
through a strong environment conscience.
[2.8] Objectives and Obligations

Objectives
To serve the national interests in oil and related sectors in accordance and consistent with Government
policies.
To ensure maintenance of continuous and smooth supply of petroleum products by way of crude oil
refining, transportation and marketing activities and to provide appropriate assistance to consumers to
conserve and use petroleum products efficiently.
SMS CUSAT
12
To enhance the countrys self-sufficiency in crude oil refining and build expertise in laying of crude oil
and petroleum product pipelines.
To further enhance marketing infrastructure and reseller network for providing assured service to
customers throughout the country.
To create a strong research & development base in refinery processes, product formulations, pipeline
transportation and alternative fuels with a view to minimising/eliminating imports and to have next
generation products.
To optimise utilisation of refining capacity and maximise distillate yield and gross refining margin.
To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.
To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in marketing
operations to effect energy conservation.

To earn a reasonable rate of return on investment.
To avail all viable opportunities, both national and global, arising out of the Government of Indias
policy of liberalisation and reforms.

To achieve higher growth through mergers, acquisitions, integration and diversification by harnessing
new business opportunities in oil exploration & production, petrochemicals, natural gas and
downstream opportunities overseas.

To inculcate strong core values among the employees and continuously update skill sets for full
exploitation of the new business opportunities.

To develop operational synergies with subsidiaries and joint ventures and continuously engage across
the hydrocarbon value chain for the benefit of society at large.
Obligations
Towards customers and dealers:
To provide prompt, courteous and efficient service and quality products at competitive prices.
Towards suppliers:
To ensure prompt dealings with integrity, impartiality and courtesy and help promote ancillary
industries.
Towards employees:
SMS CUSAT
13
To develop their capabilities and facilitate their advancement through appropriate training and career
planning. To have fair dealings with recognised representatives of employees in pursuance of healthy
industrial relations practices and sound personnel policies.
Towards community:
To develop techno-economically viable and environment-friendly products.

To maintain the highest standards in respect of safety, environment protection and occupational health
at all production units.
Towards Defence Services:

To maintain adequate supplies to Defence and other para-military services during normal as well as
emergency situations.
Financial Objectives:
To earn adequate return on the capital employed and maintain a reasonable
annual dividend on equity capital.
To ensure maximum economy in expenditure.
To manage and operate all facilities in an efficient manner so as to generate adequate internal
resources to meet revenue cost and requirements for project investment, without budgetary support.
To develop long-term corporate plans to provide for adequate growth of the Corporations business.
To reduce the cost of production of petroleum products by means of systematic cost control measures
and thereby sustain market leadership through cost competitiveness.

To complete all planned projects within the scheduled time and approved cost.
[2.9] Organizational Structure

The whole of Indian Oil Corporation (IOC) works under Corporate Office located at New Delhi. It
follows hierarchical structure where the decision flows from top to bottom and the data flows from bottom to
top. Under the corporate office there are 5 divisions namely- Pipelines, Refineries, R&D, Marketing & Assam
oil division. The Marketing division located at Mumbai co-ordinates with the regional offices i.e. North,
SMS CUSAT
14
South, East & West Region office, the other Divisional Offices & SBI for decisions regarding investments.
The Regional offices co-ordinates with respective state office that in turn coordinates with respective location
offices.
CHAPTER 3
FUNCTIONAL DEPARTMENTS
[3.1] Corporate Overview
SMS CUSAT
15
Indian Oil Corporation Limited is the countrys flagship national oil company and highest ranked
(96th) Indian corporate in the prestigious Fortune Global 500 listing in the year 2014, with business interests
straddling the entire hydrocarbon value chain.
With dominant share of national refining and pipeline capacities as well as in petroleum products
market, Indian Oil has been meeting the energy needs of the country for more than five decades now. A strong
workforce of about 33,800 employees has been instrumental in achieving such glorious milestones.
The companys operations are strategically structured along the core business areas viz. Refineries,
Pipelines, Marketing, and Research & Development. Additionally, to keep up with the rapid changes in
business environment, Business Development group was formed with a mandate to expand the existing
portfolio through backward and forward integration such as embarking into Exploration & Production and
venturing into Petrochemicals and Natural Gas business.
[3.2] Major Divisions of IOCL

Indian Oil Corporation Limited (Indian Oil) owns and operates a network of crude oil and petroleum
product pipeline in India. It has two divisions: Refineries Division and Marketing Division. The Refineries
Division is focused on managing the public sector refineries and the Marketing Division is focused on
distribution not only the entire production of public sector refineries but also the deficit products imported. It
is organized in two segments: sale of petroleum products, and other businesses, which comprises sale of
imported crude oil, sale of gas, petrochemicals, explosives and cryogenics, wind mill power generation and
oil and gas exploration activities jointly undertaken in the form of unincorporated joint ventures. The Digboi
Refinery of Assam Oil Division processed 0.623 million metric tons (MMT) of crude oil during the year. The
Division sold about 1.067 MMT of products. IBP Division comprises the explosives and cryogenics business.
SMS CUSAT
16
REFINERI
ES
PIPELINES
R& D
MARKETI
NG
ASSAM
OIL
3.3 Refineries
Indian Oil and its subsidiary company, Chennai Petroleum Corporation Ltd., together own and operate
10 of Indias 22 refineries with a total refining capacity of 65.7 MMTPA accounting for 30.54 percent of
countrys refining capacity.
Presently, the Corporations flagship, state-of-the-art 15 MMTPA refinery project at Paradip is inching
closer towards commissioning. Once commissioned, this refinery will improve Corporations competitiveness
in the market and provide enhanced operational flexibility.
3.4 Pipelines
The Corporations cross-country network of over 11,000 kms of crude oil, product and gas pipelines is
the largest in the country, meeting the vital energy needs of consumers in an efficient and environmentfriendly manner.
Firm action plans are in hand to augment the pipeline capacities for transportation of crude oil,
petroleum products including LPG, develop crude oil tankages to improve blending in order to enable
refineries to process heavier crudes as well.
SMS CUSAT
17
3.5 Marketing
With indefatigable workforce, robust countrywide dealership/ distributorship network backed by
sprawling infrastructures such as depots, terminals, aviation fuel stations, and LPG bottling plants, the
Corporation caters every corner of the country in every situation, be it scorching heat or freezing cold. The
rural markets of the country are being catered by Kisan Seva Kendra (KSK), special format retail outlets. The
KSKs are not only becoming the new face of the organization but also bolstering its market presence. Almost
every second household in India is fuelled through Indane LPG, through its vast network of retail distributors.
A large network of consumer pumps are also in operation for the convenience of bulk consumers, ensuring
products and inventory at their doorstep. The corporation enjoys more than 51 percent of infrastructure share
in the industry as a market leader. Indian Oils aviation service commands an enviable market share in the
aviation fuel business and successfully services the demands of the Indian Defence Service, domestic and
international flag carriers as well as private airlines.
Indane LPG, SERVO lubricants, PROPEL petrochemicals, are the most common and much-respected
energy brands of the Corporation amongst other.
Customer centricity has been always the focus of the Corporation. Thrust has been on modernization
of retail outlets through automation, stringent quality control measures, highway networking, loyalty
programmes, fore court management, IVRS etc.
3.6 Research & Development
Indian Oils state-of-the-art Research & Development Centre is a pioneer in lubricants formulation,
refinery processes, pipeline transportation and alternative fuels. This nodal agency of the Indian hydrocarbon
sector has been instrumental in ushering in research on Hydrogen fuel in the country. DHDT technology,
Light Naptha Isomerization technology, INDMAX technology (for maximizing LPGas yield), INDAdeptG,
Oilivorous bio-remediation technology (extended to marine applications too), Diesel Hydro DeSulphurisation
(DHDS) catalyst, a special Indicat catalyst for Bharat Stage - IV compliant Diesel, IndVi catalyst for
improved distillate and FCC throughput, and adsorbent based deep sulphurisation process for gasoline and
diesel streams are some of the in-house technologies and catalysts developed by Indian Oil.
SMS CUSAT
18
[3.7] Business model of IOCL
3.8 Refinery O&M Management

Indian Oil has over four decades' experience in operation & maintenance (O&M) of over 180 process
units at its seven refineries. Its reservoir of experienced technical teams has been providing world-class
technical
support
to
leading
petroleum
companies
around
the
world.
Having absorbed state-of-the-art technologies of leading process licensors like UOP, Chevron, IFP, Stone &
Webster, Mobil, Haldor Topsoe, KTI/Technip, Linde, CD-Tech, Stork Comprimo, etc., IndianOil in an
excellent position to offer O&M services for latest technologies such as distillate FCCUs, Resid FCCUs,
hydrocrackers, reformers (both semi-regenerative and continuous catalytic regeneration types), lube
processing units, catalytic de-waxing units, cokers, coke calciners, visbreakers, merox, hydro-treaters for kero
and gasoil streams, etc. IndianOil refineries also have units for producing specialty products such as bitumen,
LPG, MTBE, Butene-1, Propylene, Xylenes, Di-Methyl Terephthalate (DMT), polyester staple fibre (PSF)
and other petrochemicals like Linear Alkyl Benzene, Paraxylene (PX), Purified Terepthalic Acid (PTA), etc.
IndianOil's technical team is committed to continuous improvement in O&M practices to achieve the highest
standards of efficiency & reliability in pursuit of run-length improvement for maximisation of on-stream days.
Special attention is given to safety, health & environment protection practices.
SMS CUSAT
19
All IndianOil refineries are ISO certified, with the related documentation and manuals updated on a
regular basis. A number of IndianOil clients have benefited from these exhaustive manuals prepared in-house.
The ISO management & documentation is tailor-made to suit the requirements of individual refineries, taking
into consideration the design details of the licensors.
In addition, IndianOil also offers the specialised services of its experts for commissioning/start-up assistance
depending on the client's need. Its team is also well-equipped to prepare operation manuals with clear
instructions for plant start-up, operation, shutdown, emergency handling, etc.
3.9 Operation and Maintenance
IndianOil's Pipelines Division provides services for operations and maintenance. The clientele includes the
existing
pipelines
companies
and
companies
venturing
into
pipelines
business.
The services provided for Operations and Management are:
Cross country crude and multi-product pipelines
Mainline engines, pumps and motors
Station facilities, crude oil and petroleum product tanks
Automation and advanced control systems
Single Point Mooring (SPM) Systems, submarine pipelines
Development of maintenance procedures, formats, schedules, manuals
Corrosion monitoring and control
Technical audits for better performance of energy consumption, quality, safety and environment
protection
Onsite and offsite disaster management plans
Selection, testing and evaluation of Chemical Drag Reducers and corrosion inhibitors
IndianOil's expert group of engineers located in different parts of the country deliver the services offered
above. The customers can contact the Executive Director (Operations) for operation-related services.
SMS CUSAT
20
3.10 Human Resource Department of IOCL

HR functions
Training
Interactive sessions with employees to promote interpersonal effectiveness and bring down barriers to
communication
Motivational work groups, discussion forums
Appraisals and Reward system
Recruitment
Talent Acquisition (Recruitment and Selection)

IOCL follows a mix of open and campus recruitment. For open recruitment advertisements are published in
leading national dailies. For campus recruitment, Indian Oil visits IITs , NITs and other reputed technical
institutes of the country. After 2010, IOCL stopped conducting its own exam and start considering GATE
scores.
Selection procedure through GATE score
Written test Group Discussion/Group Task Personal interview
Talent management (Performance, Career and Competence Management)
Implementation of non-monetary and monetary rewards for enhancing corporate and individual
performance. Improved recruitment policy is followed to attract the best talent. Intra and inter function job
rotation is there. Challenging assignments are given. Online performance management system has been
implemented since 2005-06. There are programs for mentoring to retain talent.
Learning and development
IOCL lays emphasis on training and motivating to keep its workforce constantly engaged. The
learning services IOCL offers are on a select basis to managers from the industry on national and international
SMS CUSAT
21
basis. Indian oil setup the indian oil institute of petroleum management (IIPM) as an apex centre for
learning.IIPM also offer a 1-yesr MBA programme in petroleum management.IOCL conducts discipline
specific training workshops from time to time so that employees can constantly upgrade competencies and
strengthen individual capacities and strengthen individual capacities for organizational effectiveness.
Total rewards (Compensation and Benefits)
There are 3 categories of employees broad level executives, below board level executives ,
workmen. There is a well defined pay structure for each category. Compensation structure consists of: Basic
pay and DA, Accommodation facilities ,prerequisite and allowances, performance related payments,
superannuation benefits.
Benefits and services
The employee can be posted to any location and IOCL offers best quality of life through all amenities.
From education of children to health care of parents everything is provided by IOCL to its employees.
Life time medical care : Post retirement medical benefits
Talent Retention (Employee Engagement and Initiatives)
Sport activities
Club facilities
Article writing competition
Recognition in annual magazines.
Unique HR practices
e-Sambandh
Electronic performance management system (e-PMS) for performance appraisal.
Women in Public Sector (WIPS) cell.
First company to take GATE scores for recruitment to attract bright talent
In- house training via IIPM.
SMS CUSAT
22
SMS CUSAT
23
SMS CUSAT
24
(` in Crore)
Note
Page
March-14
March-13
2,802.90
821.94
(450.09)
103.52
270.78
7,019.09
5,005.17
28.91
20.61
28.91
20.61
10
10
(8)
(9)
33
142
104
2 - 47
107
(10)
SMS CUSAT
25
Income and expenditure account for the year ended 31st march 2014 on provision of
township, education, medical and other facilities
(` in Crore)
Particulars
March-14
March-13
INCOME :
1.
Recovery of House Rent
7.59
6.76
2.
Recovery of Utilities-Power and Water
4.52
4.32
3.
Recovery of Transport Charges
0.26
0.21
4.
Other Recoveries
5.
Excess of Expenditure over Income
7.93
7.08
468.60
422.19
TOTAL :
488.90
440.56
1.
Salaries, Wages and PF & Gratuity Contribution
155.54
141.07
2.
Consumable Stores and Medicines
31.12
27.03
3.
Repairs and Maintenance
110.03
92.16
4.
Interest
16.77
14.79
5.
Depreciation
12.65
12.30
6.
Miscellaneous Expenses :
EXPENDITURE :
Taxes, License Fees, Insurance etc.
36.44
30.26
7.
Utilities-Power, Water and Gas
99.82
92.63
8.
Rent
9.
Subsidies for Social & Cultural Activities
0.99
0.54
17.63
23.02
10. Bus Hire Charges
1.81
1.26
11. Club and Recreation
0.54
0.17
SMS CUSAT
26

12. Others
TOTAL:
SMS CUSAT
5.56
5.33
488.90
440.56
27
CASH FLOW STATEMENT For the Year Ended 31st March 2014
(` in Crore)
A
Particulars
Cash Flow from Operating Activities
1
Profit Before Tax
Adjustments for :
Depreciation
March-13
9,925.51
5,647.80
5,768.65
5,219.80
Loss/(Profit) on sale of Assets (net)
57.51
21.44
Loss/(Profit) on sale of Investments (net)
42.54
(28.01)
(2.26)
(1.46)
Amortisation of Capital Grants

Amortisation of Premium on Forward Contracts
(583.20)
15.49
Provision for Probable Contingencies (net)
238.11
407.91
Provision for Loss on Investments (net)
483.12
(634.15)
Provision for Doubtful Debts, Advances, Claims and

Obsolescence of Stores (net)
103.84
16.06
(0.29)
(110.15)
Provision for MTM Loss/(Gain) on interest rate swap
(30.61)
10.81
Foreign Currency Monetary Item Translation

Difference Account
(47.66)
(1,037.41)
(1,118.85)
Provision for Dimunition in Receivable from trust (net)
Interest Income on Investments

Dividend Income on Investments
(884.91)
(999.47)
Interest Expenditure
5,086.60
6,434.91
3 Operating Profit before Working Capital Changes (1+2)

7.
March-14
9,194.03
9,234.33
19,119.54
14,882.13
Change in Working Capital:

(Excluding Cash & Bank
Balances)
Trade & Other Receivables
(2,291.87)
(7,617.18)
Inventories
(5,391.55)
(2,504.96)
Trade and Other Payables
12,340.41
7,855.32
Change in Working Capital

5 Cash Generated From Operations (3+4)
6 Less : Taxes paid
7 Net Cash Flow from Operating Activities (5-6)
B
4,656.99
(2,266.82)
23,776.53
12,615.31
1,726.64
1,004.71
22,049.89
11,610.60
Cash Flow from Investing Activities:

Sale/Transfer of Assets
449.63
721.87
Sale / Maturity of Investments
1,117.42
782.27
Interest Income on Investments
1,037.32
1,128.40
Dividend Income on Investments
884.91
999.47
Purchase of Assets
(4,876.39)
(2,723.23)
Investments in Subsidiaries
(6,269.09)
(164.04)
(187.66)
(60.83)
Investments in Long Term Investments / Others

Expenditure on Construction Work in Progress
Net Cash Generated/(Used) in Investing Activities:
(9,992.72)
(9,022.20)
(17,836.58)
(8,338.29)
Contd...
SMS CUSAT
28
(` in Crore)
Particulars
C
March-14
March-13
Net Cash Flow From Financing Activities:

Proceeds from Long-Term Borrowings
16,253.67
7,098.44
Repayments of Long-Term Borrowings
(2,513.58)
(5,078.14)
Proceeds from/(Repayments of) Short-Term Borrowings
(8,010.39)
3,426.90
Interest paid
(6,075.83)
(7,115.08)
Dividend/Dividend Tax paid

Net Cash Generated/(Used) from Financing Activities:
(1,761.94)
(1,408.15)
(2,108.07)
(3,076.03)
Net Change in Cash & Bank Balances

(A+B+C)
2,105.24
196.28
1 Cash & Bank Balances as at end of the year
2,608.53
503.29
503.29
307.01
2,105.24
196.28
2,608.53
503.29
776.37
1.37
1,832.16
501.92
Less:
E
2 Cash & Bank Balances as at the beginning of year

NET CHANGE IN CASH & BANK BALANCES (E 1-2)
Notes:
1.
Cash & Bank Balances as at end of the year

Less: Other Bank Balances
Cash and Cash Equivalents
2.
Cash and Bank balance includes ` 9.94 crore which are not readily available for use (refer Note-19).
3.
Figures for previous periods have been regrouped wherever necessary for uniformity in presentation.
SMS CUSAT
29
SMS CUSAT
30
SUMMER INTERNSHIP REPORT INDIAN OIL COORPORATION LIMITED
CHAPTER 4
PRODUCTS OFFERED BY IOC
The main products of Indian Oil are petrol, diesel, LPG, auto LPG, aviation turbine fuel,
lubricants and petrochemicals: naphtha, bitumen, kerosene etc. Indian Oil operates the largest and the
widest network of fuel stations in the country, numbering about 20,575 (16,350 regular ROs & 4,225
Kisan Seva Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane
cooking gas to over 66.8 million households through a network of 5,934 Indane distributors.
Brands
1. Indane Gas - Domestic and Industrial Gas
2. AutoGas - Automotive Natural Gas
3. Xtra Premium - Automotive Premium Petrol
4. Xtra Mile - Automotive Premium Diesel
5. Servo - Lubricants and Greases
6. Propel - Petrochemicals
7. Indian Oil Aviation - Aviation fuel
8. LNG at Doorstep - LNG by cryogenic transportation
Indane Gas
Indane is today one of the largest packed-LPG brands in the world and has been conferred the
coveted
Consumer
Superbrand
status
by
the
Superbrands
Council
of
India.
Having launched LPG marketing in the mid-60s, Indian Oil has been credited with bringing about a
kitchen revolution, spreading warmth and cheer in millions of households with the introduction of
the clean and efficient cooking fuel. It has led to a substantial improvement in the health of women,
especially in rural areas by replacing smoky and unhealthy chulha. Indane is today an ideal fuel for
31
modern
kitchens,
synonymous
with
safety,
reliability
and
convenience.
With the status of an exclusive business vertical within the Corporation, the Indane network delivers
1.2 million cylinders a day to the doorsteps of over 8.95 crore households, making Indian Oil the
second largest marketer of LPG globally, after SHV Gas of The Netherlands. Indane is available in
compact 5 kg cylinders for rural, hilly and inaccessible areas, 14.2 kg cylinders for domestic use, and
19 kg and 47.5 kg for commercial and industrial use.
LPG is a blend of Butane and Propane readily liquefied under moderate pressure. LPG vapour
is heavier than air; thus it normally settles down in low-lying places. Since LPG has only a faint
scent, a mercaptan odorant is added to help in its detection. In the event of an LPG leak, the
vapourisation of liquid cools the atmosphere and condenses the water vapour contained in it to form a
whitish fog, which is easy to observe. LPG in fairly large concentrations displaces oxygen leading to
a nauseous or suffocating feeling.
Suraksha LPG hose, flame retardant aprons and energy efficient Green Label stoves are
recommended to enhance safety measures while using LPG as cooking fuel.
Auto Gas
Auto Gas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from
natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum
gases like propane and butane. The higher energy content in this fuel results in a 10% reduction of
CO2 emission as compared to MS.
Auto Gas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied
when moderate pressure is applied or when the temperature is sufficiently reduced. This property
makes the fuel an ideal energy source for a wide range of applications, as it can be easily condensed,
packaged, stored and utilised. When the pressure is released, the liquid makes up about 250 times its
volume as gas, so large amounts of energy can be stored and transported compactly.
The use of LPG as an automotive fuel has become legal in India with effect from April 24,
2000, albeit within the prescribed safety terms and conditions. Hitherto, the thousands of LPG
vehicles running in various cities have been doing so illegally by using domestic LPG cylinders, a
very unsafe practice. Using domestic LPG cylinders in automobiles is still illegal.
32
The
fuel
is
marketed
by
IndianOil
under
the
brand
name
AutoGas
"IndianOil has setup 350 Auto LPG Dispensing Stations (ALDS) covering 192 cities across India."
AutoGas impacts greenhouse emissions less than any other fossil fuel when measured through
the total fuel cycle. Conversion of petrol to Auto Gas helps substantially reduce air pollution caused
by vehicular emissions.
The saving on account of conversion to Auto Gas in comparison to petrol is about 35-40%.
Low filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to
AutoGas.
Natural Gas
Over the years, Natural Gas has emerged as the 'fuel of choice' across the world. It is steadily
replacing traditional fossil fuels due to its environment friendly characteristics which help in meeting
the stipulated automobile emission norms. Natural Gas has significant cost advantages over fuels
such as Naphtha and commercial LPG. Demand for Natural Gas in India is primarily driven by the
fertiliser and power sectors, which account for almost two-third of the countrys gas consumption.
Indian oil entered the Natural Gas business in 2004.Since then, by leveraging its inherent
strengths and countrywide reach, Indian oil has significantly enhanced its customer base. In the year
2013-14, it clocked total Natural Gas sales of 3.219 MMTPA (Million Metric tonnes Per Annum)
Indian Oil has co-promoted Petronet LNG Limited (PLL) for setting up LNG (Liquefied
Natural Gas) terminals at Dahej & Kochi. Indian Oil has marketing rights for 30% quantity of the
LNG procured by PLL from Ras Gas on long term basis at Dahej besides long term contract at
Kochi. Demand for Natural gas in India is growing and cannot be met by the current indigenous
production. Hence, Indian Oil is in the process of sourcing more quantities of LNG to meet the
increasing requirements.
Within the gas business, City Gas Distribution (CGD) is a rapidly growing segment. Green
Gas Ltd., IndianOil's joint venture with GAIL (India) Ltd., is already operational in Agra and
Lucknow in the state of Uttar Pradesh and is further expanding to cater to the increased demand in
33
various sectors. In an initiative to expand the CGD network, IndianOil has formed a consortium with
M/s Adani Gas Ltd. to develop CGD networks on pan India basis.
In Gas Transmission business, IndianOil owns and operates Dadri-Panipat Pipeline. IndianOil
has formed a consortium with GSPL and other OMCs to build & operate Gas pipelines across the
country.
In a major step to increase Indian Oils presence in Natural Gas industry, Corporation is
currently implementing 5 MMTPA LNG import Terminal at Ennore near Chennai which is targeted
for completion during 2015-16.
Indian Oil is in the process of procuring LNG from world market on long term as well as
short term basis for meeting the Internal Consumption at our own Refineries and for Ennore LNG
Terminal.
Indian Oil has the capabilities to supply re-gassified LNG to customers presently located in
the Northern and Western regions of India. With the expansion of the pipeline network in Southern
region as well as other parts of the country, Indian Oil can supply gas to customers located near those
pipelines. As a committed supplier, Indian Oil is completely responsible for delivery of gas to the
customers premises. The transportation services of the company engaged in transportation of gas are
hired to ensure deliveries. This model is used world over wherein multiple gas suppliers operate
through one transportation system.
The LNG at Doorstep initiative involves making LNG available to the customers not
connected by gas pipeline. Gas is transported through a cryogenic system, stored in a cryogenic
holding tank at the target location and re-gassified on-site through vaporizers for use as fuel. The
entire operation being concealed eliminates the possibility of adulteration and pilferage. Introduced in
2007, this initiative has been well received and is attracting more customers located away from the
pipelines. Indian Oil has in-house capabilities in the manufacturing of Cryogenic equipment at the
State of Art facility at Nasik for the last three decades.
Petrol/Gasoline
Automotive gasoline and gasoline-oxygenate blends are used in internal combustion spark34
ignition engines. These spark ignition engine fuels are primarily used for passenger cars. They are
also used in off-highway utility vans, farm machinery and in other spark ignition engines employed
in a variety of service applications.
Gasoline is a complex mixture of relatively volatile hydrocarbons that vary widely in chemical &
physical properties and are derived from fractional distillation of crude petroleum with a further
treatment mainly in terms of improvement of its octane rating. The hundreds of individual
hydrocarbons in gasoline range from c4 to c11.
An oxygenate is an oxygen-containing, ashless organic compound (such as an alcohol or
ether) which can be used as a fuel or fuel supplement. Motor gasoline is sold at retail outlets where it
is directly delivered into the automobile tank. The Indian Standard governing the properties of motor
gasoline & gasoline-oxygenate blends is IS 2796: 2000 (3rd Rev).
35
The Indian Standard governing the properties of diesel fuels is IS 1460:2005 (5th Rev).
Important characteristics are ignition characteristics, handling at low temperature, flash point.
XTRAMILE
Indian Oils XTRAMILE Super Diesel, the leader in the branded diesel segment, is blended
with world-class multi-functional fuel additives. Commercial vehicle owners choose XTRAMILE
because they see a clear value benefit in terms of superior mileage, lower maintenance costs and
improved engine protection. A growing section of customers who own diesel automobiles, both in the
lifestyle and passenger category, prefer XTRAMILE as a fuel for its added and enhanced
performance. XTRAMILE has brought in a huge savings in the high mileage commercial vehicles
segment. Transport fleets that operate a large number of trucks crisscrossing the country are using
DESCRIPTIVE
ANALYSIS
AN
XTRAMILE to benefit from
higher mileage and reduced
maintenanceOF
costs.
ATF/Jet Fuel
OPERATIONAL PROBLEM FACED BY
Indian Oil THE

AviationORGANISATION
Service is a leading aviationAND
fuel solution
provider in India and the mostSUGGESTING
preferred supplier of jet fuel to major international and domestic airlines. Between one sunrise and
SOLUTION
the next, IndianOil Aviation Service refuels over 1500 flights from the bustling metros to the
remote airports linking the vast Indian landscape, from the icy heights of Leh (the highest airport in
the world at 10,682 ft) to the distant islands of Andaman & Nicobar.
Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. Its principal uses are
as jet engine fuel. The most common jet fuel worldwide is a kerosene-based fuel classified as JET A1.The governing specifications in India are IS 1571: 2001 (7th Rev).
Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality
requirements of aviation fuel storage & handling. IndianOil Aviation also caters to the fuel
requirements of the Indian Defence Services, besides refueling VVIP flights at all the airports and
remote heli-pads/heli-bases across the Indian subcontinent.
Indian Oil Aviation group regularly organises International Aviation conferences that act as a vital
information facilitator with participation from leading international and all domestic airlines, allied
industries, statutory aviation authorities and government agencies from over 35 countries.
Indian Oil is the only oil company in India to market the widest possible range of fuels used by
36
Routine work given by the

organization -
XTRAPOWER DRIVER CARD SALIENT FEATURES
Name of Card: XTRAPOWER Driver Card Spot Enrolment
Incentive points - 30 points per rupee 100 purchases 1
Point = 1 Paisa.
15 points to be debited to the Merchant concerned, 15 points to be borne by the

Corporation.
Completed Application Form including Mobile Number,Vehicle No. along with copy of
Commercial Driving , License for enrolment of Driver card
37
Additional incentives to the Drivers on the occasion of Independence Day, Republic Day,
Drivers Birthday, Drivers Marriage Anniversary and Drivers Day - 1000 points- borne by
the Corporation.
Cost of each card of Rs.50/- to be recovered from Merchant.
Option for Merchants to recover the cost of the card fromthe driver.
Merchant has facility to request for Driver Card, create Drivers Profile and mapping of
Driver Card in the XP Site with their Login ID and Password.
Driver Card not to be issued to those drivers, who are driving vehicles, for which the vehicle
specific /generic cards have already been issued.
Merchant to control the transactions either on Driver card or on vehicle specific/generic

card of the Transporter.
Transaction of Cash Reload and Cash Sale to be done mostly, CCMS sale is also possible
( Minimum Rs.500/- and multiples of Rs.100/- ).
There is no expiry date for Driver card.
Minimum Reward Points for redemption of fuel 10,000.
Reward Point Redemption through CCMS Re-charge-
Driver has to send SMS for Reward Point Redemption from registered Mobile No to Mob
No.9223301330.
SMS Format : REDEEM<space<Customer ID<space>reward Points
Replacement of lost card/issue of duplicate card will be with redemption of reward Points
i.e. Rs.50/- per card.
Accidental Death Insurance Coverage of the Driver - Rs.1.00 Lac.
38

Indian Oil Coorporation

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Indian Oil Coorporation

Uploaded by

Copyright:

Available Formats

INDIAN OIL COORPORATION

[1.2] Global Analysis of Oil and Gas Industry