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Executive Summary……………….….…….3
Advantage India…………………..….……...4
Growth Drivers…...……………...……….…26
Opportunities...……………………..............33
Useful Information……….......…………..…36
EXECUTIVE SUMMARY
Second largest refiner in As of May 1, 2018, the oil refining capacity of India stood at 247.6 million tonnes, making it the second largest
Asia refiner in Asia. Private companies own about 35.62 per cent of the total refining capacity.
World’s fourth-largest India’s energy demand is expected to double to 1,516 Mtoe by 2035 from 723.9 Mtoe in 2016. Moreover, the
energy consumer country’s share in global primary energy consumption is projected to increase by 2-folds by 2035
Fourth-largest India’s consumption of petroleum products grew 5.31 per cent to 204.992 MMT in 2017-18 from 194.597
consumer of oil and MMT in FY17. Petroleum products’ consumption during April 2018 stood at 17.668 MMT.
petroleum products India was 3rd largest consumer of crude oil and petroleum products in the world in 2016.
LNG imports into the country accounted for about one-fourth of total gas demand, which is estimated to
further increase by two times, over next five years. To meet this rising demand the country plans to increase
its LNG import capacity to 50 million tonnes in the coming years.
Fourth-largest LNG
India increasingly relies on imported LNG; the country is the fourth largest LNG importer and accounted for
importer in 2016
5.68 per cent of global imports.
India imported 18.05 MMT of LNG during 2017-18, in comparison to 18.63 MMT in 2016-17. Imports during
April 2018 stood at 1.72 MMT.
Notes: MMTPA - Million Metric Tonnes Per Annum, Mtoe – Million Tonnes of Oil Equivalent; mbpd – Million Barrels Per Day; Figures mentioned in this slide is as per latest data available
Source: US Energy Information Administration (EIA), Ministry of Petroleum and Natural Gas
ADVANTAGE INDIA
ADVANTAGE INDIA
India is the world’s 3rd largest energy The University of Petroleum and Energy
consumer; oil and gas account for Studies in Dehradun, Uttarakhand, is
35.61 per cent of total energy Asia’s 1st and only energy university
consumption in India
Indian Oil is going to invest Rs 1.8 trillion
Demand for primary energy in India is over the next five to seven years to
to increase 3-fold by 2035 to 1,516 expand its refining capacity.
million tonnes of oil
ADVANTAGE
INDIA
The government allows 100 per cent Government has enacted various
Foreign Direct Investment (FDI) in policies such as the Open Acreage
upstream and private sector refining Licensing Policy (OALP) and Coal Bed
projects Methane (CBM) policy to encourage
investments
The FDI limit for public sector refining
projects has been raised to 49 per cent In 2017, the government launched
without any disinvestment or dilution of National Data Repository (NDR) to
domestic equity in the existing PSUs make E&P data available for
commercial exploitation and R&D.
Source: Business Monitor International (BMI), World Oil Outlook 2012, Ministry of Petroleum and Natural Gas, BP Statistical Review 2015,
MARKET OVERVIEW
AND TRENDS
STATE-OWNED COMPANIES DOMINATE OIL AND GAS IN
INDIA
India became the 3rd largest energy consumer in 2015 and continued to remain so in 2016.
India’s oil production reached 35.68 Mt in 2017-18 . As of 2016, the country had 600 million metric tonnes (MMT) of proven oil reserves
India had 1.2 million cubic metres of proven gas reserves at the end of 2016 and produced 31.83 bcm of gas in FY18 which is expected to rise
and reach 36 bcm^ by 2021.
IOCL operates a 13,391 km network of crude, gas and product pipelines, with a capacity of
Midstream
Indian Oil and 1.896 mbpd of oil and 9.5 mmscmd of gas
segment – storage
Gas sector
and transportation
This is around 30 per cent of the nation’s total pipeline network
IOCL is the largest company, controls 10 out of 22 Indian refineries, with a combined capacity
of 1.31 mbpd
Downstream
segment – refining, Reliance launched India’s 1st privately owned refinery in 1999 and has gained considerable
processing and market share (30 per cent)
marketing
Essar’s Vadinar refinery has a capacity of 20 mmtpa, currently accounting for around 10 per
cent of total refining capacity
Notes: bcm – Billion Cubic Metres, mbpd – Million Barrels Per Day, mmscmd - Million Metric Standard Cubic Metre Per Day, mmtpa -- million metric tons per annum, ^As per IEA
Source: BP Statistical Review 2017, US Energy Information Administration, Petroleum Planning and Analysis Cell, Aranca Research
Oil consumption in India (2008-17) (mbpd) Imports and domestic oil production in India (mbpd)
5.00 6.00
4.50
4.43
5.00
4.33
4.00 0.64
0.72
0.74
3.92
3.85
3.50
3.73
0.76 0.75
3.69
0.76
4.41
4.00
4.27
3.49
0.76
4.05
3.32
3.00 0.75
3.24
0.67
3.79
3.78
3.08
3.69
2.94
3.43
2.50 3.00
2.74
3.27
3.18
2.00
2.00
1.50
1.00 1.00
0.50 0.06
0.34
0.00 0.00
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY18 FY19*
2017P
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Oil consumption has expanded at a CAGR of 2.98 per cent during FY2008–17P to reach 4.43 mbpd by 2017.
Due to the expected strong growth in demand, India’s dependency on oil imports is likely to increase further
Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of oil for production and transportation
India crude oil demand is expected to increase over 150 per cent to 10.1 million tonnes per day by 2040.^
In FY18, total crude oil imports were valued at US$ 87.37 billion as compared to US$ 70.71 billion in FY17. In FY18, crude oil imports increased to
4.41 mbpd from 4.27 mbpd in FY17. Crude oil imports during April 2018 stood at 0.34 mbpd.
Note: CAGR – Compound Annual Growth Rate, mbpd – Million Barrels Per Day, P - Provisional, FY19* - As of April 2018, ^As per OPEC
Source: Ministry of Petroleum and Natural Gas, BP Statistical Review 2017, Aranca Research
Proven reserves and total gas consumption in the country (bcm) Domestic gas production and imports (bcm)
1600.00 70.00
52.22 12.78
1400.00 60.00
17.44
1,427.15
47.49 11.72
1,354.76
26.11
1,330.24
17.19
24.48
1200.00
1,278.06
50.00
1,251.89
22.7
1,227.20
17.05
21.6
1,148.57
1,115.26
46.48
1,090.00
1000.00
32.85 10.46
32.42 10.84
40.00
1,055.00
39.78
800.00
34.64
30.00
32.79
31.83
31.24
30.92
600.00
20.00
400.00
10.00 2.26
71.07
61.09
60.31
50.70
50.09
49.30
48.82
45.74
41.55
40.32
200.00 2.66
0.00
FY11
FY08
FY09
FY10
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
0.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
India’s gas consumption has increased at a CAGR of 2.44 per cent between 2007 and 2016.
Demand is not likely to simmer down anytime soon, given strong economic growth and rising urbanisation. Gas consumption is projected to reach
216 bcm by 2021-22.
India’s LNG imports increased at a CAGR of 8.14 per cent during FY08–FY18.
Auto LPG consumption advanced 0.1 per cent or about 20 MT in April 2018.
Note: F – Forecast, bcm – Billion Cubic Metres, CAGR – Compound Annual Growth Rate Figures are as per latest data available, FY19* - up to April 2018
Source: PPAC, BP Statistical Review 2017, Aranca Research;
Annual crude oil production (in MMT) Crude Oil Production (in MMT)
40 40
20.06
18.42
18.20
21.28
18.92
19.09
35 35
18.42
10.30
11.70
11.50
18.14
11.20
12.00
10.40
9.90
9.50
30 30
25 25 3.60 3.80
3.70 3.40 3.20 3.30 3.40
3.50
22.50
21.80
20 20
21.10
20.90
20.80
20.80
20.50
19.59
19.44
19.20
18.54
18.03
17.85
17.59
17.54
15 15
16.43
10 10
0.80
5 5
0.30
1.60
- 0
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19*
In 2017-18, crude oil production stood at 35.68 million tonnes. Crude oil production without inclusion of condensates reached nearly 34 million
tonnes.
ONGC accounted for around 58.26 per cent of total crude oil production in India.
Notes: mmt – Million Metric Tonne, JV – Joint Venture P – Provisional, FY19* - up to April 2018
Source: Ministry of Petroleum and Natural Gas, Aranca Research
Annual gas production (million metric standard cubic meter) Annual gas production (million metric standard cubic meter)
50000.00 60000
45000.00
2350
43,645.10
50000 2633
40000.00
26054
38,474.84
21609
35000.00 2639
40000
2626
31,802.35
30000.00
14491
2722
2838 2937 2881
9497
25000.00 30000
26,395.20
8912
24,860.64
6338
8235
6872
23,011.74
22,038.23
22,010.62
20000.00
23549
23429
23316
23284
23095
22088
20000
22023
21177
15000.00
10000.00
10,638.68
9,858.48
10000
9,237.48
9,083.80
9,011.68
8,876.92
8,795.63
8,577.00
5000.00
0.00 0
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Onshore Offshore ONGC Pvt/JV OIL
Note: bcm – Billion Cubic Metres, mmscmd-- Million Metric Standard Cubic Meter Per Day, JV – Joint Venture
Source: Ministry of Petroleum and Natural Gas; Aranca Research
1000 350
900 628 227
300
800
700 250
600
200
500
150
400 119
300 100
222 312 102
200
50
100
86 40
0 0
Offshore Onshore Offshore Onshore
During FY17(1), 1,245,000 metres of wells were explored and developed and 540 wells were drilled in the country.
State-owned oil companies undertake most of the upstream drilling and exploration work.
In January 2018, after a gap of eight years, the Central Government auctioned 55 exploration blocks which offered a record area for prospecting
of oil and gas. This was the first auction under OALP* that allows companies to carve out blocks of their choice with a view to bringing about 2.8
million square kilometres of unexplored area in the country under exploration.
Shares in crude pipeline network by length (out of 10,327 km) Shares in crude pipeline network by capacity (out of 141.2
(May 1, 2018)1 MMTPA) (May 1, 2018)1
IOCL
ONGC
18.20%
25.58%
OIL
5.95% 41.43% IOC
51.33%
11.53% ONGC
OIL
11.55% 34.42%
Others
Others
As of May 1, 2018, India had a network of 10,327 km of crude pipeline having a capacity of 141.2 mmtpa(1).
In terms of length, IOCL accounts for 51.33 per cent (5,301 km) of India’s crude pipeline network.
In terms of actual capacities, ONGC leads the pack with a share of 41.43 per cent, followed by IOCL at 34.42 per cent.
Company-wise length and capacity of products pipeline and crude oil pipeline (as of May 1, 2018)
IOCL BPCL(1) HPCL(2) OIL ONGC Cairn HMEL Others (GAIL and Petronet India.) Total industry
Length (Kms)
Product
7,950 1,948 3,371 654 - - - 2,688 16,611
Pipeline
Crude oil
5,301 937 - 1,193 1,191 688 1,017 - 10,327
Pipeline
Total 13,251 2,885 3,371 1,847 1,191 688 1,017 2,688 26,938
Product
46.2 16.2 38.1 1.7 - - - 9.3 111.4
Pipeline
Crude oil
48.6 6.0 - 8.4 58.5 10.7 9.0 - 141.2
Pipeline
Total 94.8 22.2 38.1 10.1 58.5 10.7 9.0 9.3 252.6
Note: kms – Kilometres, mmtpa – Million Metric Tonnes Per Annum, (1)Includes Petronet Cochin-Coimbatore-Karur Product pipeline, (2)Includes Petronet Mangalore-Hassan-Bangalore
Product Pipeline
Source: Ministry of Petroleum and Natural Gas, Aranca Research
Shares in products pipeline network under operation by length Shares in Natural Gas pipeline network by length (out of 16,793
(out of 16,611 km, FY182) km) (FY183)
0.83%
GAIL
IOC 4.87%
16.18%
Reliance
15.59%
HPCL
3.94% GSPL
47.86% BPCL
11.73% 10.62% ARN
4
OIL 67.94% Others
20.29% 1
Others
With 16,611 km of refined products pipeline network (capacity of 111.4 mmtpa) in India, Indian Oil Corporation (IOC) leads the segment with 47.86
per cent of the total length of product pipeline network, as of May 1, 2018.
Top 3 companies IOC, HPCL and BPCL contribute 79.88 per cent of the total length of product pipeline network in the country.
As of April 1, 2018, Gas Authority of India Ltd. (GAIL) has largest share (67.94 per cent or 11,410 km) of the country’s natural gas pipeline network
(16,793 km)
Note: km - Kilometre, mmtpa – Million Metric Tonnes Per Annum, LPG - Liquefied Petroleum Gas, IOC - Indian Oil Corporation, HPCL - Hindustan Petroleum Corporation Ltd, BPCL -
Bharat Petroleum Corporation Ltd, OIL - Oil India Limited, (1)Others include GAIL and Petronet India, (2)As of May 1, 2018, (3)As of April 1, 2018, (4)Others includes IOCL and ONGC
Source: Ministry of Petroleum and Natural Gas, Aranca Research
Crude oil throughput of public sector refineries has grown at a CAGR 250
91.16
91.09
of 3.68 per cent from 108.03 mmt in FY07 to 160.77 mmt in FY18.
88.66
During the same time, crude oil throughput of private sector
88.53
88.23
88.27
refineries has grown at a CAGR of 9.55 per cent from 33.43 mmt to 200
81.18
81.38
91.16 mmt.
74.44
The share of private sector refineries’ throughput in total crude
150
48.54
160.77
throughput has grown from 29.99 per cent in FY07 to 36.18 per cent
154.3
38.29
144.20
108.03 33.43
in FY18.
134.73
134.22
130.57
122.58
115.11
112.51
112.17
112.13
100
50
6.72
13.14
0
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Public sector Private sector
Note: mmt – Million Metric Tonne, Public Sector includes IOCL ,BPCL ,HPCL, CPCL and ONGC, Private sector includes RIL and Essar, FY19* - As of April 2018
Source: Ministry of Petroleum and Natural Gas, Aranca Research
Shares in India's total refining capacity (May 1, 2018) Total installed refinery capacity (mmt)
300.00
4.64% IOC
250.00
6.10%
105.50
105.50
95.00
95.00
27.95% RIL
8.08% 200.00
95.00
95.00
95.00
93.00
76.50
BPCL
150.00
10.95%
142.10
142.10
139.00
247.6 MMT
135.07
HPCL
120.07
120.07
120.07
120.07
100.00
116.89
Essar
50.00
14.74%
ONGC
27.54% 0.00
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19*
CPCL
Public sector Private sector (incl JV)
As of May 1, 2018, the sector’s total installed provisional refinery capacity was 247.6 mmt. IOC emerged as the largest domestic refiner with a
capacity of 69.2 mmt
Top three companies - RIL, IOC and BPCL contribute around 70.23 per cent of India's total refining capacity
Note: mmt – Million Metric Tonne; HPCL - Hindustan Petroleum Corporation Ltd, BPCL - Bharat Petroleum Corporation Ltd, OIL - Oil India Limited, ONGC - Oil and Natural Gas
Corporation, IOCL - Indian Oil Corporation Ltd, CPCL - Chennai Petroleum Corporation Limited, FY 19* - As of May 1, 2018
Source: Ministry of Petroleum and Natural Gas, PPAC, Aranca Research
Consumption of petroleum products in India increased to 204.92 mmt Consumption of Petroleum Products (mmt)
in FY18(P) from 194.60 mmt in FY17.
250.0
Petroleum products derived from crude oil include light distillates
such as LPG, naphtha; middle distillates such as kerosene; and 200.0
heavy ends such as furnace, lube oils, bitumen, petroleum coke and 46.4
paraffin wax 150.0 31.4 31.6
28.1 29.0
88.9
24.9
27.7 24.6
81.9
82.8
27.5
81.8
82.7
27.7
Light distillates with the highest growth rate grew at CAGR of 4.78
79.4
100.0
75.0
71.1
66.4
62.8
per cent, while middle distillates and heavy end segment witnessed a
50.0
CAGR of 3.93 per cent and 5.89 per cent respectively, during the 50.9 54.7 58.5
38.4 39.7 39.0 41.4 43.9 46.3 47.6
year FY08-17. 0.0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Production of petroleum products increased from 3,996 tmt in FY 07
to 4,608 tmt in FY 18. Light Distillates Middle Distillates Heavy Ends
4,608
4000.00
4,363
4,191
4,175
4,169
4,089
4,084
3,996
3,872
3,657
3000.00
3,458
3,377
2000.00
386
1000.00
0.00
FY18
FY 09
FY 07
FY 08
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY19*
Note: mmt – Million Metric Tonne, tmt – thousand metric tonne, P – Provisional, FY19* - As of April 2018
Source: Ministry of Petroleum and Natural Gas, Aranca Research
The total number of OMC retail outlets increased to 62,670 at the Downstream distribution statistics (MMT)
start of May 20181 from 59,595 at the end of FY17.
250.0
IOC, as of May 01, 2018, owned the maximum number of retail
outlets in the country (27,712 or 43.26 per cent of total), followed by
HPCL (15,077 or 24.06 per cent), BPCL (14,453 or 23.06 per cent) 200.0
and MRPL (6 or 0.01 per cent); the remaining being owned by
private firms. 107.58
150.0 97.36 96.61
109.72 97.36
As of May 20181, there were 20,221 LPG distributors (of PSUs) in
India. 100.0
0.0
FY14 FY15 FY16 FY17 FY18
Product pipeline Natural Gas Pipeline
Note: MMT – Million Metric Tonne, mmtpa – Million Metric Tonnes Per Annum, OMC – Oil Marketing Companies, 1As of 1st May 2018, 2As of April 1, 2018
Source: Ministry of Petroleum and Natural Gas, Aranca Research
Odisha 15 8.23
Eastern Offshore 40.67
Himachal Pradesh 10.5 9.76
Total Offshore 279.87 Total 234.496 245.33
Note: Mmt – Million Metric Tonne, mt – Million Tonne
Source: Ministry of Petroleum and Natural Gas, Aranca Research
51.11%
Hindustan Petroleum
state-owned (through 34.06
Corporation Limited
ONGC)
68.07%
ONGC 11.99*
state-owned
53.59%
GAIL India Limited 8.46
state-owned
66.13%
Oil India Limited 1.69*
state-owned
NOTABLE TRENDS
AND STRATEGIES
NOTABLE TRENDS IN THE OIL AND GAS SECTOR
Government approved the CBM policy in 1997 to boost the development of clean and renewable energy
resources
Coal Bed Methane
The CBM policy was designed to be liberal and investor friendly; the 1st commercial production of CBM was
(CBM)
initiated in July 2007 at about 72,000 cubic metres per day. Production in 2017-18 stood at 2.01 million cubic
metres per day.
The technology was first widely used in the US in the 1800s and in India (Kolkata and Mumbai) in the early
1900s
Underground Coal
UCG is currently the only feasible technology available to harness energy from deep unmineable coal seams
Gasification (UCG)
economically in an eco-friendly manner and it reduces capital outlay, operating costs and output gas
expenses by 25–50 per cent vis-à-vis surface gasification
The government initiated the National Gas Hydrate Programme (NGHP), a consortium of national E and P
Gas hydrates and bio- companies and research institutions, to map gas hydrates for use as an alternate source of energy
fuels Bio-fuels (bio-ethanol and bio-diesel) are alternate sources of energy from domestic renewable resources;
these have lower emissions compared to petroleum or diesel
The Open Acreage Licensing Policy (OALP), which allows an explorer to study the data available and bid for
Open Acreage
blocks of his choice has been initiated to increase foreign participation by global E & P companies like Shell,
Licensing Policy
BP, Conoco Phillips etc
Oil and Natural Gas Corporation (ONGC) is going to invest Rs 17,615 crore (US$ 2.73 billion) on drilling oil and gas wells
in 2018-19.
Essar Oil and Gas will undertake investments to the tune of Rs 900 crore (US$ 130.64 million) for drilling more wells in its
Raniganj CBM block to increase gas output to 2.3 MMSCMD by 2021.
H-Energy is planning to invest Rs 3,500 crore (US$ 540.62 million) to build Liquified Natural Gas (LNG) terminals and lay
down a 60 km pipeline.
State run energy firms Bharat Petroleum, Hindustan Petroleum and Indian Oil Corp plan to spend US$ 20 billion on refinery
expansions to add units, by 2022
The country’s state owned oil companies aim to sustain spending at a 3 year high due to increasing demand and declining
Expansions oil services costs. Indian Oil plans to expand its refining capacity and build new businesses, for which it will be spending
US$ 27.94 billion over the next 5-7 years.
Open Acreage Licensing Policy
Indian Oil Corp plans to make an investment of US$22.91 billion, including US$7.64 billion for expanding its existing
brownfield refineries, in the next 5 to 7 years. Moreover, the company plans to lay the nation's longest LPG pipeline of
1987 km, from Gujarat coast to Gorakhpur in eastern Uttar Pradesh, to cater to growing demand for cooking gas in the
country. In FY18, the company is planning to invest US$ 3.5 billion to expand and enhance its refinery capability and
marketing infrastructure.
India targets US$ 100 billion worth investments in gas infrastructure by 2022, including an addition of another 228 cities to
city gas distribution (CGD) network. This would include setting up of RLNG terminals, pipeline projects, completion of the
gas grid and setting up of CGD network in more cities.
Oil companies are focusing on vertical integration for next stage of growth. For instance, oil producer Oil India Ltd is
planning to build and operate refineries, while Indian Oil is planning to enter oil and gas exploration
Diversification As of March 2017, Bharat Petroleum Corp. Ltd. (BPCL), an Indian state-controlled oil and gas company, plans to enter the
country’s travel business with the launch of its startup named as “Happy Roads”. The application, which is available on
Android Play Store, documents itineraries and assists the users in planning a fun-filled trip
Move to non-
Companies are looking forward to developing JVs and technical partnership with foreign companies to improve capabilities
conventional energy to develop shale reserves
resources
Indian companies are enhancing production through redevelopment plans to increase recovery rates of hydrocarbon from
Investments to enhance oil wells; ONGC in Mumbai High achieved success in implementing this.
production Indian Oil Company (IOC) is planning to invest Rs 1.43 lakh crore (US$ 22.19 billion) to nearly double its oil refining
capacity to 150 million tonnes by 2030.
Private sector units like Adani, Sun Petrochemicals and few new entrants have bagged 1/3rd of small oil and gas fields.
More focus upon small
In February 2017, Genesis, London, bagged a contract from RIL’s (Reliance Industries) to design deep water field front
companies
end engineering at KG Basin in West India.
ONGC has started supply of Piped Natural Gas in Bhubaneswar from October 2017 and is currently laying down natural
gas pipeline in Varanasi.
Piped Cooking Gas In May 2018, India launched its biggest auction of City Gas Distribution (CGD) networks. The successful companies will be
permitted to sell Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in 86 geographical areas. The auctions
are expected to lead to investments worth Rs 70,000 crore (US$ 10.86 billion).
Notes: ATM - Automated Teller Machine, FIP – Financial Inclusion Plan, RBI – Reserve Bank of India
Source: India Banking Association, Reserve Bank of India, Aranca Research
GROWTH DRIVERS
GROWTH DRIVERS
Crude oil consumption and forecast (MT) Natural gas consumption and forecast (BCM)
600 160
CAGR 3.60% CAGR 4.31%
140
143.08
500
500.00
120
400
100
300 80
60
200
54.20
40
221.76
100
20
0 0
2017 2040F 2017 2040F
Energy demand of India is anticipated to grow faster than energy demand of all major economies, on the back of continuous robust economic
growth.
Consequently, India’s energy demand as a percentage of global energy demand is expected to rise to 11 per cent in 2040 from 5.58 per cent in
2017.
Crude oil consumption is expected to grow at a CAGR of 3.60 per cent to 500 million tonnes by 2040 from 221.76 million tonnes in 2017.
Natural Gas consumption is forecasted to increase at a CAGR of 4.31 per cent to 143.08 million tonnes by 2040 from 54.20 million tonnes in 2017.
Pricing of CNG and PNG In 2014, the pricing for CNG (transport) and PNG (domestic) were examined by the Ministry of Petroleum and Natural Gas
by CGD Entities (2014) while the disclosure of prices of the CNG and PNG commodities were made compulsory
The Policy on Shale Gas Allows companies to apply for shale gas and oil rights in their petroleum exploration licenses and petroleum mining leases
and Oil, 2013
Launched in June 2017, it allows companies to carve out area for petroleum exploration and production. The policy,
Open Acreage Licensing launched under Hydrocarbon Exploration and Licensing Policy (HELP), has replaced New Exploration and Licensing Policy
under which bidders did not have the freedom of carving out areas for E&P
The National Biofuel Promotes bio-fuel usage, the Government of India has provided a 12.36 per cent concession on excise duty on bio-ethanol
Policy, 2009 and exempted bio-diesel from excise duty
Integrated Energy Policy Outlines goals to deal with challenges faced by India’s energy sector
(IEP), 2006
Provide a roadmap to comply with various vehicular emission norms and corresponding fuel quality upgrading
Auto Fuel Policy, 2003 requirements over a period of time
Domestic Natural Gas New domestic natural gas pricing formula has been formed, which will be revised on an half yearly basis.
Pricing Formula, 2014
Monetise discovered small oil and gas fields to augment domestic production
Marginal Field Policy Improved fiscal terms viz. no oil cess applicable on crude oil production, no upfront signature bonus, pricing and marketing
freedom for oil and gas and no carried interest by NOCs
Cumulative FDI inflows into petroleum and natural gas (US$ billion)
8.00
#CAGR 14.22%
7.00
6.88
6.85
6.67
6.60
6.00
5.50
5.40
5.00
4.00
3.00
3.30
3.20
2.70
2.00
1.00
0.00
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18*
Cumulative FDI inflows in India’s petroleum and natural gas sector stood at US$ 6,879.69 million (1.87 per cent of total FDI) during April 2000–December
2017.
Between FY10 and FY17 (April 2009 – March 2017), FDI inflows into petroleum and natural gas sector grew at CAGR 14.22 per cent.
Note: FY18* - Up to December 2017, #CAGR is up to FY17
Source: : Department of Industrial Policy and Promotion, Aranca Research
Date announced Acquirer name Target name Value of deal (US$ million)
Aug 2017 Rosneft Essar Oil (49 per cent stake) 1,290
Dec 2016 Oil and Natural Gas Corp's Gujarat State Petroleum Co's 1200
Dec 2015 ONGC Videsh Ltd (OVL) Vankor oil field 1260
Oct 2013 ONGC Videsh Ltd Parque das Conchas, Brazilian Oilfield 529
OPPORTUNITIES
OPPORTUNITIES
Locating new fields for exploration: 78 per cent of the country’s sedimentary area is yet to be explored
Higher demand for skilled labour and oilfield services and equipment
LNG imports have increased significantly; this provides an opportunity to boost production capacity
Midstream segment
In light of mounting LNG production, huge opportunity lies for LNG terminal operation, engineering,
procurement and construction services
India is already a refining hub with 21 refineries and expansions planned for tapping foreign investment in
export-oriented infrastructure, including product pipelines and export terminals
Downstream segment
Development of City Gas Distribution (CGD) networks, which are similar to Delhi and Mumbai’s CGDs
The Cambay, Krishna Godavari, Cauvery and the Damodar Valley are the most prospective sedimentary basins for carrying out shale gas
activities in the country
Around 20 tcf of gas has been classified as technically recoverable reserves in the Cambay basin in Gujarat (the largest basin in the country)
spread across 20,000 gross square miles with a prospective area of 1,940 square miles
It is estimated that the Krishna Godavari (KG) basin encloses a series of organically rich shales, containing around 27 tcf of technically
recoverable gas. KG basin, located in Eastern India, holds the country’s largest shale gas reserves, extending over 7,800 gross square miles with
a prospective area of around 4,340 square miles
In April 2013, the Directorate General of Hydrocarbons (DGH) submitted its policy on exploitation of shale gas to the Ministry of Petroleum and
Natural Gas
India launched its policy on shale gas exploration to tap the non-conventional energy resource in order to boost output.
USEFUL
INFORMATION
CONTACT INFORMATION
Petroleum Conservation
Sanrakshan Bhavan, 10 Bhikaji Cama 91-11- 26198799
Research Association Mr Alok Tripathi, ED pcra@pcra.org
Place, New Delhi – 110066 Ext.301
(PCRA)
US$ : US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
Year INR INR Equivalent of one US$ Year INR Equivalent of one US$
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