March 2005 Oil and Gas Industry
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March 2005 Oil and Gas Industry Dynamic and Growing
Transcript of March 2005 Oil and Gas Industry
March 2005
Oil and Gas Industry
Dynamic and Growing
March 2005
Oil and Gas
India - An Overview
Market and Growth Potential
Players
Opportunities
Contact in India
India - An Introduction
Population
States/UTs
Geographical Area
Languages recognised
Business language
Per Capita Income**
GDP**
Over 1 bn
35
3.3 mn sq kms
22
English
US$ 534
US$ 650 bn**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
Source:CSO Statistics
March 2005
India - Fast pace Growth
Largest democracy
4th largest economy by PPP index
6th largest energy consumer
ForEx reserves skyrocket from US$ 42 bn (2001) to
US$ 133 bn (February, 2005)
GDP growth to continue between 6-8%
3rd largest economy by 2050: Goldman Sachs
Leading in IT & BPO
Oil & Gas and Biotechnology sunrise industries
March 2005
India - Leading the world
Hero Honda - largest manufacturer of motorcycles
Moser Baer - among the top three media manufacturers
in the world
Pharmaceutical Industry - 4th largest in world
Walmart, GAP, Hilfiger sources more than
USD 1bn worth apparel from India
100 Fortune 500 have set R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
March 2005
Oil and Gas
India - An Overview
Market and Growth Potential
Players
Opportunities
Contact in India
March 2005
Oil and Gas Market
Size US$ 90bn(16.5% of GDP)
Contribution to over 30%treasury
Employment 650,000
Energy requirement 35%served by sector
March 2005
Domestic crude oil production 33.38 mn tonnes
Over 100 operating PSCs
CBM - 16 blocks awarded
Overseas E&P acreage in 9 countries
Recent foray in deepwater drilling
Upstream
March 2005
Midstream
Product pipelines
Gas pipelines
City gas supply networks exist in 3 cities - to
expand to 72 cities
First LNG terminal (5 MMTPA) commissioned
First LNG ship commissioned
March 2005
Downstream
10th largest refining capacity (2.28 mn bopd)
-- 18 refineries
Largest grassroots refinery (540,000 bopd)
and 7th largest refinery
Longest LPG pipeline of 1270 kms
Existing outlets – Petro retail (19,800)
– LPG distributors (8,100)
– SKO dealers (6,500)
Construction of 3 refineries under progress
March 2005
Energy Consumption
OilNatural Gas
CoalNuclear Energy
Hydroelectricity
World
India
33
8
54
1 4
37
24 27
66
0
10
20
30
40
50
60%
of C
onsu
mpt
ion
Sources of Energy
India Vs World Energy Consumption Matrix
World
India
March 2005
Oil and Gas
India - An Overview
Market and Growth Potential
Players
Opportunities
Contact in India
March 2005
Domestic Players
ONGC Videsh Ltd
Indian Oil Corporation Ltd (IOCL)
Bharat Petroleum Corporation Ltd (BPCL)
Hindustan Petroleum Corporation Ltd (HPCL)
Reliance Industries Ltd (RIL)
GAIL India Ltd
Essar Oil Ltd
March 2005
Foreign Investments
Shell LNG & Lubes (US$ 1 bn)
BG Upstream & city gas distribution (US$ 1 bn)
Cairn Energy Upstream (US$ 500 mn)
Niko, Tullow Oil Upstream
Total Underground LPG storage tanks
Total, Bp, LubesExxonMobil, ChevronTexaco
March 2005
Foreign Interests
BP
Kuwait Petroleum Corporation
Saudi Aramco
Abu Dhabi National Oil Co
Petronas
Foreign companies participating in acquisition
opportunities (Over US$ 0.5 bn to US$ 1.5 bn)
March 2005
Oil and Gas
India - An Overview
Market and Growth Potential
Players
Opportunities
Contact in India
March 2005
Investment Potential
Next 5 years US$ 18-20 bn
Upstream sector US$ 13.05 bn
Downstream sector US$ 8.03 bn
Next 25 years US$ 110 bn
March 2005
Business opportunities
Upstream NELP rounds
EOR projects (Estimated
investments US$ 3 bn)
Oil Field services (Committed
investments US$ 2.5 bn)
Deep Water drilling
Farm in Opportunities
Coal Bed Methane
Underground coal gasification
Gas hydrate
March 2005
Business Opportunities
Midstream and downstream
Refineries (Upgradation)
Planned product pipelines -
12,272km (US$ 5 bn)
New retail outlets planned
(US$ 7 bn)
New Terminals, depots & LPG
infrastructure
March 2005
Business Opportunities
Midstream and downstream
Building strategic oil reserves
Planned gas distribution
pipeline – 14,915 kms (USD 7 bn)
City gas projects - 22 cities
March 2005
Business Opportunities
JV & Cooperation
Indian Downstream companies are
scouting for investment opportunities
Africa
CIS
Bangladesh
Srilanka
Nepal
SE Asia
March 2005
Policy Advantage
100% FDI permitted under automatic approval route in
following sectors:
- petroleum product marketing
- petroleum product pipelines
- oil exploration in small & medium sized fields
100% FDI permitted for natural gas / LNG pipelines
subject to approval from FIPB
LNG exempt from CVD / excise duty.
March 2005
Key Features
• A financial Special Purpose Vehicle (SPV) to be established to finance infrastructure projects.
• Service tax on pipeline transmission at 10.2%
• Crude oil customs duty reduced to 5%. Peak duty reduction on petroleum products to 10%.
• Customs duty on coking coal cut from 15% to 5%.
Union Budget 2005-06
March 2005
Evolving Regulatory Regime
New Exploration Licensing Policy (NELP)
-Entire value chain has been privatised
-E&P acreage offered under competitive
bidding (since 1999)
-Decontrol of Oil sector since April 2002
Draft petroleum & natural gas policy released
Draft gas pipeline policy released
Common Carrier Pipeline Policy allows 2 or
more companies to use single pipeline
Indian Hydrocarbon Vision 2025
March 2005
Oil and Gas
India - An Overview
Market and Growth Potential
Players
Opportunities
Contact in India
March 2005
Contact in India
Confederation of Indian Industry (CII)
249-F, Sector 18, Udyog Vihar Phase IVGurgaon 122015
Tel 0091 124 5014060-67Fax 0091 124 5014080/5013874E mail [email protected]
