石油天然氣工業(yè)分析英文

TableofContent

ExecutiveSummary 3

AdvantageIndia 4

MarketOverviewandTrends 6

NotableTrendsandStrategies 23

GrowthDrivers 27

Opportunities 34

UsefulInformation… 37

EXECUTIVESUMMARY

Notes:MMT-MillionMetricTonnes,Mtoe–MillionTonnesofOilEquivalent;mbpd–MillionBarrelsPerDay;Figuresmentionedinthisslideisasperlatestdataavailable

Source:USEnergyInformationAdministration(EIA),MinistryofPetroleumandNaturalGas,BPStatisticalReview2018

3

Oil&Gas

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Fourth-largestLNGimporterin2017

LNGimportsintothecountryaccountedforaboutone-fourthoftotalgasdemand,whichisestimatedtofurtherincreasebytwotimes,overnextfiveyears.TomeetthisrisingdemandthecountryplanstoincreaseitsLNGimportcapacityto50milliontonnesinthecomingyears.

IndiaincreasinglyreliesonimportedLNG;thecountryisthefourthlargestLNGimporterandaccountedfor

5.68percentofglobalimports.

Indiaimported18.05MMTofLNGduring2017-18,incomparisonto18.63MMTin2016-17.ImportsduringApr-Aug2018stoodat7.13MMT.

Third-largestconsumerofoil

India’sconsumptionofpetroleumproductsgrew5.31percentto204.992MMTin2017-18from194.597MMTinFY17.Petroleumproducts’consumptionduringApr-Sep2018stoodat104.38MMT.

Indiaretaineditsspotasthethirdlargestconsumerofoilintheworldin2017.

World’sthird-largestenergyconsumer

India’senergydemandisexpectedtodoubleto1,516Mtoeby2035from753.7Mtoein2017.Moreover,thecountry’sshareinglobalprimaryenergyconsumptionisprojectedtoincreaseby2-foldsby2035

SecondlargestrefinerinAsia

AsofSeptember1,2018,theoilrefiningcapacityofIndiastoodat247.6milliontonnes,makingitthesecondlargestrefinerinAsia.Privatecompaniesownabout35.62percentofthetotalrefiningcapacity.

OilandGas

ADVANTAGEINDIA

ADVANTAGEINDIA

Indiaistheworld’sthirdlargestenergyconsumerglobally

DemandforprimaryenergyinIndiaistoexpectedincreasethreefoldby2035to

1,516milliontonnesofoil

Theoilandgasindustryisgrowingrobustlyandplayersareundertakinginvestmentstocatertotheburgeoningdemand.

TheindustryisexpectedtoattractUS$25billioninvestmentsinexplorationandproductionby2022.^

Refiningcapacityinthecountryisexpectedtoincreaseto667MTPAby

2040.*

ADVANTAGEINDIA

GovernmenthasenactedvariouspoliciessuchastheOALPandCBMpolicytoencourageinvestments

InSeptember2018,GovernmentofIndiaapprovedfiscalincentivestoattractinvestmentsandtechnologytoimproverecoveryfromoilfieldswhichisexpectedtoleadtohydrocarbonproductionworthRs50lakhcrore(US$745.82billion)inthenexttwenty

years.

Thegovernmentallows100percent

ForeignDirectInvestment(FDI)in

upstreamandprivatesectorrefiningprojects

TheFDIlimitforpublicsectorrefiningprojectshasbeenraisedto49percentwithoutanydisinvestmentordilutionof

domesticequityintheexistingPSUs

Note:OALP–OpenAcreageLicensingPolicy,CBM–CoalBedMethane,MTPA–MillionTonnesPerAnnum,^AsperDirectorateGeneralofHydrocarbons,*AsperWorkingGrouponEnhancingRefiningCapacityby2040

Source:BusinessMonitorInternational(BMI),WorldOilOutlook2012,MinistryofPetroleumandNaturalGas,BPStatisticalReview2015

5

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OilandGas

MARKETOVERVIEW

ANDTRENDS

STATE-OWNEDCOMPANIESDOMINATEOILANDGASIN

INDIA

Indiaremainedasthethirdlargestenergyconsumerin2017.

India’soilproductionreached35.68Mtin2017-18.Asof2017,thecountryhad600millionmetrictonnes(MMT)ofprovenoilreserves

Indiahad1.2trillioncubicmetresofprovengasreservesattheendof2017andproduced31.83bcmofgasinFY18whichisexpectedtoriseandreach36bcm^by2021.

Notes:bcm–BillionCubicMetres,mbpd–MillionBarrelsPerDay,mmscmd-MillionMetricStandardCubicMetrePerDay,mmtpa--millionmetrictonsperannum,^AsperIEA

Source:BPStatisticalReview2018,USEnergyInformationAdministration,PetroleumPlanningandAnalysisCell,ArancaResearch

7

Oil&Gas

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IOCListhelargestcompany,controls10outof22Indianrefineries,withacombinedcapacityof1.31mbpd

ReliancelaunchedIndia’s1stprivatelyownedrefineryin1999andhasgainedconsiderablemarketshare(30percent)

NayaraEnergyLimited’s(NEL’s)Vadinarrefineryhasacapacityof20mmtpa,currentlyaccountingforaround10percentoftotalrefiningcapacity

Downstreamsegment–refining,processingandmarketing

IOCLoperatesa13,391kmnetworkofcrude,gasandproductpipelines,withacapacityof1.896mbpdofoiland9.5mmscmdofgas

Thisisaround30percentofthenation’stotalpipelinenetwork

Midstreamsegment–storageandtransportation

IndianOilandGassector

State-ownedONGCdominatetheupstreamsegment.

ItisthelargestupstreamcompanyinExplorationandProduction(E&P)segment,accountingforapproximately58.26percentofthecountry’stotaloiloutput(FY18).

Upstreamsegment

-explorationandproduction

OILSUPPLYANDDEMANDININDIA

OilconsumptionhasexpandedataCAGRof4.78percentduring2007–17toreach4.69mbpdby2017.Duetotheexpectedstronggrowthindemand,India’sdependencyonoilimportsislikelytoincreasefurther

Rapideconomicgrowthisleadingtogreateroutputs,whichinturnisincreasingthedemandofoilforproductionandtransportationIndia’scrudeoildemandisexpectedtoincreaseover150percentto10.1milliontonnesperdayby2040.^

InFY18,totalcrudeoilimportswerevaluedatUS$87.37billionascomparedtoUS$70.71billioninFY17.InFY18,crudeoilimportsincreasedto

4.41mbpdfrom4.27mbpdinFY17.CrudeoilimportsduringApr-Aug2018stoodat1.90mbpd.

Note:CAGR–CompoundAnnualGrowthRate,mbpd–MillionBarrelsPerDay,P-Provisional,FY19*-uptoAugust2018,^AsperOPEC,Basedon50MMT=1MBPD

Source:MinistryofPetroleumandNaturalGas,BPStatisticalReview2018,ArancaResearch

8

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2007

2.94

2008

3.08

2009

3.24

2010

3.32

2011

3.49

2012

3.69

2013

3.73

2014

3.85

2015

4.16

2016

4.56

2017

4.69

3.18

3.27

3.43

3.69

3.78

3.79

4.05

4.27

4.41

1.90

ImportsanddomesticoilproductioninIndia(mbpd)

OilconsumptioninIndia(2008-17)(mbpd)

6.00

5.00

0.64

0.74 0.72

4.00 0.76 0.76 0.75

0.67 0.75 0.76

3.00

2.00 0.29

1.00

0.00

FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19*

OilImports(mbpd) OilProduction(mbpd)

5.00

4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

GASSUPPLYANDDEMANDININDIA

India’sgasconsumptionhasincreasedataCAGRof3.40percentbetween2007and2017.

Demandisnotlikelytosimmerdownanytimesoon,givenstrongeconomicgrowthandrisingurbanisation.Gasconsumptionisprojectedtoreach143.08bcmby2040.

India’snaturalgasimportsincreasedataCAGRof10.64percentduringFY10–FY18.

AutoLPGconsumptionadvanced0.8percentduringApr-Jul2018.

Note:F–Forecast,bcm–BillionCubicMetres,CAGR–CompoundAnnualGrowthRateFiguresareasperlatestdataavailable,FY19*-uptoJuly2018

Source:PPAC,BPStatisticalReview2018,ArancaResearch

9

Oil&Gas

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38.81

2007

1,015.44

39.99

2008

1,049.12

48.34

1,073.44

59.49

1,105.50

61.32

1,230.13

56.66

1,280.36

49.81

1,303.96

49.64

1,373.63

46.41

1,204.94

50.83

1,181.37

54.20

1,241.44

2009

2010

2011

2012

2013

2014

2015

2016

2017

FY10

47.4911.72

FY11

52.2212.78

17.44

FY12

46.48

FY13

39.78 17.19

FY14

34.64

17.05

FY15

32.79

18.39

FY16

31.24

21.21

FY17

30.92

21.6

FY18

31.80

22.7

FY19*

Domesticgasproductionandimports(bcm)

Provenreservesandtotalgasconsumptioninthecountry(bcm)

70.00

60.00

50.00

40.00

30.00

20.00

9.45

10.00

10.53

0.00

Gasproduction GasImports

1600

1400

1200

1000

800

600

400

200

0

GasConsumption ProvenGasReserves

EXPORTSOFPETROLEUMPRODUCTSFROMINDIA

Indiaisoneofthelargestexportersofrefineryproductsduetothepresenceofvariousrefineries.Thecountryhadthefourthlargestoilrefiningcapacityandfourthlargestrefinerythroughputgloballyin2017.

ExportsofpetroleumproductsfromIndiaincreasedfrom51.15MMTinFY10to66.76MMTinFY18P.ThetotalvalueofpetroleumproductsexportedfromthecountrystoodatUS$34.89billioninFY18.

HSDwasthemajorexportitemamongpetroleumproducts,followedbyMS,NapthaandATF.

Note:MMT–MillionMetricTonnes,P–Provisional,FY19*-uptoAugust2018,HSD–HighspeedDiesel,MS–MotorSpirit,ATF–AviationTurbineFuel,LPG–LiquefiedPetroleumGas,LDO–LightDieselOil,SKO–SuperiorKeroseneOil,LOBS–LubricatingOilBaseStocks,^OthersincludesHexane,Benzene,MTO(MineralTurpentineOil),Sulphur,etc

Source:PPAC,BPStatisticalReview2018

10

Oil&Gas

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FY10

51.15

FY11

59.08

FY12

60.84

FY13

63.41

FY14

67.86

FY15

63.93

FY16

60.54

FY17

65.51

FY18P

66.76

FY19*

24.63

HSD

29,675.66

MS

14,035.28

Naptha

8,951.42

ATF

7,182.52

FuelOil

2,492.25

LPG

359.29

Bitumen

63.87

LDO

18.18

SKO

17.24

LOBS

13.35

Others^

3,948.42

Product-wiseexportofPetroleumProductsfromIndiainFY18(MMT)

ExportsofPetroleumProductsfromIndia(MMT)

30000

25000

20000

15000

10000

5000

0

80

70

60

50

40

30

20

10

0

UPSTREAMSEGMENT:CRUDEOILANDGAS

PRODUCTION(1/2)

In2017-18,crudeoilproductionstoodat35.68milliontonnes.Crudeoilproductionwithoutinclusionofcondensatesreachednearly34milliontonnes.

ONGCaccountedforaround58.26percentoftotalcrudeoilproductioninIndia.

Notes:MMT–MillionMetricTonne,JV–JointVenture,P–Provisional,FY19*-uptoAugust2018

Source:MinistryofPetroleumandNaturalGas,ArancaResearch

11

Oil&Gas

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16.43

21.28

18.03

20.06

19.44

18.42

19.59

18.20

18.54

18.92

17.85

19.09

17.59

18.42

17.54

18.14

22.50

9.50

21.80

10.30

20.50

11.50

19.20

12.00

20.80

11.70

21.10

11.20

20.90

10.40

20.80

9.90

8.30

4.10

CrudeOilProduction(inMMT)

Annualcrudeoilproduction(inMMT)

40

35

30

25 3.60 3.80

3.70 3.40 3.20 3.30 3.40

20 3.50

15

10 1.40

5

0

FY11FY12FY13FY14FY15FY16FY17FY18FY19*ONGC OIL Pvt/JV

40

35

30

25

20

15

10

5

-

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Onshore Offshore

UPSTREAMSEGMENT:CRUDEOILANDGAS

PRODUCTION(2/2)

Note:JV–JointVenture,^IncludingCBMproduction

Source:MinistryofPetroleumandNaturalGas;ArancaResearch

12

Oil&Gas

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8,577.00

43,645.10

9,083.80

38,474.84

8,876.92

31,802.35

9,011.68

26,395.20

8,795.63

24,860.64

9,237.48

23,011.74

9,858.48

22,038.23

10,638.68

22,010.62

4,470.92

9,100.76

23,095

26,054

23,316

21,609

23,549

14,491

23,284

9,497

22,023

8,912

21,177

8,235

22,088

6,872

23,429

6,338

10,013

Annualgasproduction(millionmetricstandardcubicmeter)

Annualgasproduction(millionmetricstandardcubicmeter)

60,000

2,350

50,000 2,633

2,639

40,000

2,626

2,722

2,8382,9372,881

30,000

20,000

1,137

10,000 2,421

-

FY11FY12FY13FY14FY15FY16FY17FY18FY19*ONGC Pvt/JV OIL

50000

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

FY11FY12FY13FY14FY15FY16FY17FY18FY19*

Onshore^ Offshore

UPSTREAMSEGMENT:EXPLORATIONAND

DEVELOPMENTACTIVITIES

DuringFY17(1),1,245,000metresofwellswereexploredanddevelopedand540wellsweredrilledinthecountry.

State-ownedoilcompaniesundertakemostoftheupstreamdrillingandexplorationwork.

InSeptember2018,investmentsworthRs5,900crore(US$840.70million)werecommittedin55oilandgasexplorationareasawardedunderOpenAcreageLicensingPolicy–1.TheGovernmentofIndiawillsoonundertakeauctionof14moreblocksinthesecondround.

Notes:FY17(1)–Provisional,*OALP–OpenAcreageLicensingPolicy,UpdateddataisexpectedtobereleasedinPNGStatistics2017-18

Source:MinistryofPetroleumandNaturalGas,ArancaResearch,BMI

13

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Explorationactivities(FY17(1))

Developmentdrillingactivities(FY17(1))

350

300

250

200

150

100

50

0

Offshore Onshore

Wells Meterage('000metres)

1000

900

800

700

600

500

400

300

200

100

0

Offshore Onshore

Wells Meterage('000metres)

227

119

102

40

628

222

312

86

PIPELINES:CRUDEPIPELINENETWORK

AsofSep1,2018,Indiahadanetworkof10,328kmofcrudepipelinehavingacapacityof143.5mmtpa(1).

Intermsoflength,IOCLaccountsfor51.33percent(5,301km)ofIndia’scrudepipelinenetwork.

Intermsofactualcapacities,ONGCleadsthepackwithashareof40.77percent,followedbyIOCLat33.87percent.

Note:km–Kilometre,mmtpa–MillionMetricTonnesPerAnnum,(1)Approximate,*OthersincludesHMEL,BPCLandCairn

Source:MinistryofPetroleumandNaturalGas,ArancaResearch

14

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Sharesincrudepipelinenetworkbycapacity

(outof143.5MMTPA,Sep1,2018)1

Sharesincrudepipelinenetworkbylength

(outof10,328km,Sep1,2018)1

ONGC

19.51%

40.77% IOC

5.85%

OIL

33.87%

Others*

IOCL

25.58%

OIL

51.33%

11.54% ONGC

11.55%

Others*

PIPELINES:EXISTINGPIPELINESININDIA

Company-wiselengthandcapacityofproductspipelineandcrudeoilpipeline(asofSep1,2018)

Note:kms–Kilometres,mmtpa–MillionMetricTonnesPerAnnum,(1)IncludesPetronetCochin-Coimbatore-KarurProductpipeline,(2)IncludesPetronetMangalore-Hassan-BangaloreProductPipeline

Source:MinistryofPetroleumandNaturalGas,ArancaResearch

15

Oil&Gas

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IOCL BPCL(1) HPCL(2) OIL ONGC Cairn HMEL Others(GAILandPetronetIndia.) Totalindustry

Length(Kms)

ProductPipeline

CrudeoilPipeline

Total

7,909 1,948 3,371 654 - - - 2,688 16,570

5,301 937 - 1,193 1,192 688 1,017 - 10,328

13,251 2,885 3,371 1,847 1,192 688 1,017 2,688 26,898

CapacityofCrudeOilPipelines(MMTPA)

ProductPipeline

CrudeoilPipeline

Total

45.4 16.2 38.1 1.7 - - - 9.3 110.6

48.6 6.0 - 8.4 58.5 10.7 11.3 - 143.5

94.0 22.2 38.1 10.1 58.5 10.7 11.3 9.3 254.1

PIPELINES:REFINEDPRODUCTSANDLPGPIPELINE

NETWORK

With16,570kmofrefinedproductspipelinenetwork(capacityof110.6mmtpa)inIndia,IndianOilCorporation(IOC)leadsthesegmentwith47.73percentofthetotallengthofproductpipelinenetwork,asofSeptember1,2018.

TopthreecompaniesIOC,HPCLandBPCLcontribute79.83percentofthetotallengthofproductpipelinenetworkinthecountry.

AsofSeptember1,2018,GasAuthorityofIndiaLtd.(GAIL)haslargestshare(68.03percentor11,410km)ofthecountry’snaturalgaspipelinenetwork(16,771km)

Note:km-Kilometre,mmtpa–MillionMetricTonnesPerAnnum,LPG-LiquefiedPetroleumGas,IOC-IndianOilCorporation,HPCL-HindustanPetroleumCorporationLtd,BPCL-BharatPetroleumCorporationLtd,OIL-OilIndiaLimited,(1)OthersincludeGAILandPetronetIndia,(2)AsofSeptember1,2018

Source:MinistryofPetroleumandNaturalGas,ArancaResearch

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SharesinNaturalGaspipelinenetworkbylength

(outof16,771km,FY192)

Sharesinproductspipelinenetworkunderoperationbylength

(outof16,570km,FY192)

0.83%

4.87% GAIL

Reliance

15.62%

GSPL

10.64% ARN

68.03% IOCL

IOC

16.22%

HPCL

3.95%

47.73% BPCL

11.76%

OIL

20.34%

Others

DOWNSTREAMSEGMENT:REFINERYCRUDE

THROUGHPUT…(1/2)

Indiahas23refineries,outofwhich18areinthepublicsector,twointhejointsectorandthreeintheprivatesector.

CrudeoilthroughputofpublicsectorrefinerieshasgrownataCAGRof3.68percentfrom108.03MMTinFY07to160.77MMTinFY18.Duringthesametime,crudeoilthroughputofprivatesectorrefinerieshasgrownataCAGRof9.55percentfrom33.43MMTto

91.16MMT.

Theshareofprivatesectorrefineries’throughputintotalcrudethroughputhasgrownfrom29.99percentinFY07to36.18percentinFY18.

Refinercrudethroughputofpublicsectorandprivatesectorstoodat

70.20MMTand37.61MMT,respectively,duringApr-Aug2018.

Note:MMT–MillionMetricTonne,PublicSectorincludesIOCL,BPCL,HPCL,CPCLandONGC,PrivatesectorincludesRILandNEL,FY19*-uptoAugust2018

Source:MinistryofPetroleumandNaturalGas,ArancaResearch

17

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FY07

108.0333.43

FY08

112.51

38.29

FY09

112.17

48.54

FY10

112.13

74.44

FY11

115.11

81.38

FY12

122.58

81.18

FY13

130.57

88.27

FY14

134.22

88.23

FY15

134.73

88.53

FY16

144.20

88.66

FY17

154.3

91.09

FY18

160.77

91.16

37.61

FY19*

70.20

VisakRheafpinaetnryamcrupdoerttthrraoffuicgh(mpuiltli(oMnMtoTn)nes)

300

250

200

150

100

50

0

Publicsector Privatesector

DOWNSTREAMSEGMENT:REFINERYCRUDE

THROUGHPUT…(2/2)

AsofSep1,2018,thesector’stotalinstalledprovisionalrefinerycapacitywas247.6MMT.IOCemergedasthelargestdomesticrefinerwithacapacityof69.2MMT

Topthreecompanies-RIL,IOCandBPCLcontributearound70.23percentofIndia'stotalrefiningcapacity

Note:MMT–MillionMetricTonne;HPCL-HindustanPetroleumCorporationLtd,BPCL-BharatPetroleumCorporationLtd,OIL-OilIndiaLimited,ONGC-OilandNaturalGasCorporation,IOCL-IndianOilCorporationLtd,CPCL-ChennaiPetroleumCorporationLimited,FY19*-AsofSep1,2018

Source:MinistryofPetroleumandNaturalGas,PPAC,ArancaResearch

18

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116.89

76.50

120.07

93.00

120.07

95.00

120.07

95.00

120.07

95.00

135.07

95.00

139.00

95.00

142.10

105.50

142.10

105.50

Totalinstalledrefinerycapacity(MMT)

SharesinIndia'stotalrefiningcapacity(Sep1,2018)

300.00

250.00

200.00

150.00

100.00

50.00

0.00

FY11FY12FY13FY14FY15FY16FY17FY18FY19*

Publicsector Privatesector(inclJV)

4.64% IOC

6.10%

8.08% 27.95% RILBPCL

10.95% 247.6MMT HPCL

Essar

14.74% ONGC

27.54%

CPCL

DOWNSTREAMSEGMENT:PETROLEUMPRODUCTS

ConsumptionofpetroleumproductsinIndiaincreasedto204.92MMTinFY18(P)from194.60MMTinFY17.

PetroleumproductsderivedfromcrudeoilincludelightdistillatessuchasLPG,naphtha;middledistillatessuchaskerosene;andheavyendssuchasfurnace,lubeoils,bitumen,petroleumcokeandparaffinwax

LightdistillateswiththehighestgrowthrategrewatCAGRof4.78percent,whilemiddledistillatesandheavyendsegmentwitnessedaCAGRof3.93percentand5.89percentrespectively,duringtheyearFY08-17.

Productionofpetroleumproductsincreasedfrom3,996tmtinFY07to4,608tmtinFY18.

Productionofpetroleumproductsbyfractionatorsgrewto2,012.36tmtduringApr-Aug2018.

Note:MMT–MillionMetricTonne,tmt–thousandmetrictonne,FY19*-AsofAugust2018,UpdateddataonconsumptionisexpectedtobereleasedinPNGStatistics2017-18

Source:MinistryofPetroleumandNaturalGas,ArancaResearch

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FY07

3,996.00

FY08

4,084.00

FY09

4,191.40

FY10

4,363.00

FY11

4,168.60

FY12

4,175.20

FY13

4,089.43

FY14

3,871.57

FY15

3,657.15

FY16

3,377.16

FY17

3,457.75

FY18

4,608.00

FY19*

2,012.36

ProductionofPetroleumProductsbyFractionators(tmt)

ConsumptionofPetroleumProducts(MMT)

5000.00

4000.00

3000.00

2000.00

1000.00

0.00

250.0

200.0

150.0

100.0

50.0

0.0

FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17

LightDistillates MiddleDistillates HeavyEnds

46.4

31.6

24.6

24.9

79.4

28.1

82.7

29.0

81.8

31.4

82.8

81.9

88.9

27.7

27.5

27.7

62.8

66.4

71.1

75.0

38.4

39.7

39.0

41.4

43.9

46.3

47.6

50.9

54.7

58.5

DOWNSTREAMSEGMENT:DISTRIBUTIONAND

MARKETING

ThetotalnumberofOMCretailoutletsincreasedto63,275atthestartofSeptember2018(P)from59,595attheendofFY17.

IOC,asofSep1,2018,ownedthemaximumnumberofretailoutletsinthecountry(27,281or43.11percentoftotal),followedbyHPCL(15,191or24.06percent),BPCL(14,527or22.96percent)andMRPL(6or0.01percent);theremainingbeingownedbyprivatefirms.

AsofSep1,2018,therewere21,206LPGdistributors(ofPSUs)inIndia.

Note:MMT–MillionMetricTonne,mmtpa–MillionMetricTonnesPerAnnum,OMC–OilMarketingCompanies,(P)-Provisional

Source:MinistryofPetroleumandNaturalGas,ArancaResearch

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Downstreamdistributionstatistics(MMT)

Pipeline

Capacity(mmtpa) Length(km)AsofSep1,2018 AsofSep1,2018

CrudePipeline

143.5 10,328

ProductPipeline

110.6 16,570

NaturalGasPipeline

104.08 16,771

250.0

200.0

107.58

150.0 96.61

109.72 97.36 97.36

100.0

50.0 85.10 89.57 97.70 104.50 110.50

0.0

FY14 FY15 FY16 FY17 FY18

Productpipeline NaturalGasPipeline

STATE-WISECRUDERESERVE,CAPACITYAND

THROUGHPUT

Installedcapacity,asofApril2017(mt)

CrudethroughputforFY2017(MMT)

Balancerecoverablereservesofcrudeoil,April1,2017(MMT)

State

State

Gujarat

93.7

105.01

Assam

159.96

Maharashtra

19.5

22.05

Gujarat

118.61

Haryana

15.0

15.64

Rajasthan

24.55

Karnataka

15.0

15.97

TamilNadu

1.5

0.53

TamilNadu

9.00

Kerala

12.4

11.82

AndhraPradesh

8.15

AndhraPradesh

8.396

9.42

Nagaland

2.38

UttarPradesh

8.0

9.23

WestBengal

7.5

7.69

ArunachalPradesh

1.52

Assam

7.0

6.57

Tripura

0.07

Bihar

6.0

6.53

TotalOnshore

324.24

Punjab

9.0

10.52

MadhyaPradesh

6.0

6.36

WesternOffshore

239.20

Odisha

15

8.23

EasternOffshore

40.67

HimachalPradesh

10.5

9.76

TotalOffshore

279.87

Total

234.496

245.33

Note:Mmt–MillionMetricTonne,mt–MillionTonne,UpdateisexpectedtobeavailableinPetroleumandNaturalGasStatistics2017-18fromMinistryofPetroleumandNaturalGas

Source:MinistryofPetroleumandNaturalGas,ArancaResearch

21

Oil&Gas

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KEYDOMESTICOILANDGASCOMPANIES

Note::FY–IndianFinancialYearfromApril–March,*forFY17

Source:Bloomberg,ArancaResearch

22

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Ownership TotalIncomefrom

Company (percent)asofFY18 OperationsinFY18

(US$billion)

IndianOilCorporationLimited

RelianceIndustries

BharatPetroleumCorporationLimited

HindustanPetroleumCorporationLimited

ONGC

GAILIndiaLimited

OilIndiaLimited

56.98% 65.79

state-owned

PublicListed 60.77

54.31% 31.13*

state-owned

51.11%

state-owned(through 34.06

ONGC)

68.07% 11.99*

state-owned

53.59% 8.46

state-owned

66.13% 1.69*

state-owned

OilandGas

NOTABLETRENDS

ANDSTRATEGIES

NOTABLETRENDSINTHEOILANDGASSECTOR

CoalBedMethane(CBM)

UndergroundCoalGasification(UCG)

Gashydratesandbio-fuels

OpenAcreageLicensingPolicy

24

Oil&Gas

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TheOpenAcreageLicensingPolicy(OALP),whichallowsanexplorertostudythedataavailableandbidforblocksofhischoicehasbeeninitiatedtoincreaseforeignparticipationbyglobalE&PcompanieslikeShell,BP,ConocoPhillipsetc

ThegovernmentinitiatedtheNationalGasHydrateProgramme(NGHP),aconsortiumofnationalEandPcompaniesandresearchinstitutions,tomapgashydratesforuseasanalternatesourceofenergy

Bio-fuels(bio-ethanolandbio-diesel)arealternatesourcesofenergyfromdomesticrenewableresources;thesehaveloweremissionscomparedtopetroleumordiesel

ThetechnologywasfirstwidelyusedintheUSinthe1800sandinIndia(KolkataandMumbai)intheearly1900s

UCGiscurrentlytheonlyfeasibletechnologyavailabletoharnessenergyfromdeepunmineablecoalseamseconomicallyinaneco-friendlymanneranditreducescapitaloutlay,operatingcostsandoutputgasexpensesby25–50percentvis-à-vissurfacegasification

GovernmentapprovedtheCBMpolicyin1997toboostthedevelopmentofcleanandrenewableenergyresources

TheCBMpolicywasdesignedtobeliberalandinvestorfriendly;the1stcommercialproductionofCBMwasinitiatedinJuly2007atabout72,000cubicmetresperday.Productionin2017-18stoodat2.01millioncubicmetresperday.

STRATEGIESADOPTED…(1/2)

InSeptember2018,theGovernmentofGujaratselectedEnergyInfrastructureLimited(EIL),asubsidiaryoftheNetherlands-basedEnergyInfrastructureButano(Asia)BV,tosetupaLiquefiedPetroleumGas(LPG)terminalatOkha

withaninvestmentofRs700crore(US$104.42million).

OilandNaturalGasCorporation(ONGC)isgoingtoinvestRs17,615crore(US$2.73billion)ondrillingoilandgaswells

in2018-19.

H-EnergyisplanningtoinvestRs3,500crore(US$540.62million)tobuildLiquifiedNaturalGas(LNG)terminalsandlay

downa60kmpipeline.

StaterunenergyfirmsBharatPetroleum,HindustanPetroleumandIndianOilCorpplantospendUS$20billiononrefinery

expansionstoaddunits,by2022

Thecountry’sstateownedoilcompaniesaimtosustainspendingata3yearhighduetoincreasingdemandanddecliningoilservicescosts.IndianOilplanstoexpanditsrefiningcapacityandbuildnewbusinesses,forwhichitwillbespendingUS$27.94billionoverthenext5-7years.

IndianOilCorpplanstomakeaninvestmentofUS$22.91billion,includingUS$7.64billionforexpandingitsexistingbrownfieldrefineries,inthenext5to7years.Moreover,thecompanyplanstolaythenation'slongestLPGpipelineof1987km,fromGujaratcoasttoGorakhpurineasternUttarPradesh,tocatertogrowingdemandforcookinggasinthecountry.

IndiatargetsUS$100billionworthinvestmentsingasinfrastructureby2022,includinganadditionofanother228citiestocitygasdistribution(CGD)network.ThiswouldincludesettingupofRLNGterminals,pipelineprojects,completionofthegasgridandsettingupofCGDnetworkinmorecities.

Oilcompaniesarefocusingonverticalintegrationfornextstageofgrowth.Forinstance,oilproducerOilIndiaLtdisplanningtobuildandoperaterefineries,whileIndianOilisplanningtoenteroilandgasexploration

AsofMarch2017,BharatPetroleumCorp.Ltd.(BPCL),anIndianstate-controlledoilandgascompany,planstoenterthecountry’stravelbusinesswiththelaunchofitsstartupnamedas“HappyRoads”.Theapplication,whichisavailableonAndroidPlayStore,documentsitinerariesandassiststheusersinplanningafun-filledtrip

Diversification

Source:ArancaResearch

25

Oil&Gas

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Expansions

STRATEGIESADOPTED…(2/2)

Notes:ATM-AutomatedTellerMachine,FIP–FinancialInclusionPlan,RBI–ReserveBankofIndia

Source:IndiaBankingAssociation,ReserveBankofIndia,ArancaResearch

26

Oil&Gas

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ONGChasstartedsupplyofPipedNaturalGasinBhubaneswarfromOctober2017andiscurrentlylayingdownnaturalgaspipelineinVaranasi.

InMay2018,Indialaunc