Description
This is a presentation describes overview of oil and natural gas sector in India.
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The Indian oil and gas sector is a core industry for India. India’s oil and gas sector holds strategic importance in the economy as it meets around 42 per cent of the country’s primary energy demand and contributes over 15 per cent to the gross domestic product (GDP). India has been growing at a decent rate annually and is committed to accelerate the growth momentum. This would translate into India's energy needs growing many times
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According to Oil Industry History the first structured oil well were built in the Gulf of Mexico. This was made on a place which was nearly 100 meters deep. One can also see the Oil Industry History which suggests that European oil well were made during the 1920s. After the disaster of the North Sea UK in the year 1988, which caught fire and killed more than 160 people, there was a change in the safety policy of the oil industry..
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Crude Oil production for April-July 2011 was 12.858 million metric tonne (MMT), as compared to the 11.985 MMT in April-July 2010. Natural Gas production during April-July 2011 was 16356.3 million cubic metres (MCM). During April-July 2011, 57.01 MMT of crude oil was refined, compared to 54.33 MMT refined during corresponding period in 2010.
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BMI’s report for Q3 2011 states that India’s share (in the Asian pacific region) of gas consumption in 2010 was an estimated 10.9 per cent In 2010, India consumed roughly 2.3 Tcf of natural gas, more than 750 billion cubic feet (Bcf) more than in 2008, according to EIA estimates. Regional oil use of 20.6mn barrels per day (b/d) in 2001 reached an estimated 26.4mn b/d in 2010 and is forecast to rise to around 29.6mn b/d by 2015. Oil imports are growing rapidly, because demand growth is outstripping the pace of supply expansion.
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Oil consumption in India is projected to enhance by 4-5 per cent per annum to 2015, indicating a demand of 4.01 million b/d by 2015. Demand for petrol is expected to expand by 7.6 per cent (363,000 b/d) in 2011 and eventually by 6.7 per cent (388,000 b/d) in 2012 McKinsey anticipates that natural gas demand in India is expected to increase from current 166 million standard cubic meters per day to 320 million standard cubic meters per day by 2015.
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India’s energy demand continues to rise. As vehicle ownership expands, petroleum demand in the transport sector is expected to grow in the coming years. While India’s domestic energy resource base is substantial, the country relies on imports for a considerable amount of its energy use. According to the International Energy Agency (IEA), hydrocarbons account for the majority of India’s energy use. Together, coal and oil represent about two-thirds of total energy use. Natural gas now accounts for a seven percent share, which is expected to grow with the discovery of new gas deposits.
Oil ? The Indian government continues to hold licensing rounds in an effort to promote exploration activities and boost domestic oil production. ? According to Oil & Gas Journal (OGJ), India had approximately 5.7 billion barrels of proven oil reserves as of January 2011, the second-largest amount in the Asia-Pacific region after China. India’s crude oil reserves tend to be light and sweet. India produced roughly 950 thousand barrels per day (bbl/d) of total liquids in 2010, of which 750 bbl/d was crude oil. The country consumed 3.2 million barrels per day (bbl/d) in 2010. ? The combination of rising oil consumption and relatively flat production has left India increasingly dependent on imports to meet its petroleum demand.
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Natural Gas
According to Oil and Gas Journal, India had approximately 38 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2011. ? The bulk of India’s natural gas production comes from the western offshore regions, especially the Mumbai High complex, though fields in the Krishna-Godavari (KG) are increasingly important. ? Natural gas demand is expected to grow considerably, largely driven by demand in the power sector. ? India’s net imports reached an estimated 429 billion cubic feet (Bcf) in 2010.
Key segments ? Upstream: Comprises exploration and productivity activities ? Midstream: Involved in storage and transportation of crude oil and natural gas ? Downstream: Refining and production of petroleum products and processing storage marketing of petroleum products
•Total Production of Crude oil at 33.7 MMT in 2009-2010 •10.6% more over previous year •Total domestic consumption at 160 MMT in 2009-2010 •ONGC and OIL( Oil India Limited) accounted for 73.8% and 10.6% of total oil produced, the remaining share is produced by private / jv fields
•ONGC holds 47.3% of crude pipeline capacity
•IOCL holds 43.6%
•Remaining held by OIL
•20 Refiners of which 17 are in public sector and rest in private sector •GOI has opened the refining sector to private sector investment to increase domestic refining capacity •RIL has emerged as largest domestic refiner and has overtaken IOCL
•Total imports of crude oil and petroleum imports stand at $87.2 billion in 2009-2010 •Following are the volumes of imports Crude oil 159.3 MMT LNG 8.8 MMT Petroleum products 14.7 MMT •India's primary exports include petroleum products •Total value of exports in 2009-2010 was estimated at US$ 30 billion
•Abundant raw material •Growing demand for natural gas
•Energy Power generation Tea Plantation Industrial and domestic fuel Captive use of LPG shrinkage
•Non energy Fertile industry Petrochemicals CNG
Sector/Activity Exploration and Productivity Refining
FDI cap/equity
100%
Entry Route
Automatic
Other Conditions
Subject to sectoral regulations of Ministry of Petroleum & natural gas Subject to sectoral policy
49% of public sector undertaking (PSU’s) without involving any divestment or dilution in domestic equity in existing PSU’s , 100% for private equity
Foreign investment promotion board for PSU’s and automatic route for private companies
?
?
?
? ?
Oil field (Regulation and development) Act 1948 Oil and Natural Gas commission Act, 1959 Petroleum and Minerals pipeline Act, 1962 Oil Industry (Development ) Act, 1974 Coal bed Methane Policy 1997
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?
?
?
?
Freight Subsidy (for far flung area) scheme, 2002 Auto Fuel Policy 2003 National Biofuel Policy 2003 Petroleum and natural act regulatory board Act, 2006 New exploration Licensing Policy 1999
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? ? ?
To provide equal platform for public and private companies for E&P Increase Domestic Production and attract inward production Liberalization of oil and Gas sector Acreages are offered to participation companies through open bidding
?
? ?
?
?
?
Blocks awarded though competitive bidding GoI has no participating interest No upfront payment Exemption of payment on custom duties on Imports Freedom to sell gas in Domestic market Companies are provided seven year tax holiday
?
? ?
?
?
?
Ensures availability of resources Monitors Price and Transportation rates Ensures equitable distribution Enforces retail service obligation Maintains information regarding petroleum, petroleum products and natural gas. Lays down technical standards in the sector
Cumulative FDI has been estimated around UD$3.2 billion between 2000 and 2010
Inbound Deals ONGC signed a MoU with Arrow Energy(Australia) for cooperation in CBM production Vedanta signed an agreement to by 51-60% of Cairn India oil and gas assets for $9.6 billion(31-40% directly and the remaining through its subsidiary Sesa Goa)
Domestic Deals IOCL acquired 5% stake in OIL for US $232.9 million Reliance power Ltd acquired Reliance Natural Resource Ltd for US $1529 million
Outbound Deals
Reliance Eagleford Upstream Ltd formed a JV with Pioneer Natural Resources Company Reliance Marcellus MLC formed JV with Atlas Energy Inc. International Consortium of Indian oil companies acquired 40% stake in Empresa Mixta Venezuela Reliance Marcellus MLC formed JV with Carrizo Oil and Gas
Upstream ? Exploration and development of new fields ? Development of unconventional resources ? Mature Oil producing Basins ? Increasing demand for skilled labor ? Growing demand for oil field services and equipment
Midstream ? Expansion of gas transmission Pipelines ? Augmentation of LNG capacity
Downstream ? Emphasis on City gas distribution networks ? Augmentation of refining capacity ? Expansion of petroleum product distribution network
doc_873009872.pptx
This is a presentation describes overview of oil and natural gas sector in India.
?
?
?
The Indian oil and gas sector is a core industry for India. India’s oil and gas sector holds strategic importance in the economy as it meets around 42 per cent of the country’s primary energy demand and contributes over 15 per cent to the gross domestic product (GDP). India has been growing at a decent rate annually and is committed to accelerate the growth momentum. This would translate into India's energy needs growing many times
?
?
According to Oil Industry History the first structured oil well were built in the Gulf of Mexico. This was made on a place which was nearly 100 meters deep. One can also see the Oil Industry History which suggests that European oil well were made during the 1920s. After the disaster of the North Sea UK in the year 1988, which caught fire and killed more than 160 people, there was a change in the safety policy of the oil industry..
?
?
?
Crude Oil production for April-July 2011 was 12.858 million metric tonne (MMT), as compared to the 11.985 MMT in April-July 2010. Natural Gas production during April-July 2011 was 16356.3 million cubic metres (MCM). During April-July 2011, 57.01 MMT of crude oil was refined, compared to 54.33 MMT refined during corresponding period in 2010.
?
?
?
?
BMI’s report for Q3 2011 states that India’s share (in the Asian pacific region) of gas consumption in 2010 was an estimated 10.9 per cent In 2010, India consumed roughly 2.3 Tcf of natural gas, more than 750 billion cubic feet (Bcf) more than in 2008, according to EIA estimates. Regional oil use of 20.6mn barrels per day (b/d) in 2001 reached an estimated 26.4mn b/d in 2010 and is forecast to rise to around 29.6mn b/d by 2015. Oil imports are growing rapidly, because demand growth is outstripping the pace of supply expansion.
?
?
?
Oil consumption in India is projected to enhance by 4-5 per cent per annum to 2015, indicating a demand of 4.01 million b/d by 2015. Demand for petrol is expected to expand by 7.6 per cent (363,000 b/d) in 2011 and eventually by 6.7 per cent (388,000 b/d) in 2012 McKinsey anticipates that natural gas demand in India is expected to increase from current 166 million standard cubic meters per day to 320 million standard cubic meters per day by 2015.
?
?
India’s energy demand continues to rise. As vehicle ownership expands, petroleum demand in the transport sector is expected to grow in the coming years. While India’s domestic energy resource base is substantial, the country relies on imports for a considerable amount of its energy use. According to the International Energy Agency (IEA), hydrocarbons account for the majority of India’s energy use. Together, coal and oil represent about two-thirds of total energy use. Natural gas now accounts for a seven percent share, which is expected to grow with the discovery of new gas deposits.
Oil ? The Indian government continues to hold licensing rounds in an effort to promote exploration activities and boost domestic oil production. ? According to Oil & Gas Journal (OGJ), India had approximately 5.7 billion barrels of proven oil reserves as of January 2011, the second-largest amount in the Asia-Pacific region after China. India’s crude oil reserves tend to be light and sweet. India produced roughly 950 thousand barrels per day (bbl/d) of total liquids in 2010, of which 750 bbl/d was crude oil. The country consumed 3.2 million barrels per day (bbl/d) in 2010. ? The combination of rising oil consumption and relatively flat production has left India increasingly dependent on imports to meet its petroleum demand.
?
Natural Gas
According to Oil and Gas Journal, India had approximately 38 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2011. ? The bulk of India’s natural gas production comes from the western offshore regions, especially the Mumbai High complex, though fields in the Krishna-Godavari (KG) are increasingly important. ? Natural gas demand is expected to grow considerably, largely driven by demand in the power sector. ? India’s net imports reached an estimated 429 billion cubic feet (Bcf) in 2010.
Key segments ? Upstream: Comprises exploration and productivity activities ? Midstream: Involved in storage and transportation of crude oil and natural gas ? Downstream: Refining and production of petroleum products and processing storage marketing of petroleum products
•Total Production of Crude oil at 33.7 MMT in 2009-2010 •10.6% more over previous year •Total domestic consumption at 160 MMT in 2009-2010 •ONGC and OIL( Oil India Limited) accounted for 73.8% and 10.6% of total oil produced, the remaining share is produced by private / jv fields
•ONGC holds 47.3% of crude pipeline capacity
•IOCL holds 43.6%
•Remaining held by OIL
•20 Refiners of which 17 are in public sector and rest in private sector •GOI has opened the refining sector to private sector investment to increase domestic refining capacity •RIL has emerged as largest domestic refiner and has overtaken IOCL
•Total imports of crude oil and petroleum imports stand at $87.2 billion in 2009-2010 •Following are the volumes of imports Crude oil 159.3 MMT LNG 8.8 MMT Petroleum products 14.7 MMT •India's primary exports include petroleum products •Total value of exports in 2009-2010 was estimated at US$ 30 billion
•Abundant raw material •Growing demand for natural gas
•Energy Power generation Tea Plantation Industrial and domestic fuel Captive use of LPG shrinkage
•Non energy Fertile industry Petrochemicals CNG
Sector/Activity Exploration and Productivity Refining
FDI cap/equity
100%
Entry Route
Automatic
Other Conditions
Subject to sectoral regulations of Ministry of Petroleum & natural gas Subject to sectoral policy
49% of public sector undertaking (PSU’s) without involving any divestment or dilution in domestic equity in existing PSU’s , 100% for private equity
Foreign investment promotion board for PSU’s and automatic route for private companies
?
?
?
? ?
Oil field (Regulation and development) Act 1948 Oil and Natural Gas commission Act, 1959 Petroleum and Minerals pipeline Act, 1962 Oil Industry (Development ) Act, 1974 Coal bed Methane Policy 1997
?
?
?
?
?
Freight Subsidy (for far flung area) scheme, 2002 Auto Fuel Policy 2003 National Biofuel Policy 2003 Petroleum and natural act regulatory board Act, 2006 New exploration Licensing Policy 1999
?
? ? ?
To provide equal platform for public and private companies for E&P Increase Domestic Production and attract inward production Liberalization of oil and Gas sector Acreages are offered to participation companies through open bidding
?
? ?
?
?
?
Blocks awarded though competitive bidding GoI has no participating interest No upfront payment Exemption of payment on custom duties on Imports Freedom to sell gas in Domestic market Companies are provided seven year tax holiday
?
? ?
?
?
?
Ensures availability of resources Monitors Price and Transportation rates Ensures equitable distribution Enforces retail service obligation Maintains information regarding petroleum, petroleum products and natural gas. Lays down technical standards in the sector
Cumulative FDI has been estimated around UD$3.2 billion between 2000 and 2010
Inbound Deals ONGC signed a MoU with Arrow Energy(Australia) for cooperation in CBM production Vedanta signed an agreement to by 51-60% of Cairn India oil and gas assets for $9.6 billion(31-40% directly and the remaining through its subsidiary Sesa Goa)
Domestic Deals IOCL acquired 5% stake in OIL for US $232.9 million Reliance power Ltd acquired Reliance Natural Resource Ltd for US $1529 million
Outbound Deals
Reliance Eagleford Upstream Ltd formed a JV with Pioneer Natural Resources Company Reliance Marcellus MLC formed JV with Atlas Energy Inc. International Consortium of Indian oil companies acquired 40% stake in Empresa Mixta Venezuela Reliance Marcellus MLC formed JV with Carrizo Oil and Gas
Upstream ? Exploration and development of new fields ? Development of unconventional resources ? Mature Oil producing Basins ? Increasing demand for skilled labor ? Growing demand for oil field services and equipment
Midstream ? Expansion of gas transmission Pipelines ? Augmentation of LNG capacity
Downstream ? Emphasis on City gas distribution networks ? Augmentation of refining capacity ? Expansion of petroleum product distribution network
doc_873009872.pptx