Transcript Oil and Gas

Oil and Gas Industry
Dynamic and Growing
March 2005
Oil and Gas
India - An Overview
Market and Growth Potential
Players
Opportunities
Contact in India
March 2005
India - An Introduction
Population
Over 1 bn
States/UTs
35
Geographical Area
3.3 mn sq kms
Languages recognised
22
Business language
English
Per Capita Income**
US$ 534
GDP**
US$ 650 bn
**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
Source:CSO Statistics
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)
Employment
650,000
Contribution to
treasury
over 30%
Energy requirement
served by sector
35%
March 2005
Upstream
 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
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
India Vs World Energy Consumption Matrix
60
54
50
%of Consumption
40
37
33
30
World
27
24
India
20
8
10
6
0
4
1
6
India
Oil
Natural Gas
World
Coal
Nuclear Energy
Sources of Energy
March 2005
Hydroelectricity
Oil and Gas
India - An Overview
Market and Growth Potential
Players
Opportunities
Contact in India
March 2005
Domestic Players
Bharat Petroleum Corporation Ltd (BPCL)
Indian Oil Corporation Ltd (IOCL)
ONGC Videsh Ltd
Reliance Industries Ltd (RIL)
Hindustan Petroleum Corporation Ltd (HPCL)
Essar Oil Ltd
GAIL India 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,
ExxonMobil,
ChevronTexaco
Lubes
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
March 2005
US$ 110 bn
Business opportunities
 NELP rounds
Upstream
 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
March 2005
 Gas hydrate
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
Union Budget 2005-06
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%.
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 IV
Gurgaon 122015
Tel 0091 124 5014060-67
Fax 0091 124 5014080/5013874
E mail [email protected]
March 2005