OIL & GAS - For updated information, please visit www.ibef.org - IBEF Presentation

 
OIL & GAS - For updated information, please visit www.ibef.org - IBEF Presentation
OIL & GAS

                                                 July 2021
            For updated information, please visit www.ibef.org
OIL & GAS - For updated information, please visit www.ibef.org - IBEF Presentation
Table of Contents

        Executive Summary              3

        Advantage India                4

        Market Overview and Trends     6

        Sector Drivers                 9

        Recent Trends and Strategies   24

        Growth Drivers                 30

        Opportunities                  36

        Key Industry Contacts          38

        Appendix                       40

 2
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Executive summary

      2. WORLD’S THIRD-LARGEST                                            3. THIRD-LARGEST
      ENERGY CONSUMER                                                     CONSUMER OF OIL
                                                                           India’s consumption of petroleum
       According to IEA (India Energy Outlook
                                                                            products grew 4.5% to 213.69 MMT in
                                                                                                                                       4. FOURTH-LARGEST
        2021), primary energy demand is expected to
        nearly double to 1,123 million tonnes of oil                        FY20 from 213.22 MMT in FY19.                              LNG IMPORTER
        equivalent, as the country's gross domestic                        India retained its spot as the third-largest
        product (GDP) is expected to increase to                            consumer of oil in the world in 2019.                            LNG import in the country accounted
        USD 8.6 trillion by 2040.                                                                                                             for about one-fourth of total gas
                                                                                                                                              demand, which is estimated to double
                                                                                                                                              over the next five years. To meet this
                                                                                                                                              rising demand the country plans to
     1. SECOND-LARGEST                                                                                                                        increase its LNG import capacity to
     REFINER IN ASIA                                                                                                                          50 MT in the coming years.
                                                                                                                                             India increasingly relies on imported
      As of May 01, 2020, India’s oil                                                                                                        LNG. It is the fourth-largest LNG
       refining capacity stood at
       259.3 million metric tonnes
                                                                              2                              3                                importer.
                                                                                                                                             India’s LNG import stood at 33.68
       (MMT), making it the second-                                                                                                           billion cubic meters (bcm) in FY20.
       largest refiner in Asia. Private
       companies       owned     about
       35.19% of the total refining
       capacity in FY20.
      India is planning to double its
       refining capacity to 450-500
                                                          1                                                                      4
       million tonnes by 2030.

 Notes: MMT - Million Metric Tonnes, Mtoe - Million Tonnes of Oil Equivalent; mbpd - Million Barrels Per Day, LNG - Liquified Natural Gas

 3
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Advantage India

4
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Advantage India

     2. GROWING DEMAND                                          3. RAPID EXPANSION
                                                                 In July 2021, the Minister for Road Transport and Highways, Mr.
      India is the world’s third-largest energy consumer
                                                                  Nitin Gadkari inaugurated India’s first liquefied natural gas (LNG)
       globally.
                                                                  facility plant in Nagpur, Maharashtra.
      Diesel demand in India is expected to double to
                                                                 In July 2021, Oil & Natural Gas Corporation (ONGC) announced to
       163 MT by 2029-30.
                                                                  spend Rs. 300 billion (US$ 4.03 billion) in FY22 to boost the oil &
      According to the International Energy Agency
                                                                  gas output.
       (IEA), consumption of natural gas in India is
                                                                 In February 2021, Prime Minister Mr. Narendra Modi announced
       expected to grow by 25 billion cubic metres
                                                                  that the Government of India plans to invest ~Rs. 7.5 trillion (US$
       (bcm), registering an average annual growth of
                                                                  102.49 billion) on oil and gas infrastructure in the next five years.
       9% until 2024.
                                                                 The industry is expected to attract US$ 25 billion investment in
                                                                  exploration and production by 2022. Refining capacity in the
                                                                  country is expected to increase to 667 MTPA by 2040.

                                                                                                             4. POLICY SUPPORT
 1. SUPPORTIVE FDI
                                                                                                                  In Union Budget 2021, the
 GUIDELINES                                                                                                        government allocated funds
                                                                                                                   worth Rs. 12,480 crore (US$
  The Government has allowed 100%
                                                                                                                   1.71 billion) for direct benefit
   foreign direct investment (FDI) in
                                                                                                                   transfer of LPG (liquefied
   upstream and private sector refining
   projects.
                                                            2                      3                               petroleum gas) and Rs. 1,078
                                                                                                                   crore (US$ 147.31 million) to
  The FDI limit for public sector
                                                                                                                   feedstock       subsidy      to
   refining projects has been raised to
                                                                                                                   BCPL/Assam Gas Cracker
   49% without any disinvestment or
                                                                                                                   Complex.
   dilution of domestic equity in
                                                                                                                  In Union Budget 2021, the
   existing PSUs.
                                                                                                                   Finance Minister announced to
                                               1                                                    4              provide 1 crore more LPG
                                                                                                                   connections under Pradhan
                                                                                                                   Mantri Ujjwala Yojana (PMUY)
                                                                                                                   scheme.

 5
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Market Overview And Trends

6
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State-owned companies dominate oil and gas in India
   India remained the third-largest energy consumer in 2019.
   India’s crude oil production in FY20 stood at 32.2 MMT.
   Crude oil production stood at 4.9 MMT in FY22 (April-May 2021) and was 30.5 MMT for FY21.
   Assam, Gujarat and Rajasthan account for more than 96% of oil production in India.
   India’s existing strategic oil reserves (SPR) is ~5.3 million tonnes.
   India had 4.7 thousand million barrels of proven oil reserves and produced 37.5 million tonnes in 2019.
   Oil production is expected to rise and reach 36 bcm^ by 2021.

                                                                   State-owned ONGC dominate the upstream segment.
                                 Upstream segment
                                  - exploration and                It is the largest upstream company in Exploration and Production (E&P) segment, accounting
                                     production
                                                                    for approximately 70.0% of the country’s total oil and gas output.

                                     Midstream                     IOCL operates a 14,701 km network of crude, gas and product pipelines, with a capacity of
     Indian Oil and
                                  segment - storage                 94.6 million metric tonnes per annum of oil and 20.0 million metric standard cubic meters per
       Gas sector
                                  and transportation                day of gas.

                                                                   IOCL is the largest company, controls 11 out of 22 Indian refineries, and has a combined
                                                                    capacity of 80.7 MTPA.
                                   Downstream
                                 segment - refining,               Reliance launched India’s 1st privately owned refinery in 1999 and has gained considerable
                                  processing and                    market share (30%). In January 2021, the company operated its plant at 96.1% capacity.
                                     marketing
                                                                   Nayara Energy Limited’s (NEL’s) Vadinar refinery has a capacity of 20 mmtpa, accounting for
                                                                    almost 10% of the 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 2020, US Energy Information Administration, Petroleum Planning and Analysis Cell

 7
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Oil supply and demand in India

                                                   Imports and domestic oil production in India (mbpd)

                                                                                        0.68               0.64
                                                 0.72              0.64
                               0.74
                                                                                                                          0.61
                                                                   4.41                 4.53               4.54
                                                 4.28
                               4.06                                                                                     3.96

                                                                                                                                           0.10

                                                                                                                                           0.62

                              FY16              FY17              FY18              FY19                  FY20          FY21             FY22*

                                                                          Oil Imports          Oil Production

   Diesel was the most consumed oil product in India and accounted for 39% of petroleum product consumption in 2019. It is used primarily for
    commercial transportation and further, in the industrial and agricultural sectors.

   Oil demand is expected to rise by 5.8 mbpd in 2040 from 5.27 mbpd in 2019.

   Oil demand increased 3.11% to 5.27 mbpd in 2019 from 5.11 mbpd the previous year.

   Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of oil for production and transportation

   In FY21, crude oil imports decreased to 3.96 mbpd from 4.54 mbpd in FY20.

 Note: CAGR - Compound Annual Growth Rate, mbpd - Million Barrels Per Day, P - Provisional, ^As per OPEC, Based on 50 MMT = 1 MBPD, * - Until May 2021
 Source: Ministry of Petroleum and Natural Gas, BP Statistical Review 2020

 8
Sector Drivers

9
Gas supply and demand in India

              Total Gas Consumption in the Country (MMSCM)                                                                   Domestic Gas Production and Imports (BCM)

       70000                                                                                                         70.00

       60000
                  64,451

                                                                                          64,144
                                                                                                                     60.00

                                                                                 60,798

                                                                                                   60,646
                                                                        59,170
                           57,367

                                                               55,697
       50000                                                                                                         50.00

                                                      52,517
                                    52,375

                                             51,300                                                                                                     28.74         33.89
                                                                                                                                       24.69   26.33                            32.86
       40000                                                                                                         40.00    21.39

       30000                                                                                                         30.00                              32.88
                                                                                                                              31.24    30.92   31.80                  31.18
                                                                                                                                                                                28.67

                                                                                                            10,485
       20000                                                                                                         20.00

       10000                                                                                                         10.00
                                                                                                                                                                                        5.24
                                                                                                                      0.00                                                              5.39
            0

                                                                                                                                FY16

                                                                                                                                        FY17

                                                                                                                                                 FY18

                                                                                                                                                           FY19

                                                                                                                                                                        FY20

                                                                                                                                                                                 FY21

                                                                                                                                                                                         FY22*
                  FY12

                           FY13

                                    FY14

                                             FY15

                                                      FY16

                                                               FY17

                                                                        FY18

                                                                                 FY19

                                                                                          FY20

                                                                                                   FY21

                                                                                                            FY22*
                                                                                                                                          Gas production          Gas Imports

   Demand is not likely to simmer down anytime soon, given strong economic growth and rising urbanisation.

   Gas consumption is projected to reach 143.08 bcm by 2040. The Government is planning to invest US$ 2.86 billion in the upstream oil and gas
    production to double the natural gas production to 60 bcm and drill more than 120 exploration wells by 2022.

   According to the International Energy Agency (IEA), India’s medium-term outlook for natural gas consumption remains solid due to rising
    infrastructure and supportive environment policies. Industrial consumers are expected to account for ~40% of India’s net demand growth. The
    demand is also expected to be driven by sectors such as residential, transport and energy.

   India’s natural gas imports increased at a CAGR of 6.92% between FY16 and FY21.

   LPG penetration rate of households reached ~97% in early 2020 compared with 56% in 2016.

 Note: F - Forecast, bcm - Billion Cubic Metres, CAGR - Compound Annual Growth Rate, * - Until May 2021
 Source: PPAC, BP Statistical Review 2020

 10
Exports of petroleum products from India

                                                                                                   Product-wise Exports of Petroleum Products from India in FY22*
             Exports of Petroleum Products from India (MMT)
                                                                                                                     (thousand metric tonnes)

      80                                                                                           6,000

      70                                                                                           5,000

                                                                                                                                                    4,806
      60                 65.5      66.8                  65.7                                      4,000
                                              61.1

                                                                                                                    2,268
              60.5
      50                                                           56.8                            3,000

      40                                                                                           2,000

                                                                                                                            957

                                                                                                                                       688

                                                                                                                                                                                                                         494
                                                                                                                                                                                   312
      30                                                                                           1,000

                                                                                                              88

                                                                                                                                              3

                                                                                                                                                                  0

                                                                                                                                                                                                        1
                                                                                                                                                                                              0
                                                                                                                                                            -
      20                                                                                                0
                                                                              9.60

                                                                                                                    MS!

                                                                                                                            Naphtha$

                                                                                                                                                                                                        Petcoke / CBFS
                                                                                                              LPG

                                                                                                                                       ATF#

                                                                                                                                                                                   Fuel Oil
                                                                                                                                                            LDO
                                                                                                                                              SKO

                                                                                                                                                                                                                         Others%
                                                                                                                                                    HSD

                                                                                                                                                                  LOBS/ Lube Oil

                                                                                                                                                                                              Bitumen
      10

       0
               FY16

                          FY17

                                     FY18

                                                FY19

                                                          FY20

                                                                     FY21

                                                                                FY22*

    India is one of the largest exporters of refinery products due to the presence of various refineries.

    Exports of petroleum products from India reached 56.8 MMT in FY21 from 60.5 MMT in FY16.

    The total value of petroleum products exported from the country increased to US$ 35.8 billion in FY20 from US$ 34.89 billion in FY19.

    HSD was the major export item among petroleum products, followed by MS, ATF and Naptha.

 Note: MMT - Million Metric Tonnes, P - Provisional, HSD - High speed Diesel, MS - Motor Spirit, ATF - Aviation Turbine Fuel, LPG - Liquefied Petroleum Gas, LDO - Light Diesel Oil, SKO -
 Superior Kerosene Oil, LOBS - Lubricating Oil Base Stocks, ^Others includes Hexane, Benzene, MTO (Mineral Turpentine Oil), Sulphur, etc, *- Until April 2021
 Source: PPAC, BP Statistical Review 2020

 11
Upstream segment: crude oil and gas production… (1/2)

                     Annual Crude Oil Production (in MMT)                                                 Crude Oil Production (in MMT)

       40                                                                                   40.0

       35       19.1                                                                        35.0
                           18.4       18.1        18.1
                                                                                                   11.4    10.4     9.9
       30                                                    16.0                           30.0                                 9.6        8.4
                                                                        15.4                                                                      7.4
       25                                                                                   25.0
                                                                                                   3.4
                                                                                                            3.3     3.4                     3.1   2.9
                                                                                            20.0   22.4                          3.3
       20
                                                                                                           20.9     20.8                20.6      20.2
                                                                                                                             19.6
       15       17.9       17.6       17.5        17.5                                      15.0
                                                             16.2
                                                                        15.1
       10                                                                                   10.0
                                                                                                                                                               1.2
        5                                                                                    5.0
                                                                                                                                                                 0.5
                                                                                    2.4                                                                  3.2
         -                                                                          2.6       -
               FY16       FY17        FY18       FY19       FY20        FY21       FY22            FY16    FY17     FY18     FY19       FY20      FY21     FY22*

                                      Onshore       Offshore                                                      ONGC     OIL     Pvt/JV

    Almost half of India’s crude oil production is from offshore fields, although this share is diminishing in the past few years as production from the
     large, ageing Mumbai High field has declined.
    In India, crude oil production stood at 30.5 MMT in FY21 and was 32.2 MMT in FY20
    Onshore production accounted for 49.53%, while offshore contributed the remaining 50.47%.
    ONGC accounted for ~66.19% of the total crude oil production in India in FY21.
 Notes: MMT - Million Metric Tonne, JV - Joint Venture, P-Provisional, * - Until May 2021
 Source: Ministry of Petroleum and Natural Gas

 12
Upstream segment: crude oil and gas production… (2/2)

      Annual Gas Production (million metric standard cubic metre)                                                                                                       Annual Gas Production (million metric standard cubic metre)

       50,000                                                                                                                                                            35,000
                                                                                                                                                                                                         2,881        2,722
                                                                                                                                                                                  2,838      2,937                                2,668
       45,000
                                                                                                                                                                         30,000                                                                2,480
                           43,645.1

                                                                                                                                                                                                         6,338       5,477
       40,000                                                                                                                                                                     8,235      6,872                               4,766
                                                38,474.8

       35,000                                                                                                                                                            25,000
                                                                                                                                                                                                                                               4,319

                                                                                                                                                                                                                       24,675

                                                                                                                                                                                                                                      23,746
                                                                                                                                                                                                          23,429
                                                                     31,802.3

       30,000

                                                                                                                                                                                              22,088
                                                                                                                                                                         20,000

                                                                                                                                                                                    21,177
       25,000
                                                                                          26,395.2

                                                                                                                         24,860.6

                                                                                                                      23,011.7

                                                                                                                                                                         15,000
                                                                                                                     22,117.1
                                                                                                                     22,038.2

                                                                                                                    22,010.6

       20,000
                                                                                                                   20,631.1
                                                                                                                10,045.8

                                                                                                                18,427.2
                                                                                                                9,903.9

                                                                                                                9,893.4

                                                                                                               9,601.0

                                                                                                                                                                                                                                                21,872
                                                                                                               9,293.9
                                                                                                               9,237.5
                                      9,083.8

       15,000
                                                                                9,011.7
                                                           8,876.9

                                                                                                     8,795.6
                 8,577.0

                                                                                                                                                                         10,000

       10,000                                                                                                                                                                                                                                             445
                                                                                                                                                              1,623.5

                                                                                                                                                                          5,000
                                                                                                                                                            3,652.2

        5,000                                                                                                                                                                                                                                            1,579
                                                                                                                                                                                                                                                         3,368
            0                                                                                                                                                                -
                    FY11

                                         FY12

                                                              FY13

                                                                                   FY14

                                                                                                        FY15

                                                                                                                 FY16

                                                                                                                         FY17

                                                                                                                                FY18

                                                                                                                                       FY19

                                                                                                                                                     FY21

                                                                                                                                                              FY22*
                                                                                                                                              FY20

                                                                                                                                                                                  FY16       FY17        FY18        FY19        FY20          FY21      FY22*

                                                                                          Onshore^                      Offshore                                                                       ONGC        Pvt/JV       OIL

 Note: JV - Joint Venture, ^Including CBM production, * - Until May 2021
 Source: Ministry of Petroleum and Natural Gas

 13
Upstream segment: exploration and development activities

                   Development drilling activities (FY19P)                                     Exploration activities (FY19P)

       1200                                                                     400

                                                                                350
       1000                                                                                                                      266
                                                                 649            300
        800
                                                                                250

        600                                                                     200
                                                                                                  149
                                                                                150
        400
                                                                                100
                                                                 338
        200                                                                                                                      85
                              165                                                50
                                                                                                   59
           0                  63                                                  0
                           Offshore                             Onshore                         Offshore                      Onshore

                              Wells      Meterage ('000 metres)                                    Wells    Meterage ('000 metres)

   In FY19P, 1,228,000 metres of wells were explored and developed and 545 wells were drilled in the country.
   State-owned oil companies undertake most of the upstream drilling and exploration work.
   The Government is planning to invest US$ 2.86 billion in the upstream oil and gas production to double the natural gas production to 60 bcm and
    drill more than 120 exploration wells by 2022.

 Notes: P- Provisional, *OALP - Open Acreage Licensing Policy
 Source: Ministry of Petroleum and Natural Gas, BMI

 14
Pipelines: crude pipeline network

                 Shares in Crude Pipeline Network by Length                                              Shares in Crude Pipeline Network by Capacity
                  (out of 10,419 kms, as of June 01, 2021)                                                 (out of 147.9 mmtpa, as of June 01, 2021)

                                                                  IOCL
                                                                                                                                                  ONGC
                                                                                                            20.08%
                   25.36%
                                                                  OIL
                                                                                                                                40.97%            IOC
                                                                                                        6.09%
                                               50.88%

               12.31%                                             ONGC
                                                                                                                                                  OIL

                        11.45%                                                                                  32.86%
                                                                  Others*
                                                                                                                                                  Others*

   As of June 1, 2021, India had 10,419 kms of crude pipeline, with capacity of 147.9 mmtpa.
   In terms of length, IOCL accounts for 50.88% (5,301 kms) of India’s crude pipeline network.
   In terms of actual capacities, ONGC leads with 40.97%, followed by IOCL at 32.86%.

 Note: km - Kilometre, mmtpa - Million Metric Tonnes Per Annum, *Others includes HMEL, BPCL and Cairn
 Source: Ministry of Petroleum and Natural Gas

 15
Pipelines: existing pipelines in India

  Length and capacity of products and crude oil pipeline by company (as of June 01, 2021)

                         IOCL        BPCL(1)       HPCL(2)         OIL        ONGC          Cairn      HMEL         Others (GAIL and Petronet India.)             Total industry

  Length (kms)

   Product
                         9,400        2,241          3,775         654           -            -            -                         2,395                            18,465
   Pipeline

   Crude oil
                         5,301         937             -         1,193        1,283          688        1,017                           -                             10,419
   Pipeline

   Total                14,701        3,178          3,775       1,847        1,283          688        1,017                        2,395                            28,884

  Capacity of Crude Oil Pipelines (mmtpa)

   Product
                         47.5          19.5          34.7          1.7           -            -            -                          9.4                              112.2
   Pipeline

   Crude oil
                         48.6           7.8            -            9          60.6         10.7         11.3                           -                              147.9
   Pipeline

   Total                 94.6          27.3          34.7         10.7         60.6         10.7         11.3                         9.4                              260.1

   Government of India is planning to invest Rs. 70,000 crore (US$ 9.97 billion) to expand the gas pipeline network across the country.

 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

 16
Pipelines: refined products and LPG pipeline network

       Shares in Products Pipeline Network under Operation by                                 Shares in products pipeline network under operation by length
           Length (out of 18,465 kms, as on June 01, 2021)                                             (out of 17,016 kms, as on December 31, 2020)

                                                                                                           1.82% 0.91%
                                                                                                                  6.13%                                              GAIL
                                                                         IOC
                       12.97%
                                                                                                                                                                     GSPL
                                                                                                           8.53%
                3.54%                                                    HPCL

                                                                                                                                                                     PIL
           12.14%                                                                                     13.23%
                                                                         BPCL
                                                  50.91%
                                                                                                                                                                     Reliance

                                                                         OIL
                                                                                                                                        69.39%                       IOCL
                  20.44%
                                                                         Others                                                                                      Others

   With 9,400 kms of refined products pipeline in India, the Indian Oil Corporation (IOC) leads the segment with 50.91%, as of June 01, 2021.
   Top three companies IOCL, HPCL and BPCL contribute more than 80% of the total length of product pipeline network in the country.
   As of December 31, 2020, Gas Authority of India Ltd. (GAIL) had the largest share (69.39% or 11,884 kms) of the country’s natural gas pipeline
    network (17,126 kms).
   In November 2020, oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) simplified the country's gas pipeline tariff structure to
    make fuel more affordable for distant users and attract investment for building gas infrastructure.

 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
 Source: Ministry of Petroleum and Natural Gas

 17
Downstream segment: refinery crude throughput… (1/2)

                                                                   Refinery Crude Throughput (MMT)

         300

         250
                                                                                                                               91.16    88.04        89.50
                                                                                                                       91.09
                                                                                                88.53      88.66
         200                                                                 88.27     88.23
                                                                   81.18                                                                                      78.00
                                               74.44     81.38
         150                                                                                                                            169.16       164.80
                           38.29     48.54                                                                          154.30     160.77
                 33.43                                                                134.22    134.73    144.20                                              143.80
         100                                                      122.58    130.57
                108.03     112.5    112.17    112.13    115.11
                                                                                                                                                                       13.80
          50
                                                                                                                                                                       25.10
           0
                   FY07

                             FY08

                                       FY09

                                                 FY10

                                                           FY11

                                                                     FY12

                                                                               FY13

                                                                                         FY14

                                                                                                   FY15

                                                                                                             FY16

                                                                                                                        FY17

                                                                                                                                 FY18

                                                                                                                                          FY19

                                                                                                                                                       FY20

                                                                                                                                                                FY21

                                                                                                                                                                         FY22*
                                                                   Public sector                      Private sector

    India has 23 refineries - 18 are in the public sector, two in the joint sector and three in the private sector.

    India’s state refineries have upgraded their facilities to comply with a new government requirement to produce oil products with the equivalent of
     Euro VI emission standards.

    Crude oil throughput of public sector refineries increased at a CAGR of 2.06%, from 108.03 MMT in FY07 to 143.8 MMT in FY21. At the same
     time, crude oil throughput of private sector refineries recorded a CAGR of 6.24%, from 33.43 MMT to 70.0 MMT.

    The share of private sector refineries throughput in the total crude throughput grew from 29.99% in FY07 to 35.19% in FY20.

 Note: MMT - Million Metric Tonne, Public Sector includes IOCL ,BPCL ,HPCL, CPCL and ONGC, Private sector includes RIL and NEL, * - Until May 2021
 Source: Ministry of Petroleum and Natural Gas

 18
Downstream segment: refinery crude throughput… (2/2)

                  Shares in India’s Total Refining Capacity
                                                                                                               Total Installed Refinery Capacity (MMT)
                            (as of June 01, 2021)
                                                                                                   300.00
                                 4.60%
                                                                           IOC                     250.00
                           6.04%

                                                                                                                                                                                        110.00

                                                                                                                                                                                                          88.20
                                                                                                                                                                                                 88.20

                                                                                                                                                                                                                   88.20
                                                                                                                                                                               105.50
                                                                                                                                                                      95.00
                                                                                                                                                             95.00
                                                   27.89%                  RIL                     200.00

                                                                                                                                 95.00

                                                                                                                                          95.00

                                                                                                                                                   95.00
                                                                                                                        93.00
                    8.00%

                                                                                                               76.50
                                                                           BPCL                    150.00

                                                                                                                                                                                                          162.10
                                                                                                                                                                                                 161.70

                                                                                                                                                                                                                   161.70
                                                                                                                                                                               142.10

                                                                                                                                                                                        142.07
                                                                                                                                                                      139.00
                                                                                                                                                             135.07
               10.84%
                                 249.9 MMT

                                                                                                                        120.07

                                                                                                                                 120.07

                                                                                                                                          120.07

                                                                                                                                                   120.07
                                                                                                   100.00

                                                                                                               116.89
                                                                           HPCL

                                                                                                    50.00
                                                                           NEL

                     15.33%                                                                           0.00
                                                                           ONGC
                                              27.29%

                                                                           CPCL
                                                                                                                             Public sector                  Private sector (incl JV)

   As of June 01, 2021, the sector’s total installed provisional refinery capacity stood at 249.9 MMT and IOC emerged as the largest domestic refiner,
    with a capacity of 69.7 MMT.
   In FY21, the top three companies, IOC, RIL and BPCL, contributed 70.6% to 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, * - Until April 2021
 Source: Ministry of Petroleum and Natural Gas, PPAC

 19
Downstream segment: petroleum products

                                                       Production of Petroleum Products by Fractionators (TMT)

                                                                                                      4,931.22

                                                                                                                  4,759.56
                                                                                     4,608.00

                                                                                                                              4,212.18
                                            3,657.15

                                                                       3,457.75
                                                          3,377.16

                                                                                                                                         699.00

                                          FY15           FY16        FY17          FY18          FY19            FY20        FY21        FY22*

    Consumption of petroleum products in India increased to 213.7 MMT in FY20 from 194.60 MMT in FY17.

    Petroleum products derived from crude oil include light distillates such as LPG, naphtha; middle distillates such as kerosene; and heavy ends such
     as furnace, lube oils, bitumen, petroleum coke and paraffin wax.

    Production of petroleum products by fractionators reached 4,212.18 TMT in FY21.

 Note: MMT - Million Metric Tonne, TMT - Thousand Metric Tonne, P – Provisional, * - Until May 2021
 Source: Ministry of Petroleum and Natural Gas

 20
Downstream segment: distribution and marketing

   The total number of OMC retail outlets increased to 77,331, as of                                         Downstream distribution statistics (MMT)
    June 01, 2021 (P), from 59,595 in FY17.
                                                                                                  250.0
   In India, IOCL, as of June 01, 2021 (P), owned the highest number of
    retail outlets (32,177), followed by BPCL (18,652) and HPCL
    (18,692).                                                                                     200.0

                                                                                                                                                                 102.36

                                                                                                                                                                          107.50
                                                                                                                                                    107.58

                                                                                                                                                                                             93.69
                                                                                                                                                                                    93.69
                                                                                                                                         96.61
   As of June 01, 2021 (P), there were 25,104 LPG distributors (under

                                                                                                                                 97.36
                                                                                                             109.72

                                                                                                                         97.36
                                                                                                  150.0
    PSUs) in India.

                                                                                                  100.0

                                                                                                                                                                 114.30

                                                                                                                                                                                             112.20
                                                                                                                                                                          111.30

                                                                                                                                                                                    111.30
                                                                                                                                                    110.50
                                                                                                                                         104.50
                                                                                                                                 97.70
                                                                                                                         89.57
                                                                                                             85.10
                                                                                                   50.0

                                                                                                    0.0
                                                                                                           FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22#
                                                                                                                      Product pipeline                       Natural Gas Pipeline*

                                                                                                                                     Capacity (mmtpa)                          Length (kms)
                                                                                               Pipeline                                   as of                                    as of
                                                                                                                                      June 01, 2021                            June 01, 2021

                                                                                               Crude Pipeline                               147.9                                  10,419

                                                                                               Product Pipeline                             112.2                                  18,465

                                                                                               Natural Gas Pipeline*                        337.3                                  17,126

 Note: MMT - Million Metric Tonne, mmtpa - Million Metric Tonnes Per Annum, OMC - Oil Marketing Companies, (P) - Provisional, PSU - Public Sector Unit, *- on December 31, 2020 for
 natural gas pipeline, #- on June 1, 2021 for product pipeline
 Source: Ministry of Petroleum and Natural Gas

 21
State-wise list of CNG stations in the country
  State                                 CNG Stations as of November 30, 2020             State                                  CNG Stations as of November 30, 2020

             Andhra Pradesh                               72                               Madhya Pradesh & Rajasthan*                           2

                 Assam                                     1                             Madhya Pradesh & Uttar Pradesh*                         2

                  Bihar                                    9                                         Maharashtra                                397

                                                                                                 Maharashtra & Gujarat                          12
      Chandigarh, Haryana, Punjab &                       15
           Himachal Pradesh*
                                                                                          National Capital Territory of Delhi                   421
                                                                                                        (UT)
          Dadara & Nagar Haveli                            7
                                                                                                         Odisha                                 19
             Daman and Diu                                 4
                                                                                             Puducherry & Tamil Nadu*                            1
        Daman and Diu & Gujarat                            9
                                                                                                         Punjab                                 69
                  Goa                                      4
                                                                                                      Rajasthan                                 39
                 Gujarat                                  709
                                                                                                      Tamil Nadu                                 2
                Haryana                                   137
                                                                                                      Telangana                                 73
      Haryana & Himachal Pradesh*                          2
                                                                                                         Tripura                                11
           Haryana & Punjab*                               4
                                                                                                     Uttar Pradesh                              340
            Himachal Pradesh                               1
                                                                                            Uttar Pradesh & Rajasthan*                          25

               Jharkhand                                  13
                                                                                           Uttar Pradesh & Uttarakhand*                          1

               Karnataka                                  37                                         Uttarakhand                                10

                 Kerala                                   12                                         West Bengal                                13

            Madhya Pradesh                                70                                             Total                                 2,543

 Source: Ministry of Petroleum and Natural Gas
 * Some of the GAs authorized by PNGRB span areas in more than one state; Compressed natural gas (CNG)

 22
Key domestic oil and gas companies

                                                                                                               Total Income from
                                                                                            Ownership
                                                       Company                                                 Operations in FY20
                                                                                          (%) as of FY20
                                                                                                                  (US$ billion)
                                                                                              56.98%
                                                       Indian Oil Corporation Limited                                79.97
                                                                                            state-owned

                                                       Reliance Industries                  Public Listed             87.1

                                                       Bharat Petroleum Corporation           54.31%
                                                                                                                     46.78
                                                       Limited                              state-owned

                                                                                               51.11%
                                                       Hindustan Petroleum
                                                                                        state-owned (through         37.83
                                                       Corporation Limited
                                                                                               ONGC)
                                                                                              68.07%
                                                       ONGC                                                          13.57
                                                                                            state-owned

                                                                                              53.59%
                                                       GAIL India Limited                                             9.43
                                                                                            state-owned

                                                                                              66.13%
                                                       Oil India Limited                                              1.93
                                                                                            state-owned

 Note: : FY - Indian Financial Year from April-March
 Source: Company’s Annual Report 2019-20

 23
Recent Trends and Strategies

24
Notable trends in the oil and gas sector

 1. Coal Bed Methane (CBM)                                                                                     5. Open Acreage
 •    CBM policy was designed to be liberal and                                                                Licensing Policy
      investor-friendly. The 1st commercial                                                                    •     Open Acreage Licensing Policy (OALP),
      production of CBM was initiated in July                                                                        which allows an explorer to study the data
      2007 at about 72,000 cubic metres per day.                                                                     available and bid for blocks of his choice,
                                                                                            5
 •    Production in 2019-20 stood at 655.44                                                                          has been initiated to increase foreign
      million cubic metres.
                                                                 1
                                                                                                                     participation by global E & P companies like
 .                                                                                                                   Shell, BP, Conoco Phillips etc.
                                                                                                               •     In January 2020, Open Acreage Licensing
 2. Underground Coal                                                                                                 Programme Bid Round-V offered 8
                                                                                                                     sedimentary basins and 11 blocks with a
 Gasification (UCG)                                                                                                  total area of 19,789.04 sq.km.
 •    The technology was first widely used in

                                                            2                                      4
      the US in 1800s and in India (Kolkata and
      Mumbai) in early 1900s.
 •    UCG is currently the only feasible                                                                             4. Oil Pricing
      technology available to harness energy                                                                         •   Organisation of the Petroleum Exporting
      from deep unmineable coal seams                                                                                    Countries (OPEC) meets 78% of India's

                                                                               3
      economically and in an eco-friendly                                                                                crude oil demand, 59% LPG needs and
      manner. It reduces capital outlay,                                                                                 ~38% LNG consumption as of 2020.
      operating costs and output gas expenses                                                                        •   In November 2020, the Indian
      by 25-50% vis-a-vis surface gasification.                                                                          government urged OPEC to remove
                                                  3. Gas hydrates and bio-fuels                                          pricing anomalies for different regions
                                                                                                                         with a view to help the Corona-battered
                                                  •   The Government initiated the National Gas Hydrate                  global oil industry get back to normalcy.
                                                      Programme (NGHP), a consortium of national E & P
                                                      companies and research institutions, to map gas hydrates
                                                      for use as an alternate source of energy.
                                                  •   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.

 25
Strategies adopted … (1/4)

   1
             Expansion
                     To expand beyond the natural gas business, in July 2021, GAIL (India) Ltd. announced to invest ~Rs. 5,000 crore (US$ 670.18
                      million) to establish a portfolio of renewable energy targeting a capacity of at least 1 gigawatts and build plants for both compressed
                      biogas and ethanol.
                     In June 2021, the government announced that it will auction unmonetised large oil and gas fields of state-owned ONGC and OIL to
                      boost hydrocarbon production.
                     In February 2021, Petronet LNG announced its plans to increase in its Dahej terminal's capacity by 29% to 22.5 million tonnes per
                      annum (mtpa) to meet the rising demand.
                     Key Indian oil retailers such as Bharat Petroleum and Hindustan Petroleum have announced plans to increase the capacity of their
                      outlets in rural areas in 2021.
                     In February 2021, ONGC announced that by May 2021, it would increase natural gas output from a KG basin block to 2.5-3 million
                      standard cubic meters per day.
                     In February 2021, the government launched key oil & gas projects in Assam, such as INDMAX Unit at Indian Oil’s Bongaigaon
                      Refinery, Oil India Limited's secondary tank farm at Madhuban, Dibrugarh and a ‘Gas Compressor Station’ at Hebeda Village,
                      Makum and Tinsukia remotely from Dhemaji in Assam.
                     In February 2021, the government launched key oil and gas projects such as the Ramanathapuram – Thoothukudi natural gas
                      pipeline and Gasoline Desulphurisation Unit at Chennai Petroleum Corporation Limited, Manali.
                     As per the Union Budget 2019-20, under scheme ‘Kayakave Kailasa’, the Ministry of Petroleum & Natural Gas enabled SC/ST
                      entrepreneurs in providing bulk LPG Transportation. State run energy firms Bharat Petroleum, Hindustan Petroleum and Indian Oil
                      Corp have plans to spend US$ 20 billion on refinery expansions to add units by 2022.
                     India targets US$ 100 billion worth investment in gas infrastructure by 2022 and to add another 228 cities to the gas distribution
                      (CGD) network. This would include setting up RLNG terminals, pipeline projects, completion of the gas grid and setting up of CGD
                      network in more cities.
                     On September 15, 2020, the Prime Minister, Mr. Narendra Modi inaugurated the three petroleum sector projects in Bihar which cost
                      more than Rs. 900 crores (US$ 122 million)
                     In October 2020, Torrent Gas Ltd. announced plan to spend Rs. 8,000 crore (US$ 1.1 billion) over the next five years to expand its
                      urban gas operations with the aim of setting up 500 CNG dispensing pumps by March 2023.

 Source: Bloomberg reports, News Articles

 26
Strategies adopted… (2/4)

   2
             Diversification
             •   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
             •   In July 2021, India diversified procurement for crude by announcing its first shipment from Guyana scheduled next month. This move also
                 indicates a future roadmap for extended alliance with Guyana in the oil & gas sector.

   3
             Investments to enhance production
             •   In July 2021, Bharat Petroleum Corporation Ltd. (BPCL) announced plan to establish its first-generation ethanol production plant in
                 Telangana at an estimated investment of Rs. 1,000 crore (US$ 134.04 million).
             •   The Indian oil and natural gas sector is likely to witness an investment of US$ 206 billion in the next eight to ten years.
             •   Indian Oil Company (IOC) is planning to invest Rs. 1.43 lakh crore (US$ 22.19 billion) to double its oil refining capacity to 150 million
                 tonnes by 2030.
             •   ONGC plans to invest more than US$ 500 million in Mumbai High.
             •   In February 2020, Indian Oil Corporation (IOC) announced plans to invest Rs. 500 crore (US$ 71.54 million) at Chitradurga in Karnataka.
             •   In December 2020, the Indian Oil Corporation (IOCL) announced plans to invest Rs. 1,689 crore (US$ 228.81 million) in new projects in
                 Andhra Pradesh. This includes Rs. 1,522 crore (US$ 206.19 million) on petro products infrastructure and Rs.167 crore (US$ 22.62
                 million) on LPG storage facilities.

   4
             Commercial use of oil
             •   In October 2020, the Cabinet Committee on Economic Affairs (CCEA) allowed Abu Dhabi National Oil Co. (ADNOC) to commercially use
                 50% of the oil it had stored in Indian underground strategic reserves.
             •   This flexibility will encourage the company to store more oil in the three strategic petroleum reserves built at Visakhapatnam, Mangalore,
                 and Padur and will act as an insurance against supply and price disruptions.

 Notes: ISEER - Indian Seasonal Energy Efficiency Ratio
 Source: News Articles, techARC1

 27
Strategies adopted… (3/4)

   5
             Pilot project Initiated for Shale Gas Production in India
             •   Oil and Natural Gas Corp (ONGC) has started Shale Gas exploration by spudding the first Shale Gas well RNSG-1 in Burdwan district of
                 West Bengal.
             •   In 2018, Great Eastern Energy Corp (GEECL) announced to invest US$ 2 billion over the next ten years in West Bengal to explore shale
                 gas reserves.
             •   As of March 2017, 22 assessment wells (5 exclusive shale gas in Cambay basin and 17 dual objective wells) in 19 Petroleum Mining
                 Lease (PML) blocks have been drilled and required data are being generated/evaluated for shale gas/oil assessment.

   6
             Move to non-conventional energy resources
             •   The Government is planning to set up around 5,000 compressed biogas (CBG) plants by 2023.
             •   In July 2021, ONGC, an upstream oil company, and NTPC announced plan to expand the offshore wind energy development in India and
                 accelerate presence in the renewable energy space.
             •   JBM signed an MoU with the Ministry of Petroleum and Natural Gas (MoPNG), Govt. of India, for the development of Compressed
                 Biogas (CBG) Projects.
             •   In December 2020, the Minister for Petroleum & Natural Gas and Steel Mr. Dharmendra Pradhan laid the foundation stone for the
                 Leafiniti Bioenergy’s CBG plant in the Bagalkot district of Karnataka. This plant will utilise 200 TPD (tonnes per day) of press mud and will
                 be commissioned at an estimated cost of Rs. 42 crore (US$ 5.6 million).

   7
             More focus upon small companies
             •   Private sector units like Adani, Sun Petrochemicals and few new entrants have bagged 1/3rd of small oil and gas fields.

 Source: CEAMA, India Retail Report, Business Line, IMAP India, News Sources

 28
Strategies adopted… (4/4)

   8
             Innovate for India
             •   In February 2021, IndianOil Corp. Ltd. signed a ‘statement of intent’ with Greenstat Hydrogen India Pvt. Ltd. to establish a centre of
                 excellence for Hydrogen value chain and other related technologies such as hydrogen storage, fuel cells, etc.
             •   In December 2020, the Minister for Petroleum & Natural Gas and Steel Mr. Dharmendra Pradhan has appealed to the scientific
                 community to Innovate for India (I4I) and create competitive advantages to make India ‘Aatmanirbhar’.

   9
             High Octane Petrol
             •   In December 2020, Indian Oil launched a world-class premium grade Petrol (Octane 100) in India. Branded as XP100, the premium-
                 grade petrol was launched in 10 cities.

   10
             ONGC Videsh
             •   In June 2021, ONGC Videsh is in the process to raise US$ 525 million in overseas foreign money loans from a mixture of home and
                 overseas lenders to repay bonds maturing in the subsequent months.
             •   ONGC Videsh, the abroad arm of the state-run explorer Oil and Natural Gas Corporation, is in discussion with half a dozen international
                 and domestic banks for the loan and intends to close the deal this month and draw down next month.

 Source: CEAMA, India Retail Report, Business Line, IMAP India, News Sources

 29
Growth Drivers

30
Growth drivers

               Growing demand                                       Favourable business condition                                         Government support

              Robust growth in domestic                                                                                                            100% FDI investment
                                                                                 Abundant raw material
                       market                                                                                                                            allowed

                  Increasing demand for
                                                                                       Skilled labour                                              Favourable policies
                        natural gas

 Notes: TCM - Trillion Cubic Metres, EandP - Exploration and Production
 Source: Ministry of Petroleum and Natural Gas, US Energy Information Administration, BP Statistical Review of World 2015 Energy, June 2012; BMI

 31
Rising demand

                  Crude oil consumption and forecast (MT)                                  Natural gas consumption and forecast (BCM)

                                                                                   160
                                      CAGR 3.60%                                                                 CAGR 4.18%
      600
                                                                                   140

                                                                                                                                         143.08
      500                                                                          120

                                                                  500.00
      400                                                                          100

                                                                                    80
      300
                                                                                    60
      200

                                                                                                       58.10
                                                                                    40
                             221.56

      100                                                                           20

        0                                                                             0
                           2017                                2040F                                   2018                           2040F

   Energy demand of India is anticipated to grow faster than energy demand of all major economies on the back of robust economic
    growth.Consequently, India’s energy demand as a percentage of global energy demand is expected to rise to 11% in 2040 from ~6% in 2017.
   Crude oil consumption is expected to grow at a CAGR of 3.60% to 500 million tonnes by 2040 from 221.56 million tonnes in 2017.
   Natural Gas consumption is forecast to increase at a CAGR of 4.18% to 143.08 million tonnes by 2040 from 58.10 million tonnes in 2018.
   Diesel demand in India is expected to double to 163 million tonnes (MT) by 2029-30.
   As of May 20, 2020, Oil Marketing Companies (OMCs) delivered 6.8 crore LPG cylinders to Pradhan Mantri Garib Kalyan Package (PMGKP)
    beneficiaries.
   India’s oil demand is projected to rise at the fastest pace in the world to reach 10 million barrels per day by 2030, from 5.05 million barrel per day
    in 2020.
   According to government data, India's natural gas production increased by 22.7% YoY in April 2021, as Reliance Industries Ltd. and its partner,
    BP plc, increased production in the KG-D6 block on the east coast.

 Notes: F-Forecast, MT - Million Tonnes, BCM - Billion Cubic Metres
 Source: BP Statistical Review of World Energy 2019, BP Energy Outlook 2019

 32
Regulatory overview of the industry

   1
             National Policy on Biofuels, 2018
             •   Proposed an indicative target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2030.
             •   Promoted advanced biofuels through a viability gap funding scheme of Rs. 5,000 crore (US$ 745.82 million) in six years for 2G ethanol
                 Bio refineries along with additional tax incentives.

   2
             Ethanol Procurement Policy
             •   The Ministry of Petroleum and Natural Gas released an ‘Ethanol Procurement Policy’ on a long-term basis under the ‘Ethanol Blended
                 Petrol (EBP) Programme’ (October 11, 2019), which covers modalities for long-term ethanol procurement, proposed mechanisms for
                 long-term procurement contracts, pricing methodology and other topics.

   3
             Liquefied natural gas (LNG) policy
             •   The Ministry of Petroleum and Natural Gas released a draft LNG policy that aims to increase the country's LNG re-gasification capacity
                 from 42.5 million tonnes per annum (mtpa) to 70 mtpa by 2030 and 100 mtpa by 2040.

   4
            Open Acreage Licensing
             Launched in June 2017, it allowed companies to carve out area for petroleum exploration and production. The policy, launched under
              Hydrocarbon Exploration and Licensing Policy (HELP), replaced New Exploration and Licensing Policy under which bidders did not have
              the freedom of carving out areas for E&P.

 Source: CEAMA, India Retail Report, Business Line, IMAP India, News Sources

 33
FDI investments in petroleum and gas in India

                           FDI Inflow in Petroleum and Natural Gas between April 2000 and September 2020 (US$ billion)

       8.00
                                                                                                                                  0.81         7.82
                                                                                            0.18        0.03         0.14
       7.00                                                          1.10       0.07

       6.00
                                                2.10          0.10

       5.00

       4.00
                   2.70          0.10
       3.00

       2.00

       1.00

       0.00
               FY01-FY11         FY12          FY13           FY14   FY15      FY16         FY17         FY18        FY19         FY20      FY01-FY20

   FDI inflow in India’s petroleum and natural gas sector stood at US$ 7.92 billion between April 2000 and March 2021.
   India has invited global firms to invest in its strategic petroleum reserves (SPRs) owing to the country’s rising energy consumption. India’s share in
    global energy consumption is set to rise from 7% to 12% in 2050.

 Source: Department Of Promotion Of Industry And Internal Trade

 34
M&A activities in the Indian oil and gas sector

  Date announced          Acquirer name                              Target name                                Value of deal (US$ million)

                          Oil India Ltd. (54.16%), Engineers India   Bharat Petroleum Corporation (Numaligarh
  Mar 2021                                                                                                                1,361
                          (4.4%) and Government of Assam (3.2%)      Refinery 61.5% stake)

  Jan 2021                Total                                      Adani Green Energy (20% minority stake)              2,500

                                                                     Bharat Oman Refineries (BORL)
  Dec 2020                Bharat Petroleum Corporation                                                                 Not disclosed
                                                                     (36.62% stake)
                                                                     East West Pipeline (EWPL) (Previously
  Mar 2019                Brookfield                                 known as Reliance Gas Transportation                 1,800
                                                                     Infrastructure)
  Apr 2018                Indian Oil Corporation Ltd (IOCL)          Shell Exploration & Production, Oman                  329
  Feb 2018                ONGC                                       HPCL (51.11% stake)                                57,020.39
                                                                     Abu Dhabi National Oil Co (10% stake in
  Feb 2018                ONGC Videsh                                                                                      600
                                                                     offshore oilfield)

  Aug 2017                Rosneft                                    Essar Oil (49% stake)                                1,290

  Dec 2016                Oil and Natural Gas Corp's                 Gujarat State Petroleum Co's                         1,200

  Dec 2015                ONGC Videsh Ltd. (OVL)                     Vankor oil field                                     1,260

  Jan 2015                Bharat Forge                               Mecanique Generale Langroise                         12.82

  Jun 2014                Gulf Petrochem Ltd.                        Sah Petroleums Limited                                7.13

  Mar 2014                IOCL                                       Progress Energy Canada Ltd.                       Not disclosed

  Mar 2014                IOCL                                       Progress Energy Canada Ltd.                       Not disclosed

  Mar 2014                IOCL                                       Progress Energy Canada Ltd.                       Not disclosed

 Source: Thomson Banker, News Articles

 35
Opportunities

36
Opportunities

                                                                                                      3. Upstream segment
 1. Midstream segment
                                                                                                       Locating new fields for exploration: 78%

                                                                        1
  Expansion in the transmission network of                                                             of the country’s sedimentary area is yet to
   gas pipelines.                                                                                       be explored.
  LNG imports have increased significantly.                                                           Increasing the share of natural gas: The
   This provides an opportunity to boost                                                                government is working towards increasing
   production capacity.                                                                                 the share of gas from 6.2% (currently) to
  In light of mounting LNG production, huge                                                            15% of the energy mix by 2030.
   opportunity lies for LNG terminal                                                                   Development          of     unconventional
   operation, engineering, procurement and                                                              resources: CBM fields in deep sea.
   construction services.                                                                              Opportunities for secondary/tertiary oil
                                                                                                        producing techniques.

                                                        2                                3
                                                                                                       Higher demand for skilled labour and
                                                                                                        oilfield services and equipment.
                                                                                                      .

 2. Down stream
 segment
  India is already a refining hub with 21 refineries, and expansion is planned for tapping foreign
   investment in export-oriented infrastructure, including product pipelines and export terminals.
  Development of City Gas Distribution (CGD) networks similar to Delhi and Mumbai’s CGDs.
 • India is set to expand India’s natural gas grid to 34,500 kms by adding another 17,000 km
   gas pipeline. The regasification capacity of the existing 42 MMT per annum will be expanded
   to 61 MMT per year by the year 2022.
  Indian companies are expected to spend Rs.100 billion (US$ 1.35 billion) over three years on
   1,000 liquefied natural gas (LNG) stations along main roads and industrial corridors and in
   mining areas to cut diesel consumption.
  As per preliminary data of gasoline sales, fuel consumption in India registered growth in June
   2021 and is expected to further recover by end-2021. Gasoline sales by state refiners stood
   at 2.12 million tonnes in June 2021, registering an increase of 5.7% YoY.

 37
Key Industry Contacts

38
Contact information

          Name                  Address                           Contact person           Telephone          E-mail

          Oil Industry          3rd Floor, Tower C, Plot No. 2,   Mr. Ajay Srivastava,
                                                                                           0120-2594630
          Development           Sector - 73, Noida, Uttar         Financial Adviser and                       facao.oidb@nic.in
                                                                                           0120-2594603
          Board (OIDB)          Pradesh - 201301                  Chief Accounts Officer
          Petroleum
          Conservation          Sanrakshan Bhavan, 10 Bhikaji
                                                                                           91-11- 26198799
          Research              Cama Place, New Delhi -           Mr. Alok Tripathi, ED                       pcra@pcra.org
                                                                                           Ext.301
          Association           110066
          (PCRA)
                                Ministry of Power, 4th floor,
          Bureau of Energy                                        Mr. Abhay Bakre,         91-11- 26178316,
                                SEWA Bhawan, RK Puram,                                                        dg-bee@nic.in
          Efficiency (BEE)                                        Director General         91-11- 26179699
                                New Delhi - 110066
                                Ministry of Petroleum & Natural
                                Gas,
          Oil Industry Safety   8th Floor, OIDB Bhawan, Plot      Mr. Varanasi
                                                                                           0120-2593800       rao.vj@gov.in
          Directorate           No 2,                             Janardhana Rao, ED
                                Sector-73, Noida, Uttar
                                Pradesh-201301
                                Ministry of Petroleum and
          Petroleum Planning    Natural Gas, 2nd floor, Core-8,   Mr. Vinod Kumar,
          and Analysis Cell     SCOPE Complex, 7 Institutional    Deputy Director -        011-24306153       webadm@ppac.gov.in
          (PPAC)                Area, Lodhi Road, New Delhi -     Information Technology
                                110003
                                Ministry of Petroleum and
          Directorate General                                     Mr. Atanu Chakraborty,
                                Natural Gas, OIDB Bhawan,                                  0120 - 2472001     dg@dghindia.org
          of Hydrocarbons                                         Director General
                                Plot No 2, Sector 73, Noida

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Appendix

40
Glossary

   B/D (or bpd): Barrels Per Day

   MBPD (or mbpd): Million Barrels Per Day

   BCM (or bcm): Billion Cubic Metres

   CBM: Coal Bed Methane

   CGD: City Gas Distribution

   EandP: Exploration and Production

   FDI: Foreign Direct Investment

   FY: Indian Financial Year (April to March)

   FY20 implies April 2019 to March 2020

   GoI: Government of India

   Rs.: Indian Rupee

   PM: Prime Minister

   LNG: Liquefied Natural Gas

   MMT (or MMT): Million Metric Tonne

   MMTPA (or mmtpa): Million Metric Tonnes Per Annum

   EBITDA: Earning Before Interest Taxes Depreciation Amortisation

   NRL: Numaligarh Refinery Limited

   CPCL: Chennai Petroleum Corporation Limited

   HPCL: Hindustan Petroleum Corporation Limited

   BPCL: Bharat Petroleum Corporation Limited

 41
Glossary

   IOC: Indian Oil Corporation Ltd

   EOL: Essar Oil Ltd

   RPL: Reliance Petroleum Limited

   MRPL: Mangalore Refinery and Petrochemicals Limited

   PCCK: Petronet Cochin-Coimbatore-Karur

   PMHB: Petronet Mangalore-Hassan-Bangalore

   OALP: Open Acreage Licensing Policy

   TOE (or toe): Tonnes of Oil Equivalent

   US$ : US Dollar

   ONGC: Oil and Natural Gas Corporation of India

   IOCL: Indian Oil Corporation Limited

   mn bbl: Million Barrels

   CAGR: Compound Annual Growth Rate

   JV: Joint Venture

   UCG: Underground Coal Gasification

   NGL: Natural Gas Liquids

   OMCs: Oil Marketing Companies

   NHGP: National Gas Hydrate Programme

   Wherever applicable, numbers have been rounded off to the nearest whole number

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Exchange rates

  Exchange Rates (Fiscal Year)                                               Exchange Rates (Calendar Year)

                    Year                         Rs. Equivalent of one US$              Year                  Rs. Equivalent of one US$
                  2004-05                                 44.95                         2005                           44.11
                 2005-06                                  44.28                         2006                           45.33
                 2006-07                                  45.29                         2007                           41.29
                 2007-08                                  40.24                         2008                           43.42
                 2008-09                                  45.91                         2009                           48.35
                 2009-10                                  47.42                         2010                           45.74
                 2010-11                                  45.58                         2011                           46.67
                 2011-12                                  47.95                         2012                           53.49
                 2012-13                                  54.45                         2013                           58.63
                 2013-14                                  60.50                         2014                           61.03
                 2014-15                                  61.15                         2015                           64.15
                 2015-16                                  65.46                         2016                           67.21
                 2016-17                                  67.09                         2017                           65.12
                 2017-18                                  64.45                         2018                           68.36
                 2018-19                                  69.89                         2019                           69.89
                 2019-20                                  70.49                         2020                           74.18
                 2020-21                                  73.20                         2021*                          72.68
 Note: As of June 2021
 Source: Reserve Bank of India, Average for the year

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