The Indian Oil and Gas Industry. DIBD India

Transcription

1 The Indian Oil and Gas Industry DIBD India

2 Introduction to the Indian Oil and Gas Industry Current market situation Growth of Indian Oil and Gas Industry Competitive landscape Nordic and Danish players SWOT

3 Current Market Situation - Oil The Indian Oil and Gas industry plays an important role in the Indian economy with major refineries and gas companies in the country. Indian Oil and Gas sector is primarily controlled by state owned Oil and Natural Gas Corporation (ONGC) which accounts for approx. 60% of India s crude oil output. The Indian Oil industry consumption was around 3.57 mn barrels per day (b/d) in 2012 compared to around 3.27 mn b/d in 2011 and is expected to reach 4.20 mn b/d by Indian Refinery industry has approximately 21 refineries with total oil refinery capacity being around 3.6 mn b/d which is expected to reach 4.29 mn b/d by India imports around 70% of total oil needs, from countries like Saudi Arabia, Iran, UAE, etc, and has spent USD $91,490 million in 2011 on imports.

4 Current Market Situation - Gas Indian Natural Gas consumption was approx 69.1 billion cubic meter (BCM) during It is expected to grow to 160 BCM by India imports 23% of total gas needs from Iran, Pakistan, Afghanistan, Myanmar, Qatar and has spent USD $8,405 million on imports in 2011.

5 Growth of Indian Oil Industry 4 3,5 3 2,5 Oil production & consumption in mn 2 1,5 1 Oil production in mn b/d Oil consumption in mn b/d 0,5 0 TIMELINE b/d Barrels per day

6 Growth of Indian Gas Industry Gas production & consumption in mn Gas production in BCM Gas consumption in BCM 20 0 TIMELINE BCM billion cubic meters

7 Competitive Landscape India has a largely state-controlled Oil and Gas sector. The main government upstream vehicle is ONGC, which accounts for two-thirds of India s crude oil and natural gas production. It is diversifying into refining and oil distribution. Privately owned domestic conglomerate Reliance Industries also participates in the Indian exploration and refining segments, with BP set to be a key partner in domestic upstream activities.

8 Key Government Entities in the Indian Oil and Gas Industry Company name Activities Office locations Total turnover in India in USD $ ONGC Oil and gas production North India, Uttarakhand 12 billion Oil India Crude oil production North India, New Delhi 1.6 billion Indian Oil corporation Petroleum products North India, New Delhi 54.6 billion BPCL Oil production West India, Maharashtra 26.4 billion HPCL Refinery West India, Maharashtra 23.8 billion GAIL Natural gas North India, New Delhi 5 billion

9 Key Private Entities in the Indian Oil and Gas Industry Company name Activities Office location Total turnover in India USD $ Reliance Industries Limited Natural gas West India, Maharashtra 43 billion Essar Oil Refinery West India, Maharashtra 9.61 billion Adani Gas Gas distribution West India, Gujarat 5.37 billion Cairn Energy Oil exploration North India, Haryana 1.6 billion

10 Major Refineries in India Indian Oil Corporation BPCL Reliance Industries Essar Oil Indian Oil Corporation Indian Oil Corporation BPCL HPCL HPCL Indian Oil Corporation Indian Oil Corporation BPCL

11 Oil and Gas Rigs in India OIL Cairn Energy OIL OIL Reliance Industries Cairn Energy

12 Oil and Gas Pipelines in India OIL DGH DGH OIL DGH DGH DGH

13 Scandinavian Cases in India (1/2) Welltec Welltec was established in 1994 in Denmark Welltec is worlds leading provider of robotic solutions for oil & gas wells Welltec is headquartered in Denmark with offices in 20 countries Welltec designs and manufacturers advanced technology for onshore and offshore wells Welltec has 450 employees worldwide Welltec started Indian operations in 2007 with offices in Mumbai, Maharashtra and Kakinada, Andhra Pradesh

14 Scandinavian Cases in India (2/2) SELCO A/S SELCO is a European firm founded in 1960, with headquarters in Denmark SELCO has subsidiaries in China, India, Middle East and South East Asia SELCO focuses on manufacturing of electronic control, alarm systems SELCO started its operations in Mumbai India in 2009 SELCO has been operating within the Indian Oil & Gas industry since 2006 SELCO does not have an extensive setup within the Oil & Gas industry, but has approached Engineering India Limited(EIL) to seek an approval to cater in the Oil and Gas industry SELCO had a discussion with Essar Oil in Hazira for control panels According to SELCO, getting an approval from EIL to enter the Oil & Gas industry is difficult and SELCO also feels that the parent company should be a solution provider rather than a product provider According to SELCO, exploration companies has good potential within the Oil and Gas industry

15 SWOT Analysis of The Indian Oil and Gas Industry Strengths India is the worlds fifth biggest energy consumer and continues to grow rapidly Major natural gas discoveries by a number of domestic companies hold significant medium to longterm potential. Demand for petroleum products Increase in demand for oil and gas High exploration portfolio Weaknesses The oil and gas sector is dominated by statecontrolled enterprises, although the government has taken steps in recent years to deregulate the industry and encourage greater foreign participation Increase in oil prices Inadequate and slowly developing infrastructure Lack of awareness in safety issues Environmental issues Opportunities Liquefied natural gas (LNG) imports are still set to grow rapidly over the longer term as domestic consumption expands India has freed gasoline retail price controls Untapped domestic oil and gas potential Strong domestic energy demand growth High recovery rates from existing projects Threats Increased competition within government and private players Continuing government interference Changes in national energy policies

16 Want to know more... Want to get more hands-on knowledge about the growing market opportunities for Danish companies in the huge yet complex Indian market... DIBD offers two points-of-contacts: Anders Kjøller Manager, DI Copenhagen E: P: (+45) M: (+45) Kunal Singla Director, DI India E: P: (+45) M: (+91) Anders works as Manager with focus on Asian markets in DI. He has over 10 years of project experience from projects in Asia. Anders has over 4 years of hands-on experience in the field from the Chinese market gained as Director of DI s office in Shanghai ( ). Experience from several projects within the marine, food and utility industries amongst others with business development, market studies, implementation of market entry strategies as well as implementation of distributor management. Anders has a M.Sc. Economics & M.A. East Asian Studies. As the director of DIBD s office in Mumbai, Indian-Danish Kunal is the man on the ground in India. Kunal has substantial hands-on experience with various projects (including partnership searches etc.) and recruitment in India. Kunal also has previous experience from the Commercial Department at the Royal Danish Embassy in New Delhi, and DI s Business Law department in Copenhagen. Kunal is fluent in Danish, English and the Indian national language Hindi, and has an extensive network in the Indian business community. Kunal holds a M.Sc. in Business Administration and Commercial Law from Copenhagen Business School, and has studied in the United States and China.