energy demand is expected to double to 1,464 mtoe by 2035

World’s fourth-largest

energy consumer

• India’s energy demand is expected to double to 1,464 mtoe by 2035 from 559 mtoe in

2011. Moreover, the country’s share in global primary energy consumption would increase

twofold by 2035

Fourth-largest

consumer of oil and

petroleum products

• Oil consumption is estimated to reach 4.0 mbpd by FY16, expanding at a CAGR of 3.2 per

cent during FY08–FY16F

Sixth-largest LNG

importer in 2011 • LNG imports accounted for about one-fourth of total gas demand. India's gas demand is

estimated to more than double over the next five years

Source: US Energy Information Administration (EIA); Ministry of Petroleum & Natural Gas; Aranca Research

Notes: mtoe – Million Tonnes of Oil Equivalent; mbpd – Million Barrels Per Day, F - Forecast

Growing demand

Source: Business Monitor International (BMI); World Oil Outlook 2012; Ministry of Petroleum & Natural Gas; Aranca Research

Notes: mbpd – Million Barrels Per Day; bcm – Billion Cubic Meters

Growing demand

• India is the world’s fourth-largest energy consumer (2011); oil and gas account for 37.3 per cent of total energy consumption

• Buoyant economic growth is the main factor driving the country’s energy requirements

Skilled workforce

• About 139,068 people were employed in the petroleum industry at the end of FY12

• The University of Petroleum and Energy Studies in Dehradun, Uttarakhand, is Asia’s first and only energy university

Policy support

• Government has enacted various policies such as the New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) policy to encourage investments across the industry’s value chain

Supportive FDI guidelines

• 100 per cent Foreign Direct Investment (FDI) is allowed in upstream and private sector refining projects

• The FDI limit for public sector refining projects has been raised to 49 per cent

FY08

Oil

demand:

3.1 mbpd;

Gas

demand:

31.5 bcm

FY16F

Oil

demand:

4.0 mbpd;

Gas

demand:

165.2 bcm

Advantage

India

Source: US Energy Information Administration, Ministry of Petroleum & Natural Gas; Aranca Research

Notes: bcm – Billion Cubic Meters; tcf – Trillion Cubic Feet; mbpd – Million Barrels Per Day; mmscmd – Million Metric Standard Cubic Meter Per Day,

ONGC – Oil & Natural Gas Corporation of India; IOCL – Indian Oil Corporation Ltd

India is the world’s fourth-largest energy consumer

The country has 5.47 billion barrels of proven oil reserves, with oil production of 0.8 mbpd (FY2013)

India has 43.8 tcf of gas reserves in FY13 and produced 40.7 bcm of gas in FY13

Indian oil and gas sector

Midstream

segment –

Storage and

transportation

Downstream segment – Refining,

processing and marketing

• IOCL operates a 11,214 km network of crude, gas and product pipelines, with a capacity of 1.6 mbpd of oil and 10 mmscmd of gas

• This is around 30 per cent of the nation’s total pipeline network

• IOCL is the largest company, operating 10 out of 22 Indian refineries

• Reliance launched India’s first privately owned refinery in 1999 and has gained a considerable market share (28 per cent)

Upstream

segment -

Exploration and

production

• The upstream segment is dominated by the state-owned ONGC • It is the largest upstream company in the exploration and production (E&P)

segment, accounting for approximately 60 per cent of the country’s total oil output (FY13)

Oil consumption in India and current reserves

Source: Ministry of Oil & Natural Gas; BMI forecasts; Aranca Research

Notes: F – Forecast; CAGR – Compound Annual Growth Rate;

mbpd – Million Barrels Per Day; mn bbl – Million Barrels; * - Provisional

Oil consumption is estimated to expand at a CAGR of 3.4

per cent during FY2008–16F to 4.0 mbpd by 2016

Owing to this strong expected growth in demand, India’s

dependency on oil imports is expected to increase further

3.1

3.2

3.9

4.1 4.3

3.5

3.7 3.9 4.0

4,800

4,900

5,000

5,100

5,200

5,300

5,400

5,500

5,600

5,700

5,800

0.0

1.0

2.0

3.0

4.0

5.0

FY08 FY09 FY10 FY11 FY12* FY13F FY14F FY15F FY16F

Oil Consumption (mbpd) - LHS

Proven Oil Reserves (mn bbl) - RHS

Imports and domestic oil production in India

Source: Ministry of Oil & Natural Gas; BMI forecasts; Aranca Research

Notes: F – Forecast; mbpd – Million Barrels Per Day; * - Provisional

In FY13, imports accounted for approximately 80 per cent of

the country’s total oil demand

Backed by new oil fields, domestic oil output is anticipated

to grow to 1.0 mbpd by FY16

0.7 0.7 0.7 0.8 0.8 0.8 1.0 1.0 1.0

2.5 2.7 3.2

3.3 3.4 3.7

2.7 2.9 3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

FY08 FY09 FY10 FY11 FY12* FY13* FY14F FY15F FY16F

Oil Production (mbpd) Oil Imports (mbpd)

Proven reserves and total gas consumption in the

country (bcm)

Source: PPAC, Ministry of Oil & Natural Gas; Aranca Research

Notes: F – Forecast; bcm – Billion Cubic Meters;

CAGR – Compound Annual Growth Rate,

* - Provisional

With India developing gas-fired power stations,

consumption is up more than 160 per cent since 1995

Demand is not likely to simmer down any time soon, given

strong economic growth and rising urbanisation; during

FY2008–17F, gas consumption is likely to expand at a

CAGR of 21.0 per cent

31

32

47

51

46

40

13

7

15

0

16

5

17

5

1,0

90

1,1

15

1,1

49

1,2

78

1,3

30

1,3

30

1,3

30

1,3

30

1,3

30

1,3

30

0

200

400

600

800

1,000

1,200

1,400

FY08 FY09 FY10 FY11 FY12* FY13* FY14F FY15F FY16F FY17F

Gas Consumption Proven Gas Reserves

Domestic gas production and imports (bcm)

Source: Ministry of Oil & Natural Gas; Aranca Research

Notes: F – Forecast; bcm – Billion Cubic Meters;

* - Provisional

Domestic production accounts for more than three-quarters

of total gas consumption in the country

Imports constitute the rest; in 2012, the share of imports

was 22.0 per cent

India increasingly relies on imported LNG; the country was

the sixth-largest LNG importer in 2011 and accounted for

5.3 per cent of global imports

India’s LNG imports are forecast to increase at a CAGR of

33 per cent during 2012–17

32 33 47 52 48 41 44 47 51

64 12 11

12 12 13 23

32 32 48

56

FY08 FY09 FY10 FY11 FY12 FY13* FY14F FY15F FY16F FY17F

Gas Production Gas Imports

Crude oil production (mmt)

Source: Ministry of Petroleum & Natural Gas; Aranca Research

Notes: mmt – Million Metric Tonne; JV – Joint Venture

Total crude oil production was 37.9 mmt during FY13

ONGC accounted for 59.5 per cent of total crude oil

production in India

24.4 26.1 25.9 25.4 24.9 24.4 23.7 22.6

3.2 3.1 3.1 3.5 3.6 3.6 3.8 3.7

4.6 4.8 5.1 4.7 5.3

9.7 10.5 11.6

0

5

10

15

20

25

30

35

40

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

ONGC OIL Private/JV

Annual gas production (bcm)


Notes: bcm - Billion Cubic Meters;

JV – Joint Venture

Total gas production was 40.7 bcm during FY13

The contribution from Private/JV has decreased over the

last couple of years.

22.3 22.5 23.1 23.1 23.3 23.5

2.3 2.3 2.4 2.4 2.6 2.6 7.7 8.1

22.0 26.8

21.6 14.5

FY08 FY09 FY10 FY11 FY12 FY13

ONGC OIL Private/JV

Exploration activities (FY12*) (‘000 meters)


Note: * - Provisional

During FY12, 1,631,000 meters of wells were explored and developed in India

During the same period, 756 wells were drilled in the country

Most upstream drilling and exploration work is undertaken by state-owned oil companies

ONGC is the leader in the upstream segment and accounts for 62 per cent of total crude oil output in India

Development drilling activities (FY12*)

(‘000 meters)

198

467 87

295

Wells MetreageOnshore Offshore

409

740 62

129

Wells Metreage

Onshore Offshore

Shares in crude pipeline network by length

(out of 9,537 km)


Notes: km – Kilometre; mmtpa – Million Metric Tonnes Per Annum

India has a network of 9,537 km of crude pipeline having a capacity of 138.3 mmtpa

In terms of length, IOCL accounts for 45.9 per cent (4,376 km) of India’s crude pipeline network; moreover, the company

has the country’s longest pipelines, namely the Salaya-Mathura-Panipat Pipeline (1,870 km) and the Haldia-Barauni /

Paradip-Barauni Pipeline (1302 km)

In terms of capacity, ONGC leads the pack with a share of 47.4 per cent (65.5 mmtpa), followed by IOCL at 29.2 per cent

(40.4 mmtpa)

Shares in crude pipeline network by capacity

(out of 138.3 mmtpa)

12.5%

11.9%

45.9%

OIL

ONGC

IOCL

6.1%

47.4%

29.2% OIL

ONGC

IOCL

Shares in product pipeline network under

operation by length (out of 11,274 km)*


Notes: 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, PMHB - Mangalore Hasan Bangalore,

PCCK - Cochin-Coimbatore-Karur

* - As on 30th September 2012

Of the 11,274 km of refined products pipeline network (capacity of 70.7 mmtpa) in India, Indian Oil Corporation (IOC)

accounts for 54 per cent (6,127 km)

Gas Authority of India Limited (GAIL) has largest share (88 per cent or 2,038 km) of the country’s LPG pipeline network

(2,312 km)

Shares in LPG pipeline network by length

(out of 2,312 km)*

12%

88%

IOC

GAIL

54%

19%

15%

6% 3%

3%

HPCL

BPCL

OIL

PCCK

PMHB

Refinery crude throughput (mmt)


Note: mmt – Million Metric Tonne

State-controlled entities dominate the downstream segment

as well

India has 19 refineries in the public sector and 3 in the

private sector

In FY13, public sector refineries accounted for 69.4 per cent

of total refinery crude throughput

112.5 112.2 112.1 115.3 120.9 126.2

43.6 48.6 80.7 90.7

49.1 55.5

FY08 FY09 FY10 FY11 FY12 FY13

Public Sector Private Sector

Shares in India's total refining capacity

(FY’13)

Source: Ministry of Petroleum & Natural Gas; PPAC; Aranca Research

Notes: mmt – Million Metric Tonne; * - Provisional, 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,

NRL - Numaligarh Refinery Limited, MRPL - Mangalore Refinery and Petrochemicals Limited, RPL - Renegade Petroleum Ltd, EOL - Essar Oil Ltd

Total crude throughput rose from 130.1 mmt in FY06 to 181.7 mmt in FY13*

In FY13, the sector’s total installed refinery capacity was 215.06 mmt

In FY13, IOC emerged as the largest domestic refiner with a capacity of 54.2 mmt

Total installed capacity (mmt)

25%

11%

13%

5% 1%

7%

13%

9% IOC

HPCL

BPCL

CPCL

NRL

MRPL

RPL

EOL

135 135

78 80

0

50

100

150

200

250

FY12 FY13

Public Sector Private/JV Sector

Petroleum products from crude oil (mmt)


Notes: mmt – Million Metric Tonne; * - Provisional

During FY13, 217.8 mmt of petroleum products were produced

Petroleum products derived from crude oil include light distillates such as LPG, naphtha; middle distillates such as

kerosene; and heavy ends such as furnace and lube oils, bitumen, petroleum coke, paraffin wax

The production of petroleum products is expected to reach 1199.7 mmt during the 12th Plan period (2012–17)

Petroleum products from natural gas (mmt)

32 38 40 40 51 55 58

64 71 77 80

94 100 103 23 26

28 30

35 35 35

FY06 FY07 FY08 FY09 FY10 FY11 FY12*

Light Distillates Middle Distillates Heavy Ends

2.2

2.1

2.1

2.2

2.2

2.2

2.2


LPG

Downstream distribution statistics (‘000 tonnes)


Notes: mmt – Million Metric Tonne; mmtpa – Million Metric Tonnes Per Annum

* - Provisional

In FY13, total sales of petroleum products by companies

was 146.7 mmt, up 4.2 per cent from the previous fiscal

year

The total number of retail outlets (including private

companies) increased to 49,077 in April 2013 from 45,104

in April 2012

IOC owns the maximum number of retail outlets in the

country (48.8 per cent of total), followed by HPCL (26.7 per

cent) and BPCL (24.5 per cent); the remaining outlets are

owned by private firms

As of April 1, 2013, there were 12,610 LPG distributors in

India

0

50,000

100,000

150,000

200,000


Product Pipeline LPG Pipeline Crude Pipeline

Pipeline Capacity (mmtpa)

As of April 1, 2012

Length (km)

As of April 1, 2012

Product Pipeline 76.3 11,218

LPG Pipeline 3.9 2,312

Crude Pipeline 138.3 8,528

Total 218.5 22,057

Energy consumption pattern in 2011

Source: US Energy Information Administration (EIA);

Asia-Pacific Economic Cooperation (APEC); Aranca Research

Notes: mtoe – Million Tonne of Oil Equivalent

BTU – British Thermal Unit

In 2011, coal accounted for 41 per cent of total primary

energy demand

Energy demand in the Asia-Pacific region is expected to

reach 5,627 Mtoe by 2020 and 6,861 Mtoe by 2035

India’s energy demand is expected to double by 2035 to

48.7 quadrillion BTU 41%

23%

23%

8% 5% Coal

Petroleum

Solid biomass &waste

Natural gas

Nuclear & otherrenewables

Consumption pattern expected in 2035

Source: International Energy Agency (IEA); 12th Five-Year Plan;

Aranca Research

Over the next few years, the dependence on gas, hydro

power and nuclear power is expected to increase relative to

oil and coal

The government aims to quadruple India’s nuclear power

generation capacity to 20 GW by 2020; currently, seven

nuclear power reactors of 4,930 MWe capacity are under

construction 42%

24%

15%

11%

8% Coal

Petroleum

Solid biomass &waste

Natural gas

Nuclear & otherrenewables

Source: Bloomberg; Aranca Research

Notes: FY – Indian Financial Year, April–March

Company Ownership

(per cent)

FY13 Turnover

(USD billion)

Indian Oil Corporation

Limited

78.9 per cent state-

owned 84.7

Reliance Industries Public Listed 73.0

Bharat Petroleum

Corporation Limited


owned 44.5

Hindustan Petroleum

Corporation Limited


owned 39.7

ONGC 69.2 per cent state-

owned 29.7

GAIL India Limited 57.3 per cent state-

owned 9.4

Oil India Limited 68.4 per cent state-

owned 1.8

Source: Bloomberg; Aranca Research

Company Ownership

(per cent)

Global Turnover

(USD billion)

Cairn Energy India Pvt

Ltd Private Sector 1.5 (H114)

Shell Private Sector 341.9

(Nine months 2013)

BG Group Private Sector 13.7

(Nine months 2013)

BP Private Sector 285.4

(Nine Months 2013)

Coal Bed Methane

(CBM)

• Government approved the CBM policy in 1997 to boost the development of clean and

renewable energy resources

• CBM is an eco-friendly natural gas (methane), which is absorbed in coal and lignite seams

• CBM policy was designed to be liberal and investor friendly; the first commercial

production of CBM was initiated in July 2007 at about 72,000 cubic metres per day

Underground Coal

Gasification (UCG)

• The technology was first widely used in the US in the 1800s, and in India (Kolkata and

Mumbai) in the early 1900s

• UCG is currently the only feasible technology available to harness energy from deep un

mineable coal seams economically in an eco-friendly manner

• Reduces capital outlay, operating costs and output gas expenses by 25–50 per cent, vis-

à-vis surface gasification

Gas hydrates and bio-

fuels

• The government initiated the National Gas Hydrate 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

Source: Ministry of Petroleum & Natural Gas;

Aranca Research

Note: mt – Million Tonne

State Installed capacity,

as of April 2012 (mt)

Crude throughput for

2011–12 (mt)

Gujarat 91.7 104.8

Maharashtra 18.5 20.9

Haryana 15.0 15.5

Karnataka 15.0 12.8

Tamil Nadu 11.5 10.6

Kerala 9.5 9.5

Andhra Pradesh 8.4 8.8

Uttar Pradesh 8.0 8.2

West Bengal 7.5 8.1

Assam 7.0 6.7

Bihar 6.0 5.7

Punjab 9.0 -

Madhya Pradesh 6.0 -

Total 213.1 211.4


Notes: * - Provisional; # - April 2000–September 2013

Growing demand

Inviting Resulting in

Growing demand Increasing investments Policy support

India is fourth

largest energy

consumer

Rise in

population and

economic growth

to fuel demand

Increasing

industrialisation

and usage of gas

Supportive FDI

policies

Promoting of

investments in the

sector

Introducing

policies such as

CBM and NELP

FDI in FY13* was

USD2.03 billion

Cumulative# FDIs

in oil & gas totalled

USD5.4 billion

Huge investments

planned under

Eleventh Plan

Robust domestic

market; expected to

expand

• India is the world’s fourth-largest energy consumer

• Oil consumption is expected to rise 42.5 per cent during 2010–20

• The country accounted for 10.3 per cent of total demand for gas in Asia-Pacific in 2011

Increasing demand for

natural gas

• Several industries are increasing the usage of natural gas in operations; this has boosted

natural gas demand in India

• Some of the main industries that use natural gas – pulp and paper, metals, chemicals,

glass, plastic and food processing

Abundant raw material • The nation has large coal, crude oil and natural gas reserves

• Oil reserves amounted to 5.47 billion barrels in FY13

• Natural gas proved reserves stood at 1.24 tcm in FY13

Source: Ministry of Petroleum & Natural Gas; US Energy Information Administration,

BP Statistical Review of World Energy, June 2012; BMI; Aranca Research,

Notes: tcm - Trillion Cubic Meters, E&P - Exploration and Production

Favourable policies

• 100 per cent FDI allowed in E&P projects/companies; 49 per cent allowed in refining under

the automatic route from earlier approval route

• Policies to promote investments in the industry such as New Exploration Licensing Policy

(NELP) and Coal Bed Methane (CBM)

Huge investments

• Investments worth USD75 billion is expected across the oil & gas value chain under the

12th Plan (2012–17)

• Since April 2000-September 2013, FDI worth USD5.4 billion has been invested in India’s

petroleum and natural gas sector

Skilled labour

• The nation offers abundant skilled labour at much competitive wages compared to other

countries

• The University of Petroleum and Energy Studies in Dehradun, Uttarakhand, is Asia’s first

and only energy university

Natural gas discoveries • Several domestic companies (such as ONGC, Reliance and Gujarat State Petroleum)

have reportedly found natural gas in deep waters

• This offers significant expansion opportunity for the next decade

Source: Ministry of Petroleum & Natural Gas; BMI; Aranca Research

Integrated Energy

Policy (IEP), 2006 • Outlines goals for dealing with challenges faced by India’s energy sector

Petroleum and Natural

Gas Regulatory Board

(PNGRB) Act, 2006

• To regulate refining, processing, storage, transportation, distribution, marketing and sale of

petroleum, petroleum products and natural gas

Auto Fuel Policy, 2003 • To provide a roadmap to comply with various vehicular emission norms and corresponding

fuel quality upgrading requirements over a period of time


Note: NELP - New Exploration Licensing Policy

National Biofuel Policy,

2002 • To promote bio-fuel usage, the GoI has provided a 16 per cent concession on the excise

duty on bio-ethanol and exempted bio-diesel from excise duty

Freight Subsidy (for far-

flung areas) Scheme,

2002

• To compensate public sector Oil Marketing Companies (OMCs) on the freight incurred to

distribute subsidised products in far-flung areas

NELP, 1999 • To provide a contract framework for E&P of hydrocarbons; licenses for exploration are

awarded through a competitive bidding system; nine rounds of bidding completed till 2011

FDI Policies • The E&P segment’s FDI limit is 100 per cent, and the refining segment’s limit is 49 per

cent

Coal Bed Methane

(CBM) Policy, 1997 • To encourage exploration and production of CBM gas as a new eco-friendly source of

energy

Petroleum Rules, 1976 • Provisions for regulations governing pollution, safety, and other operating standards


Oil Industry

(Development) Act,

1974

• An act establishing a board to develop the oil industry and levy excise duty on crude and

natural gas

Petroleum and Minerals

Pipelines Act, 1962 • Acquisition of user’s rights by the government of India on land demarcated for laying

pipelines to transport petroleum and other minerals from one area to another

Petroleum and Natural

Gas Rule, 1959 • Regulates the grant of petroleum and natural gas exploration licenses and mining leases,

which belong to the government

Oil Field (Regulation

and Development) Act,

1948 • An act to regulate oilfields and develop mineral oil resources


FDI inflows into petroleum and natural gas

(USD million)

Source: Department of Industrial Policy & Promotion; Aranca Research

Notes: * - Provisional

** - Data for the period April-September 2013

Cumulative FDI inflows during April 2000 – September 2013 in India’s petroleum and natural gas sector stood at USD5.41

billion (2.6 per cent of total FDIs)

Across sectors, cumulative FDI inflows during April 2000 - September 2013 was USD204.8 billion, with the services sector

accounting for the largest share (18.8 per cent), followed by construction development (11.12 per cent) and

telecommunication (6.3 per cent)

FDI inflows into India (USD billion)

14.0 89.0

1,427.0

412.0

266.0

556.0

2,030.0


12.5

24.6

31.4

25.8

21.4

35.1

22.4

16.8

0

10

20

30

40

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14**

Source: Thomson Banker; Aranca Research

Date announced Acquirer name Target name Value of deal (USD million)

Oct 2013 ONGC Videsh Ltd Parque das Conchas, Brazilian Oilfield 529

Jun 2013 ONGC Videsh Ltd

(in partnership with Oil India Ltd) Rovuma Area 1 Offshore Block 2640

Nov 2012 ONGC Videsh ConocoPhillips (Kashagan Field) 5000.0

Nov 2012 Inpex Corp Oil and Natural Gas Corp’s exploration block

KG-DWN-2004/6 Not disclosed

Sep 2012 ONGC Videsh Hess Corp (Azrei oilfield) 1000.0

Apr 2012 Trafigura Pte Ltd Nagarjuna Oil Co Ltd 130.0

Apr 2011 Sesa Goa Ltd Calm India Ltd 1492.0

Feb 2011 BP PLC Reliance Industries Ltd 9,000.0

Aug 2010 BPRL EP413 13.4

Aug 2010 Sesa Goa Ltd Cairn India Ltd 1,180.8

Aug 2010 Vedanta Resources PLC Cairn India Ltd 6,568.5

Aug 2010 Reliance Industries Ltd Marcellus Shale Natural Gas 391.6

Jun 2010 Reliance Industries Ltd Infotel Broadband Svcs Ltd 1,026.7

Apr 2010 Sim Siang Choon Hardware Interlink Petroleum Ltd 17.8

Source: Thomson Banker; Aranca Research

Date announced Acquirer name Target name Value of deal (USD million)

Apr 2010 Reliance Industries Ltd Atlas Energy Inc-Marcellus 339.0

Mar 2010 Investor Group Gulfsands Petroleum PLC 573.3

Mar 2010 Natural Power Venture Pvt Ltd Great Offshore Ltd 11.8

Feb 2010 Investor Group Republic of Venezuela-Carabobo 4,848.0

ONGC’s position in the Indian market

• ONGC is the largest upstream oil company

• ONGC accounts for 60 per cent of India’s total crude

oil output and 57 per cent of total gas production

(FY13)

ONGC revenue growth (USD billion)

Source: Company Reports; BMI, Aranca Research

Note: TOE - Tonne of Oil Equivalent

• ONGC

registered

highest-

ever oil

production

• Highest

reserve

accretion

in the last

two

decades

– 83.5

million

toe

• Domestic

crude

production

up 2.1 per

cent

• ONGC

reported net

profit of

USD3.9

billion in

2011

• Highest-

ever

dividend

payout of

USD1.6

billion

• ONGC

recorded

net profit of

USD3.6

billion in

2013

13.0

15.3 14.2

13.1

15.3 15.9

15.2

FY07 FY08 FY09 FY10 FY11 FY12 FY13

Source: Company Reports; Aranca Research

Reliance Industries is a leading company in the petrochemical, refining and oil & gas industry

The company was ranked 99th in the Fortune Global 500 list 2012

It contributes 14 per cent to India's exports (Mar 2011) and 4.6 per cent of total market capitalisation in the country

FY12

Net Profit USD3.9 billion USD3.9 billion

EBITDA USD7.3 billion USD7.1 billion

Turnover USD66.8 billion USD68.4 billion

FY13 • Turnover increased by 9.2 per

cent in FY13

• Exports increased by 15 per cent to USD44.1 billion

• Record crude throughput at 68.5 million tonnes

• US shale: FY13 revenue and EBITDA at USD616 million and USD483 million respectively

Reliance Industries has entered into JVs with various companies across segments to align growth opportunities; it signed JVs

with Atlas, Pioneer, Carrizo SIBUR, and D.E. Shaw as well as entered into a strategic alliance with BP recently.

Upstream segment Midstream segment Downstream segment

• Locating new fields for exploration: 78

per cent of the country’s sedimentary

area is yet to be explored

• Development of unconventional

resources: CBM fields in the deep sea

• Opportunities for secondary/tertiary oil

producing techniques

• Increased demand for skilled labour

and oilfield services and equipment

• Expansion in the transmission network

of gas pipelines

• LNG imports have increased

significantly; this provides an

opportunity to boost production

capacity

• In light of mounting LNG production,

huge opportunity lies for LNG terminal

operation, engineering, procurement

and construction services

• Development in city gas distribution

(CGD) networks, which are similar to

Delhi and Mumbai’s CGDs

• To construct new refineries

considering advantages such as low

operation costs, lesser freight charges

and favourable policies

• Expansion of the country’s petroleum

product distribution network

• India has 63 tcf of recoverable shale gas reserves

• The Cambay, Krishna Godavari, Cauvery, and the Damodar Valley are the most prospective sedimentary basins for carrying

out shale gas activities in the country

• Around 20 tcf of gas has been classified as technically recoverable reserves in the Cambay basin in Gujarat (the largest

basin in the country), spread across 20,000 gross square miles with a prospective area of 1,940 square miles

• It is estimated that the Krishna Godavari (KG) basin encloses a series of organically rich shales, containing around 27 tcf of

technically recoverable gas. KG basin, located in Eastern India, holds the country’s largest shale gas reserves, extending

over 7,800 gross square miles with a prospective area of around 4,340 square miles

• India is likely to launch bidding for shale gas exploration toward the end of 2013

• In April 2012, the Directorate General of Hydrocarbons (DGH) submitted its draft policy on exploitation of shale gas to the

Ministry of Petroleum and Natural Gas

Source: E&Y; Aranca Research

Note: tcf – Trillion Cubic Feet

Name Address Contact person Telephone E-mail

Oil Industry Development

Board (OIDB)

301, World Trade Centre, Babar

Road, New Delhi – 110001

Mr T S Balasubramanian,

Financial Adviser and Chief

Accounts Officer

91-11- 23413298

91-11- 23414692 [email protected]

Petroleum Conservation

Research Association

(PCRA)

Sanrakshan Bhavan, 10 Bhikaji

Cama Place, New Delhi –

110066

Mr Arun Kumar, ED 91-11- 26198799

Ext.301 [email protected]

Bureau of Energy

Efficiency (BEE)

Ministry of Power, 4th floor,

SEWA Bhawan, RK Puram,

New Delhi – 110066

Dr Ajay Mathur, Director

General

91-11- 26178316,

91-11- 26179699

[email protected],

[email protected]

Oil Industry Safety

Directorate

Ministry of Petroleum & Natural

Gas, 7th floor, “New Delhi

House”, 27 Barakhamba Road,

New Delhi – 110001

Mr J B Verma, ED 91-11- 23316798 [email protected]

Petroleum Planning and

Analysis Cell (PPAC)


Gas, 2nd floor, Core-8, SCOPE

Complex, 7 Institutional Area,

Lodhi Road, New Delhi –

110003

Dr Basudev Mohanty,

Director

91-11- 24362501,

91-11- 24361380 -

Directorate General of

Hydrocarbons


Gas, C-139, Sector 63, Noida –

201301

Mr S K Srivastava, Director

General 0120 - 4029401 [email protected]

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

E&P: Exploration and Production

FDI: Foreign Direct Investment

FY: Indian financial year (April to March)

So FY12 implies April 2011 to March 2012

GoI: Government of India

INR: Indian Rupee

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

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

NELP: New Exploration Licensing Policy

TOE (or toe): Tonnes of Oil Equivalent

USD: 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

Year INR equivalent of one USD

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

2013-14 59.23

Exchange rates (Fiscal year)

Year INR equivalent of one USD

2005 45.55

2006 44.34

2007 39.45

2008 49.21

2009 46.76

2010 45.32

2011 45.64

2012 54.69

2013 57.72

Exchange rates (Calendar year)

Average for the year

India Brand Equity Foundation (“IBEF”) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The

same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium

by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in

any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the

content is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

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energy demand is expected to double to 1,464 mtoe by 2035

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