India Petroleum Industry

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[3/5]Total Votes [ 13 ]  
Rate this page:

India Petroleum Industry Latest News And Updates

India invites Canadian firms to invest in energy infrastructure
July 09, 2015 10:35 AM
India has invited Canadian financial institutions to invest in its energy infrastructure, an official statement said on Wednesday. The petroleum ministry statement here said Petroleum Minister Dharmendra Pradhan met Canadian officials and businessmen, during his visit to the country from July 4-6 to participate in the second India Canada Energy Dialogue, and "offered to jointly underwrite large-scale energy projects such as LNG (liquefied natural gas), refinery and petrochemical plants". He also "highlighted the availability of world standard cost-effective and quality engineering, procurement and construction companies in India with highly talented manpower who can contribute to the Canadian hydrocarbon sector", it added. Source: IANS
Bengal petrol pump owners withdraw agitation
May 25, 2015 10:03 AM
Following a tripartite meeting between petrol dealers, oil companies and state government officials, petrol pump owners in south Bengal and Kolkata have withdrawn from their stand of abstaining from fuel purchase. The West Bengal Petroleum Dealer' Association, commanding a base of nearly 800 petrol pumps, had previously called for refraining from fuel purchase from oil companies effective May 21 following a set of allegations. "We had a meeting between the State Home Secretary Sanjay Mitra, other state officials, oil company officials and us to discuss our grievances following which an agreement was reached," association general secretary Saradindu Pal said. "We are hence withdrawing from our previous stance of refraining from oil purchase and petrol pumps in the city or south Bengal won't be running dry." Source: IANS
Indian firms ready to invest in Mexico oil, gas: Pradhan
May 20, 2015 05:58 PM
Indian companies are willing to participate in the exploration of even deep water and unconventional hydrocarbon resources in Mexico, Petroleum Minister Dharmendra Pradhan told Mexican officials during his recent visit to the central American nation. "Indian companies are willing to participate in exploration and production activities in Mexico, including in deep water and unconventional resources," the petroleum ministry said in a release in New Delhi on Wednesday.  Pradhan also offered to help Mexico upgrade its refining sector, saying that India has emerged as a modern refining hub with expertise to develop complex refineries in a most cost-effective manner, the statement added. Source: IANS
OPEC daily basket price closes over a dollar lower
May 20, 2015 05:50 PM
The basket of 12 crude oils of the Organisation of Petroleum Exporting Countries (OPEC) closed at $61.11 a barrel on Tuesday compared to $62.98 on Monday, the organisation's secretariat said. The OPEC Reference Basket of Crudes is made up of Murban (UAE), Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia) and Merey (Venezuela). A barrel equals 159 litres. Source: IANS
Bengal petroleum dealers to stop fuel purchase from May 21
May 20, 2015 10:19 AM
Complaining of malpractices and a deteriorating business environment, a forum of petroleum dealers of West Bengal on Tuesday announced they would refrain from fuel purchases indefinitely from oil firms in the state. The West Bengal Petroleum Dealers Association (WBPDA) said that they have submitted a petition to the state's secretary on the issues affecting them. Over 800 petrol pumps would be a part of the protests. WBPDA alleged oil companies have developed a nexus with oil-truck operators in the state, forcing the oil dealers to avail third party oil-trucks despite about 60 percent oil dealers in the state owning their own oil-tankers. Source: IANS

Over the years India Petroleum Industry has played an influential part in triggering the speedy expansion of the country's economy by contributing 15% in the total GDP. Further to this, petroleum exports gave new dimension to foreign exchange earnings by drawing US$ 23.64 billion in the FY 2008-09.

To assist and acknowledge the expansion of the sector, the Cabinet Committee on Economic Affairs felicitated 44 petroleum research blocks on November 2008 under the New Exploration Licensing Policy (NELP-VII).

Various Production Segments:

  • Refinery production: Refinery production in context of crude oil escalated from 156.11 MT in FY 2007-08 to 160.67 MT in FY 2008-09. Indian Oil Corporation Ltd is looking forward to elevate the capacity of its Haldia refinery and Panipat refinery plants to 7.5 million tones and 15 million tones respectively in 2010.

  • Natural Gas Production: The natural gas production in 2008-09 increased from the previous year's 32.40 billion cubic metres tonnes (BCM) to 32.84 BCM. In 2009 alone the Natural gas production was registered at 33,846 million cubic metres.

  • Crude Oil Production: The projected production of crude oil during the 11th Five-Year Plan (2007-2012) is 206.76 MMT, while that of natural gas is 255.27 BCM. Cumulative production of crude oil between April-December 2009 was 25,152 MT, while cumulative production of refinery production during the same period was 119,283 MT.

India as an international refining destination

India is steadily emerging as an international destination for oil refining with investment requirements lesser by 25% - 50% as compared to its Asian counterparts. As per the analysis carried out by Deutsche Bank, India is expected to enhance its refining competence by 45% in the next 5 years. Being the fifth biggest worldwide nation in context of distillation capacity, India enjoys 3% of the international capacity share. To move ahead in making its presence felt strongly in the global market, Indian petroleum firms are planning to raise their distillation capacity from the existing 149 mtpa to 243 mtpa by FY 2011-12.

Indian petroleum retail market

Expansion of Indian petroleum retail market is triggered by the growth in automobile sales that resulted in major foreign investments. The growth is estimated to sustain and the market is likely to expand further by 20 million every year till 2030, placing India at the world map in terms of being the biggest automobile market.

Accordingly, the petroleum dealers Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation in collaboration with each other are looking forward to add 2,262 petrol pumps in India by 2010.

Investments in India Petroleum Industry

  • In 2010 the state-owned oil firms are expected to splurge US$ 11.34 billion on developing supplies and constructing new shipping networks for petroleum and natural gas.

  • Indian Oil Corporation is looking forward to establish a petroleum plant in the state of West Bengal by bringing in investments worth US$ 596.63 million.

  • ONGC will bring in US$ 694 million for raising services at its oil fields in Assam and adjoining states to enhance the petroleum output. In addition it will also splurge US$ 5.65 billion on capital expenses in the next two years.

  • GAIL (India) Limited and OVL, the international associate of leading oil and gas player ONGC, are expected to bring in investments worth US$ 250 million.

Future of India Petroleum Industry

As per the latest CII-KPMG analysis, the energy industry of India will help tin the expansion of the petroleum sector by bringing in investments worth US$ 120 billion-US$ 150 billion in the next 3-5 years. By 2012, the prospects in India Petroleum Industry are estimated to accomplish US$ 35 billion to US$ 40.

Last Updated on 13 December 2011