Industry Report Project

(Draft Copy)

Prepared by:

Shubh Savalia (1820330)

Shubham Bhargava (1820331)

Anhad Jit Singh (1820356)

Oil and Gas Industry (India)

This report is a draft copy of the industry report project (IRP) on Oil and Gas
industries in India. The companies that have been considered while making this
project are Reliance Petroleum, Oil and Natural Gas Corporation (ONGC),
Gas Authority of India Limited (GAIL). These companies are taken into
consideration for the project, taking an assumption that these are leading
companies in Oil and Gas Industry in India.

The draft copy consists of following content:

 Introduction
 History and origin
 Key Statistics and facts
 Company Profiles
Introduction

The oil and gas sector is among the eight core industries in India and plays a
major role in influencing decision making for all the other important sections of
the economy.

India’s economic growth is closely related to energy demand; therefore the need
for oil and gas is projected to grow more, thereby making the sector quite
conducive for investment.

The Government of India has adopted several policies to fulfil the increasing
demand. The government has allowed 100 per cent Foreign Direct Investment
(FDI) in many segments of the sector, including natural gas, petroleum products,
and refineries, among others. Today, it attracts both domestic and foreign
investment, as attested by the presence of Reliance Industries Ltd (RIL) and Cairn
India.

History and Origin

The first oil deposits in India were discovered in 1889 near the town of Digboi in
the state of Assam.

The natural gas industry in India began in 1889 with the discovery of gas fields
in Assam and Gujarat. Natural gas gained further significance after the discovery
of large reserves in the South Basin fields by ONGC in the 1970s.
Key Statistics and Facts

 Oil imports rose sharply from US$ 70.72 billion in 2017 to US$ 87.37
billion in 2018.
 3rd largest consumer of oil in the world.
 4th largest importer of Liquefied Natural Gas (LNG).
 16,226 km of Gas Pipeline infrastructure in the country.
 US$ 7.018 billion worth FDI was attracted between 2000 and 2019.
 Crude oil consumption is expected to grow at CAGR of 3.60% to 500
million tonnes by 2040.
These were based on the Exchange rate as on Q3 FY19:
INR 1 = US$ 0.0139

Company Profiles

1. Reliance Industries Limited

Reliance Industries Limited is engaged in refining, including manufacturing of

refined petroleum products, and petrochemicals, including manufacturing of
basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber
in primary forms. The Company's segments include Refining, Petrochemicals,
Oil and Gas, Organized Retail and Others. The Refining segment includes
production and marketing operations of the petroleum products. The
Petrochemicals segment includes production and marketing operations of
petrochemical products, including polyethylene, polypropylene, polyvinyl
chloride, poly butadiene rubber, butadiene, acrylonitrile, caustic soda and
polyethylene terephthalate.

 Owns the world’s largest refining hub with a capacity of 1.24 mbpd
 Operates across upstream and downstream
  Standalone total income of Rs 3,94,323 crore (US$ 56.42 billion) in FY19
 Reliance Petroleum has a network of more than 1,300 fuel retail outlets
spread across the country

2. Oil and Natural Gas Corporation

Maharatna ONGC is the largest crude oil and natural gas company in India,
contributing around 70 per cent to Indian domestic production. The company
ranks 11th among global energy majors (Platts). It is the only public sector Indian
company to feature in Fortune’s ‘Most Admired Energy Companies’ list. The
company also ranks 18th in ‘Oil and Gas operations’ and 183rd overall in Forbes
Global 2000. Acclaimed for its Corporate Governance practices, Transparency
International has ranked ONGC 26th among the biggest publicly traded global
giants. It is most valued and largest E&P Company in the world, and one of the
highest profit-making and dividend-paying enterprise. ONGC has a unique
distinction of being a company with in-house service capabilities in all areas of
Exploration and Production of oil & gas and related oil-field services. Winner of
the Best Employer award, this public sector enterprise has a dedicated team of
over 33,500 professionals who toil round the clock in challenging locations.

 Largest crude oil and natural gas company in India

 Ranked 11th globally as per Platts Top 250 Global Energy Rankings, 2017
 ONGC Videsh, its subsidiary, is the largest India’s largest international oil
and gas company
 Standalone Total Income of Rs 881.65 crore (US$ 12.22 billion) in 9M
FY19
3. Gas Authority of India Limited (GAIL)

The company was incorporated on 16th of August, 1984. The Gas Authority of
India Ltd. (GAIL), one of India's leading Public Sector Enterprises, is the largest
gas transmission and marketing company in the Country. The Company,
possessing a well-developed and efficient infrastructure, was established as a
wholly owned Company of the Government of India in August, 1984 with 100%
equity held by the Government of India and, within a short time, it has grown into
one of the 'Navratna' enterprises and is ranked among the top ten companies in
India. The various activities of the Company range from Gas marketing and
distribution through trunk and regional systems, to retailing of Natural Gas to Gas
processing for production and marketing of LPG, liquid hydrocarbons and
Petrochemicals. The equity pattern in the Company has also changed and the
Government today holds about 52.1% of the equity in the Company.

 The operating income of the company stood at Rs. 9,085 crore on 2019.
 The net income of the company stood at Rs. 6,026 crore on 2019.
 The worth of the assets of the company are Rs. 74,379 crore on 2019.
 It has total number of 4,529 employees.