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Indian Oil Corporation Organisational Structure
Indian Oil Corporation Organisational Structure
Indian Oil Corporation Organisational Structure
With over 34,233-strong workforce, IndianOil has been helping to meet India’s
energy demands for over half a century. With a corporate vision to be the Energy
of India, IndianOil closed the year 2011-12 with a sales turnover of Rs. 4,09,957
crore ($ 85,550 million) and profits of Rs. 3,955 crore ($ 825 million).
History:
IndianOil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil
Corporation was formed in 1964, with the merger of Indian Refineries Ltd.
IndianOil and its subsidiary (CPCL) account for over 49% petroleum products
market share, 31% national refining capacity and 71% downstream sector
pipelines capacity in India.
The IndianOil Group of companies owns and operates 10 of India's 22 refineries
with a combined refining capacity of 65.7 million metric tonnes per annum
(MMTPA, .i.e. 1.30 million barrels per day approx.). IndianOil's cross-country
network of crude oil and product pipelines spans 10,909 km with a capacity of
75.55 MMTPA of crude oil and petroleum products and 10 MMSCMD of gas.
This network is the largest in the country and meets the vital energy needs of the
consumers in an efficient, economical and environment-friendly manner.
It has a portfolio of powerful and much-loved energy brands that includes Indane
LPGas, SERVO lubricants, XtraPremium petrol, XtraMile diesel, PROPEL &
petrochemicals, etc. Validating the trust of 66.8 million households, Indane has
earned the coveted status of 'Superbrand' in the year 2009.
With a steady aim of maintaining its position as a market leader and providing
the best quality products and services, IndianOil is currently investing Rs. 47,000
crore in a host of projects for augmentation of refining and pipelines capacities,
expansion of marketing infrastructure and product quality upgradation.
Innovation is key
IndianOil has a sprawling world-class R&D Centre that is perhaps Asia's finest.
It conducts pioneering work in lubricants formulation, refinery processes,
pipeline transportation and alternative fuels, and is also the nodal agency of the
Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the country.
The Centre holds 212 active patents, with over 100 international patents.
IndianOil's domestic portfolio includes 11 oil and gas blocks and 2 CBM blocks
in India including 2 blocks as part of a consortium under NELP-VIII (blocks GK-
OSN-2009/1 and GK-OSN-2009/2). The overseas portfolio includes ten blocks
spread across Libya, Iran, Gabon, Nigeria, Timor-Leste and Yemen. Exploration
activities are at various stages of progress. In addition, as part of consortium,
IndianOil has been awarded Project -1 in the Carabobo heavy oil region of
Venezuela. To boost E&P activities, IndianOil has incorporated Ind-OIL
Overseas Ltd. – a special purpose vehicle for acquisition of overseas E&P assets
– in partnership with Oil India Ltd.
Natural Gas
marketing is another thrust area for IndianOil with special focus on City Gas
Distribution (CGD) business. The Corporation has entered into franchise
agreements with several CGD players to market Compressed Natural Gas
through its retail outlets. During 2011-12, gas sales grew by an impressive 27%
to 2.9 million tones from 2.28 million tones in the previous year.
IndianOil's joint venture with GAIL India Ltd. - Green Gas Ltd. – is authorised to
take up city gas distribution in Agra. A long term gas supply agreement has been
signed with NTPC.
Furthermore, in consortium with GSPC, HPCL and BPCL, IndianOil has won
gas pipeline bids for Mallavaram to Bhilwara and Vijaypur via Bhopal, Mehsana
to Bhatinda and Bhatinda to Jammu and Srinagar.
IndianOiI has forayed into alternative energy options such as wind, solar, bio-
fuels and nuclear power. A 21 MW wind power project is operational in the
Kutch district of Gujarat. The solar power initiative is being spearheaded on a
pilot basis in Orissa, Karnataka and the Northeast and a pan-India phased roll-out
is underway. Solar products such as solar lanterns and torches are being sold
through the Retail Outlets in rural and urban areas. With a view to investing in
the nuclear energy sector in the country, IndianOil has entered into an agreement
with the Nuclear Power Corporation of India Ltd.
IndianOil has the largest captive plantation – over 1,000 hectares – for bio-fuel
production in India which is underway in the States of Chattisgarh and Madhya
Pradesh, generating rural employment. To straddle the complete bio-fuel value
chain, IndianOil has formed a joint venture with the Chhattisgarh Renewable
Development Authority. IndianOil CREDA Biofuels Ltd. has been formed to
carry out farming, cultivating, manufacturing, production and sale of biomass,
bio-fuels and allied products and services in Chattisarh. In Uttar Pradesh,
IndianOil is establishing a model value chain for the production of
bio-diesel. A MoU for collaborating on commercial production of bio-diesel
from algae has also been signed with PA LLC
PRODUCTS:
Indane Gas
Auto Gas
Natural Gas
Petrol/Gasoline
Diesel/Gas oil
ATF/Jet Fuel
SERVO lubricants & greases
Marine Fuels & Lubricants
Kerosene
Bulk/Industrial Fuels
Bitumen
Petrochemicals
Special Products
Crude Oil
Business Operations :
Refineries
IndianOil refineries process all major indigenous crude oil plus over 36 types of
imported crude oil, from which it produces more than 60 types of petroleum
products, ranging from light distillates, such as LPG, naphtha and motor spirit, to
heavy ends, such as furnace oil and low sulphur heavy stock. The flexibility of
processing capability allows IndianOil to vary both its crude oil inputs and
petroleum product outputs to achieve the company’s desired production mix. To
meet the growing domestic demand for middle distillate products, such as HSD
and superior kerosene oil, IndianOil has invested in secondary processing
facilities to produce these higher value added products.
IndianOil refineries are fully equipped to meet the current environmental norms
in relation to product specifications in the country and are being constantly
modernized and upgraded to be able to meet all future environment regulatory
requirements.
Pipelines
Indian Oil Corporation owns and operates the largest network of crude oil and
petroleum product pipelines in India. The total network of pipelines is 10,909 km
with a capacity of 75.55 million metric tonnes per annum . The company’s
pipelines are well positioned to supply petroleum products from its refineries and
India’s ports to high demand states in northwestern India.
Marketing
IndianOil and its subsidiaries account for 49% petroleum products market share.
The company distributes its products directly to bulk customers and to retail
customers via a network of retail outlets and dealers/distributors.
Developing more than 2500 formulations over the years, it has successfully
perfected the state-of-the-art lube formulation technology meeting latest national
and international specifications with approvals from major original equipment
manufacturers. IndianOil markets around 800 grades of lubricants under the
brand name "SERVO" based on its own R&D technology and is one among the
six worldwide technology holders of marine oil technology. It has extensive
laboratory and pilot plant facilities to successfully pursue projects in lube,
refining and pipeline areas making it a unique technology centre.
Vertical integration along the entire hydrocarbon value chain is a key strategy for
achieving growth in the hydrocarbon business. IndianOil is attempting vertical
integration through E&P initiatives to secure its own equity oil so as to safeguard
its business interest against the highly volatile international oil market..
Petrochemicals
IndianOil has finalised a master plan to enter into the petrochemical product line
by integrating its core refining business with petrochemical activities,
predominantly utilising the streams available in various refineries.
Gas
With gas emerging as preferred fuel for the utilities sectors viz., power, fertilizers
and transportations, its share in the total energy basket is expected to reach 20%
by the year 2025. The company has taken several initiatives to harness these
growth potentials.
Top
Indian Oil Corporation Ltd. has been established to carry out the objectives
specified in the Memorandum & Articles of Association of the Company. The
main activities of IndianOil are refining, transporting and marketing of petroleum
products.
Vision
Objectives
To serve the national interests in oil and related sectors in accordance and
consistent with Government policies.
To ensure maintenance of continuous and smooth supplies of petroleum
products by way of crude oil refining, transportation and marketing
activities and to provide appropriate assistance to consumers to conserve
and use petroleum products efficiently.
To enhance the country’s self-sufficiency in crude oil refining and build
expertise in laying of crude oil and petroleum product pipelines.
To further enhance marketing infrastructure and reseller network for
providing assured service to customers throughout the country.
To create a strong research & development base in refinery processes,
product formulations, pipeline transportation and alternative fuels with a
view to minimising/eliminating imports and to have next generation
products.
To optimise utilisation of refining capacity and maximise distillate yield
and gross refining margin.
To maximise utilisation of the existing facilities for improving efficiency
and increasing productivity.
To minimise fuel consumption and hydrocarbon loss in refineries and stock
loss in marketing operations to effect energy conservation.
To earn a reasonable rate of return on investment.
To avail of all viable opportunities, both national and global, arising out of
the Government of India’s policy of liberalisation and reforms.
To achieve higher growth through mergers, acquisitions, integration and
diversification by harnessing new business opportunities in oil exploration
& production, petrochemicals, natural gas and downstream opportunities
overseas.
To inculcate strong ‘core values’ among the employees and continuously
update skill sets for full exploitation of the new business opportunities.
To develop operational synergies with subsidiaries and joint ventures and
continuously engage across the hydrocarbon value chain for the benefit of
society at large.
Obligations
Towards suppliers
To ensure prompt dealings with integrity, impartiality and courtesy and help
promote ancillary industries.
Towards employees
Financial Objectives
To ensure adequate return on the capital employed and maintain a
reasonable annual dividend on equity capital.
To ensure maximum economy in expenditure.
To manage and operate all facilities in an efficient manner so as to generate
adequate internal resources to meet revenue cost and requirements for
project investment, without budgetary support.
To develop long-term corporate plans to provide for adequate growth of the
Corporation’s business.
To reduce the cost of production of petroleum products by means of
systematic cost control measures and thereby sustain market leadership
through cost-competitiveness.
To complete all planned projects within the scheduled time and approved
cost.
Top management hierarchy of Indian Oil Corporation ltd.
BOARD OF
DIRECTORS
CHAIRMAN
FUNCTIONAL
DIRECTORS
EXECUTIVES
The powers, which are not delegated are exercised by the Board of Directors
subject to the restrictions and provisions of the Companies Act, 1956.
Chairman 1
Functional Directors 7
Non-Functional Director 11
Total 18
Executives:
I ( Executive Director's) 64
H (General Manager) 157
G (Dy. General Manager) 478
F (Chief Manager) 1217
E (Senior Manager) 1297
D (Manager) 1712
C (Dy. Manager) 2864
B (Assistant Manager) 2876
A (Officer) 4342
Total 15007
Workmen
IX (Supervisor) 1375
VIII (Supervisor) 5093
VII (Supervisor) 1280
VI (Supervisor) 3438
V (Skilled) 3480
IV (Skilled) 3743
III (Unskilled) 520
II (Unskilled) 48
I (Unskilled) 405
Total 19382
Major Project
CONSTRUCTION OF TANKS AND BLENDING FACILITY AT
VADINAR (5 X 85000 KL)
Project Cost: Rs. 267.00 crore
Expected Commissioning: September 2012
Benefit: The proposed scheme would ensure the reduction in demurrage being
paid at Vadinar crude oil receipt terminal.
Brief Description: Project consists of construction 5 tanks of 85000 KL
capacity each to store HS-Heavy crude oil along with crude oil mixing facility
at Vadinar.
REVAMP OF FCC UNIT AT MATHURA
Project Cost: Rs. 1000.00 crore
Expected Commissioning: January 2013
Benefit: The project would improve reliability of the unit, increase LPG
production consequently, maximize value added propylene to be recovered
from LPG stream through PRU revamp.
Brief Description: Project consists of Revamp of Reactor – Regenerator
Section, Third Stage Separator (TSS) for reduction of particulate emission,
modification in the Gas-Con Section and the OSBL (outside battery limit),
Revamp of existing Propylene Recovery Unit (PRU) and other related facilities.
BUTADIENE EXTRACTION UNIT AT PANIPAT
Project Cost: Rs. 341.50 crore
Expected Commissioning: February 2013
Benefit: This project would provide feedstock for the upcoming Styrene
Butadiene Rubber project at Panipat
Brief Description: As a part of integrating petrochemical value chain and
enhancing the value addition from Panipat Naphtha Cracker Project (PNCP),
production of Styrene Butadiene Rubber from butadiene feedstock available
from Panipat Naphtha Cracker project is envisaged.
INTEGRATED CRUDE OIL HANDLING FACILITIES AT PARADIP
Project Cost: Rs. 1492.33 crore
Expected Commissioning: The SPM offshore installation mechanically
completed. Commissioning will be undertaken during fair weather window, i.e.
between November 2012 to March 2013.
Benefit: The proposed facilities would enhance crude handling capacity at
Paradip port.
Brief Description: The proposal is for installation of 2nd SPM for Paradip
Refinery and 3rd SPM & sub-sea crude oil transfer pipeline with associated
facilities as a part of Integrated Offshore Crude Handling Facilities at Paradip.
STYRENE BUTADIENE RUBBER (SBR) AT PANIPAT
Project Cost: Rs. 890 crore
Expected Commissioning: 1st quarter 2013
Benefit: Value addition for naphtha / butadiene by forward integration with
SBR.
Brief Description: As part of integrating petrochemical value chain and
enhancing value from the Naphtha Cracker at Panipat, this project envisages
production of Styrene Butadiene Rubber from the Butadiene feedstock available
from the Naphtha Cracker. This project is being executed as a joint venture –
Indian Synthetic Rubber Ltd. (ISRL) - between IndianOil; Marubeni, Japan;
and TSRC, Taiwan.
GRASSROOTS REFINERY PROJECT AT PARADIP (ORISSA)
Project Cost: Rs. 29,777.00 crore
Expected Commissioning: April - September 2013
Benefit: The project will help in partially meeting the deficit in distillates viz.
LPG, Naphtha, MS, Jet/Kero, Diesel and other products, in the eastern part of
the country. The complex will generate intermediate petrochemicals feedstock.
Brief Description: A 15 MMTPA refinery is being constructed at Paradip in
Orissa. The refinery will have, apart from a Crude and Vacuum Distillation
Unit, a Hydrocracking Unit, a Delayed Coker Unit and other secondary
processing facilities. This will be the most modern refinery in India with a nil-
residue production, and the products would meet stringent specifications.
IndianOil has taken over 3344 acres of land for the project and necessary
infrastructure development.
DE-BOTTLENECKING OF SALAYA-MATHURA CRUDE PIPLEINE
Project Cost: Rs. 1584.00 crore
Expected Commissioning: 30 months after receipt of statutory clearances
Benefit: With the proposed de-bottlenecking/augmentation of SMPL, the
refineries would be in a position to process more crude oil.
Brief Description: The proposal is for enhancing the capacity of Salaya-
Viramgam section from 21 MMTPA to 25.0 MMTPA, [Viramgam-Koyali
section from 8.5 MMTPA to 9.0 MMTPA, Viramgam-Chaksu section from
13.5 MMTPA to 16.5 MMTPA, Chaksu-Mathura section from 7.5 MMTPA to
9.2 MMTPA and Chaksu-Panipat section from 6 MMTPA to 7.3 MMTPA].
Paradip-Haldia-Durgapur LPG Pipeline
Project Cost: Rs. 913.00 crore
Expected Commissioning: 30 months after receipt of statutory clearances
Benefit: The pipeline will facilitate cost-effective transportation of LPG from
Paradip and Haldia to the LPG bottling plants at Balasore, Budge Budge,
Kalyani & Durgapur.
Brief Description: The proposal envisages laying a pipeline for transportation
of LPG from Paradip and Haldia to the LPG bottling plants at Balasore, Budge
Budge, Kalyani & Durgapur. Total length of the pipeline is estimated to be
about 700 km.
Environment
The treated effluent is far superior to the stipulated MINAS quality and
quantum standards. Treated effluent is being reused to the extent of 65-70% in
the refinery units. Panipat Refinery continues to maintain zero discharge since
commissioning in 1998.
IndianOil refineries have adopted various measures for control of gaseous
emissions. These include use of low-sulphur fuel oil, desulphurisation of refinery
fuel gas, tall stacks for better dispersion of flue gases, advanced process control
systems; and energy conservation measures to reduce fuel consumption.
The sulphur dioxide emissions at IndianOil Refineries are well below the
limits prescribed by the Ministry of Environment&Forests and State Pollution
Control Boards. Ambient air monitoring stations with automatic continuous
monitoring instruments are provided at all the refineries. In particular, Mathura
Refinery has set up three ambient air quality-monitoring stations between the
refinery and the city of Agra and a fourth one at Bharatpur. Utmost care is taken
to minimise the impact of refinery operations on the air quality of the
surrounding areas so that the ambient air quality remains within the stipulated
limits prescribed for sensitive areas.
Most IndianOil refineries have commissioned secondary processing units
for improving fuel quality and reducing emissions. Some of the recent
commissioning include Hydrogen unit and Diesel Hydrotreater unit at Mathura
refinery and Motor Spirit Quality projects at Mathura and Haldia refineries.
Sulphur recovery units have been installed at all the refineries.
GREEN INITATIVES:
Low Sulphur (0.5%) Diesel was introduced in metros from April 1996.
Extra-low Sulphur (0.25%) Diesel was introduced in the eco-sensitive Taj
Trapezium area from September 1996, in Delhi from October 1997, and across
the country from 1st January 2000.
Diesel with 0.05% sulphur content was introduced in the metros in 2001.
Unleaded Motor Sprit (petrol or Gasoline) was made available all over the
country since February 1, 2000.
Green fuels (petrol and diesel) conforming to Euro-III emission norms have
already been introduced in 13 cities/states; the rest of the country is getting BS-II
fuels.
IndianOil is fully geared to meet the target of reaching EURO-III compliant
fuels to all parts of the country by the year 2010; major cities will upgrade to
Euro-IV compliant fuels by that time.
IndianOil has invested about Rs. 7,000 crore so far in green fuel projects at
its refineries; ongoing projects account for a further Rs. 5,000 crore.
Motor Spirit Quality Improvement Unit commissioned at Mathura
Refinery; similar units are coming up at three more refineries.
CONCLUSION: