Oil and Gas

Marketing and Resource Management

Pritish Barman
Assistant Professor (SS)
Dept. of Petroleum Engineering & ES
School of Engineering
 Content

• Structure of O&G Industry

• Development of O&G Industry
• India HC Vision 2025
• Petroleum Resource Classification
• Resource Management

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EXPLORATION

MARKETING

PRODUCTION

REFINING &
PETROCHEMICAL

PIPELINE 3
 Introduction
• Structure
– Upstream: E & P and Storage
– Midstream: Custody Transfer – Pipeline – Custody Transfer
• Pipeline (15 miles per hour for NG)
• LNG Vessel
• Crude Tanker
• Cascade Systems –Truck Mounted – (remote production, e.g. – CBM)
– Downstream: Refining (Frac. Distillation) & Petrochemical
– Marketing & Sales: Retail Outlets, Gas Station.
• Ownership
• Market
• Geopolitics – OPEC,

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 Indian Strategic Petroleum Reserves
• To ensure energy security, the Government of India had decided to set up 5 million metric tons (MMT) of strategic crude oil storages at
three locations namely, Visakhapatnam, Mangalore and Padur (near Udupi). These strategic storages would be in addition to the existing
storages of crude oil and petroleum products with the oil companies and would serve as a cushion during any external supply
disruptions. The construction of the Strategic Crude Oil Storage facilities is being managed by Indian Strategic Petroleum Reserves
Limited (ISPRL), a Special Purpose Vehicle, which is a wholly owned subsidiary of Oil Industry Development Board (OIDB) under the
Ministry of Petroleum & Natural Gas. Engineers India Limited (EIL) is taken as the Project Management Consultant for all three projects.

The crude oil storages are constructed in underground rock caverns and are located on the East and West coast of India. Crude oil from
these caverns can be supplied to the Indian Refineries either through pipelines or through a combination of pipelines and ships.
Underground rock caverns are considered the safest means of storing hydrocarbons. The estimated cost of the project was around
Rs.2,837 crore at September 2005 prices. This excluded the cost of filling the crude oil in the caverns. Approval of the Union Cabinet was
obtained to enhance the capacity at Visakhapatnam to 1.33 MMT and to permit utilization of the additional 0.3 MMT compartment by
Hindustan Petroleum Corporation Limited (HPCL) on proportionate cost sharing basis. As a result of this approval, the strategic storage
capacity is 5.03 MMT.

The approved Revised Cost Estimates for Visakhapatnam, Mangalore and Padur are Rs.1178.35, Rs 1227 crores and Rs 1693 crores
respectively. The total cost of all the three projects is Rs 4098.35 crore, out of which Rs 265.79 crore is being provided by HPCL for the
0.3 MMT compartment at Visakhapatnam.

• SPRL will operate the storage facilities as custodian of core critical sovereign crude oil reserves apart from operating the facilities as
custodian of crude oil of any other entity that Government may determine. It shall also coordinate the release and replenishment of
strategic crude oil stock during supply disruptions through an Empowered Committee to be constituted by the Government of India.
Visakhapatnam project has already been commissioned and strategic portion of crude oil has been filled in 1.03 MMT cavern
compartment. HPCL has commenced utilization of the 0.3 MMT compartment for its day to day refining operations. 

Project Mangalore Cumulative

Location facility Physical in October 2016 by filling one compartment through crude oil procured by MRPL and BPCL
has been commissioned
Progress
base on directions in %One VLCC was procured by MRPL and two VLCC’s were procured by BPCL. ISPRL has signed an
of MoP&NG.
The physical status of the three projects is as of end July 2018 is as follows:
agreement with ADNOC for filling the second compartment at Mangalore. The first consignment of 2million barrels of oil from ADNOC
Visakhapatnam 100 AsAt
onPadur
30.06.2018, the authorized capitalchecks
was Rs.3832.56
was received at ISPRL Mangalore on 21st May 2018. site pre-commissioning are done,Crore andispaid
facility up
expected to be
Mangalore 100 of 2018-19.  & subscribed capital of the company was Rs.3685.37 Crore.
commissioned in Second quarter
Padur 99.20

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Petroleum Resource Classification
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Resource Evaluation

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