INTRODUCTION

INDIAN OIL- A PROFILE

Indian oil is the largest commercial undertaking in India, engaged in the business of refining, transportation and marketing of petroleum products throughout the country. It is the only Indian company in Fortune Global 500 listing of the worlds largest industrial and service companies. Indian oil owns and operates 8 of the countries refinery with a total refining capacity of 50.69 Million Metric Tons Per Annum (MMTPA). Indian oil has received approval from government in 1998 to set up a grassroots refinery of 9.0 MMTPA capacities at Paradip in Joint Venture. Indian Oil board has also approved the expansion of Cauvery Basin Refinery at Nagapattinam to 9MMTPA as a joint venture with Madras Refineries Ltd (MRL). Before taking Panipat Refinery and BGR, into operation, all the other six refineries of IOCL have achieved ISO-9002 and ISO-14001 accreditation. Mathura refinery has the unique distinction of being the first oil refinery in the world to receive occupational health and Safety Management System (OHSMS) certification. IOCLs quality initiative has led to over 60 units earning ISO-9001/9002/14001 accreditations.

IOCL has the largest network of 6268km cross- country pipeline for economical, reliable and eco friendly mode of transportation of crude oil and petroleum products. IOCL has a vast marketing network, spread all over the country, with 55% market share. It also imports crude oil and major petroleum products on behalf of the oil industry. IOCL has a world class R&D centre at Faridabad, Haryana, which has contributed significantly in the development and indigenization of lubricants formulation and also in process optimization, additives and catalysts in petroleum refining. IOCL nurtures the vision of becoming an integrated and diversified global energy corporation. It is augmenting infrastructure and harnessing new business opportunities in petrochemicals, power lube marketing, R&D, training and consultancy, exploration & production, LNG and fuel management in India and abroad. SERVO lubricants have been exported to Nepal, Bhutan, UAE, Kuwait and Sri lanka. Three offices have been opened at Kuala Lumpur, Kuwait and Dubai to coordinate and explore business opportunities. Indian Oil Corporation Ltd (IOCL) Refineries, an overview: IOCL is the countrys largest commercial enterprise, with a turnover of Rs 131247 crore and profit after tax of Rs. 2865 crore for Fiscal year 2009- 2010. IOCL was formed in year 1964 through the merger Indian Oil Company Ltd (1959) and Indian Refineries (1958). IOCL is also the highest ranked Indian company in the Fortune Global 500, at 170 th position. It is the 18th largest petroleum company in the world and the number one petroleum trading company among the national oil companies in the Asia- Pacific region. Indias Flagship national Oil Company as the flagship of national oil company, IOCs countrywide network of 24000 approx sales points and is backed for suppliers by 158 bulk storage depots and terminals, 95 aviation fuel stations and 88

Indane LPG bottling plants. Its subsidiary, IBP Company Ltd, is a stand- alone marketing company with a nationwide network of nearly 4000 retail sales points. Indian Oil also operates the largest and the widest network of retail outlets in the company. Upward integration and Diversification, Exploration and Production (E&P): The company has embarked upon major investments in E&P so as to secure its own equity oil and safeguard its business interest against volatile international oil market. It has entered into various joint ventures and farm out agreement with ONGC and other private and foreign companies in India and abroad.

GAS: Gas has emerged as the preferred fuel of the utilities viz; power, fertilizer and transportatation. Its share in total energy basket is expected to rise from 8.8% at present to 20% by 2025. The company has adopted multi pronged strategy to take advantage of the strategies shift occurring in the energy sector. Petronet LNG Ltd (PLL): PLL, a joint venture promoted by IOC along with BPCL, ONGC and GAIL has commissioned its 5MMTPA LNG terminal at Dahej in Gujarat, with first parcel of LNG from Qatar received in January 2004. The IOC has decided to take-off 1.5MMTPA on LNG for the next 25 years, as its maiden foray into gas marketing. Petrochemical: The company considers petrochemical as major growth driver in the future growth. The company has just commissioned its linear alkyl benzene unit at its Koyali refinery with an investment of Rs 12.5 billion. The unit would use kerosene as feed stock (100 TMTPA). The company has envisaged an investment of about Rs. 250 billion spread over 8 years of which Rs. 108 billion would be invested in petrochemical business. Some of the projects being undertaken by the company are as follows:

Panipat refinery Expansion from 6MMTPA to 12MMTPA. 73km Mundra- Khandala crude pipeline. 353km Paradip- haldia crude oil pipeline. 506km Sidhpur- Sangner product pipeline. 683km Chennai-Trichi- Madhurai product pipeline. MS Quality improvement projects at Mathura, Koyali and Haldia Refinary.

PX/PTA Unit at panipat refinery with an investment of Rs. 51billion is to be commissioned in this quarter. The unit would use Naphtha (500TMTPA) as feedstock and PTA as finished products. Naphtha Cracker project and downstream polymer units at panipat with an investment of Rs.63 billion was completed in year 2008.