CHAPTER-III RESEARCH SETTING

Indian Oil Corporation Limited (IOCL), Vadodara

GUJARAT REFINERY is a rapidly developing company. It is a production unit which produces MS, ETF, BUTIMEIN, ETF, LPG, etc. Name of the is only enough to it the goodwill and credit of the company. Its product quality the leading factors helps it to cover the national and state market. It is situated at koyali.

Gujarat refinery was establishment by our Prime Minister Jawaharlal Nehru in the year 1965. As it a huge step in industrial the government has supported the unit & having the register office at Bombay.

Indian oil corporation limited was formed in 1964 through the mergers of Indian oil company limited (ESTD-1959) and Indian refineries limited (ESTD-1958.)

Indian oil is also the highest ranked Indian company. It is also largest petroleum company in the world and the 1st petroleum trading company among the National oil companies in the Asia Pacific region.

It is currently Indias largest company by sales with turnover of Rs.1,83,204 crore and profit of Rs, 4915 crore.

HISTORY
Following the conclusion of an Indo-Soviet agreement in 1961 February, a site for the establishment of a 2 MMTPA Oil Refinery in Gujarat at Koyali near Vadodara was selected on the 17th April 1961. The Soviet and Indian engineers signed a contract in October 1961 for the preparation of the project report jointly. The first Prime Minister of India, Pandit Jawaharlal Nehru laid the foundation stone of this Refinery on 10th May, 1963. The Refinery was commissioned with Soviet assistance at a cost of Rs.26.00 crores and went on stream in October 1965. The first million tonne Crude Distillation Unit was commissioned for trial production on 11th October 1965 and full production at the rated capacity was achieved on 6th December 1965. The throughput was further increased by 20% beyond the designed capacity in January 1966. Dr. S Radhakrishnan, then President of India, dedicated the refinery to the nation with the commissioning of second crude distillation unit and Catalytic Reforming Unit on 18th October, 1966. The third 1.0 mmtpa crude distillation unit (AU-3) was commissioned in September 1967 to process Ankleshwar & North Gujarat crudes. In December 1968, Udex plant was commissioned for production of benzene & toluene using feedstock

available from CRU. By 1974-75 with in-house modifications, the capacity of the refinery was further increased by 40% to a level of 4.2 mmtpa. To process imported crude the refinery was expanded during 1978-79 by adding another 3 MMTPA Crude Distillation unit (AU-4) along with downstream processing units like Vacuum Distillation, Visbreaker & Bitumen Blowing Unit. By 1980-81 this unit started processing Bombay High crude in addition to imported crudes. It was for the first time in Indian petroleum industry that Indian engineers independently handled such a big project. To recover high value products from the residue, the secondary processing facilities consisting of Fluidized Catalytic Cracking Unit (FCCU)of 1.0 mmtpa capacity along with a Feed Preparation Unit (FCCU) of 1.0 mmtpa capacities, were commissioned in December 1982. Refinery also set up Pilot Distillation Facilities (PDF) for the production of N- Heptane & light Aluminum Rolling Oils (LARO). Meanwhile, to enable absorption of increased indigenous crudes the crude processing capacity of the refinery was further increased to 9.5 mmtpa. In 1993-94, Gujarat commissioned the country's first Hydrocracker Unit of 1.2 mmtpa for conversion of heavier ends of crude oil to high value superior products. Country's first Diesel Hydrodesulphurisation Unit (DHDS) to reduce sulphur content in diesel was commissioned by Gujarat Refinery in June 1999. Also commissioned in September eliminate lead in MS. Also MTBE Unit was commissioned in September 1999 to eliminate lead in MS. Conceptualised and commissioned SouthEast Asia's largest centralised effluent treatment plant by dismantling all the four old ETP's in June 1999. By September 1999 with commissioning of atmospheric distillation unit (AU-5), Gujarat Refinery further augmented its capacity to 13.7 mmtpa making it the largest PSU refinery of the country.

A project for production of high value LAB (Linear Alkyl Benzene -- which is one of the major raw materials used in manufacturing detergents) from Kerosene streams has been implemented. In order to meet future fuel quality requirements, MS Quality improvement facilities was commissioned in 2006. LAB (Linear Alkyl Benzene): The year 2004-05 marked IndianOils big-ticket entry into petrochemicals with the commissioning of the country s largest Linear Alkyl Benzene (LAB) plant at Gujarat Refinery in August 2004. It is also the largest grassroots single train Kerosene-to-LAB unit in the world, with an installed capacity of 1,20,000 MTPA[. Currently, two grades of LAB high molecular weight and low molecular weight are being produced. The quality of the LAB produced here has found wide acceptance in the domestic and overseas markets. Built at a cost of Rs. 1,248 crore and commissioned in a record 24 months time, the plant produces superior quality LAB for manufacturing environment-friendly biodegradable detergents, using state-of-the-art Detal technology from M/s UOP, USA. The key raw materials for the plant, catering to domestic as well as export market requirements meeting the latest and most stringent quality standards, are Kerosene and Benzene produced at Gujarat Refinery. The Gujarat Refinery at Koyali in Gujarat in Western India is IndianOils largest refinery. The refinery was commissioned in 1965. Its facilities include five atmospheric crude distillation units. The major units include CRU, FCCU and the first Hydrocracking unit of the country. Through a product pipeline to Ahmadabad and a recently commissioned product pipeline connecting to BKPL product pipeline and also by rail wagons/trucks, the refinery primarily serves the demand for petroleum products in western and northern India. When commissioned, the Gujarat refinery had a design capacity of 3.0 MMTPA. It was subsequently increased to 4.3 MMTPA by the revamping of three distillation

units. In 1978, its processing capacity was further increased to 7.30 MMTPA by the addition of a crude distillation unit. A fluidised catalytic cracking unit was added to the refinery in 1981 to increase production of middle distillates, such as diesel and LPG. The capacity of the refinery was further increased to 9.5 MMTPA by 1990 through low cost revamping / debottlenecking and addition of a hydrocracker in 1992 for maximisation of middle distillates. Subsequently the crude capacity was increased to 12.5 MMTPA in 1999 by addition of new Atmospheric Unit of 3 MMTPA alongwith revamp of FCC Unit. The capacity has since been increased to its present capacity of 13.70 MMTPA by low cost debottlenecking. The company has already commissioned the facilities for MTBE and Butene-1 production. The refinery also produces a wide range of specialty pro ducts like Benzene, Toluene, MTO, Food Grade Hexane, solvents, LABFS, etc. The Gujarat Refinery achieved the distinction of becoming the first refinery in the country to have completed the DHDS (Diesel Hydro De-sulphurisation) project in June 1999, when the refinery started production of HSD with low sulphur content of 0.25% wt (max.). A project for production of high value LAB (Linear Alkyl Benzene -- which is one of the major raw materials used in manufacturing detergents) from kerosene streams has been implemented. In order to meet future fuel quality requirements, MS Quality improvement facilities are planned to be installed by 2006.

HISTORICAL DEVELOPMENT

Indian refineries limited were formed with Mr. Feroze Gandhi as chairman. Indian Oil Company limited was established on 30th June 1956 with Mr. S. Nifalingappa as the first chairman.

Foundation was laid for Gujarat Refinery Indian oil blending limited (a 50:50 joint venture between Indian oil and Mobil) was formed.

Indian Oil Corporation limited was born on 1st Sep, 1964 with the merger of Indian Oil limited company. Barauni refinery was commissioned. The first petroleum product pipeline from Guwahati to Siliguri (GSPL) was formed.

Gujarat refinery was in augurated by Dr, S. Radhkrishan the president of India Barauni kanpur pipeline (BKPL) and Koyali Ahemdabad products Indian oil people maintained the vital supply of petroleum products to defense 1965 war.

Indian oil acquired 60% majority shares of IBP. The same was offloaded in favors of the president of India under directive in 1972.

Dealership

reservation

was

extended

to

war

widows,

disabled

defencePersonnel, Freedom fighters, etc after 1971 war. R & D center was establishment at faridabad. SERVO, the first indigenous lubricant was launched. Commercial production of SERVO iii Titex grease commenced at the worlds First plant at vashi, Bombay Business development received new thrust Indian oil entered in to LNG business through petronet LNG- AJVcompany. Indian oil crossed the turnover of the magical mark of Rs. 100000 crore the first corporation in India to do so. Lanka IOC private limited launched in Srilanka, Gasohal, 5% ethanol blended patrol, was introduced in select states.

INDMAX unit at guwahati refinery commission Indian oil technology limited for marketing instinctual properties of R & D center was launched SERVO become a super brand.

Indian oil becomes the top oil trading company amongst national oil companies in the Asia pacific region for the second consecutive your. Indian oil signs a supply purchase agreement to procure 1.75 MMTPA LANG to be received by the last quarter of 2009 at petronet LNG limited Dahej terminal. Indian oil breached the Rs. 150000 crore marks in sales turnover by clocking Rs.150677 in turnover in fiscal 2004.

VISION
A major, diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security & public distribution.

MISSION

To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services, and cost reduction.

To maximize creation of wealth, value and satisfaction for the Stakeholders. To attain leadership in developing, adopting and assimilating state of-the-art technology for competitive advantage.

To provide technology and services through sustained Research and Development.

To foster a culture of participation and innovation for employee growth and contribution.

To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

VALUES
Indian Oil nurtures a set of Core Values like as follows: Care: Empathy Understanding Co-operation Empowerment

Innovation: Creativity Ability to learn/absorb Flexibility Change

Passion: Commitment, Dedication, Pride, Inspiration,

Ownership, Zeal & Zest

Trust: Delivered Promises, Reliability, Integrity, Truthfulness, Transparency

OBJECTIVE OF COMPANY

To serve the national interests in the oil and related sectors in accordance and consistent with Government policies.

To ensure and maintain continuous and smooth supplies of petroleum products by way of crude refining, transportation and marketing activities and to provide

appropriate assistance to the consumer to conserve and use petroleum products efficiently. To earn a reasonable rate of interest on investment. To work towards the achievement of self-sufficiency in the field of oil refining by setting up adequate capacity and to build up expertise in laying of crude and petroleum product pipelines. To create a strong research and development base in the field of oil refining and stimulate the development of new product formulations with a view to minimize/eliminate their imports and to have next generation products. To maximize utilization of the existing facilities in order to improve efficiency and increase productivity. To optimize utilization of its refining capacity and maximize distillate yield from refining of crude to minimize foreign exchange outgo. To minimize fuel consumption in refineries and stock losses in marketing.

ORGANIZATIONAL STRUCTURE OF HR DEPARTMENT

Executive Director

DGM (HR) CHRM

ERM DM (ER)

M(W&A)

M(W&A)

M(hindi)

DM(A&W) ERO SO(ER) SO (A) SO(ER) ERO

SO(ER) SO (admin.)

SO(ER) DM(ER) S0(ER)

O (Admn,) SO (A)

SERVICES AND REFINERIES OF IOCL

IOCL

Marketing

Pipelines

Refineries

R&D Centre

Assam Division

Guwahati

Barauni

Gujarat

Haldia

Mathura

Panipat

Digboi

Major Division of I.O.C.L.

Corporate Office: New Delhi. Registered Office: Mumbai. R&D Center: Faridabad

Division of the Refineries

Digboi Refinery. Guwahati Refinery. Barauni Refinery. Gujarat Refinery. Haldia Refinery Mathura Refinery Panipath Refinery

Marketing Division
Head Office: Mumbai Northen Region: New Delhi Eastren Region: Kolkata Westorn Region: Chennai

Pipeline Division
Head Office: Noida Eastern Region(PL): Kolkata Westerns Region(PL): Rajkot Northen Region(PL): Panipath,Haryana

R&D Divisions
Head Office: Faridabad,Haryana

Assam Oil Division

Digboi, Assam Note: The Assam oil division has only refinery at Digboi & has a network of marketing setup.

Digboi Refinery
The Digboi Refinery was set up at Digboi in 1901 by Assam Oil Company Limited. The Indian Oil Corporation Ltd. Took over the refinery and marketing

management of Assam Oil Company Ltd. with effect from 1981 and created a separate division. This division has both refinery and marketing operations. The refinery at Digboi had an installed capacity 0.50 MMTPA (million metric tonnes per annum). The refining capacity of the refinery was increased to 0.65 MMTPA by modernization of refinery in July, 1996. A new delayed Coking Unit of 1,70,000 TPA capacity was commissioned in 1999. A new Solvent Dew axing Unit for maximizing production of microcrystalline wax was installed and commissioned in 2003. The refinery has also installed Hydrotreater to improve the quality of diesel.

Guwahati Refinery
Guwahati Refinery is an oil refinery near Guwahati, India owned by the India Oil Corporation. It was the first in the public sector and was set up in collaboration

with Romania at a cost of Rs.17.29 crores and commissioned on 1 January 1962 with a design capacity of 0.75 MMTPA. The present capacity of this Refinery is 1.00 MMTPA. A hdrotreater unit for improving the quality of diesel has been installed and was commissioned in 2002. The refinery has also installed in 2003 Indmax Unit, a novel technology developed by its R&D Centre for upgrading heavy ends LPG, motor spirit and diesel oil.

Barauni Refinery
Barauni Refinery in the Bihar state of India was built in collaboration with the Soviet Union at a cost of Rs.49.4 crores and went on stream in July, 1964. The initial capacity of 2 MMTPA was expanded to 3 MMTPA by 1969. The present capacity of this refinery is 6.00 MMTPA. A Catalytic Reformer Unit (CRU) was also added to the refinery in 1997 for production of unleaded motor spirit. Projects are also planned for meeting future fuel quality requirements.

Haldia Refinery
The Haldia Refinery for processing 2.5 MMTPA of Middle East crude was commissioned in January, 1975 with two sectors - one for producing fuel products and the other for Lube base stocks. The fuel sector was built with French collaboration and the Lube sector with Romanian collaboration. The refining capacity of the Refinery was increased to 2.75 MMTPA in 1989 through debottlenecking measures. The refining capacity was further expanded to 3.75 MMTPA with the commissioning of new crude distillation unit of 1.0 MMTPA in March, 1997. The present refining capacity of this Refinery is 6.00 MMTPA

 Mathura Refinery
The Mathura Refinery, owned by Indian Oil Corporation, is located in Mathura, Uttar Pradesh. The refinery processes low sulphur crude from Bombay High, imported low sulphur crude from Nigeria, and high sulphur crude from the Middle East. The refinery, which cost Rs.253.92 crores to build, was commissioned in January, 1982. The FCCU and Sulphur Recovery Units were commissioned in January, 1983. The refining capacity of this refinery was expanded to 7.5 MMTPA in 1989 by debottlenecking and revamping. A DHDS Unit was commissioned in 1989 for production of HSD with low content of 0.25% wt. (max.). The present refining capacity of this refinery is 8.00 MMTPA.

Panipat Refinery
Panipat Refinery is an oil refinery that was set up in 1998. It is located in Baholi village, Panipat, Haryana. Panipat is the seventh refinery belonging to I O C L the cost of the refinery's construction was Rs 9024 crores. It has a capacity of twelve MMTPA. The refinery's highlights include:

Zero discharge of effluent gases. The presence of four ambient air monitoring stations that were in place well before the refinery was in use.

It is an eco- friendly refinery, as indicated by a green belf outside it. The establishment of a totally electronic-based communication system within the refinery.

It has the lowest manpower of all refineries in the region with similar capacities.

PRODUCTS
1) SERVO 2) Indane LPGas 3) Indian oil Aviation Service 4) Auto Gas 5) Premium Fuels 6) Xtra Power 7) Swagat Highway Flagship Retail Outlets 8) Xtracre

Main Products of Gujarat Refinery

Liquefied Petroleum gas (LPG) Benzene Toluene Naphtha Motor Sprit (MS) Superior Kerosene Oil (SKO) Aviation Turbine Fuel (ATF) Linear Alkyl benzene (LAB) High Speed Diesel Oil (HSD) Light Diesel Oil (LDO) Furnance Oil (FO) Low Sulphur Heavy Stock (LSHS) Bitumen

Sulphur

MANUFACTURING PROCESS

Gujarat Refinery Gets Raw Material From:-

The main raw material for Gujarat refinery is crude oil, refinery gets crude oil from both indigenously and imported supplied from Ankleshwar and Gandhar oil fields as also from north Gujarat. Gujarat refinery also gets its raw material from ONGC, Oil other PSC operators through the ONGC/Oil pipeline refinery. Indigenously offshore supplies from Bombay high and Panna Mukta are bought to Vadinar. Imported crude oil is brought to the three ports location namely Vadinar,Haldia and Mathura and is transported to inland refineries through IOCs pipeline. This imported crude oil through salaya Mathura pipeline (SMPL) at koyali the Gujarat refinery.

Process:-

The crude oil, indigenous and imported through different pipelines and stored separately tanks from where they are fed to various atmospheric distillation units. Gujarat refinery has four primary distillation units viz.AU -1, AU-2, AU-3, AU-4, AU-5 with flexibility of process indigenous or imported crude. The various product streams obtained on crude distillation are: 1. Methane, ethane and propane and butane as refinery fuel gas. 2. Liquefied mixtures of propane and butane marketed as liquefied petroleum gas (LPG). 3. Gasoline fraction. 4. Aviation turbine fuel (ATF). 5. Superior kerosene oil (SKO). 6. High speed Diesel (HSD). 7. Reduced crude oil (RCO). Produced in atmospheric units is a process in three vacuum units viz. VDU,FPU-I and FPU-II for preparing feed for FCC and HCU.RCO produced from imported crude is also processed in VDU and the bottom of this goes bitumen production or to visbreaker unit for production of furnances oil.

ACHIEVEMENT:

 Moved up 17 places in the latest fortune global 500 listing of the worlds largest corporation, from 170 in the year 2005 to 153 in 2006 it is also the 21 st largest petroleum company in the world . Moved up five places in the plants top 250 global energy company to be ranking from 26th in 2004 to 21st in 2005. it is the only Indian company to be featured among the top 25 energy companies worldwide and is also among the top three energy companies in Asia in the listing. Emerged as Indias 1st corporate in the annual listings of business world business India, business today, the economic times, the financial express for the year 2005.Lasted as Indias most trusted brand in the gasoline category in the year 2005. Baggd a record haul of 13 awards in major category at the 45 th annual awards of the association of its excellence in business communication along the leading corporate of India. Won five national petroleum management programme awards for excellence in various categories, including human resource management, women

development and creativity and innovation.