DIBD India

The Indian Oil and Gas Industry

25.

9.

12

DIBD India

Introduction to the Indian Oil and Gas Industry

Current market situation
Growth of Indian Oil and Gas Industry
Competitive landscape
Nordic and Danish players

SWOT

DIBD India

Current Market Situation - Oil

The Indian Oil and Gas industry plays an important role in the Indian economy with
major refineries and gas companies in the country.
Indian Oil and Gas sector is primarily controlled by state owned Oil and Natural Gas
Corporation (ONGC) which accounts for approx. 60% of Indias crude oil output.
The Indian Oil industry consumption was around 3.57 mn barrels per day (b/d) in
2012 compared to around 3.27 mn b/d in 2011 and is expected to reach 4.20 mn
b/d by 2017.
Indian Refinery industry has approximately 21 refineries with total oil refinery
capacity being around 3.6 mn b/d which is expected to reach 4.29 mn b/d by 2016.
India imports around 70% of total oil needs, from countries like Saudi Arabia, Iran,
UAE, etc, and has spent USD $91,490 million in 2011 on imports.

DIBD India

Current Market Situation - Gas

Indian Natural Gas
consumption was approx 69.1
billion cubic meter (BCM)
during 2011. It is expected to
grow to 160 BCM by 2022.

India imports 23% of total gas

needs from Iran, Pakistan,
Afghanistan, Myanmar, Qatar
and has spent USD $8,405
million on imports in 2011.

DIBD India

Growth of Indian Oil Industry

4
3,5
3
2,5
2
Oil production &
consumption in mn

Oil production in mn b/d

1,5

Oil consumption in mn b/d

1
0,5

TIMELINE
b/d Barrels per day

DIBD India

Growth of Indian Gas Industry

120

100

80

60
Gas production &
consumption in mn

Gas production in BCM

Gas consumption in BCM

40

20

TIMELINE
BCM billion cubic meters

DIBD India

Competitive Landscape
India has a largely state-controlled Oil
and Gas sector.
The main government upstream
vehicle is ONGC, which accounts for
two-thirds of Indias crude oil and
natural gas production. It is diversifying
into refining and oil distribution.
Privately owned domestic
conglomerate Reliance Industries also
participates in the Indian exploration
and refining segments, with BP set to
be a key partner in domestic upstream
activities.

DIBD India

Key Government Entities in the Indian Oil and Gas Industry

Company name

Activities

Office locations

Total turnover in India

in USD $

ONGC

Oil and gas production

North India, Uttarakhand

12 billion

Oil India

Crude oil production

North India, New Delhi

1.6 billion

Indian Oil corporation

Petroleum products

North India, New Delhi

54.6 billion

BPCL

Oil production

West India, Maharashtra

26.4 billion

HPCL

Refinery

West India, Maharashtra

23.8 billion

GAIL

Natural gas

North India, New Delhi

5 billion

DIBD India

Key Private Entities in the Indian Oil and Gas Industry

Company name

Activities

Office location

Total turnover in India

USD $

Reliance Industries
Limited

Natural gas

West India, Maharashtra

43 billion

Essar Oil

Refinery

West India, Maharashtra

9.61 billion

Adani Gas

Gas distribution

West India, Gujarat

5.37 billion

Cairn Energy

Oil exploration

North India, Haryana

1.6 billion

DIBD India

Major Refineries in India

Indian Oil Corporation

BPCL

Reliance Industries
Essar Oil
Indian Oil
Corporation

Indian Oil Corporation

BPCL
HPCL
HPCL

Indian Oil
Corporation

Indian Oil Corporation

BPCL

DIBD India

Oil and Gas Rigs in India

ONGC
OIL
Cairn Energy

ONGC

ONGC

ONGC
OIL
ONGC

ONGC
OIL
Reliance Industries
Cairn Energy

ONGC

DIBD India

Oil and Gas Pipelines in India

ONGC
OIL
DGH

DGH

ONGC
OIL
DGH

ONGC
DGH

ONGC

DGH

DIBD India

Scandinavian Cases in India (1/2)

Welltec
Welltec was established in 1994 in Denmark
Welltec is worlds leading provider of robotic solutions for oil & gas wells
Welltec is headquartered in Denmark with offices in 20 countries
Welltec designs and manufacturers advanced technology for onshore and offshore
wells

Welltec has 450 employees worldwide

Welltec started Indian operations in 2007 with offices in Mumbai, Maharashtra and
Kakinada, Andhra Pradesh

DIBD India

Scandinavian Cases in India (2/2)

SELCO A/S
SELCO is a European firm founded in 1960, with headquarters in Denmark
SELCO has subsidiaries in China, India, Middle East and South East Asia
SELCO focuses on manufacturing of electronic control, alarm systems
SELCO started its operations in Mumbai India in 2009
SELCO has been operating within the Indian Oil & Gas industry since 2006
SELCO does not have an extensive setup within the Oil & Gas industry, but has approached
Engineering India Limited(EIL) to seek an approval to cater in the Oil and Gas industry
SELCO had a discussion with Essar Oil in Hazira for control panels
According to SELCO, getting an approval from EIL to enter the Oil & Gas industry is difficult
and SELCO also feels that the parent company should be a solution provider rather than a
product provider
According to SELCO, exploration companies has good potential within the Oil and Gas
industry

DIBD India

SWOT Analysis of The Indian Oil and Gas

Industry
Strengths
India is the worlds fifth biggest energy consumer and
continues to grow rapidly
Major natural gas discoveries by a number of
domestic companies hold significant medium to longterm potential.
Demand for petroleum products
Increase in demand for oil and gas
High exploration portfolio

Weaknesses
The oil and gas sector is dominated by statecontrolled enterprises, although the government has
taken steps in recent years to deregulate the industry
and encourage greater foreign participation
Increase in oil prices
Inadequate and slowly developing infrastructure
Lack of awareness in safety issues
Environmental issues

Opportunities
Liquefied natural gas (LNG) imports are still set to
grow rapidly over the longer term as domestic
consumption expands
India has freed gasoline retail price controls
Untapped domestic oil and gas potential
Strong domestic energy demand growth
High recovery rates from existing projects

Threats
Increased competition within government and
private players
Continuing government interference
Changes in national energy policies

DIBD India

Want to know more...

Want to get more hands-on knowledge about the growing market opportunities for Danish
companies in the huge yet complex Indian market... DIBD offers two points-of-contacts:
Anders Kjller
Manager,
DI Copenhagen

E: adk@di.dk
P: (+45) 33 77 37 72
M: (+45) 26 20 45 60
Kunal Singla
Director,
DI India

E: kusi@di.dk
P: (+45) 33 77 45 25
M: (+91) 99 30 56 27 61

Anders works as Manager with focus on Asian markets in DI. He has over 10 years of
project experience from projects in Asia.
Anders has over 4 years of hands-on experience in the field from the Chinese market
gained as Director of DIs office in Shanghai (2007-11).
Experience from several projects within the marine, food and utility industries
amongst others with business development, market studies, implementation of
market entry strategies as well as implementation of distributor management.
Anders has a M.Sc. Economics & M.A. East Asian Studies.
As the director of DIBDs office in Mumbai, Indian-Danish Kunal is the man on the
ground in India.
Kunal has substantial hands-on experience with various projects (including
partnership searches etc.) and recruitment in India.
Kunal also has previous experience from the Commercial Department at the Royal
Danish Embassy in New Delhi, and DIs Business Law department in Copenhagen.
Kunal is fluent in Danish, English and the Indian national language Hindi, and has an
extensive network in the Indian business community.
Kunal holds a M.Sc. in Business Administration and Commercial Law from Copenhagen
Business School, and has studied in the United States and China.