LOGISTICS MANAGEMENT ANALYSIS

RELIANCE INDUSTRIES LIMITED JAMNAGAR

CONTENTS PAGE
PREFACE
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY

1 INTRODUCTION 05

1.1 History and Background of Reliance 06

1.2 Introduction to RIL REFINERY DEVISION JAMNAGAR 07
1.3 Important Features of Jamnagar Complex 11
1.4 Awards & Achievement of RIL. 13

2 OIL SCENARIO OF INDIA 14

2.1 Refineries all over India 16

2.2 Current Crude Oil Production & Import 18
2.3 Current Demand & Consumption for Petroleum Products 19
2.4 Mode Wise Dispatch 21
2.5 Challenges to Indian Refinery Sector in Future 23
2.6 Opportunity for Reliance Industries Limited 24

3 LOGISTIC FUNCTION 25

3.1 Study of Major Logistics Function 26

3.2 Logistics Management Scope 27
3.3 Hierarchy of Industrial Working 29
3.4 Important Act and Regulations 31
3.5 Company Products 33
3.6 RIL Logistics Function 34

4 PRODUCT EVACUATION PATTERN 36

4.1 Loading Facilities 37

4.2 Inventory Management 42
4.3 Transportation Channels 42

5 STRATEGIES FOR DECONTROLLED SCENARIO 53

5.1 Marketing Infrastructure 58

5.3 Marketing Strategy 59

6 RELIANCE CORE VALUES AND WORK CULTURE 65

7 SUGGESTIONS AND RECOMMENDATIONS 70
8 FUTURE PROJECTS 73
9 APPENDIX 79
10 BIBLIOGRAPHY 80

2
EXECUTIVE SUMMARY:

TOPIC: LOGISTIC MANAGEMENT ANALYSIS IN RELIANCE INDUSTRIES

LIMITED.

In this project, it is describes that the requirement of Logistics Management and its
functions to meet the demand of various petroleum and petrochemical products. It
shows the characteristics and future projection of oil industry in India. It is felt that
systematic analysis of logistic of the petroleum and petrochemical products shall
favor in achieving the RIL’s domestic and international marketing goals and targets.
The growth of the company is depends on how the logistics management is
functioning.

The project report cover the following topics:

 Introduction to organizations.

 Oil scenario of India.

 Logistics functions.

 Product evacuation pattern.

 Marketing strategy.

 Interface with other oil companies.

 Strategies for decontrolled scenario.

3
1INTRODUCTION

4
1.1 HISTORY AND BACKGROUND OF RELIANCE

This is the story of company with a vision, of how it grew from being a small trading
unit, to be ranked among the 50 emerging market companies in the world. It is the
story of how a company helped place India firmly on the world industrial scenario
taking with its family, a growing family which include collaborators, suppliers,
customers, employees and the largest investor base in the country. It is the story of
how a company’s vision has extended to include newer challenges, newer goals. And
most of all, it is the story of a company where growth is a way of life.

Reliance began in 1958 as a small trading organization dealing in various

commodities including nylon and Rayon. In 1966, Reliance set up a textile complex an
Naroda, near Ahmedabad to manufacture textile.

In 1982, Reliance backward integrated by setting up India’s largest Polyester

manufacturing plant at the Patalganga complex near Mumbai. On the banks of the
river patalganga, 78 KMS from Bombay. By 1988, this complex was part of one of the
most integrated manufacturing complex of the world.

In 1991, Reliance began manufacturing PVC & MEG at two new plants at Hazira.
Hazira complex near Surat in Gujarat is situated on the banks at river Tapi and is
spread over 1000 acres of land. Which is comparable in design and Technology to the
best in the world.

Now at Jamnagar in Gujarat, Reliance has built the worlds largest grass roots level
petroleum refinery, a petrochemical complex and an independent power plant.

5
1.2 INTRODUCTION TO RIL

RELIANCE INDUSTRIES LIMITED is one of the fastest growing refineries. It is a

level global player in the area of petrochemicals. RIL, which is the largest grass roots
refinery in the world. RIL is taking a major step forward in the field of petroleum
refinery. Refinery and petrochemical complex is situated about 30 kms from the city
Jamnagar in Saurashtra region of Gujarat state. Spread over 7500 acres of land. It is
the worlds largest single grass roots level refinery, with the highest degree of
complexity among all refineries in India.

It is the largest state of the refinery in India, accounting for over around 25% of the
country’s refining capacity. The Rs27000 Crore complex being setup by the reliance
group at Jamnagar represents the single largest investment ever made by the private
sector at any single location in India. Reliance Industries Limited refinery division
Jamnagar is equipped to meet the challenges of highest world-class product quality
and environment norms and speciation. This will enable RIL to build leadership in
domestic markets and effectively compete in export markets.

UOP From the USA, the world leaders in refinery technology has provided the basic
engineering and license for the project FOSTER WHEELER, B & V PITCHARD,
PROCOR, LINDE & UNION CARBIDE are renowned licensors in their areas and
are the know how supplies for cover Sulfur granulation, Hydrogen and
Polypropylene respectively. Bechtel internationally reputed engineering contractors
had the single point responsibility for technology, engineering, procurement
construction management and project management services for the project.

The reasons for choosing Jamnagar as the location for setting up these mega projects
are:

 Proximity to crude surplus regions i.e.: Middle East

 Well connected to high demand center pipeline network
 All weather sheltered port-adequate draft
 Well connected by Rail, Road and Air
 Link with Kandla enables RPL to use oil sectors substantial tank age and
evacuation facilities.

“It was the beginning of an unending story”

6
BRIEF OVERVIEWS OF RIL REFINERY DEVISION JAMNAGAR:

The complex mainly consists of:

 Refinery of RIL.
 Petrochemical Complex of RIL.
 Rail Road Tank Farm.
 Marine Terminal.
 Power Plant.

Reliance industries has the capacity of processing 30 million metric tons per annum
of crude, which contributes approximately 25% of India’s existing refinery capacity.
And this will lead Reliance to the country’s largest Private Sector Refinery. The
estimated production is 540 Kilo Barrels per Stream Day (KBPSD). RIL will also
produce unleaded Gasoline, which is not commonly produced by other Oil Refineries
in India.

The superior Technology deployed at Reliance will enable it to meet product

specifications of highest international levels. The technology is imported from Bechtel
Company (USA), the world leader in refinery technology and this company has
provided basic engineering and license for the project.

Refinery business gives a tremendous “backward integration” opportunity for

Reliance group with their interest ranging from Oil operations to textile
manufacturing, the refining business help the Group to capture the value addition at
every stage.

The major reforms of government are:

 Decanalising the crude import.

 Deliscensing of the refinery sector.
 Infrastructure of refinery.
 Deregulation of products.

This will lead RIL to healthy “Global” Competition.

The Jamnagar facilities are divided into Complex and Plants:

The plants of RIL are divided into Fuel and Non fuel plants.

7
COMPLEX PLANTS
FUELS Crude
FCC (Fluidized Catalytic Coker)
Coker
Hydrogen
Sulfur
RTF (Refinery Tank Farm)
NON FULES Aromatics
Polypropylene
CPP (Captive Power Plant)*
Utilities and Offsites*
MTF (Marine Tank Farm)*
Marine & Offshore*
RRTF (Rail Road Tank Farm)*
IPP (Independent Power Plant)

*- Major Units.

CPP:
The Reliance Industries Jamnagar complex has it’s own Power Plant for captive
consumption for the entire complex including the Marine Tank Farm and the
Township.

Utilities and Off sites:

Desalination Unit.
Fire Water System.
Cooling Towers
ETP (Effluent Treatment Plant) etc.

MTF:
Which has the storage facilities for crude and product and which also has the
pipelines of these products up to RTF.

Marine & Offshore:

Jetties
SPM’s (Single Point Mooring) facilities.
JKPL (Jamnagar Kandla Pipeline).

RRTF:
It consists of Road, Rail, Costal loading and unloading and pipeline (GAIL) loading
facilities.

8
OTHER FACILITIES:

LEARNING CENTRE:

Learning Center is established to center to the learning needs of the employees. This
center has in-house facilities and Outsource facilities from time to time, depending on
the topics & schedule.

Several classrooms, auditorium, workshops, library and internet facilities are

equipped with state of the art equipment for imparting the training are incorporated
in the world class learning center.

Besides the planned training lessons, additional viewing of the educational

videocassettes & interactive lessons on CD ROM can be arranged on requests.

The learning center is located close to the Main Administration Building on Avenue
A.

9
1.3 IMPORTANT FEATURES OF JAMNAGAR COMPLEX

 Leading Ranks

Worlds largest grass root level refinery

• Worlds largest FCC, COKER PX plants
• Group investment over 6 bn US $
• Investment equivalent to 4% of turnover of India corporate sector

 The two largest Refineries of India

1 Reliance 30 mmtpa
2 Koyali 13.70 mmtpa

 Total length of plant piping is approximately 5000 kms double the distance
from Mumbai to Kolkota.

 Total cables length is approx. 14500 kms entire coastline of USA.

 Peak construction labor mobilized was 75000 all accommodated in a

developed labor colony at site.

 Tallest structure is OSBL flare 150 meter Double the height of Qutub Minar.

 Largest pipe is 112 inches (Over 9 Ft) diameter, you can drive a Maruti car
through it.

 Heaviest equipment is C3/C4 splitter 1500 MT.

 Desalination plant meets all the requirement of the water.

 The refinery site was fully commissioned in 1999 last quarter just 24 months
from a green field stage.

10
RELIANCE GROUP OF COMPANIES

LOCATION YEAR PRODUCT

NARODA 1966 APPREAL TEX-TILES “VIMAL” (suiting, shirting,
(AHMEDABAD) dress material)
HOME TEX-TILES (tapestry, curtain)
PATALGANGA 1980 Polyester
(MUMBAI) Paraxylene
Polyester staple fibre
Linear alkyl benzene
HAZIRA 1991- Ethylene oxide
(SURAT) 92 Mono ethylene glycol
Vinayl chloride monomer
Polyvinyl chloride
JAMNAGAR 1999 PETROLEUM PRODUCTS & PETRO CHEMICALS

AWARDS

NARODA 1 ASTM Safety award 1989- For achieving disability injury

96 index every year
2 The textile Institute 1997 In recognition of the company’s
development award commitment to international
standard of quality
HAZIRA 1 ICMA Award 1996 For Environment control
strategies and safety in the
chemical plants
2 Golden Jubilee 1995- For outstanding pollution
memorial trust 96 control program
award
3 Federation of 1995 For Environment preservation
Gujarat Industrial and pollution control
award
PATALGANGA 1 Indian merchant 1994 For out standing achievement
chamber award to ward of air and water
pollution in industry
2 British safety council 1992 For lowest accident rate
award
3 National safety 1991 For highest accidents free
award period
4 Baroda productive 1992-
council first rank 93 For good house keeping contest
trophy for petrochemical complex

11
1.4 ACHIVEMENTS/AWARDS:

PATALGANGA

 ISO 9002 for all plants & services and ISO 9001 for CES & CTS.
 Award of honor for 1993,94,95 & 96 from National Safety Council, USA.
 During 1994,95 & 96 was ranked second amongst the member chemical industries
worldwide.
 Received Sword of Honor from British Safety Council for 1992,93,94 & 95.
 Received 5 Star rating from British Safety Council for three consecutive years
1992,94 & 96.
 Gujarat Safety Council award for lowest Disable Injury index for the year 1992 &
1996.
 Received first prize in Petrochemical sector for Excellence in energy conservation
and management in 1994-95 and special award in 1996-97 from ministry of
power, Govt. of India.

JAMNAGAR:

 ISO 9002 for all plants & services and ISO 9001 for CES & CTS.
 Received Golden Peacock National Quality Award
 Received 8th IBPL energy conservation award GOLD TROPHY in private sector
for 1997.
 Best Safety Pace Setters’ Award for the year 2001.
 Best Safety Pace Setters’ Award for the year 2002.
 Best Safety Pace Setters’ Award for the year 2003.
 At Reliance Jamnagar now company brings ISO 18000.

Some of the above Awards are Achieved by Patalganga and Jamnagar Combinely.

12
2 OIL SCENARIO
OF INDIA

13
OIL SCENARIO OF INDIA:

Crude oil is the raw material for petroleum products. Crude oil varies widely from
region to region and from field to field. Some crude’s are light-colored, mobile
liquids; others are thick, treacly or tarry materials. Some have quite pleasant smells
Others smell quite disgusting. However all are made up mainly of three types of
hydrocarbons, alkenes, cycloalkenes and aromatics.

Major deposits of oil occur in only a fairly limited number of regions. More than half
the world’s known reserves are in the Middle East. India has relatively small oil
reserves, account for just 0.5 % of the world’s total oil reserves. At the current
production rate the reserves are expected to last another 25 years.

India oil production is insufficient to satisfy domestic demand. India has its own crud
oil production in Mumbai, Assam etc but in order to meet indigenous demand it has
to depend on the import of crude. As a result India is a net importer of crude oil,
which account for approximately one third of country ‘s import bill.

Major sources of purchase of raw material:

• Middle east region

• Far east region
• Northwest region
• Singapore region
• South America

14
2.1 REFINERIES ALL OVER INDIA
There are seventeen Refineries all over India.
 15 refineries are in Public Sector.
 1 refinery in Joint Sector.
 1 refinery in Private Sector.
SECTOR SR.NO. REFINERY NAME REGION CAPACITY
(MMTPA)
PUBLIC 1 IOC Indian Oil Koyli 13.70
Corporatio Guwahati 1.00
n Mathura 8.00
Panipat 6.00
Haldia 4.60
Barauni 4.20
Digboi 0.65
2 HPCL Hindustan Mumbai 5.50
Oil Visakh 7.50
Corporatio
n Ltd.
3 BPCL Bharat Mumbai 6.90
Petroleum
Corporatio
n Ltd.
4 CRL Cochin Cochin 7.50
Refinery
Ltd.
5 BRPL Bongaigaon Bangaigaon 2.80
Refinery
Ltd.
6 NARIMANAM Crude Narimanam 0.50
Distillation
Unit Of
MRL
7 NRL Numaligarh Numaligarh 3.00
Refinery
Ltd.
8 MRL Madras Chennai 6.50
Refinery
Ltd.
JOINT 1 MRPL Mangalore Mangalore 9.69
Refinery
Ltd.
PRIVATE 1 RIL Reliance Jamnagar 30.0
Industries
Ltd.

15
Total capacity of refineries all over India is 116.04 MMTPA.

Capacity target during Tenth Plan: - 167 MMTPA (31.3.2007)

There are three new joint venture refineries and one private sector refineries.

SECTOR SR.NO REFINERY PARTNERS LOCATION CAPACITY

(MMTPA)
JOINT 1 Bharat M.P. + Bina 6.0
Oman Oman Oil
Refinery Company
Ltd.
2 Eastern IOCL + Orissa 9.0
India Kuwait
Refinery Petroleum
ltd. corp.
3 BPCL BPCL + Up 7.0
Shell
PRIVATE 1 Essar Oil Jamnagar 9.0
Ltd.

16
2.2 CRUDE OIL PRODUCTION & IMPORT:

It is increased rapidly in country in 1980. It was around 34 MT in 1989-90 & it is felt

to about 27 MT in 1992-93. The country ‘s production achieved an all time peak of 35
MT in 1995-96. Thereafter the production has stagnated at about 32 MT per year.
Production in Gujarat area was about 5.8 MT as per last data received.

With crude oil production stagnating at around 32 MT per year, along with massive
refining capacity addition replacing product imports with crude, & demand growing
rapidly, the imports of crude oil have rapidly increased in last few years.

CRUDE IMPORT:

YEAR MT

1996-97 &
1997.98 34
1998.99 40
1999-00 58
2000.1 74

During the same period the product Import have dropped down from 22-23 MT in an
earlier year to about 9 MT in 2000-01 & further down to 6.5 MT in a year 2002-02.

Self-sufficiency in Oil has dramatically fallen from more than 80% in 1989-90 to 64%
in 1990-91 & just 31% in 2000-01.

According to last data received India’s IMPORT/EXPORT.

TOTAL IMPORT RS 2,30,873 CRORE

EXPORT RS 2,03,571 CRORE
TRADE
BALANCE RS (-27,302 CRORE)

OIL IMPORT RS 71,497 CRORE

EXPORT RS 8,542 CRORE
TRADE
BALANCE RS (-62,955 CRORE)
OTHER
THAN OIL TRADE
BALANCE RS 35,653 CRORE

17
INDIA’S CRUDE OIL PRODUCTION & IMPORT (IN MT)

ASSAM ON SHORE 5.2

ARUNACHAL PRADESH ON SHORE 0.0
TAMIL NADU ON SHORE O.7
GUJARAT ON SHORE 5.8
BOMBAY HIGH OFF SHORE 16.6
JVC OFF SHORE 4.1

TOTAL ON SHORE 11.7

ON SHORE 20.7

TOTAL PRODUCTION 32.4 MT

IMPORT 74.1 MT
AVAILABILITY 106.5 MT

2.3 OVERALL DEMAND FOR PETROLEUM PRODUCT:

In India this demand grew at an average of about 5.3% per year in 1970’s and at
5.8% per year in 1980’s & 1990’s.
It was around 100 MT as per last data.

Elasticity of Demand with respect of GDP is 2 in 1970’s, 1.2 in 1980’s, and Unity in
1990’s.

Naphtha Consumption has increased by two & half times from 4.7 MT in 1996-97 to
11.7 MT in 2000-01. It is principally due to the commissioning of India’s largest
Naphtha Cracker of Reliance.

INDIA’S PETROLEUM PRODUCT CONSUMPTION:

PRODUCT CONSUMPTION
IN PERCENTAGE
LPG 7.8
MS 7.1
NAPHTHA 11.8
ATF 2.3
SKO 10.6
HSD 37.2
LDO 1.6
LUBES 1.2
FO/LSHS 12.7
BITUMEN 2.6
CONSUMPTION OF OTHER PRODUCTS IS 5.1 %

18
India’s Refining Capacity is increased by 64% from around 68 MT per year in 1998-
99 to approximately 112 MT in 2000-01 i.e. by 43 MMTPA. In just two years with
Reliance’s 30 MMTPA Refinery contributing a large chunk of this increase. This has
made the country self sufficient in refining capacity. Significantly improving the
energy security and domestic value addition. Product imports have virtually stopped,
thus saving the precious foreign exchange for the country.

19
2.4 MODE WISE DESPATCH (IN MMT):

YEAR ROAD RAIL PIPELINE COSTAL

2000- 22.9 35.1 27.8 9.6
01
2001- 23.9 37.0 31.5 10.6
02
2002- 24.9 36.4 31.6 11.6
03

MODE WISE DESPATCH (IN PERCENTAGE):

YEAR ROAD RAIL PIPELINE COSTAL

2000- 24 37 29 10
01
2001- 23 36 31 10
02
2002- 24 35 30 11
03

Here we can see that the highest percentage for dispatch is for Railway but nowadays
the Railways re facing increasing constraints in movement of Oil product due to
saturation of track capacity & non-availability of locomotives & tank wagons, due to
resources constraint & hence the share of the Railways has been steadily decreasing
over the past few years. Over the long run the cost of transportation through Rail
increases annually due to higher operating cost as against to Pipelines, whose
operating cost is minimal.

Movement of products from Depots/Terminals to Retail Outlets situated in their

proximity is done only through Road transportation, as alternative modes would be
unviable.

With increasing Demand the Product transportation volumes would also increases.
This is expected to make Pipelines viable in more sectors & hence the share of
Pipeline in moving Petroleum Products is expected to increases. In developed
countries is 60 % of total while in India it is only 30 %.

Total Pipeline Network of around 5000Kms., From the Refineries to consumption

center.

20
ADVANTAGE OF PIPELINE TRANSPORTATION:

 Bulk transportation, Most Energy efficient.

 Cost effective & convenient.

 Evacuation & Handling Losses are minimal

 Product moves container remains stationary unlike the other modes.

 Several products can be pumped in the same Pipeline using Batching schedule.

 It is more environmental friendly mode of transportation.

 It is least affected by natural calamities likes Floods, Landslides, Fire so it is

Safest mode of transportation, helps in maintaining Uninterrupted Supply.

 Low operation & Maintenance.

21
2.5 CHALLENGES TO INDIAN REFINING SECTOR IN THE FUTURE

As the new millennium dawns, refineries face many challenges in the years ahead. On
the one hand, crude oil suppliers will be increasingly heavy and high in sulfur, on the
other hand environmental regulations and demand considerations will require that
the product slate becomes lighter, lower in sulfur, and in general, of higher quality.
To address these challenges, refiners will have to broaden their horizons, embraces
new technologies, and seek synergistic projects both within the refinery as well as in
outside world.

Crude oil supply:

Crude oil supply is projected to get heavier and sourer. On a world wide, the
incremental barrel of crude oil is expected to have a straight run yields of 40% resid,
42% gasoline and distillate, and 18% LPG, naphtha etc. at the same time, the
demand for products from the incremental barrel is expected to have the following
distribution: 3%resid, 79%gasoline and distillate, 18%LPG, Naptha etc. the
mismatch between straight run yields and product demands indicates that resid
upgrading process will play an increasing role in the refining industry.

Environmental consideration:

Environmental requirements have played a major role in shaping the operation of

today’s refineries and will continue to do so in future. Allowable sulfur levels in
refinery products are constantly being pushed downward. For the year ahead target
sulfur values for sulfur in reformulated gasoline have been proposed as 143 ppmw
and 30-50 ppmw for diesel by the year 2005.

Entry of MNCS:

Globalization and competition would squeeze margins, restructuring and cost

reduction will be the new mantra.

22
2.6 OPPORTUNITY FOR RELIANCE PETROLEUM LIMITED

 Government of India is in favor of creating additional refining capacity in the

country to provide higher level of energy security, hence, in 1001 the Private
sector opened up refining sector for the investment. Till then only National oil
companies were setting up oil refineries in India.
 Assuming that no additional refining capacity is added, incremental demand
of petroleum product will have to be met through imports, it is hence
reasonable to expect that the new refiners will get tariff adjusted import parity
price.
 All the above factors lead to the conclusion the refinery investment in India
will be a viable proposition.

In the preset scenario RIL is marketing their under Administrative Pricing

Mechanism decided by OCC like IOC, HPC, BPC. After April 2002 market will
be deregulated which means prices will be decided by market. In such scenario
RIL will market their products directly with the customer. That means RIL can
directly sell their products to their customer, despite supplying their customers
RIL can also supply their products to those refineries, which are going under
deficit in terms of supply.

23
3 LOGISTICS
FUNCTION

24
3.1 STUDY OF MAJOR LOGISTICS FUNCTION AND EVACUATION
ANALYSIS VIA DIFFERENT MODES IN RELIANCE INDUSTRIES
LIMITED:

 An overview of Major Logistics Functions.

 To study Evacuation facilities for an effective and efficient evacuation of the

estimated volume of the controlled products from the RIL refinery through
different modes of distribution.

 To ascertain the total yearly percentage evacuation of controlled products to

different region through different modes of transportation.

 Strategies for retain marketing of controlled products.

 To set a high standard for service delivery time and they meet this standard
consistently.

 To establish and operate knowledgeable & friendly customer service

department that can resolve the problems in a satisfactory & timely manner.

25
3.2 Logistics management scope:

In today’s global market place, selling a product is something is easier than getting
customers. Company must decide on the best way to store, handle and move their
product and service so that they are available to customers in the right assortment, at
the right time, and in the right place. Logistics effectiveness has a measure impact on
both customer satisfaction and company costs. A poor distribution system can
destroy an otherwise good marketing effort. It involves the management of entire
supply chain, value added flows from suppliers to final users. The logistics manager’s
task is to coordinate the whole channel of physical distributions system- the activities
of suppliers, purchasing agents, marketers, channel member and customer.

The activities include forecasting information systems, purchasing production

planning, order processing, inventory, warehousing and transportation planning.

Companies today are placing greater emphasis on logistics for several reasons. First,
customer service and satisfaction have become corner customers of marketing
strategy in many businesses, and distribution is and important customer element.
Second, logistics is a major cost element for most companies. Third, the explosion in
product variety has created a need for improved logistics management.

The major logistics a function includes order processing, warehousing, inventory

management and transportation.

Order processing:

Order can be submitted in many ways by mail of telephone, through sales people, or
via computers and electronic data interchange (EDI).

Ware housing:

Every company stores its gods while the wait to be sold. A storage function is needed
because production and consumption cycle rarely match.

26
Inventory:

Inventory levels also affect customer’s satisfaction. The major problem is to maintain
the delicate balance between carrying too many inventories and carrying too little.

Transportation:

Marketers need to takes an interest in their company’s transportation decision. The

choice of transportation carries affects the pricing of products, delivery performance,
and condition of the goods when they arrive all of which affects customers
satisfaction.

27
3.3 HIERARCHY OF INDUSTRY WORKING:

MINISTRY OF PETROLEUM

Reliance refinery Before deregulation Oil marketing company

After deregulation

Retail outlet Retail outlet

CUSTOMER

28
Refining Sector was opened up to the Private Sector in 1991.
After 1st April 2002 Administered Pricing Mechanism (APM) has been dismantled &
Oil Marketing Companies are being allowed to fix Retail Prices for MS & HSD.

The Petroleum Refining & Marketing Regulatory Board is Expected to monitor

Petroleum Product Price in the Deregulated Scenario & Ensure that there is no
Profiteering by the Oil Marketing Companies. It will also ensure that the Petroleum
Products are available through out the Country. In May-02 Government has granted
& given Marketing Rights to Reliance.

29
3.4 IMPORTANT ACTS AND REGULATIONS CONCERNING OIL INDUSTRY:

 Petroleum Act 1934 & Rules 1976 & the Amendment.

 Critical OISD standard.

 Standard of weight & measure Act 1976.

 Customer & Excise Regulation.

 Transport Discipline Guide Line.

 Industry Quality Control Manual (Aviation & Non Aviation).

 BIS speciation.

 Motor Vehicle Act 1988.

 Sales Tax Regulation.

 Chemical Accident (Emergency Planning, Preparedness & Response) Rules.

 MS/HSD (Prevention of malpractice in supply and Distribution) Order 1990.

 Kerosene (Restriction on use & Fixation of Ceiling Price order 1993).

 Explosive Act 1889.

 Gas Cylinder Rules 1981.

 The Air Prevention & Control of Pollution Act 1981.

 Factories Act 1948 (Bare Act 1998).

 The Public Liability Insurance Ace 1991.

30
31
SOME IMPORTANT SAFETY FEATURES:

 Fire, heat and gas detection system.

 Emergency shut down system.

 Overspill sensors.

 Interlocks.

 Terminal automation system.

 Oil movement information system.

 Tank inventory system.

 Automatic water sprinkler system.

 Semi fixed foam supply system in storage tanks

 Extensive coverage of fire hydrants/monitors.

 Round the clock coverage for fire fighting.

 Benzene vapor recovery system.

 Nitrogen blanketed tanks for methanol, ATF & Benzene.

 Closed drum draining system.

 Ows system for handling oily water.

 Fire alarm system.

 Availability of first aid box at all required locations.

32
3.5 COMPANY PRODUCTS:

PETROLEUM PETROCHEMICAL SOLID

PRODUCTS PRODUCTS PRODUCTS

HSD BZ COKE
SKO PX SULFUR
MS OX POLY-
LPG FO
PROPYLENE HA
LDO CBFS
LCO TOLULENE
ATF

RECEIPT:

METHANOL
ETHANOL
NRS (NAPTHA RETURN STREAM)

PRODUCTS AND THEIR USAGE:

 Diesel Industrial & Transportation Fuel

 Kerosene Domestic Fuel
 ATF Aviation Turbine Fuel
 LAB feedstock Manufacturing of LAB (detergent)
 LPG Industrial & Domestic Fuel
 Gasoline Light Motor Vehicle Fuel
 Naphtha Petrochemical Feedstock
 Coke Power Plant Fuel
 Sulfur Manufacture of Sulfuric Acid/Chemical
 Para Xylene Manufacture of PTA
 PP Plastic Products

33
3.6 LOGISTICS FUNCTIONS:

ORDER PROCESSING:

There are four modes of dispatches, for Road and Rail SAP automatically create
order by the interface of SAP system with customer system, Oil companies have
interface with RIL Company.

Once the data matches with Oil Company’s an automatic order is created in SAP
system, which is linked with technical automation system (TAS).

The details from SAP are transferred to TAS, which will enable the task to the
loading at Gantry. After the loading is over SAP generates excise invoice and other
Railway documents.

For coastal and pipeline customer issues LAN (loading advice note) based on loading
program given by oil company to different location. Order is created manually in
SAP system.

This order reference number is utilized for creating delivery note, invoice and other
related documents.

WAREHOUSING:

RTF

The refinery tank farm facility is situated in the man refinery site. It is distributed
over an area of 3 sq. km. it covers al the facilities for receiving and handling of the
Crude oil, other raw material, intermediates and products.

INVENTORY MANAGEMENT:

TANK INVENTORY SYSTEM

Since all the petrochemical & petroleum and Raw material (crude) are stored in
special and scientific tank to maintain optimum inventory level. So the inventory
system is called as Tank Inventory System (TIS).

TIS are totally automated one, which is monitored by control panel at RRTF & MTF.

Every tank in RRTF & MTF is attached with a device called ATG (Automatic Tank
Gauging), which notice down following Parameters Viz. Level, Temperature,
Pressure and Density of a tank. These parameters are used to calculate Gross volume,
Water volume and Net volume at 150C and net weight of the stored product.

34
These volume and weight will help in ascertaining the ULLAGE i.e. empty space
present in tank, PUMPABLE VOLUME i.e. volume of product above dead stock,
FLOW RATE and TIME to LIMITS (it is time to fill or evacuate the tank).

TIS having interface with other SAP software viz. TAS, OMIS etc. will access the
information to all the system.

This data helps to maintain the optimum inventory level respect of demand and
supply of the product.

TRANSPORTATION:

Product dispatch facilities

Road and Rail dispatch will be from Road and Rail Tank Farm (RRTF). Sea and
Pipeline dispatch will be from Marine Tank Farm (MTF).

 RRTF (Road)

Tank age and number of bays differ from product to product LPG is having 16 No. of
loading bays, MS is having 3 No. of bays, ATF is having 2 No. of loading bays, SKO
is having 6 No. of loading bays and HSD is having 18 No. of loading bays. Total
loading is automated and controlled by Terminal Automation System (TAS).

 RRTF (Rail)

RIL has two Rail gantries i.e. one for Oil and second for LPG. Oil Gantry has two
spurs. Each gantry is for a full rake on a single spur. Oil gantry has pipeline to load
HSD rakes. At the request of the industry RIL is providing facilities to load MS &
SKO. Mass flow of LPG and volume meter for Diesel as provided. Loading will be
automated and controlled by TAS.

 MARINE TANK FARM

Tank age at MTF is provided for tanker and pipeline dispatch.

LPG and ATF have one tank each for dispatch. MS, HSD & SKO have 3,6 & 2 tank
respectively for dispatch. Total eleven tanks for dispatch for the controlled products.
Other dispatch facilities are jetties. There are four jetties for product evacuation.

 PIPELINE

Petronet VK runs a 24” diameter pipeline across the gulf connecting Jamnagar
Refineries and Kandla-Bhatinda pipeline. Tanks at MTF are used for pumping MS,
HSD and SKO if required in this pipeline.
RPL has also share in Gail Kandla-Loni pipeline, which carries LPG.

35
 4 PRODUCT
EVACUATION
PATTERN

INTRODUCTION

36
RRTF is engaged in receipt, storage and dispatch of raw materials and finished
products. Raw materials for refinery are received from tank lorries, stored in RRTF
and transferred to RTF via pipeline, finished products from refinery are received,
stored, in RRTF and detached via tank lorries, tank wagons, cross-country pipelines
(LPG)

PRODUCT RECEIPT, STORAGE & HANDLING

Products are received from RTF/AEROMATICS/MTF are stored in RRTF, before

being dispatched via tank, truck, tank wagons, of pipelines products handled are
LPG, PROPYLENE, HSD, SKO, MS, NAPTHA, ATF, BENZYNE, PX, OX, HEAVY
AEROMATICS & LDO.

Dedicated pipelines for diff.+ products are used for the transfer from RTF to RRTF.
The same run down lines can be used transferring from RRTF to RTF/MTF.
However this involves manual operation restored to only as an exception.

All product receipts are metered by custody transfer meters. Dispatches are based on
weighbridge measurement/turbine meter measurement. LPG & white oil products
respectively.

RAW MATERIAL AND STORAGE

Methanol is received from tank lorries and unloaded at 02 bays having facility of
unloading 4 tank lorries at a time there are 02 No. Internal floating roof tanks having
capacity of 1100KL each. Methanol is transferred to RTF using methanol transfer
pumps via 6” pipelines.

Naphtha return stream and mixed xylene can also be received from tank lorries and
unloaded at 02 bays having facility of unloading 4 tank lorries at a time. Provision is
made for storing these products in 2 tanks having capacity of 3650KL each.

RAIL TERMINAL

Rail terminal is consists with POL gantry (Spur 1 & Spur 2) and LPG gantry to load
full rake of LPG & POL (HSD/MS/SKO/ATF) products liquid gantry is having a full
length of 800m to load a full rake of 54 BTPN (8 wheeler) or 72 conventional (4
wheeler) wagons at a time.
LPG gantry is having a full length of 800m. Divided into two parts by keeping a 50m
distance in between as per chief controller of explosive (CCOE) requirement to load
32 BTPGLN (8wheeler) or 64 conventional (4 wheeler) wagons at a time.

37
POL LOADING FACILITIES (For Spur 1 & Spur 2)

SPUR 1 (1 to 5) and SPUR 2 (6 to 7)

SR NO PRODUCT PUMPS SIZE BCU CAPACITY

M3/HR
1 HSD 2+1 18” 08 500
2 SKO 1+1 08” 08 500
3 PCN 2+1 18” 08 500
4 ATF 2+1 20” 08 500
5 MS 3% 1+1 08” 08 500
6 PCN 2+1 18” 08 500
7 MS 1% 2+1 20” 08 500

POL LOADING FACILITY

Each POL (HSD/PCN/ATF/SKO/MS) product having 3 unloading point and 1

centrifugal unloading pump connected with associated pipelines connected to
respective product tank.

LPG LOADING FACILITY

LPG loading gantry consists of 2 sections having 50m gaps as per CCOE
requirements. Each section consists of 4 bays each having facility of loading four 8
wheeler and eight 4 wheeler wagons.

LPG UNLOADING FACILITY

POL products are dispatched by volume, and LPG is dispatched by weight. One LPG
unloading compressor is having capacity of 150 m3/hr is provided to unload LPG sick
wagon at any point of the gantry.

PROCEDURE FOR LOGISTIC CORDINATION OF ROAD LOADING

The procedure is covered for the liquid products handled at RPL, RIL, LPG & LSHS
load office.
Tare weight capturing of tankers (WBN) and preparation of filling advice note (FAN)

Tankers of those products whose loading is not through TAS are first taken on
weighbridge are captured in truck tracking system weighbridge entry (incoming)

However incase of LPG tankers (loaded through TAS) tare weight is captured in TAS
for each tanker. For those RIL & LSHS products, which load through BCU, only one
tanker for each bay is taken on the weighbridge at the beginning of loading & their
tare weights are noted.

38
During capturing & noting the weight following care must be taken
Tanker should be stationary on weighbridge.
Driver must have come down from tanker.
Truck engine must be off.
Tare weight should be within reasonable limits.

FAN indicates the bay no., loading product of the truck, truck no, loading time, truck
details. The generation of FAN is done in TAS for those tankers, which load through
TAS & in SAP for those tankers, which load manually.

PROCEDURE FOR LOGISTIC CORDINATION OF RAIL LOADING

According to the ILP & BPC (All India rail movement coordinator) directives, the
base coordinator places the indent with RIL. RIL based on product availability places
the indent with railways.

The scope of the procedure covers logistics planning & marketing coordination
activities done to achiever the ILP targets fixed by oil industry to load product such
as HSD, MS, SKO, LPG, ATF in tank wagons to the destination mentioned in the
LAN issued by base coordinator. The procedure also covers the tank wagon master
updating &the activities carried out at rail load office related to rake loading.

The base coordinator will prepare LAN & handover the same to MOG. The LAN
contains details such as destination, Oil Company, product, no of wagons duty paid,
or bonded. Wherever necessary oil company will also mention the critical parameters
such as BZ content in MS, sulfur content in HSD in their LAN.
Rail load office person review the stock & accordingly advice the Rail load office
officer to prepare an indent &place the same with the railways.

39
PROCEDURE FOR LOGISTICS COORDINATR IN COSTAL & PIPELINE
DISPATCH FOR ILP PRODUCTS

The product wise costal & pipeline evacuation is decided in ILP meeting for coastal
evacuation, HPC (costal movement coordinator) schedules. The movement of vessels
monitors the movement of vessels and also broadly plans the quantity to be loaded in
every vessel. Two major pipelines are being operated from Jamnagar. One pipeline is
transferring HSD, SKO & MS through VKPL. The other pipeline owned by GAIL is
transferring LPG from Jamnagar to loni. The product is evacuated by these agencies
(GAIL, PVKL) on behalf of omcs. In case of VKPL the pumping is dome as per
quantity to be pumped in the pipeline and also the quantity to be loaded in vessel is
conveyed to RIL in the form of LAN for costal & pipeline movement, business group
in Mumbai conveys the quantities to MOG Jamnagar/EPS.

GAIL PUMPING

 In ILP meeting the oil Industry decides the location wise LPG to be pumped from
RIL through GAIL pipeline.

 The base coordinator in consultation with other omcs will prepare bulk LAN and
hand over the same to RIL, a copy of LAN is sent to GAIL also.

 Meanwhile LPG from RRTF sphere is drawn by GAIL as per requirement &
pumped into GAIL pipeline. As soon as the LAN the exhausted a fresh LAN will
be issued by base coordinator.

 The day-to-day pumping rate is monitored as per pre data of ILP.

 Incase of any stock or ullage crisis, pumping rates are regulated in consultations
with EPS, HO Mumbai & omcs’.

 Any query from omcs regarding quality of products will be sorted cut by MOG in
consultation with concerned departments like CTS, MTF, RTF, RRTF etc &as
per agreed operating procedure.

 In case of deviation from quality specification the same is conveyed to omcs and
their approval is obtained either orally or written communication.

40
FINDINGS:

Performance Measurement criteria of marketing evacuation group:

 Ensure timely evacuation so as to avoid loss of crude through out due to product
containment.

 Ensure uninterrupted availability of products in the market at the optimum

logistics cost.

 Co-ordinate with manufacturing to avoid loss of sale of specific product due to

product non-availability in the markets.

 Optimize utilization of product evacuation capacity.

 Ensure finished product inventories are maintained at on optimum level.

REGION WISE & MODE WISE DEAPATCH:

It mainly depends upon these factors

 Major shut downs.

 Change in logistics scenario.
 Natural calamities.

Due to above factors region & mode wise supply & demand scenario gets affected.

41
 LOGISTICS FUNCTION:

4.2 INVENTORY MANAGEMENT:

TANK INVENTORY SYSTEM:

All the Petrochemical & Petroleum products and Raw material (crude) are
stored in special and scientific tanks to maintain optimum inventory level.
This inventory system is called as Tank Inventory System (TIS).

TIS is totally automated which is monitored by control panel at RRTF & RTF.

Every tank in RRTF & MTF is attached with a device called ATG (Automatic
Tank Gauging), which notes down following Parameters viz. Level,
Temperature, Pressure and Density of a tank.

These parameters are used to calculate Gross Volume, Water Volume, Net
Volume at 150c and Net weight of the stored product.

These volumes and weight will help in ascertaining the ULLAGE i.e. empty
space present in a tank, PUMPABLE VOLUMES i.e. volume of product above
dead stock, FLOW RATE and TIME to LIMIT (It is time to fill or evacuate
the tank).

TIS having interface with other SAP software viz. TAS, OMIS ETC. will
access the information to all the systems.
This data helps to maintain the optimum inventory level in respect of demand
and supply of the product.

4.3 TRANSPORTATION CHANNELS:

ROAD DESPATCH:

Following steps are being put inline for dispatching the products:

Indent:
Daily IOC/BPC/HPC issue indent for upliftment product wise /qty. wise for
the next day requirement and short fall of qty. as per evacuation plan.

Commercial:
IOC shall provide the commercial documents to facilitate the truck loading/
dispatch.

42
 Excise gate pass/invoice.
 Commercial validation of the tank truck before loading.
 Delivery challan cum invoice and stock transfer challan etc.

Invoice:
Invoice series has been defined as per sells like
Domestic sells : Payment of Excise Duty.
Export : No Payment of Excise Duty.
Dimed Export : No Payment of Excise Duty.
Stock Transfer
And Others : Payment of Excise Duty.

3 copies of L.R. (1 Original Copy is kept with RILLO. & 2 c/c sent to H.O.)
4 copies of invoice (2 copies sent to RPPL then RPML and finally to Customer
and remaining 2 copies kept with RIL for dispatch to OIL COMPANIES)
4 copies of invoice generated for dispatch to others and stock transfer.

Original copy for Buyer : Sent to H.O and then to Buyer.

Duplicate copy for Transporter : Given to Driver.
Triplicate copy for Assessee : Kept with RILLO. For Record.
Extra Copy for Check Post : Given to Tanker Driver.

Every product has its own series No. For invoice that serial No. Should be
properly maintained.

Quality Certificate is also given for Customer.

Form-45 is given for product shifted out of Gujarat.

Product Rate is defined in advance and buyer does total payment of product in
advance to RIL.

Invoice copy is a important document. If excise duty is paid on product and

that product is used as a raw material for further production then after
making final product he will gain that paid excise duty deducted.

Safety/Statutory:
IOC is responsible for all statutory/safety rules/Regulation pertaining to
Loading/movement of products through tank truck, and shall monitor and
maintain necessary documents/Database.

43
Quality Control:

RIL shall ensure that all products to be loaded conforms to BIS specifications
and CQM norms/standards.

RIL shall provide QC certificate in respect of operating tanks and Joint

samples shall be taken and retained from the operating tanks as per IQCM for
future reference before commencement of loading operation.

Format for operating tanks details:

Product Tank no DIP Quantity Density/Temp/Flash point.

HSD
LPG
ATF
SKO
MS

TRUCK LOADING:

ACTIVITY/SEQUENCE:

TRUCK TRACKING SYSTEM (TTS)

 MAIN GATE ENTRY (MGN).

 TIME OFFICE.
 TRUCK PARKING GANTRY (TPN).
 REPORT TO OIL COMPANY COUNTER.
 RELIANCE COUNTER (TOUCH KEY CARD).
 TRUCK ORDER LINKING (TOL).
 LOADING ARM BAY ALLOCATION.
 REPORT TO LOAD OFFICE
RIL LOAD OFFICE :
RPL LOAD OFFICE :
LSHS LOAD OFFICE :
LPG LOAD OFFICE :
 ISSUE OF FILLING ADVICE NOTE (FAN).
 EXCISE INVOICE GENERATED BY RIL.
 INVOICE HANDOVER TO TRUCK DRIVER.
 MAIN GATE EXIT (MGX).

44
45
RAIL DESPATCH:

CAPACITIES:

4 Rakes per day in three shifts of LPG and 4 Rakes per day in three shifts of
liquids can be loaded.
Rake filling time will be 4 hour for both types of wagon for both LPG and
liquids like HSD/MS.

FACILITIES:

RIL Load Gantry & LPG Load Gantry.

Rail Gantry for Oil products – 01 No -- 54 (8 wheelers) or 72 (4 wheelers)

Tank wagons can be loaded at a time.

Rail Gantry for LPG – 01 No – 32 (8 wheelers) or 64 (4 wheelers)

Tank wagons can be loaded at a time.

Facilities for degassing and purging of sick LPG wagons.

CO-ORDINATION:

IOC//HPC/BPC Shall be responsible for co-ordination with railways

regarding all matters of loading and dispatches of tank wagons. Oil Company
and RIL staff co-ordinate and co-operate with each other during the entire
loading operations till the release of the tank wagons. Oil Company gives
yearly and monthly demand for products to RIL according to that RIL make
planning and put demands of rakes to Railways.

RAILWAY CHARGES:

All the necessary fees such as siding charges/shunting charges/wagon

registration fees/ freight charges/ demurrage charges and other payments shall
be paid by RIL initially and then Oil Company will pay to RIL. Office spaces
for railways staff shall be provided by RIL and Railway shall pay their wages
and incidental charges.
Oil Company shall be responsible for arranging sufficient number of fit tank
wagons from safety & QC point of view.

46
 DEMURRAGE/FREETIME:

Demurrage is charged by railways for detention of tank wagons beyond the

given free time during the tank wagon loading operations. Free time is
calculated from the time when wagon at the gantry, are declared fit by
Railways.

WAGON LOADING:

 OIL COMPANIES shall accept the placement slip from Railways and a copy
is provided to RIL. And the time of rake entry to rail siding is informed well in
advance by OIL COMPANIES at siding gate RIL security shall note in time
and total no. of wagons.

 OIL COMPANIES co-ordinates with Railways for clearance of wagon for

loading and physically inspect wagons and confirms to RIL of no. of fit/sick
wagons.

 OIL COMPANIES provide filling note to RIL for loading operations.

 RIL & OIL COMPANIES shall jointly note down the tank wagons no. Manual
loading memo. And these no. are entered in OIL COMPANIES system &
electronically inform RIL the product allocation tank wagon wise & clearance
for loading.

 OIL COMPANIES issues sick memo to railways with reasons.

 After the loading details finalized and down loaded to TAS, TAS sets the batch
controllers with wagon no., the quantity/product to be loaded. TAS will do the
lining up, opens necessary valves, commences, operations and complete the
operations for the Target quantity.

 RIL & OIL COMPANIES shall ensure the smooth and safe filling operations.

 RIL & OIL COMPANIES staff shall check the wagons for water presence (not
applicable for LPG), water if any, shall be drained out from the bottom and
topped with the product.

 The final Loading Memo (FLM) prepared by RIL on the basis of quantity
registered by the flow meter/mass flow meter.

 RIL prepare necessary pocket/paste-on labels wagons wise and hand over both
FLM & paste on label to OIL COMPANIES.

 OIL COMPANIES cross checks & discrepancy if any shall be rectified

immediately by RIL.

47
  The manhole cover of all the filled tank wagons shall be closed properly and
OIL COMPANIES shall seal all the tank wagons at top & bottom. For LPG
sealing will not be required.

 OIL COMPANIES shall issue the release memo to railways & co-ordinate for
removal of the tank wagons from the siding.

 Before removal of the tank wagons, RIL security shall be instructed to allow
the Exit of the wagons. RIL security shall note the out-time and no. of wagons
removed.

 During the removal of wagons gross weight of each wagon of LG shall be

obtained from In-motion weigh bridge and the gross weight shall be updated
in the loading memo.

PIPELINE TRANSFER:

INDENT/PIPELINE TRANSFER SCHEDULE:

 OIL COMPANIES shall co-ordinate with OCC/OMCS and prepare monthly

and weekly schedule for pipeline transfer in respect to agreed products.

 Everyday at the close of the first shift OIL COMPANIES shall provide indent
for pipeline transfer for the next day. With the following.

 Time of PLT.
 Product.
 Quantity.
 Duty paid/Bonded.

 RIL shall confirm acceptance of indent and in case of change RIL shall inform
OIL COMPANIES immediately.

CO-ORDINATION:

 OIL COMPANIES shall co-ordinate with the receiving location and confirm the
finalized pipeline transfer program well in advance to:

 Industry co-ordinates (if any).

 Custodian of pipeline (if any).
 Surveyor (if any).

48
49
 OIL COMPANIES shall also confirm to RIL in advance the following.

 Exact time of PLT.

 Firm parcel size.
 Product.
 Sequence of pumping (if any).
 Receiving tank No.(s).
 Ullage of the receiving tank(s).
 Whether switch over of tank is required.
 Name of the OIL COMPANIES officer who will supervise pipeline transfer.

ACTIVITIES/SEQUENCES:

 As per the “Marketing Agreement” the delivery point shall be segregation (valve)
between the pipeline facilities within the RIL facilities and pipeline facilities used
by OIL COMPANIES to lift the agreed products. Hence, after the RIL facilities
responsibility lies with RIL as far as pipeline operation is concerned.

 During the pipeline transfer operation OIL COMPANIES and RIL shall closely
co-ordinate to ensure smooth & safe transfer.

 Pipeline operations Log Book shall be maintained jointly by RIL & OIL
COMPANIES. As far as possible all information/activities
communication/occurrences/QC aspects during the pipeline transfer shall be
logged and signed by both RIL & OIL COMPANIES personnel.

 Any switch over of tanks during PLT by either side shall be informed well in
advance and proper care shall be taken for smooth and safe switch over of tanks.

 During pipeline transfer dispatch tank shall not be utilized for receipt. Similarly,
receipt tank shall not be utilized for dispatch/delivery.

 RIL shall ensure that minimum setting time as per industry practice is
maintained between receipt and delivery of product from the operating tan.

 RIL shall avoid pumping of hot product. As far as possible, the product
temperature shall not exceed the ambient temperature by OIL COMPANIES.

 Dispatches by pipeline the delivery shall be deemed completed at the time of

closing of the gauge for the dispatching tank.

 Only after receiving the conformation regarding the completion of PLT from RIL
the valves and other facilities at receiving location shall be closed and confirm the
same to RIL.

50
51
 MARINE TANKER LOADING:

RIL is having 4 jetties facilities for loading and unloading products and for
receiving crude.
4 jetties are known as A, B, C, and D.

 A – Alpha.
 B – Bravo.
 C – Charlie.
 D – Delta.

Among these four jetties Alpha is the Smallest One and Delta is the Biggest One.

 Alpha is for LPG, PX, and OX.

 Bravo is for NAPHTHA, PX, and OX.

 Charlie is for MS, HSD, and LDO & SKO.

 Delta is for MS, HSD, and LDO & SKO.

Crude is generally comes from Middle East, Europe, North America, South
America, Africa.

Ships are known as LCC, VLCC & ULCC.

 LCC – Large Crude Carrier. Capacity is 100-200 KT.

 VLCC – Very Large Crude Carrier. Capacity is 200-350 KT.

 ULCC – Ultra Large Crude Carrier. Capacity is > 350 KT.

52
 Types Of Tankers:

Oil tankers are cargo ship specially designed to transport liquid products in bulk.
There are three types of oil tankers available.

 Clean tankers, which are utilized for carrying, white oil products.

 Dirty tankers, which are utilized for carrying crude oil as well as black oil
products. These tankers are normally fitted with heating coils in order to
maintain in sufficient high temperature to keep the cargo in liquid form for easy
pump ability.

 There are special tankers for carrying specially products like lube oils, gases
(LPG) bitumen etc. These tankers are fitted with special type of equipment’s
depending upon the cargo to be carried.

TANKER FLEET:

The Hire Agreement between the Oil Companies and the owner of the vessels is
known as “Charter party agreement (c/p)”. There are generally two different
types of Charter party agreement:

Time Charter.
Voyage Charter.

Time Charter:
An Agreement to lease the services of the tanker for a definite period of time is
known as charter.

Voyage Charter.
A Voyage Charter party (c/p) is a contract entered between the ship owner and
the Charters for performing a voyage from one port to another port or as area
agreed upon.

53
LOADING SEQUNCE:

 Before the arrival of the tankers OIL COMPANIES shall provide the
following information to RIL.
 Name of the tanker/tankers.
 Last port of call.
 Expected time of Departure from.
 Draught of the vessel.
 Product and quantity to be loaded.
 Bunker Requirement of the vessel.
 Next port of call.

 All shipping/port related formalities should be completed by OIL

COMPANIES.

 OIL COMPANIES shall confirm the Name of the boarding officer who will
co-ordinate with the tankers as well as RIL. Similarly, RIL shall confirm the
Name of the duty officer who will co-ordinate on behalf of RIL.

 On arrival of tanker, OIL COMPANIES shall in consultation with the RIL

tender the Notice of Readiness (NOR).

 After the Berth has been Nominated, OIL COMPANIES shall inform and co-
ordinate with the ship agent, port master, pilot office and surveyor and also
co-ordinate with RIL for safe berthing of the vessel.

 After Berthing and clearance from the concerned authorities, Boarding officer
shall board the tanker and collect from the master all relevant shipping
documents.

 Boarding officer shall inspect the tanks for establishing the fitness of the tanks
to load nominated products.

 Boarding officer shall ensure that no other operation, particularly Ballasting,

inter tank transfer shall be carried out during the entire loading operations,
without obtaining clearance from the boarding officer. Boarding officer shall
examine the conditions of the tanker, bulk heads and Boarding officer shall
examine the conditions of the tanker, bulk heads and other fitting as far as
possible to ensure that there is no leakage of product.

 Boarding officer shall supervise the connection of the Hose/loading are to the
correct manifold, as advised by the master.

 Jetty manifold valve shall be opened just before the commencement of tha
loading.

54
 Duty officer shall inform the boarding officer about the commencement of
loading and wait for the confirmation of receipt at tanker end.

 Boarding officer shall arrange to take the first in samples from the tanker’s
tank and send to lab for testing and if if meets the specifications the loading
shall be resumed.

 Boarding officer shall arrange to take the Dips of the tanker tanks every hour
and calculate the quantity receipt and compare with the quantity receipt and
compare with the quantity pumped from the terminal. If any abnormal
variation is observed, matter shall be investigated both at terminal end and if
required loading operations shall be stopped. Only after ascertaining the
reasons. Loading operations shall be resumed.

 After the required quantity is pumped, duty officer shall inform the boarding
officer of completion of loading operations. Boarding officer disconnect the
Hose of loading arm after clearance from duty officer.

 If required bunker fuel shall be supplied by RIL and separate billing shall be
raised in this regard.

 IMPORTANT TERMS:

 LOA: Length Over All (Total length of vessel from Bow to Stern).

 BEAM: Width of the Vessel.

 DRAFT: Depth of the Vessel.

 ULLAGE: In a tanker distance of oil level from the top of tank. It is used for
measuring quantity of oil.

 CARGO TANKS: The space used for carrying cargo in the tanker.

 BALLAST TANKS: Tanks reserved for carrying Ballast when the ship is
empty/party loaded.

 DROUGHT: Height from the keel to the water line (Depth of the Vessel inside
water).

 DEAD WEIGHT: Carrying capacity

55
5 STRATEGIES FOR
DECONTROLLED
SCENARIO

56
STRATEGIES FOR DECONTROLLED SCENARIO:

In line with the Govt. Oil sector policies, RIL is currently selling the four product
namely LPG, Gasoline, Kerosene and Diesel to the public sector oil companies IOC,
HPCL and BPCL to the extent required by them.

The marketing of these controlled products is to be deregulated with effect from

April-02 as per the schedule announced by the Govt. RIL propose to enter the
business of retail marketing of controlled products in India. RIL also gets the
permission of establishing their own retail outlets, petrol pumps through out the
India. RIL should adopt the following strategies before entering to retail marketing.

OBJECTIVE:

While going for retail marketing RIL should have the following objectives in their
mind.

 Create a retail sales network:

In the present scenario RIL is having retail outlet like IOC/HPC/BPC.
Now RIL has to more expand its retail networks all across India.

 Create a brand image:

There are several decision evaluation processes used by a customer for a
particular brand. They prefer those brands:
One who satisfies their needs.
There are certain benefits attached with the products.

The customer develops a set of brand benefits about where each brand stands on
each attribute. The set of benefits about a brand make up the brand image.

RIL has to create brand image among the customer before switch on to retailing.
The better the brand is the better the consumer interest.

FUNCTIONS:

 Planning new locations:

Retailers are accustomed to saying that the three keys to success are “location,
location and location”. Customers generally choose the nearest petrol pump and
sales depts.

RIL has to select regions of the country in which to open outlets, then particular
cities and then particular sites.

57
 Demand forecasting:

In most markets, total demand and company demand is not stable, good
forecasting becomes a key factor in company success. All forecast are built on one
of three information bases:
What people say.
What people do.
What people have done.
The first basis: what people say involves surveying the opinions of buyers or these
close to them, such as sales people or outside experts. It encompasses three
methods: - survey of buyer’s intentions, composites of sales force opinions and
expert opinion. Building a forecast on what people do involves another method,
putting the products into a test market to measure buyer response, the final basis
what people have dome involves analyzing records of past buying behavior or
using a time series analysis or statistical demand analysis.

 Sales and market shares:

For Total potential RIL needs to know the actual industry sales taking place in its
market, this means identifying its competitions and estimating their sales.

Service: RIL should have to adopt four characteristics of service that greatly
affect the design of market programs.

Competitors: RIL will have to face pure competition from public sector
companies, because they are offering the same product and service. There is no
basis for differentiation, competitors price are also same.

ACTIVITIES:

 Update policies:

RIL should have to update their policies so that the company can deal with
stakeholders, employees, customers, suppliers, distributors and other important
groups.

 Earning per customer for development retail counter:

Every company loses money on some of its customer. The well known 20-80 rules
says that the top 20 percent of the customer generate 80 percent profit of
company.

58
 RIL has to consider customers in the following manner:

• The largest customers demand considerable service and receive the deepest
discounts.
• The smallest customers pay full price and receive minimal service, but the
cost of transaction with small customers reduce their profitability.
• The mid-size customers receive good service and pay nearly full price and
they are often the most profitable.

RIL has to measure customer satisfaction as well as customer profitability to earn

profit in retailing.

 Regular meeting with dealers and visit to retail outlet:

RIL will have to conduct sales meetings because periodic sales meetings provide a
social occasion, a break from routine, a chance to meet and talk with “company
brass” and each other, and a chance to air feeling and to identify with a large
group.

 Facility maintenance at Retail Outlet:

RIL will have to maintain facilities like shopping store at their retail outlets to
create their brand image.

RIL has declared ‘PetroCard’ as other competitors.

 Advertising campaigns:

RIL has to run advertising campaigns for each local market in a process called
communication adaptation.

RIL can change its message at four different levels, or RIL can us one message
everywhere, varying only the language, name, colors. RIL will have to maintain
the following quantities in their advertising campaign.

Create an Efficient & Effective Sales Force for proper commissioning and smooth
functioning of R.O. (Retail Outlets).

59
• Public presentation:
Advertising public nature confers a kind of legitimacy on the product and also
suggest a standardized offering, because many persons receive the message,
buyers know that motives for purchasing he product will be publicly understood.

• Pervasiveness:
Advertising permits the seller to repeat a message many times. It also allows the
buyer to receive and compare the message of various competitors. Large-scale
advertising says something positive about the seller’s size, power and success.

• Amplified expressiveness:
Advertising provides opportunities for the dramatizing the company and its
products, through the artful use of paint, sound and color.

• Impersonality:
The audience does not feel obligated to pay attention or respond to advertising.
Advertising is a monologue in front of not a dialogue with the audience.

Advertising is used to build up a long-term image for the products or trigger

quick sales. Advertising can efficiently reach geographically dispersed buyers.
Consumers believe that a heavily advertised brand must offer “good value”.

 Business to Business selling:

E-business will drive the over all strategy in the Process Automation System
(PAS) market for both suppliers and users in the near future. The effectiveness
and potential earnings from using the Internet as a platform for effective business
processes are fast becoming a reality. The Internet promises to enhance process
information by expanding the lines of traditional system.

It can allow users to views and collect process and store data via hardened web
server from any browser anywhere in the world.

60
5.1 MARKETING INFRASTRUCTURE:

In the present scenario RIL markets their product with co-ordination of

IOC/HPC/BPC. The evacuation is based upon Administrative Price Mechanism. For
each month oil companies decide SPM plan for evacuation in advance.

Evacuation is based upon dispatch facilities available at Reliance.

After Mar-02 there is no Administrative Price Mechanism i.e. RIL can market their
products directly to the customers but RIL has to further adopt a multi-pronged
strategy, encompassing:

 Potential joint venture and alliances.

 Development of their own distribution and marketing infrastructure.
 Invest in pipeline distribution structure of India.

61
5.2 MARKETING STRATEGY:

MARKETING AGREEMENT:

 RIL and OIL COMPANIES have entered into a long term Marketing Agreement.
As per the Agreement OIL COMPANIES shall market all Agreed products Ex.
RIL Refinery on the agreed terms & conditions during the period of the
Marketing Agreement.

 It is the primary responsibility of OIL COMPANIES to evacuate as required

products as per the agreed evacuation plan Ex. RIL facilities.

 RIL should ensure that all necessary assistance/co-operation as required are

extended to evacuate the products as per the plan.

 To evacuate the agreed products jointly following all standard safety, statutory,
quality and quantity and norms as agreed upon by RIL & OIL COMPANIES.

RIL & OIL COMPANIES INTERFACE:

 The successful implementation of evacuation plan Ex. RIL depends on close and
positive interface between the RIL and OIL COMPANIES team that facilities
dispatches of various products as per the plan, with the flexibility to meet to
unforeseen situation that may arise from time to time.

 To make the interface smooth and effective the partners (RIL & OIL
COMPANIES) must have:

• Mutual understanding and appreciation.

• Anticipation of implementing problems and timely exchange of such
information.
• Co-ordination effort to find mutually beneficial solution.
Flexibility in approach.

 The success or failure of the interface activity is also depend on whether both the
partners act as a team or otherwise. This will be a continuous process and to be
carried out:

• Informally at various dispatch unit levels Tank wagon/Tank

Truck/pipeline/Tanker operations.
• Formally through daily meetings and interaction at different management
levels.

62
BASIS OF OPERATION:

 The Roles/Responsibility/Functions/Operating Procedure/Principles/Practices in

respect of evacuation of products shall be based on:

• The agreement.
• Standard Norms/Practices in Oil Industry as per Rules/Regulations.

In case of an ambiguity/Disputes in any issue relevant Rules/Regulations or clause

of the agreement may be referred.

DELIVERY POINT:

Delivery of all Agreed Products shall be made by RIL to OIL COMPANIES at the
following points.

 In case of deliveries into Tank Truck and Tank Wagon, the delivery points shall
be the end of the Loading Arm in the gantry.

 In case of the Pipeline transfer the delivery point shall be the segregation (valve)
between the Pipeline facilities used by Oil Companies to lift the agreed products.

 In case of Tanker loading &Bunkers the delivery point shall be at the end of the
loading arm, Hose connected to the ship’s Flange.

 Title to and risk of loss for each Agreed Products shall pass from RIL to OIL
COMPANIES at the applicable delivery points.

TRANSPORTATION:

OIL COMPANIES have to provide sufficient number of Tank, Trucks at its own
cost, Tank Wagon or Ocean Tankers to ensure receipt of the monthly contract
quantity at the delivery points.

MEASUREMENT/ACCOUNTING OF PRODUCTS:

 In the case of loading into Tank Wagon/Tank Truck product quantity will be
assessed based on flow meters provided by RIL.

 In case of transfer by pipeline of ocean tankers RIL should raise invoice on OIL
COMPANIES for quantities assessed jointly on custody transfer meter/flow meter
provide by RIL.

 In case of dispatch by pipeline the delivery shall be completed at the time of

closing of the Gauges for the dispatching tank.

63
64
 All such flow meters/custody transfer meters are duly calibrated by appropriate
agencies of the Government and/or independent and reputed
surveyors/inspectors.

 All measurement as per the agreement shall be on this basis of Volume

determined at 150c for MS, HSD, SKO and ATF and on Weight basis for LPG.
For this purpose the quantities at the observed temperatures shall be first
conveyed to 150c and the quantities at 150c so arrived, is used for making the
invoice.

PRODUCTION AND EVACUATION PLAN:

 RIL has to prepare and provide to OIL COMPANIES Annual/Monthly

production plan for each of the Agreed products.

 Prior to the 15th day of each month RIL should provide OIL COMPANIES with a
production schedule for the following month.

 OIL COMPANIES should prepare and provide to RIL a monthly Mode-wise

Evacuation plan for each of the Agreed Products to match the OIL COMPANIES
Annual upliftment plan taking into consideration annual contract quantity and
the capacities of RIL delivery facilities within 30 days after the receipt of total
annual production plan.

 On the bases of annual/monthly contract quantity OIL COMPANIES should give

weekly/daily evacuation plan product wise/mode wise.

METER PROVIDING SYSTEM:

The meter reading is done for MS/HSD/ATF/SKO using master turbine meter and
for LPG master mass meter. Master turbine meters, will in turn be proved using
volumetric process. Master mass flow meters can also be verified using volumetric
prover.

WEIGH BRIDGE SYSTEM:

Electronic weighbridge system has been provided in liquids/LPG loading area to

acquire Tare and Laden weight of tank truck when it is applicable.

An in-motion weighbridge system has provided to acquire tare and laden weight of
LPG Wagon at the Rail Gantry.

65
OTHER FACILITIES:

 On line dye Injection system.

 Tanker cleaning system.
 Ethyl Mercaptan doping system for LPG.
 Laboratory Information management system to get quality related data &
Quality Certificate.

INDENT/ORDER:

 Every day OIL COMPANIES shall give the Indent mode wise /product wise
/quantity wise/shift wise upliftment for the following day.
 Every day OIL COMPANIES shall confirm the upliftment program for the sort
fall quantity (If any) for the following day.
 A specimen format for Indent is given below.

INDENT/ORDER

 Date & Time of indent :

 Supply Date :
 Product :
 Quantity :
 Mode Of Dispatch :
 Shift/Time Of Dispatch :
 Category (Duty Paid/Bonded) :
 Remarks :

SIGNATURE
OIL COMPANY

On Receipt of Indent/Order from OIL COMPANIES, RIL has to examine the

stock position product wise and other operational aspects and shall confirm the
acceptance of the Indent.

If any change is required to be carried out in the Indent the same shall be
communicated to OIL COMPANIES immediately.

AUTOMATION/BUSINESS SOFT WARE:

66
The total process and operations of the RIL facilities are integrated and monitored by
the DCS (Distributed Controlled System) with the help of following Automation
Packages.

 TAS (TERMINAL AUTOMATION SYSTEM)

 TIS (TANK NFORMATION SYSTEM)
 ATG (AUTO GUAGING SYSTEM)
 OMIS (OIL MOVEMENT INFORMATION SYSTEM)

 All business process/commercial documentation at RIL, Jamnagar are carried

out by SAP-ERP Software.

 SAP has to Interface with TAS (Terminal Automation System) TDM

(Terminal Documentation Module).

 Both OIL COMPANIES and RIL operating personnel must have basic
understanding of each other’s system/software.

 SAP does interface with TAS, which is primarily for handling evacuation of
products through different modes safely &efficiently. TAS will have interface
with TIS/OMIS.

EXCISE AND CUSTOMS:

 When Goods are manufactured in the country & consumed in the country
itself then the duty payable comes under Excise Control. Excise is an indirect
tax. Although Excise is leviable as soon as goods are manufactured, it is
collected only when goods are removed from a factory or a bonded warehouse.
Custom Duty is a tax on Import/Export of goods in to/out of the country.
Imported goods are permitted to be stored in Bond and Duty is collected at the
time of removal of goods bond for home consumption.

 SELF REMOVAL PROCEDURE (SRP)

Under this procedure no physical supervision of Excise officers is necessary

for removal of excisable goods and other operations in a factory/warehouse. In
order to ensure that this is not abused, a detailed accounting procedure,
periodical returns and inspections audits have been introduced.

 RESPONSIBILITY:

RIL and OIL COMPANIES shall separately be responsible for preparation

and submission of returns, records maintenance of both Statutory/Non
statutory as applicable to them in respect of the Evacuation of Agreed

67
Products as per Excise/ Customs Rules/Regulations. Some important
Records/Documents are noted below.

68
 GATE PASS --- GP-1 AND GP-2.
 PERSONAL LEDGER ACCOUNTS (PLA).
 INVOICES/CHALLAN.
 AR3 FOR REMOVAL OF EXCISABLE GOODS IN BOND FOR
TRANSFER TO ANOTHER BONDED WAREHOUSE.
 AR4 FOR REMOVAL OF EXCISABLE GOODS FOR EXPORT.
 BILL OF ENTRY.
 BILL OF LADING.
 LICENCE FROM COLLECTOR OF CUSTOMS.
 RG-1 REGISTER SHOWING QUANTITY OF EXCISEABLE GOODS
CLEARED.
 RT-12 MONTHLY RETURN GIVING DETAILS IN RESPECT OF
QUANTITY.
 MANUFACTURED, RECEIVED AND CLEARED.
 DECLARATION UNDER RULE 173B AND 173C.
 GAUGE BOOK/DIP MEMO.
 QUALITY CERTIFICATE.
 CT-1 CENTRAL EXCISE LICENCE.
 MONTHLY CALIBRATION CERTIFICATE.

To the extent operationally feasible, transaction between RIL and OIL

COMPANIES should be based on duty paid withdrawals. Each party should
be responsible for compliance with all formalities in its respectively premises.
Whenever, Bonded transfers of agreed products from RIL to OIL
COMPANIES take place, all excise duty shall be paid by OIL COMPANIES
on duty paid withdrawal there after. RIL is responsible for compliance of all
formalities in its premises.

INVOICING TO OIL COMPANIES:

Reliance processes a consolidate Invoice for sales made to OIL COMPANIES

on a daily basis. All deliveries from beginning of first shift till end of third shift
shall be for the same day. In other words date change in documents should
follow this timing rather than from mid night to mid night. These Invoices
should be processed product/mode/category wise (Bonded or Duty paid). The
quantity for this Invoice shall be the sum of individual Gate pass Quantities
converted to 150c quantities applying relevant Density/Temperature.

Mutually Agreed-pricing formula should be applied on the total quantity at

150c in order to arrive at total Invoice value by RIL.

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 6 RELIANCE CORE
VALUES AND WORK
CULTURE

RELIANCE CORE VALUES AND WORK CULTURE

70
Every enterprise in Reliance evolves around the core belief that:

“Growth is a way of life”

This philosophy has been constantly furthered by a “Bias for Action”

Reliance also believes in,

“Think Big, Think Fast & Think Ahead. Pursue your Goals even in the face of
difficulties, & convert adversities into Opportunities”.

Another strong value for Reliance.

Here “can do approach” completely dominant the minds.
Fundamental elements of its core values & work culture also provide framework
for companies expectation from its employees.

Mastering the Fundamentals:

Excellent command of one’s functional area is the starting point in Reliance.

This is augmented by intimate knowledge about the entire work process, its
fundaments and its consequences.
The “successful employees” is the one who is mobile and visible and who is
familiar with the brass-tacks.

Continuing Education & Learning:

Reliance has kept itself ahead by establishing an environment of constant learning

& knowledge enchantment. It provides ample opportunities for continuous
learning.

It also expects employees to document and institutionalize this collective learning

and constantly engage in knowledge sharing & transfer of learning with in the
organization.
The “Company” believes that education & learning will enhance your ability to
contribute to company’s goals as well as personal prospects.

EMPOWERMENT:

Employees in Reliance are empowered based on knowledge, skill & attitudes.

Here one’s demonstrated abilities and positive attitude is a ticket to becoming
empowered.
Employees are expected to take personal ownership of his/her functions and
assignment & stay focused. Empowerment is not only right but it is a
responsibility.

71
TRUST:

Trust is a concept with infinite nuances and hence cannot be fully realized
through a statement of intent.

At one level it is reflected in the empowerment and operational freedom in its area
of expertise. On another level it has to be experienced in the relationships that it
forge with its fellow employees, supervisors & peers. It is a two way street.

INITIATIVE & INNOVATION:

Initiative & ability to think differently are hallmarks of Reliance and have played
very significant role in its growth and success.
These commitments are a distinct feature of Reliance work culture.
Reliance believes that ambiguous situations can be dealt with strong initiatives
and commitment to end results.

TEAM WORK:

Teamwork is fundamental to RIL belief in creating non-hierarchical work

Environment.

Company encourages teamwork.

It creates an enormous opportunity to learn from each other’s experience.
Cross-functional teams create synergy between various functions & Reliance
commonality of approach.

INTEGRITY:

The company expects total financial and intellectual integrity from all employees.

• All the financial dealings of employees, with in the company and with outside
agencies should be transparent to the company.

• Reliance work culture depends more on verbal communication and hence

integrity of thoughts, speech and action also assume equal importance.

Adherence to the above enunciated core values and work culture aspects are
absolutely essential and no compromise is permissible.

72
 HEALTH, SAFETY & ENVIRONMENT POLICY:

“Safety of a person override all the production targets” is the health, safety &
environment policy of Reliance.

To attain this, the provisions of safeguard the health, safety & environment in the
plants:

 Properly designed plants.

 Effective use of safe working procedures & practices.

 Meeting in all respects the applicable statutory requirements.

 Clearly defined procedures for inspection, operation & emergency shut down and
their updating.

 Imparting relevant training and strict validation of employees after training.

 Continuous & systematic & micro level auditing – internal as well as external of
work procedures and practices.

 Continuous & systematic education of company’s contractors and transporters

personnel for observing safe work practices.

 Detailed investigations of all incidents including the minor ones & near miss
incidents followed b recommendations to avoid recurrence.

 Analyze the findings or investigations of accidents in similar industry and take

steps to prevent such accidents in the plants.

 Keep abreast with the latest international codes, standards & practices.

 Continuous of plant & ambient environment as well as of various effluents liquid,

gas & solids to maintain a clean and safe environment in and around the plants.

 Pre-Employment and periodic medical check ups of employees for early

identification of occupational health hazards.

RELIANCE QUALITY POLICY:

73
Reliance is committed to total customer satisfaction in terms of Quality and
service for the entire range of its products, its continued commitment of excellence
& innovative efforts helps in staying ahead as market leaders.

74
HUMAN RESOURCE DEVELOPMENT PHILOSOPHY:

Fundamental to the work of the Reliance organization and its ultimate

competitive position, is a respect for the development of employees through self-
help & guidance to foster common purpose & cohesion.

Reliance believe in:

 Employee development is not just about acquiring skills to solve specific

problems but also expanding minds to address problems and opportunity
which have now become apparent with full understanding of cross functional
linkages.

 Continuing personal development is the constant obligations of all employees

and constant responsibility of all executives, managers and supervisors.

 The development and use of human potential and a learning organizations.

 Continuous success in the future.

75
 7 SUGGESTIONS
RECOMMENDATIONS

76
SUGGESTIONS/RECOMMENDATIONS:

ROAD:

 Road facilities should be increased by 6 lanes passing and Road condition should
be improved on all major connecting roads to avoid,
 Over crowding of trucks.

 Delayed & Unsafe dispatch of product.

 Reduce chances of accident.

 Reduce cycle time.

 Adequate safety measure to avoid fire-catching devices for safe loading.

 Adequate bay facilities for products having higher demand in market.

 Cycle Time of truck should be reduced.

 Most of the time waste in waiting and transits time like in a queue at time
office, at a loading point or bay, at the time of invoice so it should be
reduced by proper facilities try to increase no of counter at the time office
and load office.

 Interface between SAP & TAS and other Oil Companies servers should be
fast enough.

 Inventory should be maintained at optimum level.

 Reduce chance of leakage while loading.

 Reduce chance of mistake at TOL.

 Give proper knowledge to truck driver & cleaner about function of touch
key and loading.

 Properly working of Display Board.

 In addition make proper and somewhat loud announcement in advance at

parking so next turn person be ready for his turn.

77
  All the documents require to check out should be bring out by supervisor
of Transport Company instead of the driver or cleaner this would be very
helpful for the smooth working of person at time office and save time.

RAIL:

 Rake movement should be improved to meet evacuation target.

 Automation loading should be improved.

 Try to reduce any chance of mistake by operator at time of loading by giving him
proper knowledge and training.

 Better co-ordination between oil companies and railway persons and RIL
employees.

78
8 FUTURE PROJECTS IN
INDIA

79
Installed Capacity Of Petroleum Refineries In India:

Regio Company Name Place Yr. Of Capacit Expansion

Installation y Plans
(mmtpa)
North Indian Oil Corporation Mathura 1982 8.00 6.00
(IOC)
Indian Oil Corporation Panipat 1998 6.00
(IOC)
East Indian Oil Corporation Digboi 1901 0.65 1.80
(IOC)
Indian Oil Corporation Guwahati 1962 1.00
(IOC)
Indian Oil Corporation Barauni 1964 4.20
(IOC)
Indian Oil Corporation Haldia 1975 4.60
(IOC)
Bongaigon Refinery & Bongaigon 1979 2.35
Petrochemicals Ltd.
(BRPL)
Numaligarh Refinery Numaligarh 1999 3.00
Ltd (NRL)
West Hindustan Petroleum Mumbai 1954 5.50
Corpn Ltd. (HPCL)
Bharat Petroleum Corp. Mumbai 1955 6.00
Ltd. (BPCL)
Indian Oil Corporation Koyali 1965 13.70 1.50
(IOC)
Reliance Industries Ltd. Jamnagar 1999 30.00 13.50
(RIL)
South Kochi Refineries Ltd. Kochi 1966 7.50 6.00
(KRL)
Hindustan Petroleum Visakh 1957 7.50
Corp. Ltd. (HPCL)
Chennai Petroleum Manali 1969 6.50 3.00
Corp. Ltd. (CPCL)
Chennai Petroleum Narimanam 1995 0.50 0.50
Corp. Ltd.
Mangalore Refinery Mangalore 1996 9.00
&Petrochemical Ltd.
(MRPL)
Total Refining Capacity 116.0

80
81
FUTURE PROJECTS IN INDIA:

BINA REFINERY:
Originally promoted by Bharat Petroleum Corporation and Oman Oil Co., but the
latter has opted out. It is to be set up at Bina in MP with a capacity of 6million mtpa
expected.

ESTERN INDIA REFINERY:

Joint Venture between Indian Oil Corporation and Kuwait Petroleum Corporation.
Being set up at Abhayachandrapur, Orissa with installed capacity of 9million mtpa.

BHATINDA REFINERY:
Promoted by Hindustan Petroleum. Proposal for joint venture being discussed with
group of UAE. Proposed capacity is 9 million mtpa.

PARADIP REFINERY:
Indian Oil implement the project on its own after Hinduja Group opted out of the
project.

ESSAR OIL REFINRY:

It is promoted by Essar Group with capacity of 12 million mtpa at Jamnagar.

HINDUJA REFINERY:
The Hinduja Grup is setting up a 2 million mtpa lube oil refinery at Hardispur in
Orissa.

SOROS REFINERY:
The US based Soros Group is promoting this 6 million mtpa capacity refinery at
Haldia, West Bengal.

82
PIPELINE NETWORK IN INDIA:

Pipeline Length Capacity Owner Year of

(KM) (MMTPA) Commission
Guwahati-Siliguri 435 0.8 IOCL 1964
Koyali-Ahmedabad 116 1.1 IOCL 1966
Barauni-Kanpur 669 1.8 IOCL 1966
Haldia-Barauni 525 1.4 IOCL 1966
Haldia-Mourigram- 269 1.3 IOCL 1974
Rajbandh
Mathura-Jalandhar 526 3.7 IOCL 1982
Kandla-Bhatinda 1443 6.0 IOCL 1996
Mumbai-Pune 161 3.9 HPCL 1985
Digboi-Tinsukhia 75 0.7 IOCL -
Mumbai-Manmad 252 4.3 BPCL 1998
Visakh-Vijaywada 356 4.1 HPCL 1998
Total 4827 29.0 - -

VKPL (Vadinar-Kandla Pipeline):

It is a joint venture by PIL(Petronet India Ltd.) and IOC.
It is 117 Kms long and having capacity of 11.5 MMTPA.
This pipeline is meant for evacuation of Petroleum Products from Refineries of
Reliance at Jamnagar & Essar Oil Ltd. (EOL) being setup at Vadinar, at present it is
laid from Reliance Refinery at Jamnagar to Oil installation of IOC at Kandla where
it is hooked up with the existing Kandla-Bhatinda Pipeline of IOC.

83
SOME OTHER PIPELINES PROJECTS ARE:

 Kochi-Karur Pipeline (CCKPL)

JV by PIL & BPCL
Length 292 Kms
Capacity 3.3 MMTPA – First Phase
4 MMTPA – Second Phase

 Mangalore-Hassan-Banglore (MHBPL)
JV by PIL & HPCL
Length 364 Kms
Capacity 5.5 MMTPA – First Phase
8.5 MMTPA – Second Phase

 Chennai-Madurai (CTMPL)
JV by PIL & IOC
Length 520 Kms
Capacity 2.0 MMTPA – First Phase
2.5 MMTPA – Second Phase

 Bina-Kanpur Pipeline
JV by PIL & BPCL

 Paradip-Rourkela Pipeline
JV by PIL & IOC

 Bhatinda-Pathankot Pipeline
JV by PIL & HPCL

84
LONG TERM DEMAND ESTIMATES FOR PETROLEUM PRODUCTS
CONSUMPTION IN INDIA. (IN MMT):

Product End of End of End of End of By

10th plan 11th plan 12th plan 13th plan
2007 2012 2017 2022 2025
LPG 10 13 15 19 20
MS 10 15 21 28 34
NAPHTHA 16 19 22 27 29
ATF 3 3 4 4 4
SKO 15 16 17 18 19
HSD 69 99 136 182 214
LUBES 1 2 2 2 3
FO/LSHS 17 21 25 30 33
BITUMEN 4 4 6 7 8
OTHERS 3 3 4 5 6
TOTAL 148 195 252 322 370

VISION 2025:

Estimated required capacity is approximately 360 MMTPA

Total Investment in Refining Sector is about of Rs 2,70,000 Crore.

Rs 1,35,000 Crore Marketing Infrastructure.

Rs 21,000 Crore Pipelines.
Rs 16,000 Crore Product Tankage & Related facilites.
Rs 93,000 Crore Retail Outlets.
Rs 5,000 Crore LPG Bottaling Plants over the same period.

Out of total demand in future around 90 % of it is of Middle Distillates.

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BIBLIOGRAPHY

 RIL journal

 Petroleum Review

 RIL monthly review

 Oil & Gas journal

 Refinery Reviews

 Handbook Of Writers & Editors by S. Rao

 Website www.ril.com

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