Mr. B. Ashok, Chairman, IndianOil sharing IndianOil's Financial Results 2015-16 at
Corporation's Annual Press Conference held at New Delhi today.
Indian Oil Corporation Ltd. (IndianOil), India’s top-ranked Fortune 'Global 500' company and flagship national oil major in the downstream sector, turned in yet another year of all-round excellent performance in 2015-16. Renewing its commitment to the Corporate Vision of being 'The Energy of India,' IndianOil maintained its sustained growth and market leadership in 2015-16.
According to IndianOil Chairman, Mr. B Ashok, the Corporation sold 80.722 million tonnes of products, including POL, Gas, Petrochemicals, Explosives, and Exports; its refineries clocked a throughput of 56.2 million tonnes with 103.7% capacity utilisation; and cross-country network of pipelines registered the highest ever throughput of 79.8 million tonnes in the year 2015-16.
IndianOil registered the highest ever sales of petrochemicals at 2.538 million tonnes in 2015-16, as against 2.477 million tonnes in the previous year. Sale of Natural Gas, at 1.929 million tonnes, registered a growth of 6.9% over the previous year.
The hallmark of the year's performance was the commissioning of IndianOil's 11th and India's most modern refinery at Paradip. The incorporation of a 4.17 MMTPA INDMAX unit based on IndianOil R&D developed technology, at Paradip Refinery marked a major milestone in IndianOil’s quest to emerge as a world-class technology solutions provider.
During the year, the Corporation spearheaded successful implementation of PaHaL (Pratyaksha Hastantrit Labh) scheme by the oil marketing companies for direct benefit transfer of LPG to customers across the nation. The ambitious scheme of the Union Government, covering over 92% of LPG customers as on 31st March, 2016, has won recognition as the world’s largest cash transfer programme for households by the Guinness Book of World Records. IndianOil also led from front in successfully rolling out the Government of India's 'GiveItUp’ and ‘GiveBack’ campaigns for LPG consumers.
CORE PERFORMANCE
Marketing
Mr. B. Ashok, Chairman, IndianOil addressing the media at
IndianOil's Annual Press Conference 2016. With sales of 72.651 million tonnes of petroleum products in 2015-16, IndianOil continued to lead the market in the core product categories of petrol, diesel and LPG, and strengthened its reach, reliability and responsiveness as the commercial organisation with the largest customer interface in India.
Riding on the growth curve in infrastructure, manufacturing and services sectors resulting in enhanced POL consumption, the Corporation registered 13.5% in MS (petrol) and 3.8% growth in HSD (diesel) sales. This was powered by a continuously expanding marketing infrastructure and retail network, backed by enhanced refining and pipeline throughput capacities.
Besides maintaining about 6,500 dedicated facilities for bulk customers like the defence services, the railways and state transport undertakings, IndianOil currently operates over 25,000 fuel stations covering every nook and corner of the country. About 1,000 fuel stations were added to the retail network in 2015-16. XtraPremium branded petrol was re-launched at over 2,600 fuel stations during the year, and clocked a sales volume of 205 TMT.
Automation of over 1,700 IndianOil fuel stations was completed during the year, taking their cumulative number to over 9,400; with this, IndianOil fuel stations in 55 cities are now fully automated. Also, about 4,200 fuel stations of the Corporation switched over to use of solar energy for daily operations, which together is equivalent to about 15 MW of conventional electrical power.
IndianOil's popular Indane cooking gas completed 50 glorious years in October 2015. The superbrand accounts for nearly half of the market share for LPG in the country, with sales of 9.2 million metric tonnes during the year 2015-16. In its bid to reach out to more households, IndianOil enrolled a record one crore new LPG customers during the year, raising the Indane customer base to 9.88 crore. Over 1,200 LPG distributorships were commissioned during 2015-16, also the highest ever for a financial year.
The concept of 'smokeless village' pioneered by IndianOil during the year is yet another corporate initiative to improve LPG availability among the rural populace. More than 3,400 villages and towns have been declared smokeless as on 31st March, 2016.
IndianOil Aviation Service also completed 50 successful years as the market leader in November 2015. IndianOil refuels over 1,750 flights a day; that is, more than one aircraft every minute. During the year 2015-16, IndianOil commissioned its 100th AFS at Rourkela in Odisha, a landmark achievement for the Corporation.
IndianOil’s world-class SERVO lubricants were introduced in Saudi Arabia and Tanzania markets during the year; with this, the brand has presence in 27 overseas markets.
Mirroring rising customer aspirations, the Corporation is assimilating IT tools in business processes and across customer touch points to enhance customer service and value-added facilities. E-initiatives by way of automation of operations right from bulk storage points to fuel stations; and launch of business portals and mobile apps for bulk and retail customers, resellers and field force have enhanced productivity, besides ease and convenience of work processes.
Refineries IndianOil refineries (excluding Paradip Refinery which began commercial production from 1st March 2016) together achieved the highest ever crude oil throughput of 56.2 million tonnes in 2015-16, with a capacity utilisation of 103.7% and the best-ever combined distillate yield of 80.6 wt%.
Focussed efforts in energy conservation enabled them register the lowest Fuel & Loss (F&L), Specific Energy Consumption (in terms of MBN ) and Energy Intensity Index (EII), at 8.53%, 53.8 and 101 respectively.
With the commissioning of Paradip Refinery during the year, the Corporation’s refining capacity has risen to 69.2 million tonnes per annum and the group refining capacity to 80.7 million tonnes per annum. Set up at a cost of Rs. 34,555 crore, it is the most-modern refinery of the country, with a complexity factor of 12.2 based on Nelson Index, and is configured to process high-sulphur heavy crude oils with major secondary processing units in place for quality up-gradation of products.
A 4.17 million tonnes per annum INDMAX unit, based on IndianOil R&D’s flagship process technology, was commissioned as an integral part of Paradip Refinery. INDMAX enables direct conversion of petroleum hydrocarbon streams into more valuable light distillates and petrochemical feedstock. Globally licenced through M/s. Lummus Technology, USA, the process can double production of LPG, demand for which is going up sharply.
IndianOil continued its efforts to widen its crude oil basket and tie-up new supply sources to de-risk supply. Eight new grades of crude oil were processed in its refineries for the first time during the year. The Corporation has over the years built up capabilities to process 174 grades of crude oil from over 40 different sources across geographies.
Pipelines As a pioneer in oil pipelines in the country, managing one of the world's largest oil pipeline networks, IndianOil achieved the highest-ever throughput of 79.8 million tonnes during the year 2015-16, which was about 5.5% more than that of the previous year.
About 525 km of additional pipeline length was added during the year, as part of IndianOil’s plans to continuously expand its network in line with growth in business. Projects currently under implementation would further increase the length of the pipelines network from 11,746 km currently to about 17,000 km, and throughput capacity from 85.5 to 102 million tonnes per annum.
Research & Development The year 2015-16 was a year of great success in technology deployment for IndianOil. Besides the INDMAX unit set up at Paradip Refinery and the ongoing incorporation of OCTAMAX technology at Mathura Refinery, deployment of INDAdeptG technology for production of BS-IV gasoline from INDMAX gasoline stream is in progress at Guwahati Refinery.
The Corporation's R&D Centre was granted 18 new patents during the year. Total patents under the ambit of IndianOil stand at 454 including 74 patents (35 in India and 39 overseas) filed during the year.
Indane Nanocut, a hi-therm LPG-based metal cutting gas, was launched after successful field evaluation and is being distributed from 28 locations in India.
NEW BUSINESSES Over the past decade, IndianOil has assiduously built its new businesses, that is, petrochemicals and natural gas marketing, to a level where they have achieved integration into the core verticals. The Corporation's upstream forays into exploration & production have also yielded significant results in the form of a sizeable portfolio of oil & gas assets.
Petrochemicals During the year 2015-16, IndianOil registered the highest ever sales of petrochemicals at 2.538 million tonnes, as against 2.477 million tonnes in the previous year. The Corporation is now the second largest polymer supplier in the country with PROPEL grades covering over 80% of the plastics applications, and with over 50 polymer grades introduced and stabilised in the domestic market.
With two new destinations, France and Germany, added during the year, PROPEL petrochemicals are now being exported to 71 countries, and polymer intermediates to 53 countries.
Natural Gas IndianOil marketed 1.929 million tonnes of natural gas during the year 2015-16, registering a 6.9% growth in sales over the previous year. Sale of over 19,000 tonnes of gas was achieved through ‘LNG at the Doorstep’ facility for customers located away from gas pipelines.
For the first time, IndianOil successfully imported 9 LNG cargoes on its own in 2015-16. This is in addition to LNG sourced through our joint venture Petronet LNG Ltd.
IndianOil has 1.2 million tonnes per annum of LNG in the Pacific NorthWest LNG project on FOB basis for at least 20 years, and the deliveries are expected to commence in the year 2020. The Corporation is also working on capacity booking and equity participation in various upcoming LNG projects in the country, including in Gujarat and Odisha.
Through a JVC, IndianOil LNG Pvt. Ltd. (IOLPL), IndianOil is setting up a 5-million tonnes per annum LNG terminal at Kamarajar port, Ennore (near Chennai). In a related development, IndianOil has been authorised by PNGRB to develop the 1,175-km Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin natural gas pipeline.
IndianOil’s joint venture with Adani Gas Ltd. has won authorisation from PNGRB to operate city gas distribution projects in five new geographies – Panipat, Daman, Ernakulam, Udhamsingh Nagar and Dharwad.
Exploration & Production During the year, IndianOil actively engaged in exploration activities in 8 domestic blocks (including 2 coal-bed methane blocks) and 7 overseas blocks, with working interest in each ranging from 3.5% to 100%. The seven overseas blocks are located in Libya, Gabon, Nigeria, Yemen, Venezuela, USA and Canada. The consortium of IndianOil and Delonex Energy UK Ltd. has also secured the Palmeira Block under the fifth Mozambique licencing round, and the formal allotment is awaited.
Of the 15 oil & gas blocks in IndianOil’s portfolio, three are under production (all overseas), six under discovery (three overseas and three domestic), two under exploration (one overseas and one domestic) and four domestic blocks under development phase.
IndianOil, along with Oil India Ltd. (OIL) and Bharat PetroResources Ltd. (BPRL), signed agreements to acquire participatory shares in the LLC of Taas-Yuryah Neftegazobodobycha (TYNGD) from Rosneft Oil Company, the national oil company of Russia. TYNGD is currently producing 20,000 bopd and is expected to have a peak production of 100,000 bopd by the year 2021, which will enhance IndianOil’s share of production by 0.5 MMTPA and its share of 2P reserves by 164.6 Million Barrel of oil equipment (MMboe).
Another agreement was signed with Rosneft for evaluation of acquisition of stake in the CJSC Vankorneft. Vankor is Russia’s second largest field by production and accounts for 4% of Russian production and is currently producing oil at a peak level of approximately 440,000 bopd, which will enhance IndianOil’s share of production by 1.76 MMTPA and its share of 2P reserves by 218.95 MMboe.
Both these acquisitions in Russia would provide an additional 85.6% increase in IndianOil's share of 2P reserves from 447.73 to 831.28 MMboe and the Corporation’s share of production by 452% from 0.5 MMTPA to 2.76 MMTPA.
In addition, an MoU was also signed between Rosneft and the Indian consortium for joint evaluation of certain other assets of Rosneft in Russia. This will add considerable 2P reserves/equity oil to IndianOil.
SUSTAINABILITY INITIATIVES IndianOil has ambitions plans to broaden its energy basket with alternative energy options; the Corporation envisages setting up 260 MW of renewable energy (wind and solar) over the next five years.
Power generation from IndianOil's wind-power projects at Kutch (21-MW) in Gujarat and Vajrakarur & Gandikota (48.3-MW) in Andhra Pradesh reached 124 million units (kWh) during the year, which corresponds to an emission reduction of 102 TMTCO2e (thousand metric tonnes carbon-dioxide equivalent).
IndianOil's grid-connected solar photo voltaic (PV) project of 5-MW capacity at Rawra in Rajasthan generated 7.6 million units of renewable electricity, resulting in carbon emission reduction of 6.2 TMTCO2e during the year.
As part of a policy to promote solar power in day-to-day operations by setting up solar PV plants on rooftops of buildings and on surplus land, 1.7 MW of solar PV has been installed across various refineries, installations and office buildings of the Corporation with a total annual generation capacity of 1.7 million units and annual carbon emission reduction potential of 1.3 TMTCO2e.
Solar PV power generation systems have also been installed at about 4,200 IndianOil fuel stations, including Kisan Seva Kendra outlets, with a cumulative installed capacity of about 15MW. The Corporation sold more than 3,60,000 solar lanterns in small towns, semi-urban and rural areas through its retail network.
To serve as carbon sinks, IndianOil has developed green belts with a tree cover numbering 2 million at its various installations, adding about 50,000 saplings during 2015-16. 66 rain-water harvesting systems were installed during the year. Cumulatively, IndianOil now has 505 rain-water systems with an annual harvesting capacity of about 2.9 billion litres, covering a combined catchment area of 950 hectares.
A comprehensive policy has been formulated for implementation of LED lighting in place of conventional lighting across all refineries, office buildings, townships, installations & fuel stations by the year 2017.
CORPORATE SOCIAL RESPONSIBILITY IndianOil’s CSR agenda focusses on specific areas like safe drinking water, healthcare and sanitation, empowering women and socially & economically backward groups, education and employment-enhancing vocational skills, environment sustainability, protection of national heritage and promotion of art & culture, and rural development. Among the major initiatives,
• IndianOil undertook more than 3,600 cleanliness drives and events as part of Swachh Bharat Abhiyan.
• In support of Swachh Vidyalaya Abhiyan, the Corporation constructed/renovated 2,855 toilets in Government schools in 16 States across the country.
• During the year, over 16,000 non-employee patients were treated at IndianOil's Assam Oil Division Hospital in Digboi and the Swarna Jayanti Samudaik Hospital in Mathura during the year.
• Over 270 students successfully completed vocational training on skills and competencies linked to industries and received their certificates from IndianOil Multi-skill Development Institute in Digboi last year.
• Similarly, 19 girl students received diploma certificates in General Nursing and Midwifery at the Corporation's Assam Oil School of Nursing, also located in Digboi. Nearly 400 girl students from 26 batches have successfully completed the three-and-half year course since its launch in 1986.
• The IndianOil Foundation, a non-profit trust, is developing tourist-friendly facilities at the national heritage sites of Kanheri caves, Vaishali stupa, and Bhoganandiswara and Konark temples.
