Oil in India was first explored in 1889 in Digboi, Assam, yet India remains a vastly unexplored territory by far, with only a small percentage of its sedimentary basins under exploration and development. India has significant reserves with a total of 26 sedimentary basins covering an area of 3.14 million square kilometer. Exploration activity, prior to New Exploration and Licensing Policy (NELP), was dominated by public sector firms such as Oil and Natural Gas Corporation Ltd. (ONGC) and Oil India Ltd. (OIL). The discovery of massive Mumbai High fields in 1974 gave a major boost to the sector as these fields still continue to be the mainstay of India's indigenous production. Realizing that these fields would gradually deplete over time and no major discoveries were being brought into production, the Government introduced the NELP, with an aim of encouraging private sector participation in the oil and gas sector. Today, India is the 5th largest consumer of hydrocarbons in the world with an expected demand of 186.54 MMTOE in 2009-10 which is expected to grow to 233.58 MMTOE in 2011-12. Increasing gap between demand and supply of oil & gas provides ample investment opportunities in the Indian hydrocarbon industry. In the Petroleum and Natural Gas Infrastructure there is an estimated investment requirement of 76,000 – 84,000 crore in the next 5 years to develop natural gas pipelines, City Gas Distribution (CGD) networks and petroleum products pipelines. There is a strong growth potential for the LNG imports including the LNG re-gasification terminals and offshore transshipment, service providers for laying of cross country gas grid and transnational pipelines.
In the exploration and production sector, with the increased activities there is a huge potential for the oil and gas service providers such as well cementing, well logging, drilling, seismic equipments, reservoir engineering, mud logging, IT solutions etc. The market for Enhance Oil Recovery (EOR) technologies is also open with the decline of production from existing fields.
Refining sector opens a requirement for Engineering Procurement and Construction (EPC) service provider and equipment providers with the expansion of existing capacities. Creating additional refining capacity of about 110 million tonnes per annum in the near future will require an investment of over US $ 22 billion.
Key Initiatives / Information
Confederation of Indian Industry (CII) and United States-India Educational Foundation (USIEF) announce the Fulbright-Nehru-CII Fellowships for Leadership in Management Program for the academic year 2012-2013. Indian business managers, whose employers would be willing to bear 50% (US$ 18,400) of the total cost (US$ 36,800), may compete to attend this specially designed management program at the Carnegie Mellon University’s Tepper School of Business in Pittsburgh from May 23 to July 31, 2012. Aimed to broaden overall perspectives and to strengthen strategic, functional and leadership skills in global business, this program combines classes with group work, industry visits, and networking.
Complete announcement matter and application materials are available at USIEF website www.usief.org.in.
November 15, 2011 is the application deadline.
76th CII Northern Region Business Outlook Survey is a quarterly study conducted to gauge the sentiment in the economy. Earlier, the survey was conducted bi-annually, but from the 74th Survey onwards the study is conducted on a quarterly basis in order to get a more frequent indicator of business sentiment. The current survey gives an outlook on business sentiments for the first quarter of 2011-12 as compared to the last quarter of 2010-11.
The Government of India in an effort to increase exploration activities and increase private sector participation in the oil and gas exploration sector implemented the NELP in 1999, for the hydrocarbon sector, and Coal Bed Methane (CBM) in 2001 for the gas sector. The NELP regime introduced several benefits to the players such as seven year Income Tax holidays for the production of mineral oil, no custom duty on imports required for petroleum operations, removal of signature bonus, biddable cost recovery upto 100 percent.
The Confederation of Indian Industry has formulated a National Committee on Hydrocarbons, chaired by Mr Naresh Nayyar, Managing Director and Chief Executive Officer, Essar Oil Ltd. The Committee is actively involved in facilitating policy issues and in strategizing to accelerate progress on reforms, restructuring and regulation of the industry spanning across exploration and production, refining and marketing, and services sector. The Committee also makes suggestions to facilitate speedy development of infrastructure for gas pipeline, LNG terminals, ports and city gas distribution.
CII News Update
Continuous Change and Improvement is the key driver for overall growth of the Organisation said by Dr Krishan Kumar, Former Director, Maruti Centre of Excellence (MACE) in his special address at the 4th Lean Six Sigma Summit organized by Confederation of Indian Industry (CII ) NR in New Delhi, toda.....
Government set to resolve long standing issues including amendment of IBR
Mr. T.S.G. Narayannen, Secretary, Central Boiler Board, Department of Industrial Policy and Promotion while speaking at the “Seminar on Boiler Industry: Identifying Challenges and Opportunities” organized by Confedera.....
Chennai, 1 March 2012, with a buoyant and rejuvenated oil economy, a reforming Government and an increasingly significant focus on the International Stage, Iraq is today firmly placed on the World Map. Iraq is proceeding with the rebuilding activities which have transferred it into the most dynamic.....
CII Awards & Recognitions
CII and Export Import Bank of India have, in 1994, jointly established the CII-EXIM Bank Award for Business Excellence, with the aim of enhancing the Competitiveness of India Inc. The Award is based on the internationally recognized EFQM Excellence Model.