Refining has been one of the biggest success stories in the Indian economy. About 15 years ago, India had to import refined products, but today it has become a net exporter. The country’s refining capacity has gone up to 240 million tons and the consumption of products – petrol, diesel, kerosene, etc. – is 180 million tons. The challenge is in crude oil production; India produces just 40 million tons of crude oil.
Says B. Ashok, Chairman, Indian Oil Corporation Ltd (IOCL): “GDP and population expansion, coupled with India’s low per capita energy consumption, will drive massive fuel growth. Oil will continue to feature prominently in India’s energy mix even in 2040, despite rapid growth in renewable sources.” Indian Oil is bullish on its latest high-complexity refinery at Paradip, which will significantly improve the refining competitiveness of the company and India. The chairman of IOCL also foresees a paradigm shift in retailing as competitions shifts to the thriving rural hinterlands.
With all its brownfield expansions in line, Indian Oil would cross 100-million-tonne mark in about six years. It is also planning to set up a world-scale refinery in the west coast and all three state-owned refiners – Indian Oil, Hindustan Petroleum and Bharat Petroleum – will jointly establish the refinery. Indian Oil is also present in both domestic and overseas exploration and production projects. “Overseas, we have stake in three producing states – one is a gas field at British Columbia where we have a 10 per cent stake. It is a 12-mt LNG project. We have some small production in Venezuela and the US. We have recently acquired stake in Russian assets.” Lester Hayes JerseyShare This