ASSIGNMENT

OF

MANAGEMENT & PRACTICES

ON

INDIAN OIL CORPORATION

SUBMITTED TO:- Mr. MANISH KUMAR

SUBMITTED BY:- AMIT SINGH RANA

REG NO. 10900221

RV8906B12

Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore for the year 2009-10.

IndianOil is the highest ranked Indian company in the latest Fortune ‘Global 500’ listings, ranked at the 125th position. IndianOil's vision is driven by a group of dynamic leaders who have made it a name to reckon with.

In this section, read about IndianOil’s business and its spread across the country & abroad. You can also know about IndianOil's current financial performance, special initiatives and recognitions & awards that have come its way.

CORPORATE OVERVIEW IndianOil is India’s flagship national oil company with business interests straddling the entire hydrocarbon value chain – from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas, marketing of natural gas, and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the 125th position in the year 2010.

With over 34,000-strong workforce, IndianOil has been helping to meet India’s energy demands for over half a century. With a corporate vision to be the Energy of India, IndianOil closed the year 2009-10 with a sales turnover of Rs. 271,074 crore and profits of Rs. 10,221 crore.

At IndianOil, the operations are strategically structured along business verticals - Refineries, Pipelines, Marketing, R&D Centre and Business Development – E&P, Petrochemicals and Natural Gas. To achieve the next level of growth, IndianOil is currently forging ahead on a well laid-out road map through vertical integration— upstream into oil exploration & production (E&P) and downstream into petrochemicals – and diversification into natural gas marketing and alternative energy, besides globalisation of its downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), IndianOil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.

With facilities at multiple locations and ever-expanding market opportunities, IndianOil is poised to become an integrated energy company with steady forays into Oil Exploration & Production, Petrochemicals and Renewable Energy.

REACH AND NETWORK

IndianOil and its subsidiary (CPCL) account for over 48% petroleum products market share, 34% national refining capacity and 71% downstream sector pipelines capacity in India.With a steady aim of maintaining its position as a market leader and providing best quality products and services, IndianOil is currently investing Rs. 47,000 crore in a host of projects for augmentation of refining and pipelines capacities, expansion of marketing infrastructure and product quality upgradation.

The IndianOil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 62.7 million metric tonnes per annum (MMTPA, .i.e. 1.25 million barrels per day). IndianOil’s cross-country network of crude oil and product pipelines, spanning 10,899 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical

and environment-friendly manner. It has a portfolio of powerful and much-loved energy brands that includes Indane LPGas, SERVO lubricants, XtraPremium petrol, XtraMile diesel, etc. Validating the trust of 56.8 million households, Indane has earned the coveted status of ‘Superbrand’ in the year 2009.

IndianOil has a keen customer focus and a formidable network of customer touch-points dotting the landscape across urban and rural India. It has 18,643 petrol and diesel stations, including 2,947 Kisan Seva Kendras (KSKs) in the rural markets. With a countrywide network of 35,600 sales points, backed for supplies by 140 bulk storage terminals and depots, 98 aviation fuel stations and 88 LPGas

bottling plants, IndianOil services every nook and corner of the country.

Indane is present in almost 2764 markets through a network of 5095 distributors. About 7,593 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep.

IndianOil’s ISO-9002 certified Aviation Service commands an enviable 63% market share in aviation fuel business, successfully servicing the demands of domestic and international flag carriers, private airlines and the Indian Defence Services. The Corporation also enjoys a 65% share of the bulk consumer, industrial, agricultural and marine sectors.

Innovation is key IndianOil has a sprawling world-class R&D Centre that is perhaps Asia's finest. it conducts pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels, and is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the country. The Centre holds 215 active patents, including 109 international patents.

Some of the in-house technologies and catalysts developed by IndianOil are the INDMAX technology (for maximising LPG as yield), Olivorus–S bio-remediation technology (extended to marine applications too), DHDS catalyst, a special Indicat catalyst for Bharat Stage-IV compliant Diesel, IndVi catalyst for improved distillate yield and FCC throughput, and adsorbent based deep desulphurisation process for gasoline and diesel streams.

Redefining the horizonIn Petrochemicals, IndianOil is investing Rs. 20,000 crore (US$ 4 billion) by the year 2011-12. It offers a full slate of products including Linear Alkyl Benzene (LAB), Purified Terephthallic Acid (PTA), and an extensive range of polymers. IndianOil holds a significant market share of LAB in India and exports to 19 countries. A state-of-the-art 120,000 tonnes per annum Styrene Butadiene Rubber

(SBR) unit is underway at Panipat. The SBR unit will further strengthen IndianOil’s presence in the speciality petrochemicals sector.

In Exploration & Production, IndianOil’s domestic portfolio includes nine oil & gas blocks and two Coal Bed Methane blocks. The overseas portfolio includes nine blocks spread across Libya, Iran, Gabon, Nigeria, Timor-Leste and Yemen. Exploration activities are at various stages of progress. In addition, as part of consortium, IndianOil has been awarded Project -1 in the Carabobo heavy oil region of Venezuela. To boost E&P activities, IndianOil has incorporated Ind-OIL Overseas Ltd. – a special purpose vehicle for acquisition of overseas E&P assets – in consortium with Oil India Ltd.

Natural Gas marketing is another thrust area for IndianOil with special focus on City Gas Distribution (CGD) business. The Corporation has entered into franchise agreements with several CGD players to market Compressed Natural Gas through its retail outlets. IndianOil’s joint venture with GAIL India Ltd. - Green Gas Ltd. – has been authorised to take up city gas distribution at Agra. A long term gas supply agreement has been signed with NTPC.

IndianOil has signed an MoU with Tamil Nadu Industrial Development Corporation Ltd. (TIDCO) to set up a 2.5 million tonnes per annum LNG import and re-gasification terminal & gas-based power plants at Ennore, and gas pipelines for distribution in the state of Tamil Nadu, at an estimated investment of around Rs.10,000 Crore.

Venturing into alternative fuels IndianOiI has forayed into alternative energy options such as wind, solar, bio-fuels and nuclear power. A 21 MW wind power project is operational in the Kutch district of Gujarat and the cumulative power generation from the 14 wind turbine generators has crossed 6.6 crore units (KW/Hr) since commissioning in January 2009. The solar power initiative is being spearheaded on a pilot basis in Orissa,

Karnataka and the Northeast and an all-India phased roll out is underway. Solar products such as solar lanterns and torches are being sold through the Retail Outlets in rural and urban areas. With a view to investing in the nuclear energy sector in the country, IndianOil has entered into an agreement with the Nuclear Power Corporation of India Ltd.

IndianOil has the largest captive plantation – over 1,000 hectares – for bio-fuel production in India which is underway in Chattisgarh and Madhya Pradesh, generating rural employment of over 1.4 lakh man-days. To straddle the complete bio-fuel value chain, IndianOil has formed a joint venture with the Chhattisgarh Renewable Development Authority. IndianOil CREDA Biofuels Ltd. has been formed to carry out farming, cultivating, manufacturing, production and sale of biomass, bio-fuels and allied products and services in Chattisarh. In Uttar Pradesh, IndianOil is establishing a model value chain for the production of bio-diesel. A MoU for collaborating on commercial production of bio-diesel from algae has also been signed with PA LLC.

IndianOil. The Energy of India As a leading public sector enterprise of India, IndianOil has successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The Corporation takes pride in its continuous investments in innovative technologies and solutions

for sustainable energy flow and economic growth and in developing techno-economically viable and environment-friendly products & services for the benefit of its consumers.

INDIANOIL MAJOR UNITS  

Registered Office  

Registered Office IndianOil Bhavan,G-9, Ali Yavar Jung Marg,Bandra (East), Mumbai -400 051

 

Corporate Office

 

Refineries Division

Head Office SCOPE Complex, Core-27, Institutional Area, Lodhi RoadNew Delhi -110003

Barauni Refinery P.O. Barauni Refinery,Dist. Begusarai -861 114 (Bihar)

Gujarat Refinery P.O. Jawahar Nagar,Dist. Vadodara -391 320(Gujarat)

Guwahati Refinery P.O. Noonmati,Guwahati-781020 (Assam)

Haldia Refinery P.O. Haldia RefineryDist. Midnapur-721 606(West Bengal)

Mathura Refinery P.O. Mathura Refinery,

Mathura -281 005(Uttar Pradesh)

Panipat Refinery P.O. Panipat Refinery,Panipat-132140(Haryana)

Bongaigaon Refinery P.O. Dhaligaon,Dist. Chirang, Assam - 783 385

 

Pipelines Division

Head Office A-1 Udyog Marg,Sector-1, Noida-201301(Uttar Pradesh)

Northern Region P.O. Panipat RefineryPanipat -132 140 (Haryana)

Western Region P.O. Box 1007,Bedipara,Morvi Road,Gauridad,Rajkot-360 003 (Gujarat)

Southern Region 139, Nungambakkam High RoadChennai - 600034

Eastern Region 14, Lee Road,Kolkata-700020

 

Marketing Division

Head Office IndianOil Bhavan,G-9, Ali Yavar Jung Marg,Bandra (East), Mumbai -400 051

Northern Region IndianOil Bhavan,1, Aurobindo Marg, Yusuf SaraiNew Delhi -110016

Eastern Region IndianOil Bhavan,2, Gariahat Road, South (Dhakuria)Kolkata -700 068

Western Region 254-C, Dr. Annie Besant Road,Worli Colony, Mumbai -400 030

Southern Region IndianOil Bhavan139, Nungambakkam High RoadChennai -600034

 

R&D Centre

R&D Centre Sector 13 Faridabad -121 007(Haryana)

 

 

Assam Oil Division

Assam Oil Division P.O. Digboi -768 171(Assam)

 

IBP Division

IBP Division 34-A, Nirmal Chandra Street,Kolkata - 700 013

 

Group Companies

Chennai Petroleum Corporation Ltd. 536, Anna Salai,Teynampet, Chennai - 600 018

IndianOil (Mauritius) Ltd. Mer RougePort Louis Maruritius

Lanka IOC PLC Lanka IOC Head OfficeLevel 20, West Tower,World Trade Center, Echelon Square, Colombo - 01, Sri Lanka.

IOC Middle East FZE LOB 14209, Jebel Ali Free Zone,P.O.Box: 261338

IndianOil - CREDA Biofuels Limited

INDIANOIL MAJOR PROJECTS  

IndianOil continues to lay emphasis on infrastructure development. Towards this end, a number of schemes have been initiated with increasing emphasis on project execution in compressed schedules as per world benchmarking standards. Schemes for improvement and increased profitability through debottlenecking / modifications / introduction of value added products are being taken up in addition to grassroots facilities. Project

systems have been streamlined in line with ISO standards. MS QUALITY UPGRADATION PROJECT BARAUNI REFINERY (BIHAR)

Project Cost: Rs. 1,492.00 crore

Expected Commissioning: September 2010 

Benefit: The implementation of this project will improve the quality of MS to conform to Euro-III equivalent norms.

Brief Description: The major process units under this project are Isomerisation, Naphtha Hydrotreater, Reformate Splitter, FCC Gasoline Desulpurisation Unit and Hydrogen Generation Unit.

 

MS QUALITY UPGRADATION PROJECT AT GUWAHATI REFINERY (ASSAM)

Project Cost: Rs. 372.00 crore

Expected Commissioning: September 2010

Benefit: The implementation of this project will improve the quality of MS to conform to Euro-III equivalent norms.

Brief Description: The major process units under this project are Isomerisation, Light Naphtha Splitter, Naphtha Hydrotreater and Indmax Gasoline Splitter.

 

MS QUALITY UPGRADATION PROJECT AT DIGBOI REFINERY (ASSAM)

Project Cost: Rs. 356.00 crore

Expected Commissioning: September 2010

Benefit: The implementation of this project will improve the quality of MS to conform to Euro-III equivalent norms.

Brief Description: The major process units under this project are Isomerisation, Naphtha Splitter, Naphtha Hydrotreater and Reformate Splitter.

 

DIESEL HYDRO-TREATMENT (DHDT) PROJECT AT BONGAIGAON REFINERY (ASSAM)

Project Cost: Rs. 1646.39 crore

Expected Commissioning: September 2010

Benefit: The implementation of this project will improve the quality of HSD to conform to Euro-III equivalent norms. The project would also improve smoke point of Raw Kerosene and enhance production of SKO and ATF.

Brief Description: The major process units under this project are DHDT Unit, Sulphur Recovery Block, Reformer, Power Plant, DM Plant and Hydrogen Generation Unit.

 

MS QUALITY UPGRADATION PROJECT AT BONGAIGAON REFINERY (ASSAM)

Project Cost: Rs. 293.60 crore

Expected Commissioning: September 2010

Benefit: The implementation of this project will improve the quality of MS to conform to Euro-III equivalent norms.

Brief Description: The major process unit under this project is Light Naphtha Isomerisation Unit. Existing Xylene Fractionation facilities would also be used.

 

RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT GUJARAT REFINERY

Project Cost: Rs. 6,898.00 crore

Expected Commissioning: July to October, 2010

Benefit: The objectives of the project are multifold. It will ensure compliance to product quality requirement of MS/HSD to EURO-III/IV levels, enable processing of increased quantity of high sulphur crude, and improvement in distillate yield.

Brief Description: The project envisages setting up of a number of units like VGO-HDT, ATF-Merox, FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU (PDS) and SRU.

 

PANIPAT REFINERY EXPANSION FROM 12 MMTPA TO 15 MMTPA

Project Cost: Rs. 1,007.83 crore

Expected Commissioning * : October 2010

Benefit: To meet the growing deficit of petroleum products in the high demand Northwest region of India.

Brief Description: The project consists of capacity revamp of Crude and Vacuum Distillation Units (CDU / VDU), Once through Hydrocracking Unit (OHCU), Delayed Coking Unit, and installation of second stage reactors in Diesel Hydrotreating Unit (DHDT).

* Qaulity part completed in November, 2009

 GRASSROOTS REFINERY PROJECT AT PARADIP (ORISSA)Project Cost: Rs. 29,777.00 crore

Expected Commissioning: March-November, 2012

Benefit: The project will help in partially meeting the deficit in distillates viz. LPG, Naphtha, MS, Jet/Kero, Diesel and other products, in the eastern part of the country. The complex will generate intermediate petrochemicals feedstock.

Brief Description: A 15 MMTPA refinery is being constructed at Paradip in Orissa. The refinery will have, apart from a Crude and Vacuum Distillation Unit, a Hydrocracking Unit, a Delayed Coker Unit and other secondary processing facilities. This will be the most modern refinery in India with a nil-residue production, and the products would meet stringent specifications. IndianOil has taken over 3344 acres of land for the project and necessary infrastructure development jobs prior to setting up of the main

refinery are in progress. INTEGRATED CRUDE OIL HANDLING FACILITIES AT PARADIPProject Cost: Rs. 1492.33 crore

Expected Commissioning: March 2012

Benefit: The proposed facilities would enhance crude handling capacity at Paradip port.

Brief Description: The proposal is for installation of 2nd SPM for Paradip Refinery and 3rd SPM & sub-sea crude oil transfer pipeline with associated facilities as a part of Integrated Offshore Crude Handling Facilities at Paradip. PARADIP-NEW SAMBALPUR-RAIPUR-RANCHI PIPELINESProject Cost: Rs. 1793.60 crore

Expected Commissioning: September 2012

Benefit: The proposed pipeline would ensure the evacuation of Paradip Refinery products and uninterrupted supply to major parts of Orissa, Chhattisgarh and Jharkhand.

Brief Description: Project consists of laying of 1108 km long product pipeline with intermediate pumping stations at Jatni and New Sambalpur and delivery stations at Jatni, Jharsuguda, Ranchi, Raipur and Korba. The pipeline will be having a telescopic diameter of 18”/14”/12”/10” OD. DE-BOTTLENECKING OF SALAYA-MATHURA CRUDE PIPLEINEProject Cost: Rs. 1584.00 crore

Expected Commissioning: 30 months after receipt of statutory clearances

Benefit: With the proposed de-bottlenecking/augmentation of SMPL, the refineries would be in a position to process more crude oil.

Brief Description: The proposal is for enhancing the capacity of Salaya-Viramgam section from 21 MMTPA to 25.0 MMTPA, [Viramgam-Koyali section from 8.5 MMTPA to 9.0 MMTPA, Viramgam-Chaksu section from 13.5 MMTPA to 16.5 MMTPA, Chaksu-Mathura section from 7.5 MMTPA to 9.2 MMTPA and Chaksu-Panipat section from 6 MMTPA to 7.3 MMTPA]. BRANCH PIPELINE FROM KSPL, VIRAMGAM TO KANDLAProject Cost: Rs. 349.00 crore

Expected Commissioning: 30 months after receipt of environment & forest clearance

Benefit: The pipeline would provide cost-effective link with the sea route ex-Kandla for coastal movement of surplus products of Koyali refinery and enhance flexibility in the system for ensuring sustained operation of the refinery.

Brief Description: Project consists of laying of 16-inch diameter 217 km long product pipeline from Viramgam to Churwa and use of 22” diameter 14 km existing KBPL pipeline between Churwa to Kandla.

PRODUCTS IndianOil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share, IndianOil is widely recognized as India’s dominant energy brand and customers perceive IndianOil as a reliable symbol for high quality products and services.

Benchmarking Quality, Quantity and Service to world-class standards is a philosophy that IndianOil adheres to so as to ensure that customers get a truly global experience in India. Our continued emphasis is on providing fuel management solutions to customers who can then benefit from our expertise in efficient sourcing and least cost supplies keeping in mind their usage patterns and inventory management.

IndianOil is a heritage and iconic brand at one level and a contemporary, global brand at another level. While quality, reliability and service remains the core benefits to our customers, our stringent checks are built into operating systems, at every level ensuring the trust of over a billion Indians over the last four decades.

Our Retail Brand template of XtraCare(Urban), Swagat(Highway) and Kisan Seva Kendras(Rural) are widely recognized as pioneering brands in the petroleum retail segment. IndianOil’s leadership extends to its energy brands - Indane LPG, SERVO Lubricants, Autogas LPG, XtraPremium Branded Petrol, XtraMile Branded Diesel, XtraPower Fleet Card, IndianOil Aviation and XtraRewards cash customer loyalty programme.

AUTOGAS AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum gases like propane and butane. The higher energy content in this fuel results in a 10% reduction of CO2 emission as compared to MS.

AutoGas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when moderate pressure is applied or when the temperature is sufficiently reduced. This property makes the fuel an ideal energy source for a wide range of applications, as it can be easily condensed, packaged, stored and utilised. When the pressure is released, the liquid makes up about 250 times its volume as gas, so large amounts of energy can be stored and transported compactly.

The use of LPG as an automotive fuel has become legal in India with effect from April

24, 2000, albeit within the prescribed safety terms and conditions. Hitherto, the thousands of LPG vehicles running in various cities have been doing so illegally by using domestic LPG cylinders, a very unsafe practice. Using domestic LPG cylinders in automobiles is still illegal.

The fuel is marketed by IndianOil under the brand name ‘AutoGas’

"IndianOil has setup 282 Auto LPG Dispensing Stations (ALDS) covering 153 cities across India."

AutoGas impacts greenhouse emissions less than any other fossil fuel when measured through the total fuel cycle. Conversion of petrol to AutoGas helps substantially reduce air pollution caused by vehicular emissions.

The saving on account of conversion to AutoGas in comparison to petrol is about 35-40%. Low filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to AutoGas.

ATF/JET FUEL IndianOil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. Between one sunrise and the next, IndianOil Aviation Service refuels over 1500 flights – from the bustling metros to the remote airports linking the vast Indian landscape, from the icy heights of Leh (the highest airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar.

Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. Its principal uses are as jet engine fuel. The most common jet fuel worldwide is a kerosene-based fuel classified as JET A-1.The governing specifications in India are IS 1571: 2001 (7th Rev).

IndianOil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling. IndianOil Aviation also caters to the fuel requirements of the Indian Defence Services, besides refueling VVIP flights at all the airports and remote heli-pads/heli-bases across the Indian subcontinent.

IndianOil Aviation group regularly organises International Aviation conferences that act as a vital information facilitator with participation from leading international and all domestic airlines, allied industries, statutory aviation authorities and government agencies from over 35 countries.

IndianOil is the only oil company in India to market the widest possible range of fuels used by the aviation industry in India- JP-5, Avgas 100LL, Methanol Water Mixture, Jet A-1 and aviation lubricants, etc.

Aviation Turbine Fuel (ATF) is dispensed from specially designed refuellers, which are driven up to parked airplanes and helicopters. Major airports have hydrant refuelling systems that pump the fuel right up to the filling outlets on the tarmac through underground pipelines for faster refuelling. Essentially, ATF is pumped into an aircraft by two methods: Overwing and Underwing. Overwing fuelling is used on smaller planes, helicopters, and piston-engine aircraft and is similar to automobile fuelling - one or more fuel ports are opened and fuel is pumped in with a conventional pump. Underwing fuelling, also called single-point is used on larger aircraft.

To ensure that you receive the best service, every one of our 101 AFSs follows specific quality audits based on a Quality Control Index System benchmarked to global standards. In addition, 15 Quality Certification Laboratories provide complete specification tests round-the-clock. Ensuring that these standards are always upheld, there is a back up of a highly skilled, qualified and dedicated team of officers and refueling crew. IndianOil has a strategic partnership with Air BP, the world leader in aviation business. IndianOil regularly organizes seminars, symposiums and workshops to constantly interact with its partners, which apart from being a two-way channel of communication, helps us to stay abreast with advances in technology.

BITUMEN Bitumen is a common binder used in road construction. It is principally obtained as a residual product in petroleum refineries after higher fractions like gas, petrol, kerosene and diesel, etc., are removed. Indian Standard Institution defines Bitumen as a black or dark brown non-crystalline soil or viscous material having adhesive properties derived from petroleum crude either by natural or by refinery processes.

IndianOil produces bitumen from its refineries at Panipat, Mathura, Koyali, Haldia and Chennai and markets it in bulk as well as packed in steel drums. IndianOil also markets modified Bitumen CRMB and Emulsion. CRMB is produced at Panipat, Mathura, Koyali, Haldia and CPCL refineries. IndianOil markets Bitumen Emulsion by the brand name Indemul and it is produced from emulsion plants located in Haldia and Panipat refineries. CRMB and Emulsion are available both in bulk as well as in packed drums.

DIESEL/GAS OIL Petroleum derived diesel (called as petrodiesel) is a mixture of straight run product (150 °C and 350 °C) with varying amount of selected cracked distillates and is composed of saturated hydrocarbons (primarily paraffins including n , iso , and cycloparaffins), and aromatic hydrocarbons (including napthalenes and alkylbenzenes).

Diesel is used in diesel engines, a type of internal combustion engine. Rudolf Diesel originally designed the diesel engine to use coal dust as a fuel, but oil proved more effective. Diesel engines are used in cars, motorcycles, boats and locomotives. Automotive diesel fuel serves to power trains, buses, trucks, and automobiles, to run construction, petroleum drilling and other off-road equipment and to be the prime mover in a wide range of power generation & pumping applications. The diesel engine is high compression, self-ignition engine. Fuel is ignited by the heat of high compression and no spark plug is used.

The Indian Standard governing the properties of diesel fuels is IS 1460:2005 (5th Rev). Important characteristics are ignition characteristics, handling at low temperature, flash point.

Diesel fuel often contains higher quantities of sulphur. In India , emission standards (equivalent to Euro II, Euro III, Euro IV) have necessitated oil refineries to dramatically reduce the level of sulphur in diesel in view of the auto fuel policy brought in force by Govt of India.

BIS has brought out specification for "Diesel with 5% Biodiesel" that may be marketed in near future.

XTRAMILE

IndianOil’s XTRAMILE Super Diesel, the leader in the branded diesel segment, is blended with world-class multi-functional fuel additives. Commercial vehicle owners choose XTRAMILE because they see a clear value benefit in terms of superior mileage, lower maintenance costs and improved engine protection. A growing section of customers who own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought in a huge savings in the high mileage commercial vehicles segment. Transport fleets that operate a large number of trucks crisscrossing the country are using XTRAMILE to benefit from higher mileage and reduced maintenance costs.

 

INDANE GAS Indane is today one of the largest packed-LPG brands in the world and has been conferred the coveted ‘Consumer Superbrand’ status by the Superbrands Council of India.

Having launched LPG marketing in the mid-60s, IndianOil has been credited with bringing about a ‘kitchen revolution,’ spreading warmth and cheer in millions of households with the introduction of the clean and efficient cooking fuel. It has led to a substantial improvement in the health of women, especially in rural areas by replacing smoky and unhealthy chulha. Indane is today an ideal fuel for modern kitchens, synonymous with safety, reliability and convenience.

With the status of an exclusive business vertical within the Corporation, the Indane network delivers 1.2 million cylinders a day to the doorsteps of over 53 million households, making IndianOil the second largest marketer of LPG globally, after SHV Gas of The Netherlands. Indane is available in compact 5 kg cylinders for rural, hilly and inaccessible areas, 14.2 kg cylinders for domestic use, and 19 kg and 47.5 kg for commercial and industrial use.

LPG is a blend of Butane and Propane readily liquefied under moderate pressure. LPG vapour is heavier than air; thus it normally settles down in low-lying places. Since LPG has only a faint scent, a mercaptan odorant is added to help in its detection. In the event of an LPG leak, the vapourisation of liquid cools the atmosphere and condenses the water vapour contained in it to form a whitish fog, which is easy to observe. LPG in fairly large concentrations displaces oxygen leading to a nauseous or suffocating feeling.

Suraksha LPG hose, flame retardant aprons and energy efficient Green Label stoves are recommended to enhance safety measures while using LPG as cooking fuel.

To prevent diversion, the Indane brand is being backed by RFID technology, a new concept that helps track the movement of LPG cylinders. Initial trials are currently going on, after which it will be

implemented on a countrywide basis.

PETROCHEMICALS  India is amongst the fastest growing petrochemicals markets in the world. Taking this into consideration and to enhance its downstream integration, IndianOil is focusing on increasing its presence in the domestic petrochemicals sector besides the overseas markets through systematic expansion of customer base and innovative supply logistics.

Petrochemicals have been identified as a prime driver of future growth by IndianOil. The Corporation is envisaging an investment of Rs 30,000 crore in the petrochemicals business in the next few years. These projects will utilise product streams from the existing refineries of IndianOil, thereby achieving better exploitation of the hydrocarbon value chain.

Beginning with a low-investment, high-value projects such as Methyl Tertiary Butyl Ether (MTBE) and Butene-1 at Gujarat Refinery, Vadodara, IndianOil has set up a world-scale Linear Alkyl Benzene (LAB) plant at Gujarat Refinery and an integrated Paraxylene/Purified Terephthalic Acid (PX/PTA) plant at Panipat. A Naphtha Cracker complex with downstream polymer units is also in operation at Panipat.

These initiatives are designed to catapult IndianOil among the top three petrochemicals players in Southeast Asia in the long term.

In order to penetrate the petrochemicals market effectively, a separate Strategic Business Unit (SBU) has been created in IndianOil for marketing of petrochemicals. This SBU has five exclusive sub-groups, classified product wise (LAB, PTA, Polymers) and function wise (Logistics & Exports), in addition to regional/field set-ups to offer reliable customer service. This SBU has already established IndianOil's LAB business both in India and abroad. Today, IndianOil is a major supplier to the key players in the detergent industry, both national and international. Similarly, in PTA business, all major domestic customers are catered to by IndianOil. A robust logistics model has been the key to IndianOil's success story and facilities have been put in place for seamless product dispatches to customers by rail, road and sea.

Mega Plants:

Linear Alkyl Benzene (LAB) plant, Gujarat Refinery:

IndianOil made its big-ticket entry into petrochemicals with the commissioning of the country’s largest Linear Alkyl Benzene (LAB) plant at Gujarat Refinery in August 2004. It is also the largest grassroots single train Kerosene-to-LAB unit in the world, with an installed capacity of 1,20,000 metric tonnes per annum (MTPA). Currently, two grades of LAB – high molecular weight and low molecular weight – are being produced for

manufacture of environment friendly biodegradable detergents. The quality of the LAB produced here has found wide acceptance in the domestic and overseas markets.

Built at a cost of Rs. 1,248 crore and commissioned in a record 24 months’ time, the plant produces superior quality LAB for manufacturing environment-friendly biodegradable detergents. The key raw materials for the plant, catering to domestic as well as export market requirements meeting the latest and most stringent quality standards, are Kerosene and Benzene produced at Koyali Refinery.

The LAB unit at Gujarat Refinery achieved 102.8% capacity utilization during the year 2009-2010. LAB sales touched 126 TMT including export of 19 TMT to 19 countries during the year 2009-10.

Paraxylene/Purified Terephthalic Acid (PX/PTA), Panipat:

The most technologically advanced plant in the country, the PX/PTA plant marks IndianOil’s major step towards forward integration in the hydrocarbon value chain by manufacturing Paraxylene (PX) from captive Naphtha and thereafter, converting it into Purified Terephthalic Acid (PTA). The integrated Paraxylene/Purified Terephthallic Acid (PX/PTA) complex was built at a cost of Rs. 5,104 crore within the Panipat Refinery in Haryana.

The PTA Plant is the single largest unit in India with a world-scale capacity of 5,53,000 MTPA, achieving economy of scale. The process package for the PTA plant was prepared by erstwhile M/s Dupont, UK (now M/s. Invista) and that of the Paraxylene Unit was prepared by M/s UOP, USA. M/s EIL and M/s Toyo Engineering were the Project Management Consultants (PMC) for executing the PTA and PX respectively.

The Paraxylene plant is designed to process 5,00,000 MTPA of heart-cut Naphtha to produce about 3,60,000 MTPA of PX. Naphtha is sourced from IndianOil’s Panipat and Mathura refineries, for which Naphtha splitter units are set up at the respective refineries. The PTA unit produces 5,53,000 MTPA of Purified Terephthalic Acid from Paraxylene.

Naphtha Cracker Plant, Panipat:

The world-class Naphtha Cracker at Panipat, built at a cost of Rs 14,400 crore, is the largest operating cracker capacity in India.

The feed for the unit is sourced internally from IndianOil's Koyali, Panipat and Mathura refineries. The Naphtha Cracker comprises of the following downstream units - Polypropylene (capacity: 600,000 tonnes), High Density Polyethylene (HDPE) (dedicated capacity: 300,000 tonnes) and Linear Low Density Poly Ethylene (LLDPE) (350,000 tonnes Swing unit with HDPE), Mono Ethylene Glycol(MEG) plant (capacity: 325,000 tonnes).

The cracker will produce over 800,000 tonnes per annum of ethylene, 600,000 tonnes per annum of Propylene, 125,000 tonnes per annum of Benzene, and other products viz., LPG, Pyrolysis Fuel Oil, components of Gasoline and Diesel.

The Polypropylene (PP) unit is designed to produce high quality and high value niche grades including high speed Bi-axially Oriented Polypropylene (BOPP) (used for food packaging and laminations), high clarity random co-polymers (used for food containers and thin walled products) and super impact co-polymer grades (used for batteries, automobile parts, luggage and heavy duty transport containers). Polyethylene is used for making injection moulded caps, heavy duty crates, containers, bins, textile bobbins, luggage ware, thermoware, storage bins, pressure pipes (for gas and water), small blow-moulded bottles, jerry cans, etc.

KEROSENE  Kerosenes are distillate fractions of crude oil in the boiling range of 150-250°C. They are treated mainly for reducing aromatic content to increase their smoke point (height of a smokeless flame) and hydrofining to reduce sulphur content and to improve odour, colour & burning qualities (char value).

Kerosene is used as a domestic fuel for heating / lighting and also for manufacture of insecticides/herbicides/fungicides to control pest, weeds and fungi. Since kerosene is less volatile than gasoline, increase in its evaporation rate in domestic burners is achieved by increasing surface area of the oil to be burned and by increasing its temperature. The two types of burners which achieve this fall into two categories namely vaporisers & atomisers.

The Indian Standard governing the properties of kerosene is IS 1459:1974 (2nd Rev).

CRUDE OIL  

Crude oil - as petroleum directly out of the ground is called - is a remarkably varied substance, both in its use and composition. Crude oil is formed from the preserved remains of prehistoric zooplankton and algae, which have been settled to the sea (or lake) bottom in large quantities under anoxic conditions. It was formed over millions of years from the remains of tiny aquatic plants and animals that lived in ancient seas due to compression and heating of ancient organic materials over geological time. The oldest oil-bearing rocks date back to more than 600 million years, the youngest being as old as about 1 million years.

Although various types of hydrocarbons - molecules made of hydrogen and carbon atoms - form the basis of all crude oils, they differ in their configurations. The chemical structure of petroleum is composed of hydrocarbon chains of different lengths. Because of this, petroleum may be taken to oil refineries and the hydrocarbon chemicals separated by distillation and treated by other chemical processes, to be used for a variety of purposes. It can be a straw-colored liquid or tar-black solid. Red, green and

brown hues are not uncommon.

Crude oil is classified by the location of its origin (e.g. West Texas Intermediate, WT, Brent, Dubai or Minas) and often by its relative weight or viscosity (light, intermediate or heavy); refiners may also refer to it as `sweet’, which means it contains relatively little sulphur, or as `sour’, which means it contains substantial amounts of sulphur and requires more refining in order to meet current product specifications. The number of carbon atoms determines the oil's relative `weight’ or density. Gases generally have one to four carbon atoms, while heavy oils and waxes may have 50, and asphalts, hundreds.

Crude oil from an area in which the crude oil's molecular characteristics have been determined and the oil has been classified are used as pricing references throughout the world. These references are known as Crude oil benchmarks

After considering availability of indigenous crude oil, balance crude oil is required to be imported. IndianOil sources its crude oil requirement from Far East, Gulf region, Mediterranean, West Africa and Latin American sources.

Reffrence

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