1 Africa India Partnership in Hydrocarbons Ashok Dhar Sr. Vice President, IBD Reliance Industries...
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Transcript of 1 Africa India Partnership in Hydrocarbons Ashok Dhar Sr. Vice President, IBD Reliance Industries...
1
Africa India Partnership in Hydrocarbons
Ashok DharSr. Vice President, IBDReliance Industries Ltd.
India
11th African Oil and Gas, Trade and Finance ConferenceNairobi, 23-25 May 2007
NOT AN OFFICIAL UNCTAD RECORD
2
Africa and India
• Geographical Proximity and Historic ties
• Abundance of natural resources – Oil’s increasing importance – Economic advancement by exploiting natural resources– Importance for world economy, Oil Exports– Destination for FDI, Knowledge and Technology
• Africa accounts for about 11% of world oil production and 7% of reserves
• Africa accounts for about 6% of NG production and 8% of NG reserves
• Traditional trade partners
• High priority for rejuvenation of trade ties
We are striving for economic progress of our people
3
Africa and India
Africa and India energy linkages can impart rich and contemporary value to our traditional ties.
Source: Compiled from Country Data Profile, World Bank 2005 and BP Statistical Review 2006* States ** Union Territories
AFRICA INDIA Ratio
GDP growth [annual %] 5 9 0.6Coal Production [mtoe] 143 200 0.7Population, total, millions 896 1,100 0.8Primary Energy Consumption [mtoe] 317 387 0.8Electricity Generation [billion kWh] 546 679 0.8GDP [billion US$] 933 806 1.2Crude Oil Consumption [mt] 129 116 1.1Refinery Capcity [mt] 165 127 1.3GNI per capita(US$) 950 730 1.3NG Consumption [mtoe] 64 33 1.9Merchandise trade [% of GDP] 59 29 2.1Foreign direct investment, net inflows 25 7 3.9Surface area [million sq. km] 30 3 9.1Crude Oil Production [mt] 467 36 12.9Regional Divisions 52 27*+ 7**
4
India – An economy on fast track
• Large and Fast growing economy• Large consuming class• Diversified Economy
– Exporter of Services – Exporter of Manufactured goods
• 5th largest consumer of commercial energy – Accounts for 3% of world oil consumption– Per capita oil consumption is only @ 110 Kg of Oil
• Net Importer of Crude Oil– India Imports about 75% of its oil requirement – Oil imports form 30% of total Indian imports bill– About 16% of Indian crude imports are from Africa
We have reasons to be interdependent
5
India – Commercial Energy Out LookIndia Primary Energy Consumption, 2012
20%
14%
61%
1%
4%
Oil NG Coal Nuclear Hydro
668 mtoe
Africa can become a major supplier of Crude Oil and LNG to India
Year 2012
• Commercial energy demand 668 mtoe • Oil Demand 235 mmtpa, imports @ 83%• Natural Gas supplies likely to triple
India Primary Energy Consumption, 2005
30%
9%
54%
1%
6%
Oil NG Coal Nuclear Hydro
387 mtoe
6
India – Refinery Capacity Surplus
India can become a major source high quality petroleum products to Africa
69.1
127.4127.4117.0
115.2114.6
63.1
112.0
132.5
146.3154.9
184.9
191.7
224.2
111.6107.8104.1100.4100.197.190.684.3
131.8127.5123.4
119.5115.6111.9
140.9
111.9117.3
123.0128.8
134.7
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
Existing capacity (mmtpa)
Projected capacity (mmtpa)
Consumption (mmtpa)
Projected demand (mmtpa) Lower case
Projected demand (mmtpa) Upper Case
7
India - Strengths in Oil and Gas Sector
• Expertise in both on shore and off shore E&P, including deep water exploration • Expertise in building and operating large, complex, modern, integrated and environment friendly refineries in record time • Cost effective up-gradation and de bottlenecking old refineries • Expertise in downstream retailing to reach petroleum products to one billion people over half a million villages, including LPG supplies to over 90 million customers • Build cross country pipelines for NG and LPG• Pool of human resources with latest skills in the Oil Sector • Knowledge Partner – IT, SCM and Training in the Oil Sector
Africa can safely count on Indian proven skills in the
hydrocarbon sector
8
KG-D6 Development
World’s largest and most complex deepwater gas development is happening in India
9
Complex refining configuration expertise
Unit Name No of Units Capacity* No of Units Capacity*
CDU / VDU 2 325 (29 API) 2 290 (24 API)
FCC 1 200 1 180
Coker 1 160 1 160
Platformer 1 89 1 85
VGO Hydrotreater 2 210 2 220
Diesel Hydrotreater (DHT) 2 100 2 220
LCO Cracker - - 1 50
Alkylation - - 1 83
Gasoline Hydrotreater - - 1 55
Diesel PTU - - 1 60
Nelson complexity index* per each Unit, kbpsd
RIL RPL
11.2 14
India has operating experience of world’s largest units
with high refining complexity
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India will have the largest refinery complex in the world by Dec. 2008
Jamnagar: Refining Hub of the World
Source: Oil and Gas Journal
458,000
493,500
495,000
520,000
557,000
580,000
605,000
660,000
817,000
940,000
650,000
0 200,000 400,000 600,000 800,000 1,000,000
Shell Eastern, Singapore
Exxon Mobil, Baton Rouge, USA
Hovensa LLC, Virgin Islands
S-Oil Corp, South Korea
Exxon Mobil, Baytow n, USA
RPL, India Refinery
Exxon Mobil, Singapore
LG -Caltex, South Korea
Reliance Industries, India
SK Corp, South Korea
Paraguana Refining, Venezuela
BPD
RIL Group, India 1,240,000
Source: Oil and Gas Journal
458,000
493,500
495,000
520,000
557,000
580,000
605,000
660,000
817,000
940,000
650,000
0 200,000 400,000 600,000 800,000 1,000,000
Shell Eastern, Singapore
Exxon Mobil, Baton Rouge, USA
Hovensa LLC, Virgin Islands
S-Oil Corp, South Korea
Exxon Mobil, Baytow n, USA
RPL, India Refinery
Exxon Mobil, Singapore
LG -Caltex, South Korea
Reliance Industries, India
SK Corp, South Korea
Paraguana Refining, Venezuela
BPD
RIL Group, India 1,240,000RIL Group, India 1,240,000
11
•Phased out lead in less than 6 years, fuels are lead free [2000]•Benzene content in Gasoline reduced from 5% during 1996 to 3% and 1% (select cities) [2005]•Cetane number in diesel from 42min [1980s] to 51min in 13 cities and 48min in rest of the India
Diesel Quality
10000
25002500
500 35050050
10000
1980 1995 2000 2005 2010
Year
Su
lfu
r co
nte
nt
in p
pm
Rest of the country 13 cities
Gasoline Quality
2500
2000
1000
500
2500
500
150150
50
1500 (sate capitals)
1984 1998 2000 2005 2010
Year
Su
lfu
r co
nte
nt
in p
pm Rest of the country 13 cities
Africa can leverage fuel quality up-gradation experience of India in Refining and Marketing
India’s quest for Fuel Quality
12
Areas of cooperation Short term areas and benefits
• Exploration• Drilling e.g., mud pumps, chemicals, drill bits, pipes• Bulk transportation (e.g., Pipelines, Valves, anodic - cathodic protection, control instruments and jetty cabling)
•Processing• Refinery (Capital equipment for new projects, balancing equipment for expansion, EPC capacity building)
• Maintenance (Electrical, Mechanical, Instrumentation)
•Services• Operation & maintenance, trained man power• IT enabled services• Inland transport vehicles
•Consumables• Specialty Chemicals etc.,
•Down stream• Key raw materials for conversion industries – e.g., Petchem, Plastics etc.,
India can emerge as a major exporter of Products and Services
13
Areas of cooperation
Medium term areas and benefits
• JVs and project export opportunities for Indian companies in
– Upstream E&P activities
– Mid stream contracts such as laying pipelines
– Operation and maintenance of refineries
– Consultancy services
– Projects for setting up retail outlets in host countries
– Turn key project implementation etc.,
African and Indian companies can forge win-win partnerships
14
Areas of cooperation
Long term areas and benefits
• Equity participation in developed fields
• E&P contracts
• Midstream and downstream JVs and investments
• Energy Security for India in future
Africa and India can build a model of “Reverse Dependence” in South – South cooperation
15
To further enhance business opportunities between India and Africa in the Hydrocarbon sector, MOPNG, UNCTAD & FICCI
are jointly organizing India – Africa Hydrocarbon Conference & Exhibition
in New Delhi, on 6-7, November, 2007.
The participants will include
• Energy Ministers and Policy Makers from India and Africa• Leading national and international Energy Companies
• Consultants• Oil sector Service Providers
• Banking, insurance and Institutional investors• Equipment manufacturers
• Legal experts• Shipping, Pipeline and transportation companies
• Natural Gas producing companies• Petrochemical companies
17
Welcome to New Delhi