Import export of petroleum crude oil in india From other gulf countries

1. Import Export of
Petroleum Crude Oil
Submitted by:
Arpan khanna
170MBAGEN017
ANSAL UNIVERSITY

2.  The most critical energy source globally.
 Source of:
 Aviation and Motor gasoline, Kerosene, Distillate fuel oil, Residual fuel oil, LPG,
Lubricants, Paraffin wax, Petroleum coke.
 Crude oil is basis for many industries i.e. Automobiles,
Pharmaceuticals etc
 The daily price fluctuations affect the inflation rate of country & have a
direct bearing on our country
 Impact on:
 Oil price
 Exchange rate
 Balance of payment

3.  Crude import at 4341.5 barrel/Day in 2017 (All time high)
 & 602.500 barrel/Day in 1995 (All time low)
 Import from:
 UAE
 Nigeria
 Kuwait
 Saudi Arabia
 Iran, Iraq
 Venezuela

4. S no. Country Percentage of total
1 Saudi Arabia 19.9%
2 Iraq 16.2%
3 Iran 11%
4 Nigeria 10.9%
5 UAE 9.3%
6 Venezuela 8.3%
7 Kuwait 4.5%
8 Qatar 2.8%
9 Others 17.1%

5. The PSUs import 70-
80% of their crude
requirement under long
term contracts.
The long-term
contracts are entered
into in the beginning of
the financial year at
fixed prices
depending upon the
price situation and
demand and supply
situation in the
domestic market.

6. Crude Production
Crude Price

7.  The company is PSU
 lndianOil is recognised as one of India's most valuable companies.
 Having a turnover of Rs. 5,06,428 crore and a net profit of Rs. 21,346 crores in
2017-18
 Market capitalisation of 1,71,511 crore.
 The Company is the largest contributor to the national exchequer in the form of
duties and taxes.
 During the year 2017-18, Rs. 1,90,670 crores were paid to the exchequer as against
Rs. 1,79,014 crores paid in the previous year.
 lndianOil's core business has been refining, transportation and marketing of
petroleum products. Hydrocarbon value chain - upstream into oil & gas exploration
& production of natural gas and alternative energy resources.

8.  Petroleum shall not be imported into India by sea except through the ports
which are duly approved for this purpose by the Ministry of Shipping,
Government of India.
 Commissioner of Customs may, on the recommendation of the Chief Controller
allow to import from other port.
 Adequate firefighting facilities shall be provided at the ports handling of crude.
 All documents should be duly fulfilled and signed by proper authority
 All plans drawn in quadruplicate indicating:
 Unloading facility
 Navigation Channel
 Route of pipeline
 Mode of unloading
 Environment impact
 Qualitative & Quantitative risk
 Probably failure scenario

9. Copies of clearances obtained from the following authorities. –
(i) Ministry of Shipping or State Marine Board as the case may be.
(ii) Ministry of Environment and Forests or State Pollution Control Board
(iii) Commissioner of Customs.
(iv) Testing officer’s report.

10.  Buyer side
 Licence for import of petroleum
 Company profile of the Buyer
 The name of Signatory entitled to act in the name of the company (with number
and copy of his passport)
 Company name, residential address, registered office, fax, web, e-mail, phone,
mobile
 The name of the bank intended to be used for the transaction
 Required types of the petroleum products, volumes, port of discharge
 Verification whether company has already realization such kind of
business, Level qualification in such business
 Written statement that Buyer accepts and agrees with Seller's Procedures

11.  Seller side
 POP - Proof of Product (set of documents that serve as a Seller's proof that the product is
real)
 Partial Proof of Product (PPOP) Documents typically consist of:
 SGS Inspection Report or equivalent (SGS)
 Dip Test Analysis Report (DTAR)
 Certificate of Origin (COO)
 Tank Storage Receipt (TSR)
 Full Proof of Product (Full POP) are sent by Secured Mail to the Buyers Bank / Buyer and
typically consist of:
 Copy of License / permit to export, issued by the department of the ministry of energy (If
applicable)
 Copy of statement of availability of the product
 Copy of the refinery commitment to produce the product
 Copy of the pipeline corporation contract to transport the product to the loading port
 Refinery certificate of product
 Copy of the port storage agreement (TSR - If applicable)
 Dip Test Authorization letter (DTA)Copy of SGS or equivalent report (SGS)

12. S No. Tax type Percentage
1 Landing charge 1%
Rest tax applicable on value after landing charge
2 Basic Custom Duty (BCD) 5%
3 IGST 5%
4 Compensation Cess 0%
5 Specific duty 0%
Total 10

13. Shortage of Petroleum Crude
Dependence on Foreign Countries
Price Hike
Shortage of Oil Refining Capacity
Technical Problems
Import restrictions

14. Buyer issues ICPO(irrevocable corporate purchase order) with
company registration certificate and company profile
Seller issues CI(Commercial invoice), buyer countersign within
48hrs hours and Returns signed CI along with CPA(charter
party agreement from any Shipping company.
Seller verifies the Buyers nominated shipping company and
jointly signs the (CPA) charter party agreement and as well
split the freight charges with the buyer. Seller Returns signed
CPA along with POP documents:
A. Refinery Product Passport
B. Certificate of Origin
C. Statement & commitment to supply,
D. Export license and Registration Certificate

15. According to signed CPA by buyer and seller. Nominated
shipping company on confirmation of the both parties freight
charges will issue copy of NOR “notice of readiness.
Subsequent to NOR “notice of readiness”. Seller loads the
product into the sellers’ vessel and issues all exportations
documents to the buyer. Vessel sails to the buyer’s destination
Port.
Upon arrival of the vessel at the buyers discharge port, buyer
conducts Q&Q. Subsequent to successful Q&Q report at the
buyer discharge port. Buyer makes payment for the total product
Quantity.
Seller pays commissions to mandates and intermediaries within
24hrs after confirmation of the buyers’ payment

17.  Copy of License to export
 Copy of Approval to Export
 Copy of Statement of Availability
 Vessel details.
 CPA- Charter Party agreement
 Fresh Inspection at discharge port
 DTAOB- Dip test authorization on Board vessel for Rotterdam port waters
 ATB- Authority to Board
 B/L cargo manifest
 Certificate of authenticity
 Certificate of quality
 Certificate of quantity
 Certificate of origin
 Tanker Ullage receipt
 Master’s receipt for sample
 Master receipt for documents

18. New innovations
Bio-fuel
Renewable source of energy
Promoting electric vehicles
Shift toward artificial petroleum (synthetic fuel)

24.  https://www.ceicdata.com/en/indicator/india/crude-oil-imports
 https://www.researchgate.net/publication/322069253_Crude_oil_import_of_India_fro
m_its_major_oil_trade_partner_countries_An_empirical_evidence_using_panel_data_
analysis
 https://tradingeconomics.com/india/imports-of-crude-oil
 https://en.wikipedia.org/wiki/List_of_countries_by_oil_imports
 http://www.worldstopexports.com/crude-oil-imports-by-country/
 https://www.statista.com/statistics/715296/india-import-volume-of-crude-oil/
 http://peso.gov.in/PDF/Petroleum%20Rule/chapter_2.pdf
 http://www.economicsdiscussion.net/india/industries-india/8-major-problems-of-
petroleum-industry-in-india/19183
 https://www.macrotrends.net/2516/wti-crude-oil-prices-10-year-daily-chart
 https://www.iocl.com/