The oil and gas sector in India provides significant opportunities for investment and is expected to be worth $139 billion by 2015. To meet growing demand, the government allows 100% foreign investment in many segments. Major opportunities include developing new gas and crude oil pipelines, pipeline coatings, new petrochemical plants and refineries, equity participation in petrochemical projects, and developing new LNG terminals. The document outlines various sub-sectors and key players in India's large oil and gas industry.

1. NORTECH TRINITY INDIA PRIVATE LIMITED
405, Statesman House, Barakhambha Road, Connaught Place, New Delhi- 110001, INDIA| E-mail –
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Opportunities in Oil & Gas Sector
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January 01, 2015

2. Brief Introduction
India is the sixth largest consumer of oil in the world and the ninth largest crude oil importer. India’s oil
and gas sector contributes over 15% to the Gross Domestic Product (GDP). The Indian oil and gas
industry is expected to be worth USD 139,814.7 million by 2015. India’s economic growth is closely
connected to energy demand. The need for oil and gas is therefore projected to grow further,
providing vast opportunities for investment.
To meet this demand, the Government of India has adopted various policies, such as allowing 100 per
cent foreign direct investment (FDI) in many segments of the sector, such as natural gas, petroleum
products, pipelines, and refineries. This move along with various others has made the oil and gas
sector in India a more viable place to invest.
Market Highlights
The oil industry can be divided into three major components: upstream, midstream and downstream.
The upstream segment comprises Exploration and Production (E&P) activities. The midstream
segment is involved in storage and transportation of crude oil and natural gas. The downstream
segment is engaged in refining and production of petroleum products, and processing, storage,
marketing and transportation of commodities such as crude oil and natural gas.
In India crude oil is produced Onshore and Offshore. Onshore fields are in Assam/Nagaland,
Arunachal Pradesh, Gujarat, and Tamil Nadu/ Andhra Pradesh. Oil India Limited (OIL) and Oil and
Natural Gas Commission (ONGC) have the onshore field for crude oil production. Offshore production
occurs at Bombay High run by ONGC and Private/Joint Venture companies. For natural gas, onshore
fields are at Assam, Tripura, Gujarat, Tamil Nadu, Andhra Pradesh and Rajasthan. Offshore
production of natural gas takes place at the Western area of Bombay High.
India has 20 refineries out of which —17 are in the public sector and three in the private sector. Few
of the SEZs in this sector are Reliance Petroleum SEZ, Mangalore SEZ in Karnataka, Gujarat
Hydrocarbons and Power SEZ and Nagarjuna Oil Corporation in Tamil Nadu.
Major Players
Public sector corporations dominate the Indian exploration and production sector. In terms of the
percentage share in total production Oil and Natural Gas Corporation (ONGC) accounts for the
highest share.

3. The second major player in the sector is also a public sector undertaking Oil India Limited (OIL). Both
of these undertakings account for about more than 70% of the total market. The remaining share of
the pie is cluttered with various private players in the market.
Names of the key players in the oil and gas industry in India are Oil India Ltd., Oil and Natural Gas
Commission, Indian Oil Corporation, Hindustan Petroleum Corporation Ltd., Bharat Petroleum
Corporation Ltd., Gas Authority of India Ltd., Reliance Industries Ltd., Essar Oil, Adani Gas, Petronet
LNG, Cairn Energy, Shell, British Gas and BP.
Sector Prospects
India has significant potential to discover new oil and gas basins since 78% of the country’s
sedimentary area is yet to be explored. Recent large-scale oil and gas discoveries in the Krishna
Godavari and Rajasthan basins have amply demonstrated this potential.
Exploration and production spend in the country has doubled from about USD 2.5 billion in 2004–05
to about USD 5 billion in 2007–08. Overall E&P spend is expected to be in the range of USD 90–110
billion in the next 7–10 years.
This will also create a sustained demand for oil field services like drilling rigs, offshore support
vessels, tubular goods, and seismic services and equipment for constructing process platforms,
pipelines and collecting stations, as well as other surface facilities for transportation of oil and gas
from wells to delivery points.
The country’s gas pipeline coverage has increased substantially and has significant potential for
further expansion. India currently has a trunk gas pipelines network of 9,900 km with a transmission
capacity of 292 MMSCMD.
India is also rising as a potential refining hub because the capital costs are lowered by 25–50% here
in comparison to other Asian countries. Its share is 3% of the capacity worldwide and is going to
improve further by 45% over the next 5 years, according to a report compiled by Deutsche Bank.
The power and fertilizer sectors in India drive the demand for gas in the country. The demand for gas
is set to grow; thus, the natural gas share in the overall mix is projected to rise from 8% to 20% by
2025.
Business Opportunities
Gas & Crude Pipelines
Ample opportunity to grow as a vendor for New Pipe Lines both for Gas & Crude as new policy says
that India is going to form National Gas Grid and in next five years approx 30,000 KM’s new pipe lines
are going to be announced. Approx Value of projects is USD 40 billion.

4. Trans-national Pipelines
To augment the domestic supply of Natural Gas and LNG imports (Liquefied Natural Gas), the
Government is actively pursuing following pipeline projects:
 Iran Pakistan India Pipeline : This project plans to bring gas from the fields of Iran to India via
Pakistan. A special Joint Working Group (JWG) has been set up to implement this project by
2015. The project is worth US$ 4.0 billion for about 2000 km pipeline.
 Myanmar Bangladesh India Pipeline : Indian companies ONGC Videsh Ltd (OVL) and GAIL
India Ltd jointly hold 30 per cent stake in offshore block A-1 in Myanmar, where commercial
gas discoveries of about 5 tcf were made in January 2004. The block has a capacity to
produce 20-25 mmscmd for a period of 20 years. In February 2004, Myanmar decided to sell
its 65 per cent share of gas in block A-1 to GAIL. To transport gas from Myanmar, a
transnational 800 km pipeline costing US$ 1 billion is being proposed (Source : MoPNG).
 Turkmenistan-Afghanistan-Pakistan (TAP) pipeline : Daulatabad area of Turkmenistan is
reported to have sufficient gas reserves. There are plans to extend pipeline to transport gas
from this area to India.
Pipeline Coatings
Coating Systems For Old Gas & Crude pipe lines which are approx. 40000 KM’s available for coatings
and every year approx. 2000 KM will be released for coatings from IOCL, GAIL, BPCL, OIL, HPCL,
EIL, RIL, ESSAR and many other players. Approx value of projects is INR 20,000 Crores. Year 2015-
16 Approx 2200 KM’s pipe line will be tendered for 2 Ply, 3 Layer PE/PP Coatings through tenders L1
System for supply and then 2nd stage tenders for the contractors.
New Petrochemical Plants
Two new Petrochemical plants & refineries are announced and will be set up in 2015-16. There will be
need of Consulting companies, EPC Contractors and other technology companies who can take up
large contracts and execute in desired manner. Even in old Petrochemical plants there are plenty of
jobs available on account of maintenance and refabricating.
Also there is scope for New Refining & Petrochemical Technologies which will be Licensed by the
Licensors to these new projects, companies are looking for new Technologies which are able to offer
value added products with more efficiency and greater yield.

5. Investment / Equity Participation opportunity
Presently we have one large petrochemical project available and inviting approx. 26% equity form
either Indian or Foreign player wo wish to enter into Petrochemical Downstream valuechain with new
value added products which can be offered to Indian market and also to be exported to various
countries in South East Asia and if feasible then also to European market.
LNG Terminals
Petronet LNG Limited (PLL) regasification terminal at Dahej was the first LNG terminal to get
commissioned and it has commenced LNG imports from Qatar. Shell’s LNG terminal at Hazira has
also got commissioned and it is expected to support imports. Three more LNG terminals are expected
to be commissioned in near future. Capacity addition to 5 MMTPA, PLL Dahej terminal of another 5
MMTPA and to Shell’s 2.5 MMTPA of 7.5 MMTPA at Hazira have also been proposed.
These LNG Terminals also can be targeted by EPC Contractors as Petronet LNG is inviting New EPC
Companies to participate in forthcoming tenders.
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KEY CONTACT
Ashutosh Gupta
CEO and Director
405, Statesman House,
Barakhamba Road, Connaught Place,
New Delhi-110001, INDIA
Email: nortechtrinity@outlook.com
Mobile: +91-99714-66668