Geographical Region For Crude Industry

Published Date: 02 Nov 2017

Indian oil association to set up refinery in Sri Lanka

Mon , Jul 30, 2012, 12:07 pm SL Time, Colombo Page News Desk, Sri Lanka.

July 30, Colombo: Indian Oil Corporation (IOC) will set up a refinery in Sri Lanka with a speculation up to US$ 3.6 billion, a report in Business Standard stated.

IOC, which as of recently has a step in Sri Lanka through its subsidiary Lanka IOC, manages 10 refineries in India and the one in Sri Lanka will be its first refinery outside India. IOC plans to set up the refinery in a joint wander with the Sri Lankan government.

The limit of the Sri Lankan refinery is wanted to be 5-9 mtpa (million tonnesper annum).

A senior IOC official has told the Business Standard that the association has done the examination and has direct informative content on the sort of refinery they arrangement to set up in Sri Lanka.

"We are in discourses with the Sri Lankan government for assessment concessions, an occasion for traditions and extract, and different profits that a refinery might as well accumulate to us," the official has stated.

Consistent with the official the Sri Lankan government has as of recently consented to furnish arrive and the new refinery is to be manufactured close to the existing Sapugaskanda refinery. IOC's subsidiary in Sri Lanka, Lanka IOC is the main private oil association in Sri Lanka managing 157 fuel retail outlets.

Sri Lanka's 43-year-old refinery day by day prepares 50,000 barrels of fuel from Iranian light unrefined petroleum. It has a limit of 2 mtpa although the fuel utilization is 4.5 mtpa, needing 2.5 mtpa of imports.

The Sri Lankan government has started the "Sapugaskanda oil refinery development and modernization task" to unfold the generation limit to 100,000 barrels for every day.

Consistent with IOC examination, Sri Lanka's fuel requirements are evaluated to ascent to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Rather than importing fuel, the nation plans to import unrefined petroleum and process it.

Setting up the refinery in a joint step with the Sri Lankan government might permit IOC straightforward clearances in addition to the administration's duty, the report stated.

"Remembering its oil security, the Sri Lankan government has been finding at setting another refinery. They were taking a gander at interpretations of investment from different nations. Since we were available in Sri Lanka, we held dialogues with them. We have done the preparatory overview and need to see what sort of refinery might make financial sense," the official has stated.

"Acknowledging Sri Lanka's fuel utilization focuses for 2020 and 2030, we may find at either setting a five-mtpa refinery or a nine-mtpa one. Appropriately, we'll select the sort of rough to be transformed," the official has stated.

Geographical region for crude industry

http://www.iocl.com/AboutUs/GroupCompanies(LIOC).aspx

Sri Lanka raw petroleum industry has in the ballpark of 150 petrol & diesel stations in Sri Lanka, and has an extremely productive lube showcasing system. Its major offices incorporate an oil terminal at Trincomalee, Sri Lanka's biggest petroleum space office and a 18,000 tonnes for every annum limit ointments mixing plant and state-of-the craft fills and greases testing lab at Trincomalee. Lanka IOC's exercises not just furnish the island country vigor security and supply steadiness and yet update the generally speaking guidelines of administration, especially in the retail area. It assumed control 100 CPC-claimed petrol/diesel stations in February 2003 and initiated retailing items to clients. Along these lines, it assumed control 59 dealer-claimed franchisee retail outlets. Lanka crude oil industry has procured the China Bay Tank farm of World War II vintage, which is of important and vital importance as it is the biggest tank farm found between the Middle East and Singapore. The tank farm associate with the Trincomalee harbor, which is the 5th biggest all-climate, non-tidal characteristic harbor on the planet, with a 56 km shoreline, making this tank farm above all viable for fuel receipt, space and supply.

Forms of transportation and communication available in that region

http://www.iocl.com/AboutUs/GroupCompanies(LIOC).aspx

Sri Lanka is in accordance with its Vision of getting a transnational vigor major. While extending its business sector base to change over the surplus benefits of petroleum features into additional fortune for stakeholders, Sri Lanka is additionally dedicated to being an exceptional key accomplice to Sri Lanka. Its unfathomable experience in downstream petroleum operations in India is assisting make a solid and intense petroleum industry in Sri Lanka for the bigger profit of the island country. The surplus refining limit in India is being utilized to extension the existing hole between interest and supply in Sri Lanka.

Lanka IOC means to outfit the favorable circumstances of topographical closeness between India and Sri Lanka, bringing about level cargo rates in transportation and srilanka predominant R&D abilities, to furnish petroleum items at the most intense cost to the Sri Lankan market. Srilanka previously possessed and managed by CPC, has what added up to 99 tanks, each with a limit of 12,000 kilolitres. At present, just 15 of the aforementioned tanks are operational. Lanka IOC proposes to improve the tankage on necessity premise, as the volume of its downstream showcasing operations in Sri Lanka develops.

PART A

3.      Consumer buying habits

A.      Product use pattern

http://www.lankanewspapers.com/news/2008/4/26886_image_headline.html

Sri Lanka needs its first business raw petroleum creation by the year 2010. Sri Lanka has deferred assessing offers for two oil investigation obstructs in its northwestern seaward Manner bowl and is to assess unified with the most rivalry first. The nation Sri Lanka gained six tenders from Cairn India ONGC Videsh from India and Nico Resources from Cyprus for the offered three squares. The leading close is the littlest out of the three with 3,338.1 square kilometers while the third piece is the biggest with a zone of 4,126.5 square kilometers.

Oil and Natural Gas Corporation (ONGC) which was offered the square selected to India stated it was not intrigued by the allotted square referring to flat prospectively and the way that Sri Lanka was making a request for a huge mark reward.

The offering methodology was shut in January and the administration needs to select the best bidder soon. The administration had prior stated it planned to select the three most astounding bidders by April 2008 and begin the oil investigation transform by August. Clients basically feature design according to every day bases and enormous firm or business have unrefined petroleum items in their processing plants or handling house according to the necessities.

http://uk.reuters.com/article/oilRpt/idUKCOL21050320080416?sp=true

B.      Product feature preference

In Sri Lanka Ceylon Petroleum Corporation imports raw petroleum and fulfilled items works the 50,000 barrels for every day refinery and markets the features in mass and through retail outlets.

• Lanka Indian Oil Company (LIOC) imports items and showcases them in mass and through its particular retail outlets.

• Ceylon Petroleum Terminals Ltd (CPSTL) mutually claimed by CEYPETCO and LIOC manage the two primary petroleum space offices.

http://hco.hartwrfs.com/reports/heavy-raw petroleum worldwide investigation-outlook.html

The volume of substantial oil dropping in the fare business sector builds to 4.5 million b/d by 2015 and decays thereafter in the fleeting and medium-term venture situation as additionally generating nations expand overwhelming oil handling limit. The overwhelming unrefined on the fare business sector abatements to 4.3 million b/d by 2020 and 3.3 million b/d by 2030. In the lifelong situation item characteristics are overwhelming unrefined dropping in the fare business presses on to build notwithstanding developing residential preparing limit in generating nations, arriving at 6.0 million b/d by 2025 and staying at more or less that level through 2035.

C.       Shopping habits

To ascertain the size or shopping propensities of buyer subsidies one ought to contrast a true customer cost and a reference value that catches the accurate chance cost of residential utilization. Since most nations are either net exporters or net merchants of petroleum features the fitting reference cost is the appropriate outskirt cost.

• In the instance of a trading nation the outskirt FOB cost short exchange and transport edges acts for the sworn off income from devouring locally in place of trading.

• In the instance of an importing nation the fringe CIF cost in addition to exchange and transport edges speaks for the expense of domesticated utilization.

4.      Distribution of the Product

A.      Typical retail outlets

Indian Oil's Digboi (Assam) refinery Asia's first as well as its oil field is the eldest refinery and constantly managing oilfield on the planet in the wake of being in operation since 1901. In the Sri Lanka state Colombo that Indian Oil Corporation (IOC) will set up a refinery in Sri Lanka with a speculation up to US$ 3.6 billion. IOC which as of recently has a wander in Sri Lanka through its subsidiary Lanka IOC works 10 refineries in India and the one in Sri Lanka will be its first refinery outside India. IOC plans to set up the refinery outlets in a joint wander with the Sri Lankan government.

Consistent with the official the Sri Lankan government has as of recently consented to give arrive and the new refinery is to be constructed close to the existing Sapugaskanda refinery. IOC's subsidiary in Sri Lanka, Lanka IOC is the main private oil association in Sri Lanka managing 157 fuel retail outlets. The Sri Lankan government has started the "Sapugaskanda oil refinery development and modernization undertaking" to unfold the processing limit to 100,000 barrels for every day.

http://www.defence.pk/forums/central-south-asia/199197-indian-oil-company-set-up-refinery-sri-lanka.html#ixzz2PddEHg00

B.      Product sales by other middlemen

The dispersion of petroleum features is privatized in spite of the fact that with a critical opens division vicinity. Until right on time 2005 Jordan had a convention of purchasing raw petroleum at concessional costs from neighboring nations (initially Iraq, all the more not long ago Saudi Arabia). This oil is refined by the Jordan Petroleum Refinery Company into petroleum features which are sold on the local business sector at regulated costs.

Sri Lanka presented a valuing recipe in 2002 yet this was suspended in promptly 2004. Mali presented an equation in 1994 yet surrendered it in 2003. Until mid-2005 provincial costs followed planet costs and incorporated a critical component of taxation. The concessional costs on raw petroleum gained by Jordan assisted maintain a strategic distance from the necessity for either elevated residential costs or mechanical recipes up to this point.

Sri Lanka's main oil refinery at Sapugaskanda can just prepare Iranian unrefined. The oil and oil features was bargains by the agent is the individual who took features from the huge associations on wholesale groundwork and give to the retailers and from the retailers clients purchase items as per the prerequisite.

5.      Advertising & Promotion

a.      Advertising media usually used to reach your target market

b.      Sales promotions customarily used( sampling, coupons, etc)

http://www.iea.org/stats/defs/sources/crude.asp

Unrefined petroleum embodies unrefined petroleum, common gas fluids, refinery feedstocks, and added substances and also different hydrocarbons (counting emulsified oils, manufactured raw petroleum, mineral oils separated from bituminous minerals for example oil shale, bituminous sand, and what not, and oils from coal liquefaction). Unrefined petroleum is a mineral oil comprising of a mixture of hydrocarbons of common birthplace and cohorted polluting influences, for example sulphur. It exists in the fluid stage under ordinary surface temperatures and force and its physical attributes (thickness, consistency, and what not) are exceptionally variable. It incorporates field or lease condensates (separator fluids) which are recouped from partnered and non-copartnered gas where it is coexisted with the business unrefined petroleum stream. For additional qualified information on a particular item, please see this record:

Added substances are non-hydrocarbon substances included or mixed with a feature to change its lands, for instance, to enhance its ignition aspects. Alcohols and ethers (MTBE, methyl tertiary-butyl ether) and synthetic combinations for example tetraethyl lead are incorporated here. On the other hand, ethanol is not incorporated here, however under fluid biofuels.

Characteristic gas fluids (NGL)

NGLs are the fluid or condensed hydrocarbons processed in the assembling, filtration and stabilisation of common gas. The aforementioned are those segments of common gas which are recuperated as fluids in separators, field offices, or gas handling plants. NGLs incorporate yet are not constrained to ethane, propane, butane, pentane, characteristic fuel and condensate.

Different hydrocarbons

Different hydrocarbons incorporates emulsified oils (e.g. orimulsion), engineered unrefined petroleum, mineral oils separated from bituminous minerals for example oil shale, bituminous sand, and so forth. and fluids from coal liquefaction.

Refinery feedstocks

A refinery feedstock is handled oil bound for further transforming (e.g. straight run fuel oil or vacuum gas oil) other than mixing in the refining business. It is converted into one or more segments and/or fulfilled items. This definition spreads those completed features foreign for refinery allow and those came back from the petrochemical business to the refining business.

6.      Pricing Strategy

a.      Types of discounts

b.      Customary markups

In Sri Lanka just a couple of months prior, traders and moguls were fussing about if tensions in the Middle East and preparation issues somewhere else might prompt a lack of raw petroleum. Right away, a considerable number are concerned there may be excessively. Forecasters state that in the final quarter, worldwide oil yield will best interest by more than 630,000 barrels a day, the greatest surplus in four years. The hop is because of an intercection of occasions: Turmoil in the Middle East has subsided as well as the creation and transportation issues that had been smothering oil spills out of the Sri Lanka. Then, Saudi Arabia is pumping more oil to reinstate falling Iranian trades, keeping yield from the Organization of the Petroleum Exporting Countries steady. That is bringing about certain moguls and traders to change their perspective on the course of costs. As of recently, Brent unrefined, the benchmark in Europe, is down 7.8% from a three-month elevated in August. Sri Lanka rough costs are down 13% from a mid-September crest. Raw petroleum costs have been especially powerless to stresses over the worldwide economy that has not long ago seized budgetary businesses. Numerous gurus and traders state that with development in numerous major oil-depleting nations still drowsy, interest isn't heading off to be solid enough to osmoses all the additional supply.

PART B

Compare & contracts your product & competition product

Competitors product

Brand name

India

Sri Lanka

Indian Oil

Ceylon petroleum corporation

Feature

To carry on business as an importer, exporter, seller, supplier and distributor of Petroleum products. To carry on business of exploring for the exploiting, producing, and refining of Petroleum and to carry on any such business as may be incidental or conducive to the attainment of the objectives.

2. Competitor’s Promotion & Advertising Methods

In India:

http://www.pcra.org/English/education/panindia.htm

Pan India Campaign on Conservation of Fossil Fuel & its impact on Climate Change: India uses greatest of its remote wages on importing unrefined petroleum for taking care of its developing vigor demand. Moreover, Global warming is the approaching concern today. CO2 is the biggest supporter to the sensation of a dangerous atmospheric devation and petroleum features are the biggest wellspring of CO2 outflow into the earth. CO2 can't be quit being emitted from smoldering of petroleum features, however it positively might be diminished to an extraordinary degree by path of effective use of the aforementioned items and that is where the part of PCRA discriminatingly comes into power.

Emulating are major concerns why India definitely needs a national development on petroleum protection so as to push fuel proficiency in every division of the economy:

World 8 years far from being a living hellfire – IPCC report

450 MMT out of 1100 MMT of CO2 outflows in India from fossil fills.

India 5th biggest emitter of CO2 on the planet after USA (5800MT), China (4732 MT), Russia (1529 MT) & Japan (1215 MT).

Growth of utilization of petroleum items in the Xth Plan was 2.6% annually, when the economy is developing at 8% for every annum.

Projected development rate of petroleum items for India is 2.4% for every annum work 2030.

Efforts basically on supply side administration (SSM) i.e. NELP, obtaining of holdings abroad, JVs with heading oil majors for setting up refineries and what not.

Cost of interest side administration is a division as contrasted with SSM

DSM lessens CO2 outflows

Most improved and developing countries vigorously into DSM

Good DSM will guarantee that India develops as an earth dependable super power.

China focusing for 20% lessening between 2006 and 2010!!

Energy Policy for Europe (EPE) 2007:20% lessening in vigor utilization by 2020.

Japan -9.2 times additional vigor proficient for every $1000 of GDP contrasted with India.

Energy utilization levels today in Industrial segment in Japan are same as 1973 levels!!!

 India devours petroleum items worth Rs 4 lakh Crores for every annum!!!

 A2 -2.5 % preservation might come about into a recovering of Rs. 8000 -10000 crores for every year

 With deliberate protection undertakings, India can accomplish 8% GDP development rate which could be just about POL impartial!!!

Frameworks of the Campaign

 PCRA might as well captivate one of the twang's greatly encountered and rumored promoting offices to configuration and execute the work.

 The battle will be centered at rousing the clients through enthusiastic retina.

 Conceptually, PCRA battle is to be fixated on the youngsters and youth who in turn might rouse their guardians towards petroleum protection. Youngsters and youth are the normal variable who can tie clients of petroleum items crosswise over divisions, be it individual vehicle, truck, transport, industry, business foundation, family or rancher, thus the battle might be focused on towards them as the prevailing center.

 The first battle could read like "Save Petroleum to recover India" from ecological perspective, guzzling an in number feeling in the psyches of every tyke to persuade separate folks towards petroleum protection.

 A bland fight on petroleum protection might be started synchronously focusing on the guardians on the topics such as "Save Petroleum to spare your youngster's future".

 Once the nonexclusive fights are started and are unmistakable, part particular fights will be started i.e. focusing on the streamlined units, transport clients, housewives utilizing LPG, ranchers utilizing pump sets and so forth.

 The administrations of a Brand Ambassador for PCRA crusade might be utilized broadly.

 A National Theme Song on protection is to be advanced by one of the best music executives of the blue grass