year. It registered a profit of US$ 1.1 billion in FY 2005-06.1 The company employs a workforce of 30,048 personnel.
IndianOil in the Arab World
IndianOil has set up a subsidiary in the Middle East - the IOC Middle East FZE. Its office is located in Dubai, and it is responsible for coordinating the expansion of the company's business activities in the Middle East region.
IndianOil in the UAE
IndianOil coordinates its activities in the Middle East through IOC Middle East FZE. For the past nine years, IndianOil has been providing technical services and manpower support to the Emirates National Oil Company (ENOC) in Dubai.
IndianOil in Libya
In 2005, the consortium of IndianOil and Oil India Limited signed an Exploration and Production Sharing Agreement with the National Oil
Corporation of Libya for Block No. 86 in the Sirte Basin, Libya.The size of this block is over 7,000 sq km. Recently, IndianOil acquired another block in the Sirte Basin.The Sirte Basin has approximately 80 per cent of Libya's reserves and accounts for nearly 90 per cent of the country's production.
IndianOil in Kuwait
In March 2006, IndianOil signed a Memorandum of Understanding (MoU) with Kuwait Petroleum Corporation (KPC), Kuwait to jointly explore opportunities in the upstream and downstream
Company Background
Indian Oil Corporation Limited (IndianOil) was formed in 1964 through the merger of Indian Oil Company Limited and Indian Refineries Limited.
With its registered office in Mumbai , IndianOil is involved in several businesses, including refining, marketing, petrochemicals, gas, exploration and production, research and development, hydrogen, bio-fuels and consultancy.The Central Government of India holds an approximately 82 per cent stake in the company's equity.
IndianOil is the twenty-first largest petroleum company in the world. Among the national oil companies in the Asia-Pacific region, it is the leading petroleum trading company. IndianOil has four subsidiaries in India and has set up subsidiaries in Sri Lanka, Mauritius and UAE to emerge as a major transnational energy company in the world. It has also set up 12 joint ventures (JVs) in India and abroad. It owns and operates 10 of the 18 refineries in India. IndianOil sells lubricants under the brand name Servo in various geographies, including Dubai, Nepal, Bhutan, Kuwait, Malaysia, Bahrain, Indonesia, Sri Lanka, Kyrgyzstan, Mauritius and Bangladesh.
IndianOil, along with its marketing subsidiary, IBP Company Limited, operates the largest network of petrol and diesel stations in India. Indian Oil is the highest-ranked Indian company in the Fortune Global 500 listing. It generated revenue of nearly US$ 41.2 billion in FY 2005-06, which was nearly 21.6 per cent higher than those for the previous 32
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IndianOil markets its technology and process innovation through its wholly owned subsidiary, IndianOil Technologies Limited. It invested US$ 20 million on R&D in 2005-06.This focus on R&D has propelled IndianOil's success in the Arab world.
Focussed Expansion Plan
IndianOil has developed a strategy to achieve continuous growth in India and abroad.
The company has called this initiative the X Plan.
Under this plan, IndianOil has been investing US$ 5.5 billion over the period 2002 to 2007 for integration and diversification projects, refining and pipeline capacity growth, product quality upgrading and the expansion of its marketing infrastructure.
Future Plans
Focus on Overseas Growth
IndianOil is looking for suitable growth
opportunities in energy markets in the Middle East, Asia and Africa to widen its downstream market operations and increase its products and services exports. It is also considering acquisitions in these regions. IndianOil is scouting for major refinery revamp and upgrading projects, operation and maintenance of pipelines, major turnaround jobs of refineries and cross country pipelines, etc., in the Middle Eastern, European and African countries.
IndianOil has begun blending of lubricants in the Jebel Ali Free Zone in Dubai. It plans to process and blend some of its 400 graded lubricants in Jebel Ali. IndianOil values the market for lubricants in the Gulf at approximately US$ 52 million. It is also finalising distributors for its Servo brand lubricants in the UAE, Oman and Bahrain.
Vertical Integration
IndianOil has set a target of achieving revenues of US$ 60 billion by 2011-12 from its current revenues of US$ 41 billion. It plans to achieve this growth through vertical integration. As a part of hydrocarbon sectors in India, Kuwait and other
countries.This MoU gives IndianOil the opportunity to offer its technical services for the construction, commissioning, operation and maintenance of KPC's refining and petrochemical infrastructure in Kuwait. In addition, it will undertake collaborative R&D with KPC.
IndianOil also plans to offer KPC shares in its new refinery, which is being developed at Paradip, Orissa, and in a naphtha cracker unit in Panipat, Haryana. IndianOil hopes that KPC's participation in its projects will facilitate IndianOil's participation in KPC's overseas projects.
IndianOil in Oman
In 2004, IndianOil provided consultancy services in integrated management systems to Oman Refinery Company (ORC), Oman.With consultancy support from IndianOil, ORC achieved simultaneous certification in three systems, namely ISO-9001, ISO-14001, and OHSAS-18001.
IndianOil in Iraq
IndianOil, on behalf of the Indian Government, provides training to Iraqi officials in areas related to the downstream petroleum sector.
Success Factors
Investment in R&D
IndianOil is the leader in R&D in the downstream hydrocarbon sector and has one of the best R&D centres in India. It conducts research on alternative fuels such as ethanol-blended petrol, biodiesel and hydrogen. It has also begun marketing intellectual property, which is now a source of additional revenue for the company. So far, IndianOil's R&D centre has been granted 150 patents. It earned seven international and seven Indian patents during 2005-06.The centre is also conducting research in new technologies such as gas-to-liquid and coal/residue/biomass gasification.
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this plan, the company aims to increase its focus on petrochemicals, and the exploration and production of oil. It also wants to diversify its natural gas business and globalise its marketing operations.
Focus on Exploration and Production To strengthen its upstream portfolio, IndianOil seeks to acquire a suitable medium-sized
exploration and production company. It has already acquired two gas blocks in the Sirte Basin in Libya, the Farsi exploration block in Iran and an onshore farm-in arrangement in Gabon.
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