ASSIGNMENT

OF

MANAGEMENT & PRACTICES

ON

INDIAN OIL CORPORATION

SUBMITTED TO:- Mr. MANISH KUMAR

SUBMITTED BY:- AMIT SINGH RANA

REG NO. 10900221

RV8906B12
Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs.
271,074 crore and profit of Rs. 10,221 crore for the year 2009-10.

IndianOil is the highest ranked Indian company in the latest Fortune ‘Global 500’
listings, ranked at the 125th position. IndianOil's vision is driven by a group of dynamic
leaders who have made it a name to reckon with.

In this section, read about IndianOil’s business and its spread across the country &
abroad. You can also know about IndianOil's current financial performance, special
initiatives and recognitions & awards that have come its way.

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s India’s flagship national oil company with business interests straddling the
entire hydrocarbon value chain – from refining, pipeline transportation and
marketing of petroleum products to exploration & production of crude oil &
gas, marketing of natural gas, and petrochemicals. It is the leading Indian
corporate in the Fortune 'Global 500' listing, ranked at the 125th position in
the year 2010.

With over 34,000-strong workforce, IndianOil has been helping to meet

India’s energy demands for over half a century. With a corporate vision to be
the Energy of India, IndianOil closed the year 2009-10 with a sales turnover
of Rs. 271,074 crore and profits of Rs. 10,221 crore.

At IndianOil, the operations are strategically structured along business

verticals - Refineries, Pipelines, Marketing, R&D Centre and Business
Development – E&P, Petrochemicals and Natural Gas. To achieve the next
level of growth, IndianOil is currently forging ahead on a well laid-out road
map through vertical integration— upstream into oil exploration & production
(E&P) and downstream into petrochemicals – and diversification into natural
gas marketing and alternative energy, besides globalisation of its
downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius
and the United Arab Emirates (UAE), IndianOil is simultaneously scouting for
new business opportunities in the energy markets of Asia and Africa.

With facilities at multiple locations and ever-expanding market opportunities,

IndianOil is poised to become an integrated energy company with steady
forays into Oil Exploration & Production, Petrochemicals and Renewable
Energy.

REACH AND NETWORK

IndianOil and its subsidiary (CPCL) account for over 48% petroleum products
market share, 34% national refining capacity and 71% downstream sector
pipelines capacity in India.
With a steady aim of maintaining its position as a market leader and providing
best quality products and services, IndianOil is currently investing Rs. 47,000
crore in a host of projects for augmentation of refining and pipelines
capacities, expansion of marketing infrastructure and product quality
upgradation.

The IndianOil Group of companies

owns and operates 10 of India's 20
refineries with a combined refining
capacity of 62.7 million metric tonnes per annum (MMTPA, .i.e. 1.25 million
barrels per day). IndianOil’s cross-country network of crude oil and product
pipelines, spanning 10,899 km and the largest in the country, meets the vital
energy needs of the consumers in an efficient, economical and environment-
friendly manner.
It has a portfolio of powerful and much-
loved energy brands that includes
Indane LPGas, SERVO lubricants,
XtraPremium petrol, XtraMile diesel,
etc. Validating the trust of 56.8 million
households, Indane has earned the
coveted status of ‘Superbrand’ in the
year 2009.
IndianOil has a keen customer focus
and a formidable network of customer
touch-points dotting the landscape
across urban and rural India. It has
18,643 petrol and diesel stations,
including 2,947 Kisan Seva Kendras
(KSKs) in the rural markets. With a
countrywide network of 35,600 sales
points, backed for supplies by 140 bulk
storage terminals and depots, 98
aviation fuel stations and 88 LPGas
bottling plants, IndianOil services every nook and corner of the country.
Indane is present in almost 2764 markets through a network of 5095
distributors. About 7,593 bulk consumer pumps are also in operation for the
convenience of large consumers, ensuring products and inventory at their
doorstep.

IndianOil’s ISO-9002 certified Aviation Service commands an enviable 63%

market share in aviation fuel business, successfully servicing the demands of
domestic and international flag carriers, private airlines and the Indian
Defence Services. The Corporation also enjoys a 65% share of the bulk
consumer, industrial, agricultural and marine sectors.

Innovation is key
IndianOil has a sprawling world-class
R&D Centre that is perhaps Asia's
finest. it conducts pioneering work in
lubricants formulation, refinery
processes, pipeline transportation and
alternative fuels, and is also the nodal
agency of the Indian hydrocarbon
sector for ushering in Hydrogen fuel
economy in the country. The Centre
holds 215 active patents, including 109
international patents.

Some of the in-house technologies and catalysts developed by IndianOil are

the INDMAX technology (for maximising LPG as yield), Olivorus–S bio-
remediation technology (extended to marine applications too), DHDS
catalyst, a special Indicat catalyst for Bharat Stage-IV compliant Diesel, IndVi
catalyst for improved distillate yield and FCC throughput, and adsorbent
based deep desulphurisation process for gasoline and diesel streams.

Redefining the horizon

In Petrochemicals, IndianOil is
investing Rs. 20,000 crore (US$ 4
billion) by the year 2011-12. It offers a
full slate of products including Linear
Alkyl Benzene (LAB), Purified
Terephthallic Acid (PTA), and an
extensive range of polymers. IndianOil
holds a significant market share of LAB
in India and exports to 19 countries. A
state-of-the-art 120,000 tonnes per
annum Styrene Butadiene Rubber
(SBR) unit is underway at Panipat. The SBR unit will further strengthen
IndianOil’s presence in the speciality petrochemicals sector.
In Exploration & Production, IndianOil’s
domestic portfolio includes nine oil &
gas blocks and two Coal Bed Methane
blocks. The overseas portfolio includes
nine blocks spread across Libya, Iran,
Gabon, Nigeria, Timor-Leste and
Yemen. Exploration activities are at
various stages of progress. In addition,
as part of consortium, IndianOil has
been awarded Project -1 in the
Carabobo heavy oil region of
Venezuela. To boost E&P activities, IndianOil has incorporated Ind-OIL
Overseas Ltd. – a special purpose vehicle for acquisition of overseas E&P
assets – in consortium with Oil India Ltd.

Natural Gas marketing is another thrust area for IndianOil with special focus
on City Gas Distribution (CGD) business. The Corporation has entered into
franchise agreements with several CGD players to market Compressed
Natural Gas through its retail outlets. IndianOil’s joint venture with GAIL India
Ltd. - Green Gas Ltd. – has been authorised to take up city gas distribution at
Agra. A long term gas supply agreement has been signed with NTPC.

IndianOil has signed an MoU with Tamil Nadu Industrial Development

Corporation Ltd. (TIDCO) to set up a 2.5 million tonnes per annum LNG
import and re-gasification terminal & gas-based power plants at Ennore, and
gas pipelines for distribution in the state of Tamil Nadu, at an estimated
investment of around Rs.10,000 Crore.

Venturing into alternative fuels

IndianOiI has forayed into alternative
energy options such as wind, solar,
bio-fuels and nuclear power. A 21 MW
wind power project is operational in the
Kutch district of Gujarat and the
cumulative power generation from the
14 wind turbine generators has
crossed 6.6 crore units (KW/Hr) since
commissioning in January 2009. The
solar power initiative is being
spearheaded on a pilot basis in Orissa,
Karnataka and the Northeast and an all-India phased roll out is underway.
Solar products such as solar lanterns and torches are being sold through the
Retail Outlets in rural and urban areas. With a view to investing in the nuclear
energy sector in the country, IndianOil has entered into an agreement with
the Nuclear Power Corporation of India Ltd.
IndianOil has the largest captive plantation – over 1,000 hectares – for bio-
fuel production in India which is underway in Chattisgarh and Madhya
Pradesh, generating rural employment of over 1.4 lakh man-days. To straddle
the complete bio-fuel value chain, IndianOil has formed a joint venture with
the Chhattisgarh Renewable Development Authority. IndianOil CREDA
Biofuels Ltd. has been formed to carry out farming, cultivating, manufacturing,
production and sale of biomass, bio-fuels and allied products and services in
Chattisarh. In Uttar Pradesh, IndianOil is establishing a model value chain for
the production of bio-diesel. A MoU for collaborating on commercial
production of bio-diesel from algae has also been signed with PA LLC.

IndianOil. The Energy of India

As a leading public sector enterprise of
India, IndianOil has successfully
combined its corporate social
responsibility agenda with its business
offerings, meeting the energy needs of
millions of people everyday across the
length and breadth of the country,
traversing a diversity of cultures,
difficult terrains and harsh climatic
conditions. The Corporation takes pride
in its continuous investments in
innovative technologies and solutions
for sustainable energy flow and economic growth and in developing techno-
economically viable and environment-friendly products & services for the
benefit of its consumers.
INDIANOIL MAJOR UNITS

Registered Office
Registered Office IndianOil Bhavan,
G-9, Ali Yavar Jung Marg,
Bandra (East), Mumbai -400 051

Corporate Office

Refineries Division
Head Office SCOPE Complex, Core-2
7, Institutional Area, Lodhi Road
New Delhi -110003
Barauni Refinery P.O. Barauni Refinery,
Dist. Begusarai -861 114 (Bihar)
Gujarat Refinery P.O. Jawahar Nagar,
Dist. Vadodara -391 320(Gujarat)
Guwahati Refinery P.O. Noonmati,
Guwahati-781020 (Assam)
Haldia Refinery P.O. Haldia Refinery
Dist. Midnapur-721 606
(West Bengal)
Mathura Refinery P.O. Mathura Refinery,
 Mathura -281 005
(Uttar Pradesh)
Panipat Refinery P.O. Panipat Refinery,
Panipat-132140(Haryana)
Bongaigaon Refinery P.O. Dhaligaon,
Dist. Chirang, Assam - 783 385

Pipelines Division
Head Office A-1 Udyog Marg,
Sector-1, Noida-201301(Uttar Pradesh)
Northern Region P.O. Panipat Refinery
Panipat -132 140 (Haryana)
Western Region P.O. Box 1007,Bedipara,
Morvi Road,Gauridad,
Rajkot-360 003 (Gujarat)
Southern Region 139, Nungambakkam High Road
Chennai - 600034
Eastern Region 14, Lee Road,
Kolkata-700020

Marketing Division
Head Office IndianOil Bhavan,
G-9, Ali Yavar Jung Marg,
Bandra (East), Mumbai -400 051
Northern Region IndianOil Bhavan,
1, Aurobindo Marg, Yusuf Sarai
New Delhi -110016
Eastern Region IndianOil Bhavan,
2, Gariahat Road, South (Dhakuria)
Kolkata -700 068
Western Region 254-C, Dr. Annie Besant Road,
Worli Colony, Mumbai -400 030
Southern Region IndianOil Bhavan
139, Nungambakkam High Road
Chennai -600034

R&D Centre
R&D Centre Sector 13 Faridabad -121 007
(Haryana)
Assam Oil Division
Assam Oil Division P.O. Digboi -768 171
(Assam)

IBP Division
IBP Division 34-A, Nirmal Chandra Street,
Kolkata - 700 013

Group Companies
Chennai Petroleum Corporation Ltd. 536, Anna Salai,
Teynampet, Chennai - 600 018
IndianOil (Mauritius) Ltd. Mer Rouge
Port Louis
Maruritius
Lanka IOC PLC Lanka IOC Head Office
Level 20, West Tower,
World Trade Center,
Echelon Square, Colombo - 01,
Sri Lanka.
IOC Middle East FZE LOB 14209, Jebel Ali Free Zone,
P.O.Box: 261338
IndianOil - CREDA Biofuels Limited

INDIANOIL MAJOR PROJECTS

IndianOil continues to lay emphasis on infrastructure

development. Towards this end, a number of schemes
have been initiated with increasing emphasis on project
execution in compressed schedules as per world
benchmarking standards. Schemes for improvement and
increased profitability through debottlenecking /
modifications / introduction of value added products are
being taken up in addition to grassroots facilities. Project
systems have been streamlined in line with ISO standards.
MS QUALITY UPGRADATION PROJECT BARAUNI REFINERY (BIHAR)
Project Cost: Rs. 1,492.00 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation,
Naphtha Hydrotreater, Reformate Splitter, FCC Gasoline Desulpurisation Unit and
Hydrogen Generation Unit.

MS QUALITY UPGRADATION PROJECT AT GUWAHATI REFINERY (ASSAM)

Project Cost: Rs. 372.00 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation, Light
Naphtha Splitter, Naphtha Hydrotreater and Indmax Gasoline Splitter.

MS QUALITY UPGRADATION PROJECT AT DIGBOI REFINERY (ASSAM)

Project Cost: Rs. 356.00 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation,
Naphtha Splitter, Naphtha Hydrotreater and Reformate Splitter.

DIESEL HYDRO-TREATMENT (DHDT) PROJECT AT BONGAIGAON REFINERY

(ASSAM)
Project Cost: Rs. 1646.39 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of HSD to conform
to Euro-III equivalent norms. The project would also improve smoke point of Raw
Kerosene and enhance production of SKO and ATF.
Brief Description: The major process units under this project are DHDT Unit, Sulphur
Recovery Block, Reformer, Power Plant, DM Plant and Hydrogen Generation Unit.
MS QUALITY UPGRADATION PROJECT AT BONGAIGAON REFINERY (ASSAM)
Project Cost: Rs. 293.60 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process unit under this project is Light Naphtha
Isomerisation Unit. Existing Xylene Fractionation facilities would also be used.

RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT

GUJARAT REFINERY
Project Cost: Rs. 6,898.00 crore
Expected Commissioning: July to October, 2010
Benefit: The objectives of the project are multifold. It will ensure compliance to product
quality requirement of MS/HSD to EURO-III/IV levels, enable processing of increased
quantity of high sulphur crude, and improvement in distillate yield.
Brief Description: The project envisages setting up of a number of units like VGO-
HDT, ATF-Merox, FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU (PDS) and
SRU.

PANIPAT REFINERY EXPANSION FROM 12 MMTPA TO 15 MMTPA

Project Cost: Rs. 1,007.83 crore
Expected Commissioning * : October 2010
Benefit: To meet the growing deficit of petroleum products in the high demand
Northwest region of India.
Brief Description: The project consists of capacity revamp of Crude and Vacuum
Distillation Units (CDU / VDU), Once through Hydrocracking Unit (OHCU), Delayed
Coking Unit, and installation of second stage reactors in Diesel Hydrotreating Unit
(DHDT).
* Qaulity part completed in November, 2009

GRASSROOTS REFINERY PROJECT AT PARADIP (ORISSA)

Project Cost: Rs. 29,777.00 crore
Expected Commissioning: March-November, 2012
Benefit: The project will help in partially meeting the deficit in distillates viz. LPG,
Naphtha, MS, Jet/Kero, Diesel and other products, in the eastern part of the country.
The complex will generate intermediate petrochemicals feedstock.
Brief Description: A 15 MMTPA refinery is being constructed at Paradip in Orissa. The
refinery will have, apart from a Crude and Vacuum Distillation Unit, a Hydrocracking
Unit, a Delayed Coker Unit and other secondary processing facilities. This will be the
most modern refinery in India with a nil-residue production, and the products would
meet stringent specifications. IndianOil has taken over 3344 acres of land for the
project and necessary infrastructure development jobs prior to setting up of the main
refinery are in progress.

INTEGRATED CRUDE OIL HANDLING FACILITIES AT PARADIP

Project Cost: Rs. 1492.33 crore
Expected Commissioning: March 2012
Benefit: The proposed facilities would enhance crude handling capacity at Paradip port.
Brief Description: The proposal is for installation of 2nd SPM for Paradip Refinery and
3rd SPM & sub-sea crude oil transfer pipeline with associated facilities as a part of
Integrated Offshore Crude Handling Facilities at Paradip.

PARADIP-NEW SAMBALPUR-RAIPUR-RANCHI PIPELINES

Project Cost: Rs. 1793.60 crore
Expected Commissioning: September 2012
Benefit: The proposed pipeline would ensure the evacuation of Paradip Refinery
products and uninterrupted supply to major parts of Orissa, Chhattisgarh and
Jharkhand.
Brief Description: Project consists of laying of 1108 km long product pipeline with
intermediate pumping stations at Jatni and New Sambalpur and delivery stations at
Jatni, Jharsuguda, Ranchi, Raipur and Korba. The pipeline will be having a telescopic
diameter of 18”/14”/12”/10” OD.

DE-BOTTLENECKING OF SALAYA-MATHURA CRUDE PIPLEINE

Project Cost: Rs. 1584.00 crore
Expected Commissioning: 30 months after receipt of statutory clearances
Benefit: With the proposed de-bottlenecking/augmentation of SMPL, the refineries
would be in a position to process more crude oil.
Brief Description: The proposal is for enhancing the capacity of Salaya-Viramgam
section from 21 MMTPA to 25.0 MMTPA, [Viramgam-Koyali section from 8.5 MMTPA
to 9.0 MMTPA, Viramgam-Chaksu section from 13.5 MMTPA to 16.5 MMTPA, Chaksu-
Mathura section from 7.5 MMTPA to 9.2 MMTPA and Chaksu-Panipat section from 6
MMTPA to 7.3 MMTPA].

BRANCH PIPELINE FROM KSPL, VIRAMGAM TO KANDLA

Project Cost: Rs. 349.00 crore
Expected Commissioning: 30 months after receipt of environment & forest clearance
Benefit: The pipeline would provide cost-effective link with the sea route ex-Kandla for
coastal movement of surplus products of Koyali refinery and enhance flexibility in the
system for ensuring sustained operation of the refinery.
Brief Description: Project consists of laying of 16-inch diameter 217 km long product
pipeline from Viramgam to Churwa and use of 22” diameter 14 km existing KBPL
pipeline between Churwa to Kandla.

PRODUCTS
IndianOil is not only the largest commercial enterprise in the country it is the
flagship corporate of the Indian Nation. Besides having a dominant market
share, IndianOil is widely recognized as India’s dominant energy brand and
customers perceive IndianOil as a reliable symbol for high quality products
and services.

Benchmarking Quality, Quantity and Service to world-class standards is a

philosophy that IndianOil adheres to so as to ensure that customers get a
truly global experience in India. Our continued emphasis is on providing fuel
management solutions to customers who can then benefit from our expertise
in efficient sourcing and least cost supplies keeping in mind their usage
patterns and inventory management.

IndianOil is a heritage and iconic brand at one level and a contemporary,

global brand at another level. While quality, reliability and service remains the
core benefits to our customers, our stringent checks are built into operating
systems, at every level ensuring the trust of over a billion Indians over the last
four decades.

Our Retail Brand template of XtraCare(Urban), Swagat(Highway) and Kisan

Seva Kendras(Rural) are widely recognized as pioneering brands in the
petroleum retail segment. IndianOil’s leadership extends to its energy brands
- Indane LPG, SERVO Lubricants, Autogas LPG, XtraPremium Branded
Petrol, XtraMile Branded Diesel, XtraPower Fleet Card, IndianOil Aviation
and XtraRewards cash customer loyalty programme.

AUTOGAS
AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained
from natural gas through fractionation and from crude oil through refining. It is a mixture
of petroleum gases like propane and butane. The higher energy content in this fuel
results in a 10% reduction of CO2 emission as compared to MS.

AutoGas is a gas at atmospheric pressure and normal temperatures, but it can be

liquefied when moderate pressure is applied or when the temperature is sufficiently
reduced. This property makes the fuel an ideal energy source for a wide range of
applications, as it can be easily condensed, packaged, stored and utilised. When the
pressure is released, the liquid makes up about 250 times its volume as gas, so large
amounts of energy can be stored and transported compactly.

The use of LPG as an automotive fuel has become legal in India with effect from April
24, 2000, albeit within the prescribed safety terms and conditions. Hitherto, the
thousands of LPG vehicles running in various cities have been doing so illegally by
using domestic LPG cylinders, a very unsafe practice. Using domestic LPG cylinders in
automobiles is still illegal.

The fuel is marketed by IndianOil under the brand name ‘AutoGas’

"IndianOil has setup 282 Auto LPG Dispensing Stations (ALDS) covering 153 cities
across India."

AutoGas impacts greenhouse emissions less than any other fossil fuel when measured
through the total fuel cycle. Conversion of petrol to AutoGas helps substantially reduce
air pollution caused by vehicular emissions.

The saving on account of conversion to AutoGas in comparison to petrol is about 35-

40%. Low filling times and the 35-40% saving is a reason enough for a consumer to
convert his vehicle to AutoGas.

ATF/JET FUEL
IndianOil Aviation Service is a leading aviation fuel solution provider in India and the
most-preferred supplier of jet fuel to major international and domestic airlines. Between
one sunrise and the next, IndianOil Aviation Service refuels over 1500 flights – from the
bustling metros to the remote airports linking the vast Indian landscape, from the icy
heights of Leh (the highest airport in the world at 10,682 ft) to the distant islands of
Andaman & Nicobar.

Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. Its principal
uses are as jet engine fuel. The most common jet fuel worldwide is a kerosene-based
fuel classified as JET A-1.The governing specifications in India are IS 1571: 2001 (7th
Rev).

IndianOil is India's first ISO-9002 certified oil company conforming to stringent global
quality requirements of aviation fuel storage & handling. IndianOil Aviation also caters to
the fuel requirements of the Indian Defence Services, besides refueling VVIP flights at
all the airports and remote heli-pads/heli-bases across the Indian subcontinent.
IndianOil Aviation group regularly organises International Aviation conferences that act
as a vital information facilitator with participation from leading international and all
domestic airlines, allied industries, statutory aviation authorities and government
agencies from over 35 countries.

IndianOil is the only oil company in India to market the widest possible range of fuels
used by the aviation industry in India- JP-5, Avgas 100LL, Methanol Water Mixture, Jet
A-1 and aviation lubricants, etc.

Aviation Turbine Fuel (ATF) is dispensed from specially designed refuellers, which are
driven up to parked airplanes and helicopters. Major airports have hydrant refuelling
systems that pump the fuel right up to the filling outlets on the tarmac through
underground pipelines for faster refuelling. Essentially, ATF is pumped into an aircraft
by two methods: Overwing and Underwing. Overwing fuelling is used on smaller planes,
helicopters, and piston-engine aircraft and is similar to automobile fuelling - one or more
fuel ports are opened and fuel is pumped in with a conventional pump. Underwing
fuelling, also called single-point is used on larger aircraft.

To ensure that you receive the best service, every one of our 101 AFSs follows specific
quality audits based on a Quality Control Index System benchmarked to global
standards. In addition, 15 Quality Certification Laboratories provide complete
specification tests round-the-clock. Ensuring that these standards are always upheld,
there is a back up of a highly skilled, qualified and dedicated team of officers and
refueling crew. IndianOil has a strategic partnership with Air BP, the world leader in
aviation business. IndianOil regularly organizes seminars, symposiums and workshops
to constantly interact with its partners, which apart from being a two-way channel of
communication, helps us to stay abreast with advances in technology.
BITUMEN
Bitumen is a common binder used in road construction. It is principally obtained as a
residual product in petroleum refineries after higher fractions like gas, petrol, kerosene
and diesel, etc., are removed. Indian Standard Institution defines Bitumen as a black or
dark brown non-crystalline soil or viscous material having adhesive properties derived
from petroleum crude either by natural or by refinery processes.

IndianOil produces bitumen from its refineries at Panipat, Mathura, Koyali, Haldia and
Chennai and markets it in bulk as well as packed in steel drums. IndianOil also markets
modified Bitumen CRMB and Emulsion. CRMB is produced at Panipat, Mathura,
Koyali, Haldia and CPCL refineries. IndianOil markets Bitumen Emulsion by the brand
name Indemul and it is produced from emulsion plants located in Haldia and Panipat
refineries. CRMB and Emulsion are available both in bulk as well as in packed drums.

DIESEL/GAS OIL
Petroleum derived diesel (called as petrodiesel) is a mixture of straight run product (150
°C and 350 °C) with varying amount of selected cracked distillates and is composed of
saturated hydrocarbons (primarily paraffins including n , iso , and cycloparaffins), and
aromatic hydrocarbons (including napthalenes and alkylbenzenes).

Diesel is used in diesel engines, a type of internal combustion engine. Rudolf Diesel
originally designed the diesel engine to use coal dust as a fuel, but oil proved more
effective. Diesel engines are used in cars, motorcycles, boats and locomotives.
Automotive diesel fuel serves to power trains, buses, trucks, and automobiles, to run
construction, petroleum drilling and other off-road equipment and to be the prime mover
in a wide range of power generation & pumping applications. The diesel engine is high
compression, self-ignition engine. Fuel is ignited by the heat of high compression and
no spark plug is used.

The Indian Standard governing the properties of diesel fuels is IS 1460:2005 (5th Rev).
Important characteristics are ignition characteristics, handling at low temperature, flash
point.

Diesel fuel often contains higher quantities of sulphur. In India , emission standards
(equivalent to Euro II, Euro III, Euro IV) have necessitated oil refineries to dramatically
reduce the level of sulphur in diesel in view of the auto fuel policy brought in force by
Govt of India.

BIS has brought out specification for "Diesel with 5% Biodiesel" that may be marketed in
near future.
XTRAMILE

IndianOil’s XTRAMILE Super Diesel, the leader in the branded diesel segment, is
blended with world-class multi-functional fuel additives. Commercial vehicle owners
choose XTRAMILE because they see a clear value benefit in terms of superior mileage,
lower maintenance costs and improved engine protection. A growing section of
customers who own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category,
prefer XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has
brought in a huge savings in the high mileage commercial vehicles segment. Transport
fleets that operate a large number of trucks crisscrossing the country are using
XTRAMILE to benefit from higher mileage and reduced maintenance costs.

INDANE GAS
Indane is today one of the largest packed-LPG brands in the world and has been
conferred the coveted ‘Consumer Superbrand’ status by the Superbrands Council of
India.

Having launched LPG marketing in the mid-60s, IndianOil has been credited with
bringing about a ‘kitchen revolution,’ spreading warmth and cheer in millions of
households with the introduction of the clean and efficient cooking fuel. It has led to a
substantial improvement in the health of women, especially in rural areas by replacing
smoky and unhealthy chulha. Indane is today an ideal fuel for modern kitchens,
synonymous with safety, reliability and convenience.

With the status of an exclusive business vertical within the Corporation, the Indane
network delivers 1.2 million cylinders a day to the doorsteps of over 53 million
households, making IndianOil the second largest marketer of LPG globally, after SHV
Gas of The Netherlands. Indane is available in compact 5 kg cylinders for rural, hilly and
inaccessible areas, 14.2 kg cylinders for domestic use, and 19 kg and 47.5 kg for
commercial and industrial use.

LPG is a blend of Butane and Propane readily liquefied under moderate pressure. LPG
vapour is heavier than air; thus it normally settles down in low-lying places. Since LPG
has only a faint scent, a mercaptan odorant is added to help in its detection. In the event
of an LPG leak, the vapourisation of liquid cools the atmosphere and condenses the
water vapour contained in it to form a whitish fog, which is easy to observe. LPG in fairly
large concentrations displaces oxygen leading to a nauseous or suffocating feeling.

Suraksha LPG hose, flame retardant aprons and energy efficient Green Label stoves
are recommended to enhance safety measures while using LPG as cooking fuel.

To prevent diversion, the Indane brand is being backed by RFID technology, a new
concept that helps track the movement of LPG cylinders. Initial trials are currently going
on, after which it will be implemented on a countrywide basis.

PETROCHEMICALS
India is amongst the fastest growing petrochemicals markets in the world. Taking this
into consideration and to enhance its downstream integration, IndianOil is focusing on
increasing its presence in the domestic petrochemicals sector besides the overseas
markets through systematic expansion of customer base and innovative supply
logistics.

Petrochemicals have been identified as a prime driver of future growth by IndianOil. The
Corporation is envisaging an investment of Rs 30,000 crore in the petrochemicals
business in the next few years. These projects will utilise product streams from the
existing refineries of IndianOil, thereby achieving better exploitation of the hydrocarbon
value chain.

Beginning with a low-investment, high-value projects such as Methyl Tertiary Butyl

Ether (MTBE) and Butene-1 at Gujarat Refinery, Vadodara, IndianOil has set up a
world-scale Linear Alkyl Benzene (LAB) plant at Gujarat Refinery and an integrated
Paraxylene/Purified Terephthalic Acid (PX/PTA) plant at Panipat. A Naphtha Cracker
complex with downstream polymer units is also in operation at Panipat.

These initiatives are designed to catapult IndianOil among the top three petrochemicals
players in Southeast Asia in the long term.

In order to penetrate the petrochemicals market effectively, a separate Strategic

Business Unit (SBU) has been created in IndianOil for marketing of petrochemicals.
This SBU has five exclusive sub-groups, classified product wise (LAB, PTA, Polymers)
and function wise (Logistics & Exports), in addition to regional/field set-ups to offer
reliable customer service. This SBU has already established IndianOil's LAB business
both in India and abroad. Today, IndianOil is a major supplier to the key players in the
detergent industry, both national and international. Similarly, in PTA business, all major
domestic customers are catered to by IndianOil. A robust logistics model has been the
key to IndianOil's success story and facilities have been put in place for seamless
product dispatches to customers by rail, road and sea.

Mega Plants:

Linear Alkyl Benzene (LAB) plant, Gujarat Refinery:

IndianOil made its big-ticket entry into petrochemicals with the commissioning of the
country’s largest Linear Alkyl Benzene (LAB) plant at Gujarat Refinery in August 2004. It
is also the largest grassroots single train Kerosene-to-LAB unit in the world, with an
installed capacity of 1,20,000 metric tonnes per annum (MTPA). Currently, two grades
of LAB – high molecular weight and low molecular weight – are being produced for
manufacture of environment friendly biodegradable detergents. The quality of the LAB
produced here has found wide acceptance in the domestic and overseas markets.

Built at a cost of Rs. 1,248 crore and commissioned in a record 24 months’ time, the
plant produces superior quality LAB for manufacturing environment-friendly
biodegradable detergents. The key raw materials for the plant, catering to domestic as
well as export market requirements meeting the latest and most stringent quality
standards, are Kerosene and Benzene produced at Koyali Refinery.

The LAB unit at Gujarat Refinery achieved 102.8% capacity utilization during the year
2009-2010. LAB sales touched 126 TMT including export of 19 TMT to 19 countries
during the year 2009-10.

Paraxylene/Purified Terephthalic Acid (PX/PTA), Panipat:

The most technologically advanced plant in the country, the PX/PTA plant marks
IndianOil’s major step towards forward integration in the hydrocarbon value chain by
manufacturing Paraxylene (PX) from captive Naphtha and thereafter, converting it into
Purified Terephthalic Acid (PTA). The integrated Paraxylene/Purified Terephthallic Acid
(PX/PTA) complex was built at a cost of Rs. 5,104 crore within the Panipat Refinery in
Haryana.

The PTA Plant is the single largest unit in India with a world-scale capacity of 5,53,000
MTPA, achieving economy of scale. The process package for the PTA plant was
prepared by erstwhile M/s Dupont, UK (now M/s. Invista) and that of the Paraxylene
Unit was prepared by M/s UOP, USA. M/s EIL and M/s Toyo Engineering were the
Project Management Consultants (PMC) for executing the PTA and PX respectively.

The Paraxylene plant is designed to process 5,00,000 MTPA of heart-cut Naphtha to

produce about 3,60,000 MTPA of PX. Naphtha is sourced from IndianOil’s Panipat and
Mathura refineries, for which Naphtha splitter units are set up at the respective
refineries. The PTA unit produces 5,53,000 MTPA of Purified Terephthalic Acid from
Paraxylene.

Naphtha Cracker Plant, Panipat:

The world-class Naphtha Cracker at Panipat, built at a cost of Rs 14,400 crore, is the
largest operating cracker capacity in India.

The feed for the unit is sourced internally from IndianOil's Koyali, Panipat and
Mathura refineries. The Naphtha Cracker comprises of the following downstream
units - Polypropylene (capacity: 600,000 tonnes), High Density Polyethylene (HDPE)
(dedicated capacity: 300,000 tonnes) and Linear Low Density Poly Ethylene (LLDPE)
(350,000 tonnes Swing unit with HDPE), Mono Ethylene Glycol(MEG) plant (capacity:
325,000 tonnes).

The cracker will produce over 800,000 tonnes per annum of ethylene, 600,000
tonnes per annum of Propylene, 125,000 tonnes per annum of Benzene, and other
products viz., LPG, Pyrolysis Fuel Oil, components of Gasoline and Diesel.

The Polypropylene (PP) unit is designed to produce high quality and high value
niche grades including high speed Bi-axially Oriented Polypropylene (BOPP) (used
for food packaging and laminations), high clarity random co-polymers (used for food
containers and thin walled products) and super impact co-polymer grades (used for
batteries, automobile parts, luggage and heavy duty transport containers).
Polyethylene is used for making injection moulded caps, heavy duty crates,
containers, bins, textile bobbins, luggage ware, thermoware, storage bins, pressure
pipes (for gas and water), small blow-moulded bottles, jerry cans, etc.

KEROSENE
Kerosenes are distillate fractions of crude oil in the boiling range of 150-250°C. They
are treated mainly for reducing aromatic content to increase their smoke point (height of
a smokeless flame) and hydrofining to reduce sulphur content and to improve odour,
colour & burning qualities (char value).

Kerosene is used as a domestic fuel for heating / lighting and also for manufacture of
insecticides/herbicides/fungicides to control pest, weeds and fungi. Since kerosene is
less volatile than gasoline, increase in its evaporation rate in domestic burners is
achieved by increasing surface area of the oil to be burned and by increasing its
temperature. The two types of burners which achieve this fall into two categories
namely vaporisers & atomisers.

The Indian Standard governing the properties of kerosene is IS 1459:1974 (2nd

Rev).

CRUDE OIL
Crude oil - as petroleum directly out of the ground is called - is a remarkably varied
substance, both in its use and composition. Crude oil is formed from the preserved
remains of prehistoric zooplankton and algae, which have been settled to the sea (or
lake) bottom in large quantities under anoxic conditions. It was formed over millions of
years from the remains of tiny aquatic plants and animals that lived in ancient seas due
to compression and heating of ancient organic materials over geological time. The
oldest oil-bearing rocks date back to more than 600 million years, the youngest being as
old as about 1 million years.

Although various types of hydrocarbons - molecules made of hydrogen and carbon

atoms - form the basis of all crude oils, they differ in their configurations. The chemical
structure of petroleum is composed of hydrocarbon chains of different lengths. Because
of this, petroleum may be taken to oil refineries and the hydrocarbon chemicals
separated by distillation and treated by other chemical processes, to be used for a
variety of purposes. It can be a straw-colored liquid or tar-black solid. Red, green and
brown hues are not uncommon.
Crude oil is classified by the location of its origin (e.g. West Texas Intermediate, WT,
Brent, Dubai or Minas) and often by its relative weight or viscosity (light, intermediate or
heavy); refiners may also refer to it as `sweet’, which means it contains relatively little
sulphur, or as `sour’, which means it contains substantial amounts of sulphur and
requires more refining in order to meet current product specifications. The number of
carbon atoms determines the oil's relative `weight’ or density. Gases generally have one
to four carbon atoms, while heavy oils and waxes may have 50, and asphalts,
hundreds.

Crude oil from an area in which the crude oil's molecular characteristics have been
determined and the oil has been classified are used as pricing references throughout
the world. These references are known as Crude oil benchmarks

After considering availability of indigenous crude oil, balance crude oil is required to be
imported. IndianOil sources its crude oil requirement from Far East, Gulf region,
Mediterranean, West Africa and Latin American sources.
Reffrence

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