Oil Industry Development Board India has begun the development of a strategic crude oil reserve sized at 37. 4 million barrels, enough for two weeks of consumption.  Petroleum stocks have been transferred from the Indian Oil Corporation(landing Oil) to the Oil Industry Development Board The DIB then created the Indian Strategic Petroleum Reserves Ltd (SPILLS) to serve as the controlling government agency for the strategic reserve. The Indian Oil Corporation Ltd. Operates as the largest company in India in terms of remover and is the only Indian company to rank in the Fortune “Global 500” listing.
The oil concern is administratively controlled by Indian’s Ministry of Petroleum and Natural Gas, a government entity that owns Just over 90 percent of the firm. Since 1959, this refining, marketing, and international trading company served the Indian state with the important task of reducing Indian’s dependence on foreign oil and thus conserving valuable foreign exchange. That changed in April 2002, however, when the Indian government deregulated its petroleum industry and ended Indian Oil’s monopoly on crude oil imports.
The firm owns and operates seven of the 17 refineries in India, controlling nearly 40 percent of the country’s refining capacity. * origins Indian Oil owes its origins to the Indian government’s conflicts with foreign-owned oil companies in the period immediately following Indian’s independence in 1947. The leaders of the newly independent state found that much of the country’s oil industry was effectively in the hands of a private monopoly led by a combination of British- owned oil companies Burma and Shell and U. S. Companies Standard-vacuum and Caltech. An indigenous Indian industry barely existed.
During the sass, a small number of Indian oil traders had managed to trade outside the international cartel. They imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less than world market prices. Supplies were irregular, and they lacked marketing networks that could effectively compete with the multinationals. Burma-Shell entered into price wars against these independents, causing protests in the national press, which demanded government-set minimum and maximum prices for kerosene–a basic cooking and lighting requirement for Indian’s people–and motor spirit.
No action was taken, but some of the independents managed to survive until World War II, when they were taken over by the colonial government for wartime purposes. During the war, the supply of petroleum products in India was regulated by a committee in London. Within India, a committee under the chairmanship of the general manager of Burma-Shell and composed of oil company representatives pooled the supply and worked out a set price. Prices were regulated by the government, and the government coordinated the supply of oil in accordance with defense policy. * The Indian Oil Industry Evolves: Late sass-ass
Wartime rationing lasted until 1950, and a shortage of oil products continued until well after independence. The government’s 1948 Industrial Policy Resolution declared the oil industry to be an area of the economy that should be reserved for state ownership and control, stipulating that all new units should be government- owned unless specifically authorized. India remained effectively tied to a colonial supply system, however. Oil could only be afforded if imported from a country in the 1949, India asked the oil companies of Britain and the United States to offer advice on a refinery project to make the country more self-sufficient in oil.
The Joint technical committee advised against the project and said it could only be run at a considerable loss. The oil companies were prepared to consider building two refineries, but only if these refineries were allowed to sell products at a price ten percent above world parity price. The government refused, but within two years an event in the Persian Gulf caused the companies to change their minds and build the refineries. The companies had lost their huge refinery at Baden in Iran to Prime Minister Masquerade’s nationalization decree and were unable to supply Indian’s petroleum deeds from a sterling-area country.
With the severe foreign exchange problems created, the foreign companies feared new Iranian competition within India. Even more important, the government began to discuss setting up a refinery by itself. Between 1954 and 1957, two refineries were built by Burma-Shell and Standard- Vacuum at Bombay, and another was built at Paginating by Caltech. During the same period the companies found themselves in increasing conflict with the government. The government came into disagreement with Burma Oil over the Importation oil field shortly after its discovery in 1953.
It refused Burma the right to refine or market this oil and insisted on Joint ownership in crude production. Burma then temporarily suspended all exploration activities in India. Shortly afterward, the government accused the companies of charging excessive prices for importing oil. The companies also refused to refine Soviet oil that the government had secured on very favorable terms. The government was impatient with the companies’ reluctance to expand refining capacity or train sufficient Indian personnel. In 1958, the government formed its own refinery company, Indian Refineries Ltd. With Soviet and
Romania assistance, the company was able to build its own refineries at Intimation, Baring, and Kigali. Foreign companies were told that they would not be allowed to build any new refineries unless they agreed to a majority shareholding by the Indian government. In 1959, the Indian Oil Company was founded as a statutory body. At first, its objective was to supply oil products to Indian state enterprise. Then it was made responsible for the sale of the products of state refineries. After a 1961 price war with the foreign companies, it emerged as the nation’s major marketing body for the export and import of oil and gas.
Growing Soviet imports led the foreign companies to respond with a price war in August 1961. At this time, Indian Oil had no retail outlets and could sell only to bulk consumers. The oil companies undercut Indian Oil’s prices and left it with storage problems. Indian Oil then offered even lower prices. The foreign companies were the ultimate losers because the government was persuaded that a policy of allowing Indian Oil dominance in the market was correct. This policy allowed Indian Oil the market share of the output of all refineries that were partly or wholly owned by the government.
Foreign oil impasses would only be allowed such market share as equaled their share of refinery capacity. * Indian Oil Corporation: 1964 to the sass to form the Indian Oil Corporation. The government announced that all future refinery partnerships would be required to sell their products through Indian Oil. It was widely expected that Indian Oil and Indian’s Oil and Natural Gas Commission (NONCE) would eventually be merged into a single state monopoly company. Both companies grew vastly in size and sales volume but, despite close links, they remained separate.
NONCE retained control of most of the country’s exploration and production capacity. Indian Oil remained responsible for refining and marketing. During this same decade, India found that rapid industrialization meant a large fuel bill, which was a steady drain on foreign exchange. To meet the crisis, the government prohibited imported petroleum and petroleum product imports by private companies. In effect, Indian Oil was given a monopoly on oil imports. A policy of state control was reinforced by Indian’s closer economic and political links with the Soviet Union and its isolation from the mainstream of western multinational capitalism.
Although India identified its international political stance as non-aligned, he government became increasingly friendly with the Soviet Bloc, because the United States and China were seen as too closely linked to Indian’s major rival, Pakistan. India and the USSR entered into a number of trade deals. One of the most important of these trade pacts allowed Indian Oil to import oil from the USSR and Romania at prices lower than those prevailing in world markets and to pay in local currency, rather than dollars or other convertible currencies.
For a time, no more foreign refineries were allowed. By the mid-sass, government policy was modified to allow expansions of foreign-owned refinery capacity. The Indian Oil Corporation worked out barter agreements with major oil companies in order to facilitate distribution of refinery products. In the sass, the Oil and Natural Gas Commission of India, with the help of Soviet and other foreign companies, made several important new finds off the west coast of India, but this increased domestic supply was unable to keep up with demand.
When international prices rose steeply after the 1973 Arab oil boycott, Indian’s foreign exchange problems mounted. Indian Oil’s role as the country’s monopoly buyer gave the company an increasingly important role in the economy. While the Soviet Union continued to be an important supplier, Indian Oil also bought Saudi, Iraqi, Kuwaiti, and United Arab Emirate oil. India became the largest single purchaser of crude on the Dublin spot market. The government decided to nationalize the country’s remaining refineries. The Burma-Shell refinery at Bombay and the Caltech refinery at Paginating were taken over in 1976.
The Burma-Shell refinery became the main asset of a new state company, Brat Petroleum Ltd. Caltech Oil Refining (India) Ltd. Was amalgamated with another state company, Hindustan Petroleum Corporation Ltd. In March 1978. Hindustan had become fully Indian-owned on October 1, 1976, when Ego’s 26 percent share was bought out. On October 14, 1981, Burma Oil’s remaining interests in the Assam Oil Company were nationalized, and Indian Oil took over its refining and marketing activities. Half of Indian’s 12 refineries belonged to Indian Oil. The other half belonged to other state-owned companies.
By the end of the sass, Indian’s oil consumption continued to grow at eight percent per year, and Indian Oil expanded its capacity to about 150 million barrels of crude per annum. In 1989, Indian Oil announced plans to However, the government’s Public Investment Board refused to approve a 120,000 barrels-per-day refinery at Atari in Arioso because it feared future over-capacity. By the early sass, Indian Oil refined, produced, and transported petroleum products throughout India. Indian Oil produced crude oil, base oil, formula products, lubricants, greases, and other petroleum products.
It was organized into three divisions. The refineries and pipelines division had six refineries, located at Gateway, Baring, Gujarat, Halide, Mature, and Digit. Together, the six represented 45 percent of the country’s refining capacity. The division also laid and managed oil pipelines. The marketing division was responsible for storage and distribution and controlled about 60 percent of the total oil industry sales. The Assam Oil division controlled the marketing and distribution activities of the formerly British-owned company.
Indian Oil also established its own research centre at Abridged near New Delhi for testing lubricants and other petroleum products. It developed lubricants under the brand names Servo and Servo prime. The centre also designed fuel- efficient equipment. * Changes in the Oil Industry: Late sass and Beyond The oil industry in India changed dramatically throughout the sass and into the new millennium. Reform in the downstream hydrocarbon sector–the sector in which Indian Oil was the market leader–began as early in 1991 and continued throughout the decade.
In 1997, the government announced that the Administered Pricing Mechanism (AMP) would be dismantled by 2002. To prepare for the increased competition that deregulation would bring, Indian Oil added a seventh refinery to its holdings in 1998 when the Piñata facility was commissioned. The company also looked to strengthen its industry position by forming Joint ventures. In 1993, the firm teamed up with Babbler Laurie ; Co. And NYC AS of France to create Aviva-Oil India Ltd. , a manufacturer of oil products used by defense and civil aviation firms.
One year later, Indo Mobil Ltd. Was formed in a 50-50 Joint venture with Exxon Mobil. The new company imported and blended Mobil brand lubricants for marketing in India, Nepal, and Bhutan. In addition, Indian Oil was involved in the formation often major ventures from 1996 through 2000. Indian Oil also entered the public arena as the government divested nearly 10 percent of the company. In 2000, Indian Oil and NONCE traded a 10 percent equity stake in each other in a strategic alliance that would better position the two after the AMP dismantling, which was scheduled for 2002.
According to a 1999 Hindu article, Indian Oil Corporation’s strategy at this time was “to become a diversified, integrated global energy corporation. ” The article went on to claim that “while maintaining its leadership in oil refining, marketing and pipeline transportation, it aims for higher growth through integration and diversification. For this, it is harnessing new business opportunities in petrochemicals, power, lube marketing, exploration and production and fuel management in this country and abroad. In early 2002, Indian Oil acquired BIB, a state-owned petroleum marketing company. The firm also purchased a 26 percent stake in financially troubled Halide Petrochemicals Ltd. In April of that year, Indian Oil’s monopoly over crude imports ended as deregulation of the petroleum industry went into effect. As a result, the company faced increased competition from large international firms as well as new domestic entrants to the market. During the first 45 refiner would indeed face challenges as a result of the changes. Nevertheless, Indian
Oil management believed that the deregulation would bring lucrative opportunities to the company and would eventually allow it to become one of the top 100 companies on the Fortune 500–in 2001 the company was ranked 209. With demand for petroleum products in India projected to grow from 148 million metric tons in 2006 to 368 million metric tons by 2025, Indian Oil believed it was well positioned for future growth and prosperity. Principal Subsidiaries: Indo Mobil Ltd. (50%); Aviva-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petrol net to India Ltd. (16%); Petrol net VS. Ltd. (26%); petrol net ACT Ltd. (26%); petrol net CHIP Ltd. 2. 5%); Indian Oil PATRONS Ltd. (50%); Indian Oil Piñata Power Consortium Ltd. (26%); Indian Oil TUG Petroleum Ltd. (50%); Lubricious India Pet. Ltd. (50%). Principal Competitors: Brat Petroleum Corporation Ltd. ; Hindustan Petroleum Corporation Ltd. ; Royal Dutch/Shell Group of Companies Key Dates: 1948: Indian’s government passes the Industrial Policy Resolution, which states that its oil industry should be state-owned and operated. 1958: The government forms its own refinery company, Indian Refineries Ltd. 1959: Indian Oil Company is founded as a statutory body to supply oil products to Indian state enterprise. 64: Indian Refineries and Indian Oil Company merge to form the Indian Oil Corporation. 1998: The company’s seventh refinery is commissioned at Piñata. 2002: The Indian petroleum industry is deregulated * Board of directors Name I Designation I BRI Moan Banal I Chairman / Chair Person I Vision Chancre Augural I Director I Abscissas Insignia Bankrupt I Director I Nadir J. Pariah I Director I Indus Shania I Director I Michael Bastion I Director I K K Shah I Director I Geraniums Abracadabra Maharanis I Director Cyan Chain Dogma I Director I Paraded Kumar Sinai I Director Knees Norman I Director I
Corporation’s oil depot to a pipeline. There were at least 40 OIC employees at the terminal, situated close to the Gangers Airport Uproar Airport) when it caught fire with an explosion. The Met department recorded a tremor measuring 2. 3 on the Richter scale around the time the first explosion at 7. 36 pm which resulted in shattering of glass window nearly 3 km from the accident site. The fire was a major disaster in terms of deaths, injury, loss of business, property & man-days, displacement of people, environmental impact in Jasper, the capital city of the Indian state of Restaurants and a popular tourist destination.
As per eyewitnesses having factories and hotels around Indian Oil’s Startup Uproar) Oil Terminal they felt presence of petrol vapor in the atmosphere around 4:00 p. M. On 29 October 2009. Within next few hours the concentration of petrol vapor had intensified making it difficult to breathe. The Shush Hotel in the vicinity of the terminal had asked all its guests to vacate the Hotel to avert any tragedy. The police, civil administration and fire emergency services were oblivious of the situation developing in Indian Oil Terminal.
Around half past six the staff in the terminal having failed to contain the leak and low of petrol panicked and reported the matter to nearby Gangers Sad Police Station. Within next half an hour the local police chief and District Collector were on the spot along with Indian Oil General Manager, but with no plan to deal with the situation. The nearby industries, which were running second shifts, were cautioned to vacate the area. At 7:35 p. M. Huge ball of fire with loud explosion broke out engulfing the leaking petrol tank and other nearby petrol tanks with continuous fire with flames rising 30- 35 meters and visible from 30 km radius. The traffic on adjacent National Highway No. 12 was stopped leading to 20 kilometers long traffic Jam. The Jasper (Gangers) Airport is Just 5 SMS away from the accident site. Both the Army and experts from Iambi were employed on the 30th to contain the fire, which started when an oil tanker caught fire at the depot in the Startup Industrial Area.
The district administration disconnected electricity and evacuated nearby areas to limit the damage. The fire still raged on On the 31st, in the Indian Oil Corporation Depot, at Jasper, after a defective pipe line leak that set fire to 50,000 Kilometers of diesel and petrol out of he storage tanks at the OIC Depot. By then, the accident had already claimed 11 lives and seriously injured more than 150. Army and Fire Brigades continued to work Kilometers spreading the destruction with it. The District Administration and Indian Oil Corporation had no disaster management plan to deal with this kind of calamity.