India’s oil and gas industry is divided into two segments: upstream and downstream. Upstream companies are involved in the exploration, extraction, and production of oil and gas, while downstream companies deal with the refining, distribution, and retailing of these products.
The upstream segment in India is dominated by state-owned companies such as Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL). These companies are responsible for exploring and extracting oil and gas from the country’s reserves. In recent years, the Indian government has also allowed foreign investment in the upstream sector to boost exploration and production activities.
The downstream segment is dominated by state-owned oil marketing companies such as Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).
These companies are involved in refining crude oil into various petroleum products and distributing and selling these products through retail outlets.
In addition to these state-owned companies, several private companies like Reliance Industries and Essar Oil are also active in the downstream segment.
How do the two companies operate in India?
Exploration and Production
The upstream oil companies in India are responsible for exploring and producing crude oil and natural gas. They use advanced technology and methods to search for and extract these resources from the earth.
Drilling Operations
The upstream companies also undertake drilling operations to extract oil and gas from the ground. They use advanced equipment and techniques to locate and remove these resources safely and environmentally responsibly.
Refining and Processing
The downstream oil companies in India are responsible for refining crude oil into finished products such as gasoline, diesel, and other fuels. They use complex processes to refine the crude oil and produce these products.
Distribution and Sales
The downstream companies are also responsible for distributing these finished products to customers and consumers. They work closely with retail outlets and wholesalers to ensure these products reach the market.
Storage and Transportation
Both upstream and downstream companies are involved in storing and transporting oil and gas products. They use pipelines, tankers, and other means to transport these products from one location to another.
Import and Export
Both upstream and downstream companies are also involved in importing and exporting oil and gas products. They work with other countries to secure supplies of these resources and to sell finished products.
Environmental Responsibility
Both upstream and downstream companies are committed to responsible environmental practices. They work to minimize the impact of their operations on the environment and to minimize emissions of pollutants.
Research and Development
Both upstream and downstream companies are involved in ongoing research and development efforts. They use advanced technologies and techniques to improve their operations’ efficiency and safety and develop new products and processes.
Major Upstream oil companies in India
Oil and Natural Gas Corporation (ONGC)
Oil and Natural Gas Corporation (ONGC) is one of India’s largest upstream oil and gas companies. It is a public sector undertaking primarily engaged in oil and natural gas exploration, development, and production.
The company has a vast network of production fields, drilling rigs, and pipelines across the country. It is a leading player in the Indian oil and gas sector and actively participates in domestic and international oil and gas exploration and production activities.
ONGC has significantly contributed to the Indian economy, accounting for more than 80% of the country’s domestic oil and gas production.
It has a Market Cap of ₹ 181,030 Cr with a CMP of Rs. 144.
Indian Oil Corporation (IOC)
Indian Oil Corporation (IOC) is one of the largest upstream companies in India. It is involved in the exploration and production of crude oil and natural gas. The company operates in several regions of the country, including the offshore fields in the Bay of Bengal, the Krishna-Godavari basin, and the Cauvery basin.
In addition, it has overseas operations in countries such as Sudan, Mozambique, and the United Arab Emirates. IOC is also involved in the refining, marketing, and distributing of petroleum products.
It operates a network of refineries in India, which have a total capacity of 60 million metric tons per annum. The company also has a strong presence in the retail segment, with a network of over 29,000 petrol stations.
It has a Market Cap of ₹ 111,982 Cr with a CMP of Rs. 79.2.
Hindustan Petroleum Corporation Limited (HPCL)
Hindustan Petroleum Corporation Limited (HPCL) is a government-owned downstream oil and gas company that operates in the exploration and production of crude oil and natural gas.
The company is headquartered in Mumbai, India, and is one of the country’s largest oil refining and marketing companies. In the upstream sector, HPCL has interests in several offshore and onshore oil and gas fields in India and abroad.
It also produces crude oil through its joint venture companies and subsidiaries. The company is committed to meeting India’s growing energy demands and securing a reliable and sustainable supply of oil and gas.
It has a Market Cap of ₹ 32,889 Cr with a CMP of Rs. 232.
Oil India Limited (OIL)
Oil India Limited (OIL) is a leading upstream oil and gas company in India. Established in 1959, it is one of India’s oldest state-owned oil and gas exploration and production companies.
The company is headquartered in Duliajan, Assam and operates primarily in the North Eastern region of India. OIL has a vast presence in the country with an extensive network of pipelines and an experienced team of engineers and geologists.
The company’s critical operations include the exploration and production of crude oil, natural gas and coal-bed methane. It also provides various services to the oil and gas sector, including drilling, well logging, and testing.
It has a Market Cap of ₹ 25,137 Cr with a CMP of Rs. 232.
Bharat Petroleum Corporation Limited (BPCL)
Bharat Petroleum Corporation Limited (BPCL) is an Indian state-owned oil and gas company headquartered in Mumbai. It is one of the country’s largest refining and marketing companies and has a strong presence in the upstream sector.
BPCL is engaged in the exploration, production, and development of crude oil and natural gas. The company operates in several fields in India, including the Mumbai High and Bassein fields, and has interests in several international projects, such as the Namibian offshore block and the Botswana block.
BPCL is constantly exploring new opportunities in the upstream sector and is actively seeking ways to increase its production and reserves.
It has a Market Cap of ₹ 72,496 Cr with a CMP of Rs. 334.
Major downstream oil companies in India
Chennai Petroleum Corporation Limited (CPCL)
Chennai Petroleum Corporation Limited (CPCL) is India’s leading downstream oil and gas company. It was established in 1965 as a joint venture between the Government of India and the Tamil Nadu Industrial Development Corporation.
CPCL has a wide range of products and services that cater to the needs of different sectors, including the transport, power, industrial, and agriculture industries. The company operates two major refineries, Chennai and Nagapattinam, with a combined refining capacity of 11.5 million metric tons per annum.
CPCL also has a strong presence in the retail market through its retail outlets, strategically located to reach many customers. With a commitment to sustainable growth and development, CPCL has made significant investments in technology, research and development, and infrastructure to ensure that it remains at the forefront of the industry.
It has a Market Cap of ₹ 3,606 Cr with a CMP of Rs. 242.
Mangalore Refinery and Petrochemicals Limited (MRPL)
Mangalore Refinery and Petrochemicals Limited (MRPL) is a subsidiary of ONGC, India’s largest oil and gas exploration company. MRPL is a world-class downstream oil refining company located in Mangalore, India. The company was established in 1988 and has since become a leading player in the Indian petroleum sector.
MRPL has a refining capacity of 15 million metric tons per annum (MMTPA) and produces a wide range of refined petroleum products, including motor gasoline, high-speed diesel, and liquefied petroleum gas.
In addition to refining, MRPL also has a strong presence in the petrochemical industry, with a petrochemical complex that produces a range of products, including propylene, benzene, and toluene. With its state-of-the-art facilities, MRPL is well-positioned to meet the growing demand for petroleum and petrochemical products in India and beyond.
It has a Market Cap of ₹ 9,638 Cr with a CMP of Rs. 55.
Reliance Industries Limited
Reliance Industries Limited is one of India’s largest and most diversified conglomerate companies, with a significant presence in the downstream sector. Founded in 1966, the company has expanded its operations to include businesses in the areas of petrochemicals, refining, oil and gas exploration, textiles, retail, and telecommunications.
With a strong reputation for innovation and growth, Reliance Industries Limited has become a leader in the Indian market and expanded its global reach.
In the downstream sector, the company operates several refining and petrochemical facilities, producing high-quality products in high demand domestically and abroad. With a commitment to sustainability and corporate responsibility, Reliance Industries Limited continues to play a critical role in the growth and development of the Indian economy.
It has a Market Cap of ₹ 15,91,208 Cr with a CMP of Rs. 2352.
Larsen and Toubro Ltd
Larsen & Toubro Ltd (L&T) is a multinational engineering and construction company based in India. It is also a leading upstream oil company in the country, engaged in the exploration, production, and sale of oil and natural gas. L&T’s upstream oil division has a strong presence in various oil-rich regions of India, including the western offshore area, the east coast, and the onshore fields in Assam.
The company operates several oilfields in India, including the Mumbai High and the Ravva fields, and has partnerships with several international oil majors, including BP and ONGC. L&T’s upstream oil division has significantly contributed to India’s oil and gas production and has been at the forefront of exploring and producing hydrocarbons from India’s challenging and complex geology.
The division has also invested in new technologies and innovative approaches to enhance productivity and maximize efficiency. L&T’s commitment to sustainability and environmental responsibility is evident in its upstream oil division, where it follows strict environmental guidelines and practices to minimize the impact of its operations on the environment.
It has a Market Cap of ₹ 299,394 Cr with a CMP of Rs. 2131.
Nayara Energy (formerly Essar Oil)
Nayara Energy (formerly known as Essar Oil) is one of India’s largest integrated downstream oil companies. It operates in the oil and gas industry’s retail, refining and marketing segments, providing a wide range of fuel and non-fuel products and services.
The company has over 20 states and union territories across India, with a network of over 5,500 fuel retail outlets. Nayara Energy operates a state-of-the-art refining facility in Vadinar, Gujarat, with a capacity of 20 million metric tonnes per annum, making it one of the largest single-location refineries in the world.
The company’s refining operations are supported by a robust logistics network, including pipelines, storage tanks, and sea vessels, ensuring seamless delivery of products to customers across the country. Nayara Energy is committed to providing high-quality fuel and services to its customers while maintaining the highest standards of safety and environmental responsibility.
Conclusion
In conclusion, the upstream and downstream oil companies play a vital role in the Indian oil and gas industry. The upstream companies are responsible for the exploration, production and refining of crude oil, while the downstream companies are in charge of distributing and marketing refined petroleum products.
The government of India has implemented policies to promote these companies’ growth and development and encouraged foreign investment in the industry. Despite facing challenges such as the fluctuation of crude oil prices and the high cost of exploration, India’s upstream and downstream companies have managed to thrive and remain competitive.
The Indian government’s commitment to developing the energy sector and increasing energy security has led to significant investment in the oil and gas industry.