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ContentsS. No. Topics Page No.1 From the Chairman 32 DG's Report 53 CEO Speak 7Industrial Symbiosis: How Waste Can Fuel Indiaby Dr. Jennifer Holmgren, Chief Executive Officer, LanzaTech4 Service Tax on Cash Calls 11by Mr. Vivek Mishra, Executive Director, PwC; Ms. Anita Rastogi, Associate Director,PwC and Ms. Shweta Jain, Assistant Manager, PwC5 Tariff Increase for Imported Coal Power: Is Gas an Answer? 13by Mr. Nabin Ballodia, Partner-Global International Corporate Tax, KPMG, India6 Sustainability in the Oil & Gas Sector 16By Mr. Chaitanya Kalia, Advisory Partner, Climate Change & Sustainability Services,Ernst & Young and Ms. Sumana Sarkar, Senior Professional, Advisory Services, Ernst & Young7 In Crisis or Harmony, Style Matters 19by Mr. Mohinish Sinha, Leadership and Talent Practice Leader, Hay Group India8 Perspective on Gas Pricing for Start-up Professionals 22by Ms. Nitu Singh, Knowledge Manager, Oil & Gas Practice, PwC India9 2012-13: A Year of Some Decisions for Oil Sector 25by Mr. Vijay K. Sethi, Oil & Gas Analyst10 Is India Ready for Shale Gas? 29by Mr. William Dusek, Principal, Energy Practice, Booz & Co., USA and Akshaya Gulhati,Energy Practice, Booz & Co., India11 Diesel Emission—Time for Remedial Action? 32by Mr. N. R. Raje, former Director (R&D), IndianOil12 India-US: A Growing Energy Partnership 39by Ms. Neetu Vinayek, Tax & Regulatory – Oil & Gas Sector and Mr. Manish Baghla,Tax & Regulatory – Oil & Gas Sector, India13 Manage the Process, Not the Alarm 42by Mr. Ranij Tripathi, Business Development Manager, Advanced Solutions,Honeywell Process Solutions14 Executing Strategy Effectively 46by Dr. Terry Cooke-Davies, Group Chairman, Human Systems International Limited15 Reliability Studies in Refinery and Oil & Gas Processing Facilities by Dynamic Simulation 49by Mr. Ganesh Prasad, General Manager (R&D), EIL; Mr. Sheo Raj Singh, DGM (R&D),EIL; Mr. P. Narendra Kumar, Senior Engineer (R&D), EIL; Ms. Srividya R. V.,Senior Engineer (R&D), EIL16 Safety Integrity Level at Grassroots Terminal 53by Mr. H. C. Mehta, Executive Director (Operations & Distribution), HPCL17 Co-Processing of Non-edible Oils in Petroleum Refinery 56by Mr. Brijesh Kumar, General Manager (Refinery Technology), IndianOil R&D;Mr. K. U. Harinath, Chief Manager (Operations), CPCL, Manali Refinery; Mr. Sarvesh Kumar,Senior Research Manager, IndianOil R&D; Mr. K R.D. Pradeep Chand, Senior Manager(Process Engineering), CPCL, Manali Refinery18 Partial Conversion Hydrocracking Process for Clean Fuels 62by Mr. Michael Glen Hunter, Principal Hydrocracking Engineer, Haldor Topsoe A/S;Mr. Gordon Low, Technology Manager, Hydrocracking, Haldor Topsoe A/S and Mr. TorkilOttesen Hansen, General Manager (Process Development), Haldor Topsoe A/S19 Reforming Catalyst Enhancement for Higher Selectivity and Stability 68by Mr. Pierre-Yves Le-Goff, Senior Technical Manager & Project Leader, Axens, France;Mr. Jay Ross, Senior Technology & Marketing Manager, Axens, New Jersey andMr. Joseph Lopez, Development & Industrialization Engineer, Axens, France20 Computational Fluid Dynamics Applications in Troubleshooting and Safety Analysis 75by Mr. Ganesh Prasad, General Manager (R&D), EIL; Mr. D. K. R. Nambiar, Asst. GeneralManager (R&D), EIL and Mr. G. Srivardhan, Engineers (R&D), EIL21 Members' News in Pictures 8022 PetroFed Awards 8423 Events 94

From the Chairmanin FY 2014 and FY 2015 respectively. The WorldBank report adds that continued progress infiscal consolidation and in reducing structuralconstraints will determine the pace ofrecovery. Domestic risks dominate, including apossible derailing of reforms and weaker thanexpected monsoon rains, says the World Bank.here is a strong undercurrent of renewedToptimism for growth visible in mostsections of the society. The World Bank, in itsrecent Global Economic Prospects Report,however, expects muted growth led by thedeveloping world.Global GDP, according to the report isexpected to expand by about 2.2% this yearand strengthen to 3% and 3.3% in 2014 and2015. The GDP of developing countries isprojected to be around 5.1% in 2013,strengthening to 5.6 and 5.7% in 2014 and 2015respectively. Growth in Brazil, India, Russia,South Africa and Turkey has been held back bysupply bottlenecks, says the report. Whileexternal risks have eased, growth in thesecountries is unlikely to reach pre-crisis ratesunless supply-side reforms are completed. InChina also, growth has slowed as they seek torebalance the economy, according to theWorld Bank.F o r h i g h - i n c o m e c o u n t r i e s , f i s c a lconsolidation, high unemployment and stillweak business consumer and confidence willkeep growth this year to a modest 1.2%,firming to 2% in 2014 and 2.3% by 2015, addsthe report. In the Euro Area economiccontraction is projected to be 0.6% for 2013,compared with the previous projection of0.1%. Euro Area growth is expected to be amodest 0.9% in 2014 and 1.5% in 2015.Growth in India is projected to rise to 5.7% inthe 2013 fiscal year, and firm to 6.5% and 6.7%The world primary energy consumption in 2012also witnessed a slow growth of 1.8%, which iswell below the 10-year average of 2.6%,according to the BP Statistical Review.Consumption in OECD countries fell by 1.2%,led by a decline of 2.8% in the US, which wasthe world's largest decline in volumetricterms. All of the net growth took place inemerging economies with China and Indiaalone accounting nearly for 90% of the netincrease in global energy consumption.Despite this, there is a flattening in per capitaconsumption for both, India and China,according to a recent EIA report. The percapita consumption is used in the analysis,because if total oil consumption is rising, butby less than population growth, consumptionon average is falling. In some oil importingcountries there are even sharper drops inconsumption than China and India. Thesedeclines started in the 2005-07 period, as oilprices rose, and continued as oil prices haveremained high. In fact, according to thereport, all of the PIIGS (Portugal, Ireland, Italy,Greece and Spain) known for their problemswith recession have shown steep drops in oilconsumption.The oil consumption is rising faster thanpopulation in many oil exporting countries.OPEC shows a big upward jump in per capitaconsumption in 2011 and 2012. This patternoccurs both in Saudi Arabia and for OPECoutside Saudi Arabia. For Saudi Arabia, 2012 oilconsumption per capita is more than five timesas much as that of Europe. But there can be ahost of reasons for an increase or reduction inper capita oil consumption.3

The buoyancy in sentiment for growth isbacked in India by a slew of reform measuresinitiated by the Government of India. Despitethe continuing high oil prices and the recentviolent fluctuations in the foreign exchangerate, the Government of India has taken aseries of measures to reform the prices to bringthem closer to market levels.The decisions in relation to fixation of retailprice of diesel, Direct Benefit Transfer schemefor domestic LPG consumers, permission toallow exploration in mining lease areas evenafter the completion of exploration period,progress on National Data Repository andencouragement to enhance E&P activity in thecountry are also signals for the growth ofthe economy.I am confident that these, and other measuresproposed, would foster accelerated growth ofthe oil & gas industry & the national economy.R. S. ButolaSnippetsEstimated value of human hair exports from India in 2012-13,in ` crore: 2,000• Quantity of human hair auctioned by Tirupati temple in 2012,in tonnes: 600• Average price per kg of waist-length hair ofIndian women, in `: 20,000• Average price per kg of waist-length hair of rural women,not exposed to shampoos and otherchemicals and dyes, in `: 50,000Courtesy : Business India4

CEO SpeakIndustrial Symbiosis : How Waste Can Fuel IndiaBiofuel Policy calling for the blending of up to20 percent biofuels into the transport fuel poolby 2017.Dr. Jennifer HolmgrenChief Executive Officer, LanzaTechccess to energy is the cornerstone ofAeconomic prosperity. As India continuesits rise as a global power, energy usage isincreasing dramatically. According to theInternational Energy Agency, India's energydemand “more than doubled from 319 milliontonnes of oil equivalent (Mtoe) in 1990 to 669Mtoe in 2009” and is projected to reach 1,464Mtoe in 2035. Demand is expected to increaseby a “compound annual growth rate (CAGR) of3.1% from 2009 to 2035, which is more thandouble the world's energy demand” during the1same time period .While India also has the world's fifth largestcoal reserves, the country continues to relyheavily on imported coal, particularly higherquality coal varieties, oil and gas. Amidst theeconomic growth are increasing calls forsustainable energy use.Prime Minister Manmohan Singh made hispriorities clear at the 2013 Delhi Sustainable2Development Summit , where he said: “Weneed to re-engineer our economies in waysthat are both frugal and innovative in their useof resources.” To achieve these goals, theIndian government is set to reduce carbonintensity 25 percent by 2020. Mandates for fuelhave followed suit, with the country's NationalIn the case of gasoline, as of June 2012however, the total ethanol supply available inthe country for blending purposes wasestimated to be just sufficient for a 2 percentsubstitution. This was the result of nationalpolicies that required oil companies to use onlydomestic ethanol derived from non-foodsources as well as meet a price ceiling that wasabout half the price of ethanol on the globalmarket. As a result, domestic suppliers eitherput their product on the global market and/orsold it into the industrial sector, hamperingcompliance efforts by the oil marketingcompanies in India.Recently, however, restrictions have beenlifted: the price ceiling for ethanol has beenrelaxed, and large scale importation has beenpermitted. What hasn't changed, however, isthe lack of a robust ethanol productionindustry in the country. There continues to be asignificant and growing gap between theethanol needed to comply with mandates andthe domestic supply that is available. Since2010, the gap has grown to more than 1 billionlitres per year, according to Hart Energy.How can the Indian oil industry meet theincreasing requirements for ethanol given thecountry's natural resource constraints and theoverall economics of relying on importedenergy?A big part of the answer lies in an unlikelyresource – waste materials.New technology from LanzaTech convertslower value and/or waste materials that areabundant in India, including steel mill off gasesand gases from municipal solid waste andmolasses distillery effluents, into low-carbon1http://www.iea.org/publications/freepublications/publication/India_study_FINAL_WEB.pdf2http://www.madhyamam.com/en/node/86727

ethanol. This new technology can enable million tonnes (from its current 90 million3significant and sustainable domestic tonnes) by 2020 .production of ethanol that meets all therequirements currently set by the Indian Molasses Industrygovernment.As the Indian molasses industry gears up toAt its core, LanzaTech's gas fermentation meet the requirements for increased domestictechnology uses carbon-containing waste ethanol, it finds itself constrained by caps ongases as both a nutrient and energy source for distillery effluents. However, by aggregatingmicroorganisms that, in turn, produce fuels these effluents and gasifying them, the 300and chemicals.plus distilleries of India could produce anadditional half billion gallons of ethanol withIn the LanzaTech process a gas source (such as LanzaTech technology.the CO-rich off-gas stream from a steel mill aswell as syngas produced from sugar distillery Municipal Solid Wasteeffluents and municipal solid waste) isLastly, as countrywide economic growthintroduced into the bottom of a bioreactorcontinues, a growing number of people arevessel. Fermentation proceeds in a liquidmoving to cities, creating huge volumes ofmedium where the microbes grow and producemunicipal solid waste. In 2009, Environmentspecific products. These naturally-occurringand Forests Secretary Vijay Sharma estimatedmicrobes are entirely contained in thethat the country generated 150 million tonnesbioreactor and have no direct interaction withof waste each day, with most of it sent inthe outside environment. These particular 4landfills located outside cities . LanzaTechmicroorganisms are very tolerant of gasenables that waste to be used as an input forcontaminants, removing the need forethanol, helping to address two problems atexpensive scrubbing technology.once – reduced use of landfills as well as aAs the reaction proceeds the end products are sustainable source of non-food biofuel.recovered and separated from the water,So, while the mandate for ethanol blending iswhich can be returned to the bioreactor, andsteep, the resources are available to produceprepared for their intended downstreamlocally. LanzaTech's waste-to-ethanolmarkets.technology is proven and ready to deploy now.There are three resources in India well suitedfor LanzaTech's technology: steel mill offgases, and gases that can be produced frommunicipal solid waste and molasses distilleryeffluents.Steel IndustrySteel mills produce off-gases that are rich incarbon and ideal for use with LanzaTech'sprocess. India's 33 percent growth in steelproduction during the past five years wassecond only to China among the top steelproducing countries. India is projected tobecome the world's second largest steelproducer by 2015, with installed steelproduction capacity expected to rise to 200Proven TechnologyThrough its current partnership with Baosteelin Shanghai, and Capital Steel in Beijing,LanzaTech has successfully demonstrated thatthe technology scales to an annualizedcapacity of 100,000 gallons per year. Thecompany is in the process of siting locations forfull commercial production facilities with bothpartners beginning in 2014 at annualized ratesnumbering in the tens of millions of gallons.The fuel produced at both facilities meetsinternational standards and can be certifiedfor use in passenger vehicles.Beyond simply helping to meet thegovernmental mandate for ethanol,3http://www.thehindu.com/business/Industry/indias-5year-steel-output-second-highest-in-the-world/article4344478.ece4http://articles.timesofindia.indiatimes.com/2009-09-18/pollution/28112346_1_waste-management-technical-textile-landfills8

LanzaTech's technology offers significantenvironmental benefits as well.The technology has a significant impact on thecarbon footprint of steelmaking facilities andtheir products. As part of its strategy,LanzaTech – together with Tsinghua University,Michigan Technological University and theRoundtable on Sustainable Biomaterials – isdeveloping and continuously improving LifeCycle Assessments of the technologies it isdeploying.LanzaTech has calculated the greenhouse gasemission reductions of its ethanol comparedto the petroleum-derived gasoline that itreplaces. In these calculations, two cases ofwaste gas handling are addressed: (1) based onprevious use of the waste gases for electricityproduction; or (2) based on no previous use, inwhich case the waste gases were flared andCO2 was emitted directly into the atmospherefrom the mill.Preliminary findings are based on conservativeestimates of process parameters frompre-commercial designs. Even at theseconservative levels, LanzaTech and itsresearch partners estimate the benefit tobe a 50 to 70 percent reduction. LanzaTechanticipates commercial production plants tohave even larger greenhouse gas reductionsthan those presented here. If the possibility ofcredits for these reductions is included, theeconomic value of using technology likeLanzaTech increases even further.The dynamic that's in effect here is known asindustrial symbiosis – where the low valuewaste from one industry becomes an input foranother. In this case, the steel, molasses, solidwaste industries become an input partner forthe oil industry by enabling the developmentof a domestic ethanol industry that helps theoil industry meet its obligations under therenewable fuel mandates.LanzaTech is poised to help enable a new era ofdomestic growth and low-carbon energyproduction across the country.Prime Minister Singh also said at the summit:“Protection of the environment and promotingdevelopment need not amount to a zero sumgame.” By deploying technologies such asLanzaTech's, India's industrial giants can provehim right.SnippetsNumber of Indians (ranked 1), who died inroad accidents in 2011: 1,43,000• Number of Chinese and Brazilians(ranked 2 & 3) who died in road accidents in 2011: 70,134 & 36,499Number of vehicles registered everyday in Delhi,Bangalore an Mumbai: 1,400/1,000/ 400• Total number of registered vehicles at present in Delhi,Bangalore and Mumbai, in lakh: 81/ 39/ 20• Slowest peak-hour-traffic speed on busy routes in Delhi,Bangalore and Mumbai, km per hour: 5Courtesy : Business India9

ObituaryMr. Justice (Retired) J.S. Verma(1933-2013)The face of judicial activism in the1990s, he was the 27th Chief Justiceof India and served from March 25,1997 until his retirement on January18, 1998. He was associated withmany verdicts, campaigns andevents. Most recently, he headedthe three-member Committee tosuggest improvements in criminallaw to tackle crime against women,after the Delhi gang rape inDecember last year.he former Chief Justice of India,Ta colossus among judges, Mr.Jagdish Sharan Verma, 80, passedaway at a Gurgaon hospital on April22, 2013. He was among the mostactive and respected Indian juristsand was Chairman of the three-member Jury of the PetroFed Awardssince their inception in 2007.The Committee's work included aseminal Bill of Rights for women.He was Chairman of the NationalHuman Rights Commission betweenNovember 1999 and January 2003and was also the first Chairperson ofthe News Broadcasting StandardsAuthority.Describing him as “a man of vastunderstanding and knowledge oflaw”, Prime Minister ManmohanSingh said he would miss his“generous advice and guidance onmatters of public importance”.PetroFed and its Awards Jury mournhis loss and conveyed theircondolence to the bereaved family.10

Service Tax on Cash CallsVivek MishraExecutive DirectorPricewaterhouseCoopersAnita RastogiAssociate DirectorPricewaterhouseCoopersShweta JainAssistant ManagerPricewaterhouseCoopershe activities performed under the E&PTsector are highly technical, capitalintensive and bear a high degree ofcommercial risk. There is a high probabilitythat typically, projects may have to beabandoned at different stages. In order toshare the financial and technological burdenof undertaking exploration activities, as wellas better manage risks, companies frequentlybid for these projects under a consortium.Production Sharing Contract (PSC) is the mostcommon type of contractual arrangement forpetroleum exploration and development. In atypical PSC, the profit is divided between oilcompany and the Central Government afterthe physical production starts. The explorationrisk lies with the oil company which is entitledto a stipulated share of the oil produced as areward for the risk taken and work performed.Given the fact that exploration and productionactivities encompass high risk, instead of oneoil company entering into a PSC with theGovernment, three or four oil companiestogether form a consortium to lessen theassociated risk and jointly enter into a PSCwith the Government. The arrangement of theconsortium is made for operationalconvenience considering the nature of workinvolved under the relevant PSCs.One of the members is appointed as theoperator to manage and carry out jointactivities on behalf of the consortium. The costof joint activities is to be borne by themembers in the proportion of theirparticipating interest. The operator carriesout all the operating costs. However, for thecost relating to the other members of theconsortium, the operator makes a request forcash from such members (i.e. cash calls). Theother members pay their respective portion.The moot question which now arises is whetherservice tax would be applicable on the cashcalls made by the operator from the othermembers.In the current regime of service tax, for aservice to be taxable, it is essential that all theparameters of a transaction to qualify as aservice should be satisfied in the first instant.Thereafter, one has to look on the value onwhich service tax is payable.There are various reasons to conclude thatservice tax should not be applicable on thecash calls made by the operator on othermembers of the consortium.One of the key requirements of the definitionof the term “service” is that service should beprovided by one person to another. If theclauses of the PSC are looked into totality, theagreement gives the flavour of revenue sharingagreement. The operator does not render anyservice to any other person. The transaction11

amounts to pooling of resources by differentpersons who have agreed to come together toshare the business risks and rewards. Theoperator is merely a focal point forcommunication between the government andthe consortium. There is complete absence ofservice receiver and service providerrelationship.transaction in money”. In the case of cash call,the transaction is nothing but a “meretransaction in money” since it tantamounts tocapital contribution. However, even if it isassumed that cash call is not a “meretransaction in money” but a service related toit, applying this decision, still, the transactionis out of ambit of service tax.Secondly, the definition of the term “service” Further, there could be another angle to lookspecifically excludes the transactions in at the transaction of cash call. One may evenmoney. On analyzing the transaction of cash lead it to another direction by saying that cashcall as a whole, it appears that the entire call is basically reimbursement of the coststransaction is nothing but a mere transaction incurred by the operator. Even in suchin money. Basically the concept of “mutuality” circumstances, still the activity of calling cashapplies here where several persons have come from the other members would not attracttogether for sharing of revenue. When the service in the light of the various decisionsneed for money arises, the operator raises the recently pronounced by high courts. In thecash call and all other members contribute case of Ticel Bio Park Ltd. [(2013) 33towards the same. This is more of capital Taxmann.com 102], it has been held that nocontribution wherein various parties pool in service tax is applicable on the electricitytheir money towards the common expenses. charges recovered on actual basis, which wasThe operator is merely a focal point for such paid to the Electricity Board. The facts of thecapital contribution. Moreover, the operator case are that Appellant had provideddoes not charge any margin over the cash call. individual electricity meters for each modulein the tenancy area for every tenant andIn the new service tax regime, the Delhi High maintained complete record of the electricityCourt has pronounced a judgment in the case consumption for every month. The appellantof Delhi Chit Fund Association Vs. Union of collected charges for electricity consumed byIndia [2013-TIOL-331-HC], in which it has the tenants and remitted to the Electricitygone to the extent of holding that the services Department. The appellant did not collect anywhich are related to “mere transaction in excess money over the electricity charges. Itmoney” are also exempt. It has held that the was the contention of the department thatservices of foremen in a business of chit fund electricity charges were liable to inclusion inare not taxable services. In the business of chit the value of renting services.fund, several people get together to pool theirmoney for common usage. Foreman is the key Applying the ratio to the transaction of cashperson who is engaged in organizing the chit call, since the operator calls for payment offund meetings etc. In fact, there is a actual expenses without any markup, it couldcommission which is being paid to the foreman be said that there is no element of service andfor such activity. Even in such circumstances, that the operator acts as an agent of otherthe Delhi High Court has held that services of members for such calls.foreman do not attract service tax since it isnot the activity of mere transaction in money In nutshell, even under the new service taxwhich is exempt from service tax but also the regime, there will be an absence of service taxservices which are related to the “mere on the cash calls.12

Tariff Increase for Imported Coal Power:Is Gas An Answer?of domestic coal was estimated around 70million tonnes (MMT).Nabin BallodiaPartner – Global InternationalCorporate Tax KPMG, Indiaraditionally, India has been dependent onTthermal power for its energy needs.Approximately 70 percent of the country'selectricity generation capacity is based oncoal, gas and diesel with the remaining powercapacity based on other non-thermal sources.Within thermal power, coal power has been thepredominant source of energy – accounting forabout 58 percent of India's total powercapacity, followed by gas with about10 percent share in the total power capacity.The reliance of the power sector on coal isexpected to rise further in coming years withmore than 63GW of planned capacity additionthduring 12 Five Year Plan (2012-17) being1based on coal .Despite the substantial reliance on coal for itspower needs, India has been facing an ongoingconcern of limited coal supply. During March2013, only 84 percent of the total requirementof coal was available to power plants. Further,as on 31 March 2013, 21 thermal power stationshad critical coal stock (less than 7 days ofcoal). Out of these power plants, 12 only had2coal left for less than 4 days . During FY13, thegap between the requirement and availabilityThe shortage has been primarily due to the gapbetween the growth of coal-based generationcapacity and coal production. During the last 5years (2006-07 to 2011-12), coal-basedgeneration capacity has increased at a CAGR of8.7 percent, while, the domestic coalproduction has increased at a lower CAGR ofth5.1 percent. For the 12 Five Year Plan period,CAGR for coal-based capacity addition isexpected to be about 9.0 percent, whiledomestic coal production is expected to growat a CAGR of about 6.1 percent only.As the domestic coal production has not beensufficient to cover the demand from powersector, a significant amount of coal is importedin the country every year. It is also expectedthat with the coal demand rising at a stronggrowth rate, the imports are only going to riseto fill the demand-supply gap.As per the estimates by the PlanningCommission, the total demand of coal from thepower sector is likely to reach about842 million tonnes (MMT) by 2017 growing at aCAGR of about 10 percent during 2012-17.However, only 550 MMT of coal is expected tobe supplied from domestic production through2017, requiring imports to compensate for theshortfall of 292 MMT.1Report of The Working Group on Power for Twelfth Plan (2012-17),” dated January 2012, Planning Commission website,http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf, accessed 5 June 2013.2“Electricity review,” dated March 2013, CEA, http://www.cea.nic.in/reports/monthly/elec_review/mar13.pdf, accessed 11 June 2013.13

The expected continued rise in power demandcoupled with coal supply constraints(insufficient supply of 'cheap' domestic coaland lower imports of 'costly' foreign coal) hasled to power contract prices rising to INR4.8/kWh as per the Forward curve (fig. 2).increasing fuel costs (as a result of costlyimported coal primarily from Indonesia) andinability to source adequate domestic coal,CERC recently allowed two private sectorpower producers to raise the tariff of theirimported coal-based power plants. In its order,CERC allowed the concerned private powerproducers to charge a 'compensatory tariff'(tobe decided by a commission including thepower producers, electricity buyers andindependent third parties) that will be over4and above the tariff decided under the PPA .As per industry estimates, the compensatorytariff may result in about INR 1/kWh increasein electricity prices on an average. This islikely to result in contract prices (refer theforward curve of power prices) of power to riseto above INR 5/kWh.Thermal Power Plants Facing Acute CostPressureCoal is Increasingly Becoming CostlierWhile there is an increasing need to importcoal in the country, it impacts the costeconomics of power plants as the cost ofimported coal, is about 40 percent more than3the domestic coal .The cost of imported coal from countries likeIndonesia has significantly increased after theregulatory change in the country which linkedthe coal prices to international benchmarkprices. This has resulted in huge losses for theIndian power producers (that have plantsbased on imported coal) as they are unable topass-through the increased cost to thecustomers due to tariffs linked to legallybinding Power Purchase Agreements (PPA).CERC Allows 'Compensatory Tariff'Citing challenges faced by power sector due toAt tariff of about INR 5/kWh from importedcoal-based power plants, natural gas costingUSD 12/mmbtu would compete with thecoal-based power plants. Even if the feedstockcost of natural gas is about USD 15/mmbtu, thepower tariff of gas-based power plants wouldbe roughly about INR 6/kWh, only aboutINR 1/kWh higher than the imported coalbasedpower plant.With rise in compensatory tariffs for importedcoal-based power plants, the gap betweencoal-based and gas-based power tariffs canreduce to a level, at which gas can becompetitively substituted for coal. Apart frombeing a cleaner source of fuel, gas-basedpower has some additional inherent3“Crisis in coal could drag growth to pits,” dated 23 May 2013, The Financial Express, http://www.financialexpress.com/news/crisis-in-coal-could-drag-growth-to-pits/1119352/0,4accessed 5 June 2013. “CERC moots compensatory tariff for Mundra UMPP,” dated 15 April 2013, Business Standard, http://www.business-standard.com/article/companies/cercmoots-compensatory-tariff-for-mundra-umpp-113041500359_1.html,accessed 5 June 2013.14

advantages over traditional sources of fuel.Some of these advantages are-¦ Smaller Gestation Period – Typicalgestation period of a greenfield gas-basedpower plant ranges from 28-30 months,compared to about 48-84 months for a coalbasedpower plant, leading to fastercapacity additions.¦ Land & Water Requirements – The land andwater requirements of a gas-based plantare substantially lower than that of coalbasedpower plant.¦ Environment Friendly – Gas-based powerstation has about 50 percent lesseremissions than a coal-based power plant.¦ Peak-demand Power Stationspower station located near the demandcenters can be used to meet peak powerdemands.In light of the inherent advantages and the factthat gas could be an environmental friendlysubstitute for imported coal-based powerplants, its competitiveness could not be overemphasized. If the government considers somefiscal incentives to the developers, gas-basedpower plants can not only become competitivebut could be attractive for the power projectdevelopers. Currently, there exists someambiguity around availability of income taxholiday for production of natural gas withinIndia. Such ambiguity results in enhancing theoutput process for natural gas produced withinthe country. Moreover, the State VAT in someStates like Andhra Pradesh is as high as 14.50%resulting in higher output cost for natural gas.In the recent past, the government has takensome encouraging steps like reducing theimport duty on natural gas used for powergeneration (other than captive power) to Nil.– Gas-based However, if some additional fiscal incentivescan be provided to the indigenously producedgas, it can be an environmental friendlyanswer to increasing cost of coal fuelled powerin India.(The views and opinions expressed herein are those of the author and donot necessarily represent the views of KPMG in India.)SnippetsPercentage of countries in Asia and Pacific that suffer from a serious lackof water: 75• Number of countries including India, categorised as‘worst’ on Water Security Index: 7Percentage of adult mobile owners, who pretend to be on phone to avoidtalking to someone in person:13Percentage of young mobile owners (aged 18-29), who pretend to be onphone to avoid talking to someone in person: 30Courtesy : Business India15

Sustainability in the Oil and Gas SectorChaitanya KaliaAdvisory Partner, Climate Change& Sustainability Services, Ernst & YoungSumana SarkarSenior Professional, Advisory ServicesErnst & Younghere is a widespread recognition now that to climate change, with production, refiningTeconomic development and achievement and marketing facilities accounting for aboutof societal and environmental well-being are 15% of all hydrocarbon-related carbon dioxideintertwined. The oil and gas sector, a prime3equivalent emissions. The large scaleenabler of economic and social development biodiversity impacts from the deepwaterhas a unique role to play in this context. 1.3 horizon oil spill of 2010 highlights the extent ofbillion people around the world do not have the sector's environmental influence owing toaccess to electricity, and 400 million of them the nature and scale of its operations. A recent1,2live in India alone . As the emerging markets EY survey identified that the top risks for thegrow, the demand for energy continues to sector are health, safety and environment,increase.regulatory compliance, price volatility andincreasing challenge associated with accessingWhile there is increasing interest in the reserves and markets, indicating its socialalternative energy sector, the world will4responsibilities. Since it operates incontinue to meet majority of its energy environmentally and socially sensitiverequirements from hydrocarbon sources, at environments, the sector's operations areleast for the foreseeable future. Due to the subjected to scrutiny from severalnature and scale of activities along the value stakeholder groups including the regulators,chain including exploration, extraction, governments, local communities, employees,production and use of oil and gas derivatives, competitors, environmentalists and others.the sector's environmental and social impactsare also large. This presents several challenges Amidst mounting pressure on environmentaland opportunities for the sector with respect responsibility, the sector continues to faceto sustainability.issues of declining production levels in themature reservoirs and increasing reliance onOil and gas companies are challenged to less accessible reserves, which tend to requiredevelop business strategies to improve more production energy. On the other hand,economic performance, while demonstrating with rapid growth in the emerging markets,their commitment to environmental the demand for energy continues to rise. Bystewardship and social responsibility. The demonstrating the value the sector brings tosector has been identified as a key contributor these markets, social concerns regarding1UNEP, 2012;2IFMR, 2010;3EY, 2012: Six growing trends in corporate sustainability; EY, 2013: Business Pulse, Oil & Gas Sector;416

health, safety and livelihoods from In response to the stakeholder pressure oncommunities in proximity to the operations of transparency, the sector is responding withthe oil and gas companies can be assuaged. increased public disclosure on sustainabilityEngagement and building trust with the performance in the form of sustainabilitystakeholders will therefore enable the social reports. In 2012 alone, over 230 energy sectorlicensing for the sector. The sustainability companies produced a GRI based sustainability5issues most material to the oil and sector are : report. Reiterating the importance ofsustainability reporting and disclosure in theØ Climate protection and development of low8oil and gas sector, IPIECA, the global oil andcarbon energy sources (energy and GHGgas industry association for environmental andemissions)social issues, issued the Oil and Gas IndustryØ Environmental protection including use and Guidance on Voluntary Sustainabilitydisposal of water and chemicals 9Reporting . In 2012, in partnership with IPIECA,Ø Oil spillsGRI developed an Oil and Gas SectorØ Transparency of payments to governments10Supplement with extra indicators andguidance around material issues like estimatedØ Workforce health and safety, includingproved reserves and production and renewablesecurityenergy production. In India, companies such asØ Skills shortage and talent managementEssar Energy, Reliance Industries and publicØ Contribution to national economic and sector oil and gas companies of GAIL, ONGC,social developmentBPCL, HPCL and IOCL have been disclosingØ Community impact and stakeholder their sustainability performance annuallyengagementadopting one or more of these guidelines. TheProtecting indigenous rightsmost often cited sustainability issues by theseØcompanies include climate change, health andØ Respect of and upholding human rightssafety and availability of skilled manpowerother than challenges due to price volatility.The growing energy demand presents manyopportunities for innovation in the sector There is not just increased transparency byacross exploration, development of companies in the sector but also a greaterunconventional sources such as shale gas, oil commitment towards the integration ofsands and coal-bed methane, and better sustainable business practices in general andprevention and management of operational on priority themes. Within the oil and gas6mishap. Significant investments are being sector, 74 member companies of themade in the renewable energy market and are International Association of Oil and Gasset to increase in the coming years. Producers (OGP) have made a commitment toGovernments have allocated as much as sharing best practices on managing their11US$ 243 billion for renewable energy in 2010 environmental and social impacts. Followingalone including wind, solar, biomass, the questions that were raised about thegeothermal, smart-grid and biofuels transparency of extractive industries,7technologies. Further, changing consumer including the oil and gas sector, over 60 of thepreferences and growing markets for green or world's largest oil, gas and mining companiesrenewable energy also provide a business have become signatories of the Extractiveopportunity for the sector.Industries Transparency Initiative (EITI), a5EY conducted a sector-wise study of leading oil and gas sector companies, their material issues and trends in reporting in 2012. These are a subset ofsustainability issues identified by the study; EY, 2011: Turn risks and opportunities into results – oil and gas sector; Bloomberg New Energy Finance,6 7UNEP, 2011: Global Trends in Renewable Energy Investment 2011:http://www.unep.org/pdf/BNEFF_global_trends_In_renewable_energy_Investment_2011_report.pdf; http://www.ipieca.org/; IPIECA, 2010: Oil8 9and Gas industry guidance on voluntary sustainability reporting:http://www.ipieca.org/sites/default/files/publications/voluntary_sustainability_reporting_guidance_2010_1.pdf; GRI, OGSS;1011http://www.ogp.org.uk/about-ogp/;17

global initiative ensuring transparency of12payments from natural resources.In turn, the companies in the sector areincreasingly translating this externalcommitment into practice and integratingtheir sustainability strategy into their core13business strategy. Improved brand reputationis cited as one of the greatest benefits inaddressing sustainability, according to a 2011survey with 862 respondents. Other benefitscited included increased competitiveadvantage, better innovation of products andservice offerings, as well as business modelsand processes, alongside reduced costs due as14advantages, among others.It is in this context that the business case forsustainability emerges more strongly todaythan ever before. Managing sustainability ispivotal in creating long-term economic valuefor the sector. Given the central role that oiland gas sector plays in the global economy, it isin a powerful position to advance the goals ofsustainability in the wider economy.(Views expressed are their personal)1 2 1 3http://eiti.org/supporters/companies; EIU, 2010: Global Trends in Sustainability Performance Management:14http://fm.sap.com/data/UPLOAD/files/EIU-Sustainability_Performance_Management%5B1%5D.pdf; MIT Sloan Management Review & BCG, 2012:Sustainability Nears a Tipping Point – Findings from the 2011 Sustainability and Innovation Global Executive Study and Research ProjectSnippetsGap between usage of Internet by men and women in Africa, in per cent: 50• Gap between usage of Internet by men and women in South Asia includingIndia, in per cent: 33Rank of the US and China among world’s five largest arms exporters: 1&5• Rank of India and Pakistan among world’s five largest arms importers: 1&3• Rank of Russia (to India) and China (to Pakistan) as major supplies of arms: 1Number of adults globally who would like to migrate from their home country,in million: 630• Number out of these who prefer to migrate to the US and the UK,the first two choices, in million: 138 & 45• Number of Chinese and Nigerians, who aspire to migrate to the US,in million: 19 & 13• Number of Indians and Brazilians, who aspire to migrate to the US,in million: 10 & 6Courtesy : Business India18

In Crisis or Harmony, Style Mattersfour or more leadership styles. Incomparison, one third (36 per cent) of leadershave mastered none or only one leadershipstyle!This article puts forth a view on the sixleadership styles uncovered by Hay Group –and I will try to share ideas with you on the best(and not so good) situations to use each ofthese leadership styles.Mohinish SinhaLeadership and Talent Practice LeaderHay Group IndiaGlobal business leaders are over-reliant on asingle leadership style, and as a result aredemotivating employees and holding backorganizational performance. Hay Group'slatest study finds that while good leadership issynonymous with flexibly tailoring theapproach to suit the situation, one third (36per cent) of leaders have mastered none oronly one leadership style, compared to aquarter (26 per cent) who are able to adopt arange of four or more styles.t a time when the business environment isAtough and organizations are looking to getthe best from their people, it is really beyondour imagining for research to show that 2 out of3 Indian leaders are creating a demotivatingclimate for their employees to work in. The'coercive' style of leadership, characterizedby a 'do it or else' approach, is being used by62 per cent of Indian leaders, compared tojust 37 per cent globally, as proved by researchwe conducted earlier this year.Most of you would agree with me when I saythat good leadership has the power toenergize, engage, and motivate teammembers to go 'the extra mile' for theirorganization. Good leadership is synonymouswith flexibly tailoring the leadership style tosuit the situation. However, a rather moremodest outlook awaited within the results ofthis research – globally, only a quarter (26 percent) of leaders are able to adopt a range ofCoercive Leadership – do it, or elseLet's start with the most used leadership stylein India (and Asia) – 'coercive'. Leaders optingto use this style tell team members what to do,and expect them to do it. Then, they checkover employees' shoulders, and we find theyare more likely to criticize what the employeesare doing wrong rather than praise what theyare doing right! You may recognize this to bethe most commonly used leadership style inAsia, but it is now on the rise in Europe too,prompted by the recession.Here's the thing, this style does work wellduring a crisis, or when undergoing significantchange, or when a leader is up against theclock on simple tasks with an inexperiencedteam. In areas where confusion and chaosreign, a coercive leader takes control of thesituation, provides critical information, andquickly sets people in the right direction. Thestyle can also be very effective when settingboundaries and putting a stop to unwantedbehaviors.But remember, the coercive leadership style isfor occasional use only, when stuck in adifficult situation. Think of it as the sandwedge in golf – only used to get out of a specifictight spot! Excessive overuse will result inpassive resistance, rebelliousness or evensabotage of organizational goals. As is theworry in India, the coercive style tends toerode innovation, and will be near uselesswhen facing complex tasks requiring creativesolutions.19

Affiliative Leadership – Create HarmonyIn contrast, we have the 'affiliative' leadershipstyle – where the single biggest factor is to'create harmony'. The affiliative leader wantseverybody to get along, and is keen to be seenas 'just like one of us'. We have seen thataffiliative leaders strive to create harmonywithin the team by focusing on people ratherthan tasks. Moreover, they trust that if theytreat their employees well, they will berewarded with loyalty and high performance.But if 'authoritative' is your dominantleadership style, I'd advise you to hold back onthis style approach when managing anexperienced team who know as much – or evenmore – than you. This style can be counter-productive when trying to develop self-managed work teams, or involve employees inthe decision-making process.In our experience, this leadership style is bestused when managing a group of highperformers or expert professionals – forexample, designers or scientists; it helps toensure that they get on and work welltogether. It is also useful when providingsupport to a team member experiencingdifficulties, since it recognizes individuals'emotional needs. As you would have guessed,affiliative leadership tends to have a positiveimpact on team performance and is used bythe best leaders to create high performingclimates for employees.If you've ever had an authoritative manager,you, as a team member would understandwhat you need to do, how you need to do it,and why your role is important to the overallobjective – all of which contributes to creatinga high performance climate for the team! Ofcourse, this style is most impactful when usedregularly, but in a subtle way. It is mosteffective when a new vision or clear directionis needed, and is particularly valuable when ateam is new or looking to its manager forexpert guidance. Since it helps to motivatepeople, it is also a good choice when day-todaytasks are difficult or unpopular.Coaching Leadership – Help People GrowI now turn to the 'coaching' leadership style –However, the downside is that the affiliative which Hay Group's research found to be thestyle has little effect when addressing under most dominant leadership style (81 per cent)performance. It should be avoided when in the most high-performing Asiandealing with complex situations that require organizations. We find that a coaching leaderclear direction and control. Over reliance on invests the time to understand individuals'the affiliative style, our research shows, can strengths and weaknesses, and works withcreate an impression that a leader is avoiding them to achieve their personal developmentthe need to tackle tough situations.goals. He/she delegates assignments based onwho will learn most from the experience, notAuthoritative Leadership – Shape the Vision necessarily who is best for the job. The leaderfocuses on building long-term capability, evenThe 'authoritative' leadership style,at the expense of short-term performance!dominant amongst North American leaders(47 per cent), is focused on communicating Clearly, this style, characterized by pushingthe long-term direction, purpose and vision, team members to be the best they can be,and ensuring that everyone is motivated andworking towards the 'big picture'.Authoritative leaders win people over byconvincing them that they want to do the job.They also give feedback to people on how theyare doing relative to their goals, creating apositive climate that elicits the best from theteam.works well closer home. The best use is whenmanaging a group of motivated people with aclear sense of aspiration and a willingness towork towards long-term career goals. Thestyle is also useful when encouragingindividuals to innovate, show initiative andtake calculated risks; since it helps teammembers to find their own solutions to workproblems.20

Perspective on Gas Pricing for Start-up Professionalsby potentially reducing carbon emissions andair pollution. There have been some gasdiscoveries in India by Reliance Industries(2002 and 2009), Gujarat State PetroleumCorporation (2005) and ONGC (2009).Incidentally, these discoveries will increasethe consumption of gas.Nitu SinghKnowledge Manager,Oil and Gas Practice, PwC Indiaatural gas has emerged as a preferred fuelNowing to its increased supply andenvironmentally benign nature. This has led toa shift in the energy mix. As the proportion ofnatural gas keeps increasing within the energymix, it is envisaged to displace other fuels inthe future. However, the transport sector willcontinue to rely majorly on liquid fuel whilenatural gas will displace other primary sourcesof energy in the industrial segment.Moreover, India's demand for primary energy isexpected to grow at a CAGR of 3.2% during the1period 2010-2035 . Consequently, India'sdependence on imported natural gas is alsoexpected to increase from 37% in 2013-14 to254% in 2021-2022 . The country needs to spend2.2% of its GDP (Gross Domestic Product)onenergy-supply infrastructure, of which 174billion USD will need to be spent on gas supply3infrastructure .Thus, gas has become an important sector inthe Indian economy. However, gas prices arenot uniform across the country and also acrosssectors.How has Natural Gas Gained Prominence inthe Indian EconomyThe consumption of natural gas has increasedover the years and is expected to grow in thefuture as well. It offers environmental benefitsCurrent Mechanisms for Gas Pricing In IndiaIndia has a palette of gas price points based onthe licensing regime and the sector serviced.These are detailed below:1New Policies Scenario, 2010-2035, Word Energy Outlook, 20122Demand Supply Projections for Gas during 12th and 13th plan (Ministry of Petroleum & Natural Gas)3New Policies Scenario, 2010-2035, Word Energy Outlook, 201222

m APM (Administered Price Mechanism) :Gas from nominated fields, called APM gas,is currently priced at 4.2 USD per mmbtu.However, in the north-eastern states, theAPM price is 2.52 USD per mmbtu, which is60% of the APM price elsewhere, thebalance 40% being paid to the national oilcompanies (NOCs) as subsidy from thegovernment budget. APM gas is supplied tofertiliser plants, power plants, courtmandatedcustomers, and customers havinga requirement of less than 50,000 standardcubic metres per day at APM rates.mmmAlternate Fuel-linked Prices (Pre-NELPContracts): Certain discoveries were madeby the NOCs, but later were auctioned toprivate E&P players to overcome fundingconstraints and lack of advancedtechnologies. The price of natural gas inthis case is determined by the provisions ofthe PSC (production sharing contracts)signed by the Ravva and PMT (PannaMuktaTapti) consortium with the government ofIndia. The revised ceiling price in case ofPanna-Mukta gas is 5.73 USD per mmbtu andin case of Tapti, it is 5.57 USD per mmbtu.The difference between the PSC and APMprice is made up through the gas poolaccount mechanism.Arm's Length 'Market-determined' Pricing(NELP contracts): With respect to gas fromNELP fields, an Empowered Group ofMinisters used a formula after which theprice comes to 4.2 USD per mmbtu. It wasthen decided that the price discoveryprocess on arm's length basis will beadopted in the future NELP contracts, onlyafter government approval of the pricebasis or the formula. The price discoveredthrough this process will be uniformlyapplicable to all sectors.Imported Gas (LNG) Pricing: LNG pricesare determined based on internationalmarkets. The price for LNG has been linkedto JCC crude oil under an agreed formula.Various gas prices prevail in the Indian marketsince they are determined by the sourcing ofgas. If it is produced domestically then the gasprice is decided by the regulator or thegovernment, while the price of imported gas islinked to the international markets.Challenges While Fixing Gas Prices In IndiaIndia currently faces a host of challenges whilefixing gas prices. These are summarised below:Ø Demand-side ChallengesStakeholders in the energy sector believe thatthe current price of gas needs an upwardrevision. The challenge is in reaching at aunanimous price. If the price of gas increasesthen it will put pressure on the government,since 40% of gas is supplied to power sector and25% is supplied to fertiliser sector.m In the fertiliser sector, 80% of the gasconsumed is used by the urea sector as afeedstock. It is to be noted that urea is alsogoverned by the pricing policy of thegovernment of India. Both the end price ofthe urea and the price at which it is sold tofarmers are fixed by the government.Thus, if the gas price is increased, theburden will fall on the government. TheFertiliser Association of India had alsosuggested an alternative formula for fixinggas prices, where 50% of the gas price isbased on the cost of production in thecountry and the remaining 50% is based onsome other index of the imported LNG.Fertliser sector is supportive of a gas pricehike up to 2 to 3 USD per mmbtu.m An increase of 1 USD in gas priceautomatically increases the variablecomponent of energy cost of power by 0.50paisa. Gas manufacturers are demanding amarket-driven price, while on the otherhand an increase in the output price iscompletely regulated. If the governmentderegulates gas prices, power will not besold because of the made-order dispatchmechanism. If the demand is lean, only thecheapest power gets dispatched. However,this will result in idle capacities. Thepower sector is willing to pay up to USD 5per mmbtu.23

Increase in gas prices will increase the subsidy most cases. With a view to revise domestic gasburden of the government, which has been prices, the government set up the Rangarajanstruggling to rein in fiscal deficit. It will erode Committee. The committee submitted itsforeign exchange reserves and increase the report to the government in December 2012current account deficit, which will negatively with a recommendation of 8.8 USD per mmbtu.impact the economy and employment growth The committee used a formula based on anwill be hampered.average of the net-backs for producers and theaverage of exchange traded prices. TheThe Impact of Increase in Gas Pricesformula is as given below:IncreasedinflationArm's Length Price in India = 12-monthaverage of the following:LoomingenergycrisesHigherCADtVolume-weighted net-back pricing at wellhead for gas producers who export to IndiaØErodingforexreservesIncreasedsubsidyburdenIncreasein gaspricesFoodinflationSupply-side ChallengesHigherfuel pricestVolume-weighted price of US's Henry Hub,UK's NBP and Japan's JCC linked price.There were many voices against this pricemechanism suggested by Dr. Ranagarajan.Hence, another committee has been set up,namely, the Kelkar Committee. Thiscommittee is expected to come up with arevised price mechanism and submit its reportby December 2013.Since the price of imported gas is very high, The Ministry of Petroleum and Natural Gas hasranging almost between 12 to 18 USD per made a slight change, and arrived at a price ofmmbtu, India needs to give a boost to its 6.7 USD per mmbtu by taking averages of thedomestic production. To boost investment in average producer net-back for Indian importsthe energy sector, the government has allowed for 12 months and the world net-back to100% FDI in the sector. It has also introduced a producers. This price will be revised quarterly.policy empowering the NELP to enablecompanies to bid for exploration rights and Conclusionencourage private sector participation. Butthese measures have not been able to attract As there is a huge unmet demand, the revisioninvestments in the sector. Thus, the of gas prices in India can incentivisegovernment needs to have clear policies and investment in the Indian upstream sector, soproper regulations and incentivise the sector that production in the country reachesfor investors' participation to deal with energy optimum levels and all exploitable reservesissues.are put to production expeditiously. Theproducers in India will get at least the averageRecent Initiatives Taken by the IndianGovernment in Gas Pricingprice of that charged by producers worldwide.We need to have a price where demand andsupply of gas reach equilibrium.Currently, domestic gas is priced at 4.20 USDper mmbtu plus pipeline charges and taxes in(Views expressed in this article are personal and do not represent theviews of the firm)24

2012-13: A Year of Some Decisions for Oil SectorDelhi, Gujarat, Madhya Pradesh andChhattisgarh have also confirmed thistrend as good governance and economicdevelopment has been rewarded by thepeople by backing the governments.Vijay K. SethiOil & Gas Analystn e s a y s t h r e e c h e e r s f o rOacknowledging good work. In case ofoil sector reforms we can say one-and-halfcheers to the bold decisions taken by thegovernment on pricing reforms. Let uskeep the other one-and-half cheers for thecurrent year.Hence, it was about time the central Govt.realized this important development andtook bold economic decisions. Thankfully,there has been some movement on rationaleconomic decisions like opening ofmulti-brand retail to multinationals andthe long pending price reforms in oilsector. I have always advocated that smallis beautiful'. Though a lot remains to bedone for reforms in the oil sector someencouraging decisions taken by the Govt.in the last one year are worth mentioning:1. The petrol retail price wasdecontrolled in June 2010 but wasFor a change, 2012-13 was a year whennever implemented in true spirit. Theactions overtook the process of formationprevious year saw petrol price trulyof Committees and their unendingaligned to the agreed principle ofrecommendations. The economists andtrade parity.analysts have criticized the government in2. There has been rampant diversion ofthe past for its penchant for formation ofsubsidized domestic LPG forCommittees for reforms in the oil sectorunintended use, mainly automobiles.and then sitting on the recommendationsThe Govt. decision to cap subsidizeddue to perceived political fallout.cylinders to six per household inS e p t e m b e r 2 0 1 2 w h i c h w a sThere has been a long held belief that goodsubsequently increased to nine ineconomics is not good politics as rationalJanuary 2013 is one of the besteconomic decisions do not win elections.decisions taken to reign in theHowever, in the last over one decade thisballooning subsidy on domestic LPG.equation has changed and there areWith one stroke, Govt. has been ableseveral examples of good economics alsoto substantially eliminate diversion asworking as good politics. Bihar hascan be seen in analysis of products inreturned the Nitish Kumar Government forsubsequent columns of this articlea second term on the back of twoimportant factors namely improved law 3. And finally, a bold but strange,and order situation and better road decision of decontrolling Direct HSDconditions achieved in its first term.price in January 2013. It was bold25

ecause it led to huge price increasefor direct bulk consumers; but it wasstrange, and ill-conceived, because oft h e p r a c t i c a l p r o b l e m s i nimplementing it. Nevertheless, it wasa decisive action on the dieselprice front.Consumer price in January 2013 andgradual increase in retail price month aftermonth had visible impact on consumptionof diesel as can be seen from Figure-1.4. Diesel accounted for more than 42% ofPOL consumption in 2011-12. Hence,any price reform worth its while has totouch diesel if Govt. and OMC financesare to be brought back on rail. Finally,Govt. realized that 'small is beautiful'and empowered OMCs in January 2013to increase diesel price in small dosesof 45 to 50 paisa on regular basis till itThe drop in diesel consumption is notreaches the desirable level of tradebecause people have stopped using it inparity. Diesel price has thus increasedtheir vehicles or in agriculture or wherein the last six months reachingever it is used but because its price is notstRs.50.25 / liter in Delhi as of 1 June the primary reason for use. Lower2013. And the 'heavens have not consumption also means lower underfallen' because of the increase indiesel price. On the contrary it mayopen up the heavens for the economy.Let us now analyze the POL consumptionproduct-wise for 2012-13 and impact ofthese decisions on the consumptionpattern of major products.ØThe fall of King DieselThe year 2011-12 was a year of King Dieselas due to price advantage it startedsubstituting other fuels like MS, FO andeven CNG to some extent. In the last sevenyears, diesel growth has remained robustat 6.7% (2006-07), 11.1% (2077-08), 8.5%(2008-09), 8.8% (2009-10), 6.8% (2010-11)and 7.8% (2011-12). The year under review(2012-13) recorded creditable growth of6.8% despite the product losing its sheen inH-2. The first price reform in terms ofsubstantial increase in diesel price byRs.5/- per liter in September 2012,subsequent deregulation of Direct Bulkrecoveries to OMCs.ØPetrol to reclaim its rightful place inPOL consumptionA trend analysis shows that petrol growthhas always been higher than diesel. Thischanged in the past couple of years whendiesel growth surpassed that of petrol.Price reform in diesel resulted in otherfuels gaining share in POL consumption.MS, which was losing volume to dieselbecause of huge price gap between the26

price of the two fuels would now showbetter results. The data shows that thismay already be happening.MS growth at 5% in 2012-13 is the lowest inthe last seven years reflecting the impactof both diesel pricing and poor automobilesales performance.despite the cap on refills having beenintroduced in September 2012. Half apercentage point shift in consumptionfrom domestic to non-domestic is not onlya health trend but also has significantimpact on savings on account of underrecoveries and subsidy. The impact isexpected to be higher for the full year.ØLPG – The Fall of the MightyØKeroseneData reveals that LPG, barring exception PDS Kerosene is still sold at a ridiculouslyfor a couple of years, has consistently low price of Rs.14.96 per litre in Delhishown good growth. This was not only (the price of bottled water is Rs.15/- perbecause of expansion through new litre in Delhi), there has been consistentdomestic connections (domestic LPG rationalization of allocation to statesconnections as of 1.10.2012 were which has significantly brought down14.25 crores) but also due to diversion of Kerosene consumption in the last fewproduct for unintended use. The annual years. Kerosene consumption recorded aLPG consumption has almost doubled negative growth of -8.8% in 2012-13. Thesince 2001-02. consumption has come down from 11.3MMT in 2000-01 to 7.5 MMT in 2012-13.Delhi state has already declared itsintention to make it the first Kerosene freecity in India. Since per unit underrecoveries on Kerosene are extremelyhigh, the reduction has had a very positiveimpact in this regard. It is about time thatthere is some increase in price of PDSKerosene. The direct transfer of subsidyamount to the bank accounts ofbeneficiaries should take care of theleakages. A pilot project in Kotkasim inThe far reaching reform of capping the district Alwar of Rajasthan has shownmaximum number of subsidized refills in extremely positive results where PDSSeptember 2012 had a salutary effect on upliftments dropped to 1/5th of allocationthe LPG consumption. It has not only after implementation of the scheme.brought down the runaway growth in LPGØ Petroleum Coke(merely 1.6% in 2012-13) but alsocorrected the growth pattern betweenThis is one product that has recorded thedomestic and non-domestic LPG. This alsomaximum growth in consumption. In thehad positive impact on LPG subsidy andlast two years it has grown at 23.2% andOMCs under recoveries.48.5% for 2011-12 and 2012-13respectively. In fact, if growth of otherThe share of non-domestic LPG has gone upminor products including Petroleum Coketo 7.7% in 2012-13 from 7.2% in 2011-12is taken out from total POL consumption,27

the bottom line growth in 2012-13 would Rs.101088 crores in 2013-14, withcome down from 4.9% to 2.9%. The growth maximum reduction in under recoveries ofcontinues unabated in the current fiscal HSD. What needs to be remembered is that(2013-14) in the first two months it has the reduction is despite higherbeen upward of 20%. Increasing use of consumption volumes of these products,the product in cement plants and growing except SKO, in the current year. The recentproduction in the domestic refineries devaluation of rupee may, however, pareare likely to keep the consumption part of the gain.volumes high.Ø Price Reform is a Win-Win SituationOnce the diesel price is fully trade paritylinked in the current year as per pricingprinciple, it would have a major positiveSubsidy has two major negative effects. impact on OMC balance sheets. The privateFirst, it impacts the finances of the Govt. retail sector is then expected to getdepriving it of expenditure on other more reactivated giving PSUs a run for theirimportant social schemes; and second, it money. This would bring overall efficiencybreeds irresponsibility and wastage. How improvement in working of OMCs.the above few positive steps would impactthe Govt. finances can be judged from the So, let us say thumbs up to more reforms infact that OMCs under recoveries on three the oil sector during the current fiscal.sensitive products LPG, SKO and HSD were I am waiting to say one-and-halfRs.161029 crores during the year 2012-13, more cheers.which are estimated to come down toSnippetsNumber of fighter plans lost by Indian Air Force in crashes, in last three years: 29• Number of IAF pilots who lost their lives in these crashes: 6Rank of Chennai and Bangalore among 8 Indian cities on Female Security Index: 1 & 2• Rank of Ahmedabad and Delhi among 8 Indian cities on Female Security Index: 7 & 8Proportion of India’s workforce constituted by women, in per cent: 36• Percentage of India’s business-owners and business leaders who are women:13 & 25Courtesy : Business India28

Is India Ready for Shale Gas?William DusekPrincipal, Energy PracticeBooz & Company, USAAkshaya GulhatiPrincipal, Energy PracticeBooz & Company, Indiahere is a high degree of expectation it out is to drill a deep hole in the ground, put aTaround the new shale gas policy which is pipe in, puncture the balloon and extract thedue to emerge as per the recent gas at a controlled rate through the pipe.announcements by the MoPNG. EIA estimates Finding these big balloons of gas and diggingput India's recoverable shale gas reserves at that hole in exactly the right place to exactly~60 trillion cubic feet (TCF). For context, the right depth so as to extract the maximumIndia's current annual gas consumption is of gas is a science and an art that was masteredthe order of ~2 trillion cubic feet. Therefore as by major global oil and gas companies.per the EIA estimate, shale reserves can Meanwhile, smaller, more entrepreneurial oilprovide 30 years of supply at the current level a n d g a s c o m p a n i e s w e r e c h a s i n gof consumption. Everyone knows that the unconventional gas resources. These are bydevelopment of shale gas in the USA has not definition, NOT conventional and typicallyonly transformed the energy dynamics of that come in three flavours – tight gas, coal bedcountry but has also served as a boost to its methane and shale gas. Shale gas is not alignedeconomy – increasing manufacturing output to the big balloon analogy at all, in-fact quitethanks to the now low cost of gas as a fuel for the opposite – it's more like lots of littlepower generation and feedstock for industrial bubbles of gas trapped inside impermeableprocesses. Could shale gas be the panacea for shale rock that stretches for miles and milesIndia's energy needs? Can we too enjoy the underground. The way to get this gas out is notsame transformation currently underway in to drill one deep vertical hole but to drill a holethe USA? To answer these questions, we need that penetrates the shale rock, then takes ato start from the beginning and understand ninety degree turn and makes a channel in thewhat exactly is shale gas, how is it extracted, shale rock parallel to the ground – this is calledwhat are the pitfalls we need to watch for and a horizontal well. Water (mixed with acapture what we can learn from the shale gas concoction of pertinent chemicals & additives)experience of other countries, including is then blasted at high pressure through thethe USA.horizontal well to fracture the shale rock, anactivity colloquially referred to as “fracking.”Broadly, there are two types of natural gas Fracking dislodges the little gas bubbles andresources – conventional and unconventional. allows them to aggregate into bigger bubblesConventional natural gas is like a big balloon of eventually finding their way to the surfacegas trapped deep underground – the way to get through the horizontal well.29

So extracting shale gas is very different from own right, should not be the bottleneck –conventional gas production. Instead of a companies like GAIL, RIL and Oil India Limitedsingle big balloon deep underground there are have already started investing in shalemillions of little bubbles stretching over large resources in the USA and have seconded localtracts of land – large tracts of land on which staff in those regions in order to develop inpeoplelive, children go to school, farmers house technical capabilities. Rather wheregrow crops, etc. Unlike conventional gas India will lag behind is in its inability towhere perfecting the science and art of drilling effectively deploy resources (such as water, athat perfect hole is critical to success, shale resource for which there is a well-knownreserves are relatively easy to find and drill. distribution problem even for humanThus, the name of the game in shale gas is consumption) as well as create a regulatoryoperational efficiency – how quickly can one structure for sustainable development (e.g.,create those horizontal wells, frack them, providing adequate investment incentives forconnect the wells to pipeline infrastructure, developing the required supply chain andextract the gas, transport it and move to the capex; preventing environmental issuesnext tract of land. This activity can be around ground water pollution; compensatingcompared to the time-tested mechanism of land-owners which will be critical for drillingshifting agriculture where a tract of land is horizontal wells in large tracts of populatedcleared for farming and after a few years when land, etc.) These are complex problems and itthe land is no longer fertile the farmer will take more than just an isolated policy onabandons the land and moves to a fresh tract shale gas from MoPNG to solve these issues. Insomewhere else. Instead of all the capex being addition to a shale gas policy (which in itselfconsolidated in a small area as it is in will require debate and discussion onconventional drilling, shale gas extraction production sharing/ royalty, etc.) India willrequires capex spread over a wider area – need to create or modify other policies as wellespecially the extensive midstream gas as tighten mechanisms for oversight.pipeline network required to gather the gasrecovered over a large area. Finally there are India is not alone in having to deal with thisalso some new and critical environmental complexity. Eastern European countrieschallenges that need to be dealt with. (Poland, Romania, Ukraine, Bulgaria, etc.) allExtracting shale gas requires a lot of water for have shale reserves and are grappling with thefracking which then becomes unusable as it has same issues – fracking has been banned in manychemicals and additives - drilling and flowback of these nations due to environmentalfluids produced typically range from 2MM to concerns and companies have either pulled out4MM gallons per well. If this waste water is not (e.g., ExxonMobil pulled out of Poland) orproperly disposed, these chemicals and tempered expectations (Chevron which has aadditives can seep into the ground water and large amount of acreage in Eastern Europe hascause problems for inhabitants.publicly stated that commercial developmentof shale gas could be more than a decadeWhile Indian oil and gas companies have been away). Even countries who are much furtherworking successfully on conventional along in the shale gas journey are re-visitingresources for several decades, it remains to be their existing policies and further tailoringseen if they will be successful in the extraction them to deal with some of these sameof shale gas. A lot depends on whether the complexities – e.g., an initial set of shale gasinfrastructure and regulatory framework guidelines was issued in Q1 this year by the UKwithin India will be conducive to investment in Onshore Operators Group (a trade body for thethe requisite infrastructure and expertise. Our onshore O&G companies operating in the UK)view is that India has a long way to go before it which covered detailed requirements,can sustainably and safely extract shale gas. applicable at a well level, around disclosingTechnological knowhow, although critical in its chemicals and additives used in fracking. The30

same sorts of rules are being formulated in theUSA for Federal lands – the process in the USA isbeing facilitated by the Bureau of LandManagement which is currently solicitinginputs from industry groups. At the request ofCongress, the US Environmental ProtectionAgency is conducting a study on the potentialimpact of fracking on drinking water. EvenChina is set to release a new set of shale gaspolicies focused on resolving the shortage ofmid-stream infrastructure investments as wellas enforcing stricter environmental controls.will resolve India's energy crisis tomorrow. Andalthough we need a policy around shale gas, itneeds to be holistic and incorporate thelessons learned from the experiences of othercountries, especially the USA and the UK. Bothare more mature natural gas markets and haveprior experience in shale gas. Understandingthe challenges they faced around watermanagement, investment incentives,environment, land, etc. will allow us to createa more robust policy for India which willsustain over the long term.In summary, shale gas has potential but it isdefinitely not going to be a silver bullet whichSnippetsPercentage of elected representatives in India and the US who are women: 12 & 18• Percentage of elected representatives in China and Nepal who are women: 21 & 33Percentage of Senior management positions globally held by women in 2004: 19• Percentage of senior management positions globally held by women in 2013: 24• Percentage of senior management positions in China and Russia heldby women in 2013: 51 & 31• Percentage of senior management positions in India and Japan heldby women in 2013: 19 & 7Number of Indirect tax clauses which would be amended in 2013 as per Budgetpresented by P. Chidambaram; highest such changes in last 10 years: 72Average number of indirect tax clauses amended by former finance ministerPranab Mukherjee in his last four Budgets: 30 to 43Courtesy : Business India31

SCENARIOBAUAlternateTable 4: Model Assumption for the BAUand Alternate Scenarios (ICCT studies)EMISSIONSTANDARDSFUEL STANDARDSBharat IV in 13 Bharat IV in 20cities, Bharat III in cities (50 ppm sulfurrest of India diesel), Bharat IIIin rest of India (350ppm sulfur)Bharat V (2014)and Bharat VI(2016), and“SULEV” (LDV)and “BharatVII” (HDV &2/3-Wheelers) by2020ULSF (10 ppm) in 20cities and Low-sulfurfuel (50ppm) inrest of country by2014: ULSF (10 PPM)countrywide by 2016ENFORCEMENT CHANGE IN FUEL& COMPLIANCE TYPE15% of vehiclefleet are grossemittersBy 2020, only 3%of vehicle fleetare gross emitters50 (60)% of newcar sales diesel by2020 (2030)15% car sales CNG,10% LPG by 2030;75% bus sales CNGby 2030; 50% of3-wheeler salesCNG by 2030

India – US: A Growing Energy PartnershipNeetu VinayekTax & Regulatory – Oil & Gas Sectornvinayek@kpmg.comManish BaghlaTax & Regulatory – Oil & Gas Sectormanishbaghla@kpmg.comt is estimated that to eradicate poverty andImeet India's economic and humandevelopment goals, India needs to sustain 8%to 10% of economic growth over the years.These domestic goals, in turn, are critical forachieving the Millennium Development Goals(MDGs) to eradicate extreme poverty andhunger, provide universal primary education,promote gender equality and empowerwomen, reduce child mortality, improvematernal health, combat HIV/AIDS, malariaand other diseases, and ensure environmentalsustainability.In order to deliver sustained growth of 8%through 2030, India will need to supply primaryenergy three to four times that of today'sconsumption.Coal has been a mainstay of India's primaryenergy supply for many years, meeting morethan 50% of its primary energy requirements.In the last few years, coal imports have grownto 35% of its coal requirements. Oil importsmeet 70% of domestic requirements.Furthermore, the proportion of natural gasimports is increasing due to falling domesticproduction, coupled with the increase ofadditional imports.Increasing dependency on imported fuels hasled the Government of India to empowerIndian (National Oil) companies in acquiringequity in overseas projects, as well as enteringinto long term sourcing contracts.Among other countries, the U.S. engagementwith India in an energy partnership isincreasing year by year. The US and India, bothrealize the enormous growth potential in theireconomies and recognize the implications forenergy security and the global environment.The United States and India recognize thattheir mutual interests are best served byworking together in a collaborative fashion toensure stability in global energy markets.Adequate and reliable supplies of clean energyat a reasonable cost are essential to fuel India'srapidly growing economy.Currently, the Department of Energy (of the USGovernment) leads a wide variety of jointactivities with India designed to increase itsenergy security, while building a lastingpartnership and friendship between the twonations. These partnerships include theparticipation of several agencies: theDepartment of State, the Department ofCommerce, the Agency for InternationalDevelopment, the Trade and DevelopmentAgency, and the Environmental ProtectionAgency.In 1994, efforts were focused on improving theefficiency of India's coal-fired power plants,promoting the use of clean fuels such asnatural gas, wind and solar energy, helpingestablish public-private partnerships inindustrial energy efficiency, and improving theinvestment climate for U.S. energy firms.39

The US President and India's Prime Minister communication for policy coordination inbolstered energy cooperation in November times of market instability, as well as promote2001, by issuing a Joint Statement establishing increased trade and investment in the oil andenergy as one of the five pillars of the Indo- gas sector.U.S. Economic Dialogue, the other pillarsbeing trade, investment, commerce and the Recently, the group discussed a wide variety ofe n v i r o n m e n t . T h i s e n a b l e d t h e issues including cooperation in electrical grids,implementation of the President's National cleaner fossil fuel and energy efficiency,Energy Policy Plan's recommendation that the assessment of solar and wind resources,Department of Energy work with India's integration of renewable energy (RE) grids andMinistry of Petroleum and Natural Gas to testing of solar modules, export of liquefiedenhance the domestic oil and gas supply.natural gas (LNG) from the US to India, SouthAsian Regional Energy Integration, 3-D SeismicFurthermore, growing concerns about energy Surveys, alternative technologies for miningsecurity prompted the U.S. and India to launch deep-seated coal and lignite resources, anda new energy dialogue in 2005 to reflect the the extraction of coal mine methane.transformed strategic relationship betweenIndia and the US, in order to promote The Department of Energy has been helpingincreased trade and investment in the energy India in reviewing the potential for natural gassector, through the identification of further development and assisting in shaping theareas of co-operation and collaboration, while regulatory environment necessary to attractactively working with both the public and the the investment needed to develop a naturalprivate sector. Five working groups have been gas market and infrastructure.set up under the initiative.Another important area for future domesticThe five Working Groups are Oil and Gas, Coal, natural gas production is coal bed methanePower and Energy Efficiency, New (CBM). India is believed to have significantTechnologies and Renewable Energy, and Civil resources of CBM that could make importantNuclear Cooperation. These Working Groups contributions to meeting future energy needs.have launched activities designed to increase The Ministry of Coal and the Ministry ofthe development of domestic resources, Petroleum and Natural Gas, with the help ofpromote the deployment of clean energy the U.S. Trade and Development Agencytechnologies and fuels, support reforms in the (USTDA) and the U.S. Environmentalpower sector, enhance India's awareness of Protection Agency, are working together tosteps it needs to take to attract foreign establish a CBM Clearinghouse Informationinvestment in the energy sector, and bolster Center, an initiative under the Methane toIndia's energy security. The Department of Markets Partnership. This center will promoteEnergy co-chairs each of these Working Groups the development of CBM projects and CBMwith the appropriate Government of India resources by collecting data, conductingcounterparts and experts from a variety of U.S. training, facilitating technology transfers, andGovernment agencies to participate in the providing consulting services. The promotionprojects.and development of clean coal technologiesand carbon sequestration efforts associatedThe Oil and Gas Working Group endeavors to with power generation remain a focus of thestrengthen mutual energy security and current U.S. initiatives in India.promote stable energy markets to ensureadequate supplies of energy that will support One of the most important areas ofdesired levels of economic growth. It will cooperation between the U.S. Governmentadditionally work as a forum to exchange and the Government of India is improvingi n f o r m a t i o n a n d d e v e l o p l i n e s o f energy efficiency. Energy efficiencyinvestments could make a major contribution40

to shaping the future demand for energy in Furthermore, it may be noted that IndianIndia. Much of the recent cooperation between companies have invested nearly US $ 4 billionDepartment of Energy and India has focused on in the US tight oil and shale gas sectors fromfacilitating the development and deployment 2008 to 2012.of energy efficient technologies and practices,including those directed at the industrial, To conclude, it should be emphasized that theresidential, and transportation sectors. economic growth of India will lift people out ofBuilding on much of the work of the U.S. poverty and it is in the mutual interest of IndiaAgency for International Development mission and the US to support the growth, therebyin India, the Power and Energy Efficiency making India meet its energy needs andWorking Group has engaged in several projects become a more efficient user of energy, bothdesigned to decrease energy demand and domestic and imported.improve the power generation infrastructurein India.SnippetsRank of USA ($51 billion), Saudi Arabia ($28 billion) and Switzerland ($27 billion)worldwide as sources of outflow of remittances: 1,2,3• Rank of India ($70 billion), China ($24 billion) and Mexico ($24 billion) worldwide asremittance recipients: 1,2,3• Remittances as share of GDP of Tajikistan, Liberia and Nepal, in per cent: 47/31/22Number of years since earth has been warming up substantially: 100• Year by which earth will be the warmest ever since Ice Age 11,300years ago: 2100Number of companies downgraded by CRISIL between October 2012 and March 2013: 616• Number of companies upgraded by CRISIL between October 2012 and March 2013: 379Courtesy : Business India41

Manage the Process, Not the AlarmGood IntentionRanij TripathiBusiness Development Manager,Advanced SolutionsHoneywell Process Solutionshere once was a time when the operatorTmonitored the process, watched keygauges and trends, and made smalladjustments, maintaining production andpreventing alarms from occurring. All wasgood.But could it be even better? With theimplementation of microprocessor-basedcontrol systems or the DCS, we brought hugeleaps in our ability to control processes,improve efficiencies of our facilities, performpredictive maintenance, and reduce the costof alarming. Why yes, it could be better.What Is The Problem?So why do we have pages of unacknowledgedalarms, pages of standing alarms, missedalarms, and sequence of event logs that arealmost impossible to analyze? Why have ouroperators turned off the alarm summary andpermanently silenced the horns? Why dosome operators no longer monitor the processmaking adjustments to prevent alarms fromoccurring? Why have we come to the pointwhere we are managed by the alarm and we donot manage the process? An even largerquestion: How do we recover from thissituation and start to manage the processagain?Looking back-during the information age, wehad new young electrical engineers andcomputer scientists suddenly writing andimplementing control logic. With hard workand great determination, these individualsimplemented great systems that allowed us tohistorize our process variables. Theyimplemented control strategies that would fillthis room with pneumatic tubing. They createdgraphics that mimicked the physical layout ofthe facility. They were great systems. Great,for everyone but the operator.So with good intention these young developersgave the operators every piece of informationthey could ever want. And they alarmed itwhile they were at it. Here begins the road totoo many alarms.Within a short period of time the operatorbegan spending their day acknowledgingalarms and not monitoring the process. Adecade later, we had a flurry of activitydocumenting best or standard operatingpractices.Some major incidents catch worldwideattention, and suddenly all this good intentionis a problem—the very thing the operators saidthe day we installed the system.Then comes EEMUA 191 and now we haveawareness. Plant managers begin toacknowledge that problems do exist and wantto know how their facilities measure up.The Path of RedemptionAt Honeywell we have observed manysuccessful alarm management endeavors.They a l l h a v e h a d s o m e c o m m o ncharacteristics:First, the organizations did not view alarmmanagement as a one-time project, but asa life cycle. A one-time effort will not putthe systems in place to ensure long-termsuccess of alarm management.42

Secondly, alarm management is all aboutthe operator and the operationalenvironment. Successful organizationsassign knowledgeable operatorsthroughout the life cycle, even though theoperator is the hardest person to free up.Thirdly, clear roles and responsibilities areunderstood by the successful organization.Alarms are part of the safe workenvironment and as such an alarmmanagement program becomes very akinto a safety program. Successfulo r g a n i z a t i o n s a c k n o w l e d g e a n dunderstand this, and put into place themanagement systems to ensure a goodalarm management system.Once you have the traits for being successful,you need to be clear on the expectations ofwhat can be achieved.Alarm Management StepsUpon determining targets and establishingexpectations, successful organizations haveconsciously followed certain steps in theiralarm management lifecycles. These being:Alarm PhilosophyThe alarm philosophy or technicalrequirements is typically done at the plant sitelevel, although some organizations develop acorporate philosophy. The alarm philosophydocuments the management processencompassing the alarm management programas well as the actual alarm creation guidelines.This document becomes the corner stone ofthe alarm management program as it developsinto a guideline, rule book, interpretationguide, and the center for rationalization.Successful organizations find that the processof creating the alarm philosophy can be asvaluable as the document itself, as it brings allthe views, opinions, and methodologies of theemployee resources into a commonframework.Benchmark and Performance AuditThe benchmark and performance audit may bedone for several reasons. Successful alarmmanagement organizations find thatperforming the benchmark and audit yields thefollowing benefits:An understanding of where you arerelative toBest-practices guidelines, and acomparison ofYour site to industry best practicesAn analysis of your current systemPerformance to determine problem areasCreation of an informed path forwardJustification of the business caseDemonstration of due diligenceRationalizationThe classic method of rationalization involvesa team of people from operations andengineering and an impartial facilitator sittingin a room together, methodically reviewingalarm settings on each DCS tag. The key tosuccessful rationalization is preparation.Preparing for an alarm rationalization can beonerous and time-consuming. It requires thefollowing actions:1. Understand the alarm capabilities ofthe DCS2. Get a DCS database extraction. Ensure youunderstand how to categorize all tags into aplant hierarchy (plant\area\unit)3. Create a Master Alarm Database4. Ensure the necessary personnel will beparticipating. Based on tags per plant,area, and unit, accurate estimates can bederived to schedule personnel's time5. Ensure a room is booked that is separatefrom the plant environment. If panel43

operators or site personnel can easily findthe people in the rationalization meeting,then many disruptions will occurdetermine what is normal during the eventList problemsList available tags6. Book two projectors. One computer should ¦ Engineer new alarmsdisplay the master alarm database, theother should trend historical process values¦ Build new alarmsand access operating procedures and ¦ Remove old alarmsHAZOPs¦ Suppress non-relevant alarms7. Ensure a copy of P&IDs and HMIs are Care must be taken to test the logic prior toavailable. Highlight tags on the P&IDs as implementation to ensure unsafe conditionsthey are reviewedOnce the preparation is complete review theare not generated as a result of alarmsuppression.“rules of engagement”:Implementation¦¦¦rrrrrrWhat conditions allow for an alarm?How are severities classified anddetermined?What are the time-to-respond categories?How, then, are priorities determined?What alarm limits are the operatorsallowed altering? (e.g. priority “3” only?)Are alerts and/or messages available?With the preparation complete it is time tostart the rationalization. Review each of thealarm able tags on a loop basis determining:time to respond, severity, limit, causes, initialresponses, and corrective actions. Based onthese decisions, set priorities and alarm limits.Document results and record follow-up itemsa n d l o g i c o p p o r t u n i t i e s ( d y n a m i calarming/cut-outs).Dynamic And State-based AlarmingWith classic rationalization complete,dynamic and state-based alarming can beinvestigated. This is not a simple activity andtakes a solid understanding of the operationaland control philosophies of the plant during allrelevant states. During this stage you:¦¦¦Identify time of alarm floodsDetermine how to sense the initiatingeventIdentify tags that alarmed during the floodImplementation is the practice of changing thecontrol system configuration to match thedecisions made during alarm rationalization.This is best implemented in two phases:1. Implement static settings as documentedin the Master Alarm Database.2. Implement suggestions for control systemlogic to consolidate alarms. Run adiscrepancy report. If the list ismanageable, simply implement the DCSsettings that do not match the engineeredsettings. As the changes are made in theDCS, the discrepancy list will get smallerand smaller until it is complete.MaintenanceO r g a n i z a t i o n s s u c c e s s f u l a t a l a r mmanagement integrate the practices into theplant workflow to optimise plant performanceover the long term. Good maintenance ensuresproblems that arise are identified, resolved,and documented in a timely fashion.Continuous performance monitoring helpsidentify new opportunities for improvement,such as dynamic alarm strategies. It identifiesnew opportunities to optimize the alarmsystem, and alarm floods provideopportunities to better refine dynamicsuppressing strategies.44

The BenefitsAn organization will see diverse benefits withthe improvement to the operators'environment, and these can all be equatedback to a financial benefit. Some of thebenefits successful organizations have seeninclude:r Reduction in unplanned shutdownsr Reduced equipment damage as protectionrelated alarms are not missedr Reduced insurance premiumsr Improved safety and due diligencecompliance in auditing the alarm systemr Reduction in near-miss reportsOperators' Environment ImprovementGiving back the alarm system to the operator isa major accomplishment in ensuring safe andreliable operation of any process facility.Giving the operator the tools to identify anddiagnose abnormal situations, and providingthe operator with the time window toimplement a corrective action prior toescalation is what alarm management is allabout. Free from the never-ending onslaughtof nuisance alarms, operators can learn tomanage their plants better, optimizingresources and becoming better and happieroperators.“There are more things to ALARM us than toHARM us, and we suffer more often inapprehension than reality.”SnippetsRank of Surat and Pune among 11 Indian cities in terms of ‘Quality of Life’: 1 & 2• Rank of Delhi and Kanpur among 11 Indian cities in terms of ‘Quality of Life’: 10 & 11Quantity of plastic waste collected and recycled in India everyday, intonnes: 9,205• Quantity of plastic waste that remains uncollected and littered in Indiaeveryday, in tonnes: 6,137• Rank of Delhi, Chennai, Kolkata and Mumbai in plastic waste generation:1/2/3/4Number of teaching positions lying vacant in IIT’s and NITS: 8,250• Proportion this represents to total number of teaching positions, in per cent: 45Courtesy : Business India45

Executing Strategy Effectivelyof projects and programmes. And that isprecisely where the problems start for manybusinesses.Same Language – Different MeaningsDr. Terry Cooke-DaviesGroup ChairmanHuman Systems International Limiteduring the past thirty or forty years, thereDhas been an exponential growth in thenumber of professional project andprogramme managers, reflecting a recognitionof just how vital this role is to the effectivedevelopment of economic wellbeing.Unfortunately, there has not yet been acorresponding increase in the recognition ofthe importance of another role that has a vitalpart to play in the successful delivery ofprojects and programmes: the BusinessExecutive (or Executive Sponsor). This articlediscusses both why the role is cruciallyimportant, and what it involves.Projects and Programmes are Everywhere inBusiness TodayIf you want to accomplish a strategic goal, it ismost likely that you will need to undertakesome strategic initiatives: initiatives thatinvolve either new activities, or significantchanges to current activities. Perhaps theseinitiatives involve improvement to theperformance of current activities, or theintroduction of new technology, new processesor new ways of working. They may evenr e q u i r e t h e c o n s t r u c t i o n o f n e winfrastructure, or perhaps the development ofnew business, new products or new markets.Any of these initiatives can best be thought ofas projects or programmes, and takentogether, they can be thought of as a portfolioProjects and businesses are very differentkinds of undertakings – different “worlds”, ifyou like – and managing them effectivelyrequires very different mindsets. Running abusiness, for example, is all about taking thelong-term view; about being realistic aboutcurrent performance and about how it needsto change if the business is to survive andprosper. Planning is essential: carefulplanning based on the current performanceand change targets, often incorporated intoannual budgets. Risks need to be considered –unwelcome events that might happen, and ifthey do will have a negative impact onperformance. Certainly planning in a businesslooks to the future, but it is all based on andgrows out of known present performance.Planning is important to projects andprogrammes as well – perhaps even more so.But although the same word, planning, is used,what is going on is a very different activity.Projects and programmes do NOT start fromthe basis of known present performance – theyarise from someone's “dream” or “desire”.The envisioned product, service or change thatwill exist at the end of the initiative exists onlyin the mind of its promoter at this point.“Planning” is all about understanding what isto be created, and developing a set ofactivities that it is hoped will deliver it. Theplan doesn't grow out of known presentperformance; it grows out of a “wished-for”future. Accordingly, “risks” are different aswell. In addition to the possibility ofunexpected events de-railing intentions, thereis also the inherent uncertainty caused by themore or less unique set of activities that mayor may not actually be what is needed toaccomplish the project's objectives.To put it starkly:business plans are about46

adapting what is currently knows; project and business provides the project with the supportprogramme plans are about doing something that it requires).innovative.At any given time, one of these dimensionsMichael Kirton, a psychologist working in the may take precedence over the other, so theManchester area of UK for the past 40 years has balance is dynamic, like riding a bicycle,assembled a great deal of data on people's calling for constant attention rather thanpreferences for these two different ways of static, like an old-fashioned set of scales. Themaking change happen, and has demonstrated job itself places great demands on personalthe overwhelming number of people who are characteristics and behaviour. Effectivemore comfortable adapting something already executives have: excellent communicationknown rather than innovating something that skills, including listening skills; an ability toisn't.handle ambiguity; and perhaps mostimportantly of all, the ability to manageProjects and Programmes – Cuckoo's Eggs in themselves, including both time-and stressthe Business Nestmanagement.This might not matter so much if The need for governance might take“professionals” selected for their particular precedence, for example, when: the businessskills and ways of thinking could simply be left is exposed to high risk if the project fails; theto manage projects and programmes. But they project persistently under-performs; marketcannot. Projects and programmes, as we saw conditions change rapidly; illegal or nonatthe beginning of this article, are actually compliant behaviour is suspected; the projectstrategic initiatives that are central to the is mission-critical or there is a need to realignlong-term success of a business. Although the project to a new business strategy of athese initiatives themselves may be changed business context.considered “temporary” endeavours, theytake place within an environment created by On the other hand, support might be the mostthe business itself.important dimension if: the organization isfailing to provide sufficient resources to theAnd thus the day-to-day management of a project; different groups of stakeholdersproject or programme needs to be subject to within the business are seeking to imposegovernance and direction by executive conflicting requirements on the project; themanagement in the business that is sponsoring business is failing to provide the project withit. And far too frequently, such executives the decisions it needs to maintain progress;from the sponsoring business are more the project manager is inexperienced or weak;comfortable in and familiar with their business or there are early-warning signs within theenvironment (adapting what is known) than project that it could be heading for trouble.they are in the world of projects (doingsomething innovative).Working on Two Levels – Human and SystemicThe Role of the Executive – BalancingGovernance with SupportThe executive or “sponsor” thus faces thedifficult task of building a bridge between theworlds of the business and the project orprogramme. The role itself can be thought ofas finding the right balance at any point in timebetween governance (ensuring that theproject complies with the needs of thebusiness) and support (ensuring that theProviding the correct balance of governanceand support is even more challenging, becausethe kind of interventions necessary are likelyto be varied. They might, at one end of thespectrum, be caused by unhelpful personal orgroup behaviour. Alternatively, at the otherend, they might be caused by incompatible orinflexible systems (in the broadest sense of theword) that are more attuned to the needs ofthe business than those of the project.47

With the award to Daniel Kahneman of the management. All too easily, the “cuckoo in2002 Nobel Prize for Economics, the scientific the nest” falls foul of inflexible corporateestablishment acknowledged what most of us systems that are not suited to the needs of thehave known for a very long time – human beings project or programme: procurement policiesare not always rational in their decision- that introduce unhelpful delay into a projectmaking. Kahneman and his long-time for the sake of small apparent cost savings;colleague Amos Tversky developed “Prospect personnel policies and procedures that make itTheory”, explaining that people judge risk all but impossible to hire the right people fordifferently if they think of what they stand to the project's needs; governance processes thatgain (when they are willing to take risks) than slow decision-making down, introduceif they think of what they stand to lose (when dysfunctional complexity and cause costlythey are unwilling to take risks). Since this d e l a y s ; i n c o m p a t i b l e m a n a g e m e n tcarefully researched conclusion (first information systems that starve the projectpublished in 1979), a whole field known as team of the information required for timely“behavioural economics” has developed. In decisions; bureaucratic reporting processesparallel with this, management theory has that deflect effort away from the primary taskincreasingly recognized the critical of delivering the project effectively. In any ofimportance of emotional intelligence (EQ) in these cases, the Executive Sponsor is calledmanagement and leadership. Since collective upon to use their position in the business to cutdecision-making stands at the centre of the through the destructive mismatch and smootheffective management of projects, the way for the project team.competence at navigating tricky humanrelationships is an essential skill for Executive The role may not yet receive theSponsors.acknowledgement due to it, but make nomistake; the business executive (or executiveIt isn't simply about people, however. sponsor) has a vital role to play inComplex projects and programmes require a organizational project management.complex socio-technical system for theirSnippetsCombined share of Brazil, China and India in Global GDP in 1950, in per cent: 10• Projected combined share of Brazil, China and India in global GDP in 2050,in per cent: 40Number of Statutory holidays (excluding public holidays) in the UK and Polandannually: 28 & 26• Number of statutory holidays in India and China annually: 12 & 10• Number of statutory holidays in Thailand and the US: 6 & 0Courtesy : Business India48

Reliability Studies in Refinery and Oil & GasProcessing Facilities by Dynamic SimulationGanesh PrasadGeneral Manager (R&D)Engineers India Ltd.Sheo Raj SinghDy. General Manager (R&D)Engineers India Ltd.P. Narendra KumarSr. Engineer (R&D)Engineers India Ltd.Srividya R. V.Sr. Engineer (R&D)Engineers India Ltd.teady state models are used for optimizingScapital and equipment costs to obtain bestprofits. Safety evaluations, transitionsbetween operating conditions, start-up/shutdown conditions and optimization ofcontrollers' parameters are some examplesthat could not be achieved easily with steadystate simulators. Process design andperformance of process can be optimized withdynamic model since it considers steady stateperformance and operability issues in parallel.Thus, dynamic modeling and simulation hasbeen receiving increased attention over therecent years and has now become a powerfultool for better understanding the operationalcapability of processes. Dynamic Simulation isan established tool foranalyzing and understandingthe transient physical andchemical processes.which are inherently dynamic in nature suchas¦ start-up, shutdown and productionchanges¦ slugging flow in pipelines¦ batch or semi-batch reactor anddistillation processes¦ vessel and system blow-down¦ adsorption operationsThe most demanding situations areencountered during transience. Majorapplications of dynamic simulation in oil andgas industry could be:Advantages of DynamicSimulationThe main objective ofDynamic simulation is tostudy the response of thew h o l e s y s t e m t od i s t u r b a n c e s . D y n a m i csimulation will be helpful foranalyzing many operations49

a) Process Design ApplicationsReduce cost through reduced over designVerify safety of relief and flare systemAnalyze operability for highly integratedplantsDetection of unexpected explosive mixtureduring transient conditionsc) Safety & EnvironmentMinimizing noxious emissions and flaring duringstartup and shutdownDetecting hydrate forming conditionsBlow down studies and flare system designRelief valve sizingb) Engg. Design ApplicationsAvoidance of surge conditions during planttransienceRemoval or addition of hot gas bypass linesSizing of recycle valvesPrediction of match / mismatch and operationalflexibility when compressor aerodynamiccharacteristics are paired with process pressureflow profilesd) Control System DesignIdentify control logic and graphic errorsPre-tune control loopsTest instrument rangesNew or revamped plant control systemdesign, check on novel designs,improvements to existing systemsRapid investigation of many alternatives forcomplex schemesSpecification and sizing of control valvesDynamic simulation is a useful tool to analyzedifferent process scenarios. Two case studiesare being discussed to illustrate this.Case Study I: Transience Study of CrudeDistillation Unit (CDU)CDU is the first major unit in a petroleumrefinery that separates the crude into variousfractions for furtherprocessing.also helps in optimization of column reliefloads. Model of a CDU was developed in acommercial process simulator. Schematicdiagram of the model is given below. Detaileddesign specifications as well as accuratethermodynamic model were included in themodel.Any change in thecolumn inputs, such asfeed throughput has alarge impact on theCDU operation. Forany desired change incolumn output CDUoperating parametersneed to be adjusted.The use of dynamicsimulation helps inunderstanding thebehavior of crudedistillation units afterprocess upsets and50

The behavior of the CDU against the following Case Study II: Oil/Gas Separation systeminput perturbations was analyzed.Dynamic simulation for oil/gas production1. Step change in feed flow separator was done for investigating specific2. Step change in feed temperatureprocess upset scenarios and to assessoperability and controllability ahead of the3. Step change in CDU stripping steam flowplant being built.ObjectiveThe main objective of the dynamic simulationwas to ensure that the level control systemshoulda) prevent the tripping of the Main Oil Line(MOL) pumps with various upset scenariosthat are expectedb) tolerate various upset scenarios withoutexceeding high or low operating levels inthe production separator.Figure 3 shows the dynamic effect of stepchange in feed flow rate wherein flow rates ofall the components in feed stream wereincreased by 5 % of their normal values at0.01 hr, and the dynamic simulation was run tillnew steady state was achieved. This CDUmodel was also used to study the pressurerelief load of the column .A conservativeestimate of the relief load was first obtainedthrough the steady state simulation. Thedynamic model was simulated for variousrelief scenarios in order to calculate moreaccurate value of the CDU relief load. Some ofthe common scenarios for which the possibilityof pressure relief exists are reflux pumpfailure, failure of cooling water pump orfailure of fin motor in overhead condensers,electrical power failure. This type of pressurerelief study by dynamic simulation can reduceor eliminate modification of existing flaresystem, for any revamp application thus,resulting in a significant reduction of project'scapital cost.51

The following process upset scenarios havebeen studied:ª Rapid increase/turndown of feed flowª Pump change over(Booster/MOL)ª Pump shut down(Booster/MOL)The schematic diagram of the developeddynamic model is given below:of the process during Rapid increase/turndown of feed flow rates.The transient state of the process during shutdown and changeover of pumps is depicted inthe following diagramsThe performance of level control system inproduction separator against various processupset scenarios was verified for safe andreliable operation of the plant. It wasconfirmed that the control logic provided wassufficient to handle all process upsetsexpected in production separator.ConclusionThe level control system is capable to ensuredesired level in the production separator. Thefollowing figure shows the transient behaviorThe dynamic model predicts transientconditions of the processes and helps safeand reliable operation by providingoperational insights into the process. Thecase studies in this article demonstrate theapplications of dynamic simulations inanalyzing many engineering problems whichrequire understanding of transient processes.52

Co-Processing of Non-edible Oilsin Petroleum RefineryBrijesh KumarGeneral Manager(Refining Technology),IndianOil R&DK.U. HarinathChief Manager(Operations)CPCL, Manali RefinerySarvesh KumarSr. Research Manager,IndianOil R&DK.R.D. Pradeep ChandSr. Manager(Process Engineering)CPCL, Manali Refineryiodiesel is conventionally produced by r Both density and distillation of bio-dieselBtransesterification which is very complexrequire blending with lighter diesel toprocess and capital intensive. Biodiesel hasmeet the diesel specifications, which willinferior properties in terms of oxidationaffect the refiner's profitability adversely.stability, higher emission of NOx, lower energy Biodisel has a narrow boiling range of ~340-content and results in more deposits in the0370 C+ of which ~ 20% boils above T-95engine. It is also not well accepted by the0specification of BS-IV diesel i.e 360 C.automobile industry. The process also suffersfrom the following disadvantages:r The presence of oxygen in biodiesel resultsin higher emissions of NOx. Also, FAME isr Removal of free fatty acids for avoidingnot well accepted by the auto industry insaponification in subsequent steps.all proportions as these are responsible forinjector choking.r Removal and disposal of by-product rawglycerin..To circumvent the above disadvantages, IOCR&D has developed a technology forr Recovery of excess alcohol used in theco-processing of non-edible vegetable oils inprocess for complete conversion.DHDS/DHDT unit utilizing existinginfrastructure in the Refineries. The dieselr Generation of plant effluent due to waterproduct with co-processing has advantages ofwashing to remove caustic used forhigher Cetane, good Oxidation stability andneutralization of free fatty acids.lower Density.rr56Additional step of esterification, if thevegetable oil is rancid. The process issuitable only for oils having low Free FattyAcid (FFA) < 0.5%.Difficulty in meeting the dieselspecifications wrt to density (0.825 to0.845 g/cc) as biodiesel has a density ofabout 0.88 g/cc.The vegetable oils, however, have gums andmetal which could be detrimental to the life ofcatalyst used in the units. IOC R&D hasdeveloped another patented degumming anddemetallation process technology for pretreatmentof vegetable oils to remove metalcontent to below 2 ppm required forprocessing in DHDS/ DHDT units.

Around 200 MT of Jatropha oil was procuredfrom IndianOil – CREDA Biofuels Limited (ICBL),Raipur and the same was treated for reducingthe metals to less than 2 ppm. Demonstrationtrial for co-processing was conducted in Plant-13 of Manali Refinery of CPCL usingdegummed/ demetalled Jatropha Oil in theproportions from 1.0 to 6.5 % of diesel feed.Pilot Study for Co-processingIndianOil R&D carried out extensive pilot plantstudies during the last 6-7 years forco-processing of non-edible vegetable oils inproportion ranging from 5 to 50% with dieselfeed stocks. Parallely, IndianOil R&D has alsoconducted studies for neat processing of theseoils through hydroprocessing to understandthe kinetics, yield and product composition,effect of operating variables, catalystperformance etc.Initial experiments were conducted in hydroprocessing Micro-Reactor Units (MRU) withvarying operating range of various parameterssuch as LHSV, Temperature, Hydrogen toHydrocarbon (H /HC) ratio, Pressure etc.2Different catalyst systems were tried toprocess neat diesel, neat vegetable oils andalso to co-process these oils with diesel inDHDS/DHDT process.In India, depending upon geographicaladvantage, a variety of oils like, Jatropha,Karanj, Castor, Mustard, Mustard cake oil,Heavy fraction of Mustard oil and other oils &fats are available. Different proportions ofvegetable oils mixed with diesel feeds wereused for the study. Initially commercial CoMo,NiMo catalyst systems were used for the study.Subsequently, in-house developed catalystINDICAT DH IV was used. The typical productpattern with and without co-processing isgiven in Table-1.Issues in Co-processing Technology1.2.Metal Content in Vegetable Oils:Typically, all edible and non-edible oilscontain metal (Na, Ca, Mg, P, Fe, Cu, Sietc.) in the range of 100 to 800 ppm,which are required to be removed tobelow 5 ppm to make the oil suitable forco-processing. These metals are poisonfor all hydroprocessing catalysts.To address this issue, IndainOil R&Ddeveloped a Demetallation process toreduce metals to less than 2 ppm. A Patenthas also been filed in India, US and Europefor this process. The process was used fortreatment of 200 metric tonnes ofJatropha oil in commercial plant toreduce metals from about 350 ppm to< 2 ppm.Metallurgy for Storage & Handling:Vegetable oils contain free fatty acids(FFAs) typically varying from 0.5 – 10 wt%.Hence storage & handling of these oilsrequire specific metallurgy to avoidcorrosion. For processing neat vegetableoil, use of SS-317 is desired. As Plant -13 isvery old and metallurgy is inferior,corrosion study was conducted forsuitability of plant metallurgy. Thecorrosion rate was also monitored atcritical positions during the trial.3. Chemical H2Consumption: The vegetableoils contain about 10% oxygen which isconverted into water, CO & CO 2respectively by hydrodeoxygenation,h y d r o d e c a r b o n y l a t i o n &hydrodecarboxylation. The typicalhydrogen consumption is about 2.0 wt% ofveg. Oil processed. For the trial,additional hydrogen requirement was metby increasing makeup hydrogen.4. Exothermicity of Reactions: A highdegree of exothermicity is expected dueto high content of oxygen in vegetable oils& high heat of reactions. Co-processing ofvegetable oil results in increase in reactor57

Cold SepScrubber0temperature about 3 C per percent of After generation of Base Case data thevegetable oil co-processed.vegetable oil was slowly introduced in thesuction of diesel feed pump of the unit. The5. Oxidation Stability of Vegetable Oils: concentration of vegetable oil wasVegetable oil deteriorates during long progressively increased in step of 1, 3, 5 &storage at elevated temperature which 6.5%. The feed and treated diesel wascan be avoided by nitrogen blanketing and characterized for properties for each case.adding oxidation stability additives. For The typical feed & product properties for Basethe trial run, oil storage was kept for short case and 6.5% Co-processing case are given induration only.Table-2.6. CO/CO2Inhibition: During processing ofvegetable oils, water (6.0-8.0% ofvegetable processed), CO 2 (4.0 - 6.0 % ofvegetable processed) and CO (0.5 -1.0% ofvegetable processed) are generateddepending on the operating conditionsand catalyst system. The water can beseparated via boot provided in theseparator vessel. The CO inhibits theactivity of the catalyst by adsorption onactive sites, although inhibition istemporary & less pronounced with NiMocatalyst & higher pressure. The buildup ofCO and CO 2 in the recycle gas is thereforerequired to be controlled. A proper systemneeds to be installed to reduce CO & CO 2content in recycled gas. Water gas shift &CO Methanator systems may be required.Co-processing Trial Run at CPCLCo-processing Trial run was conducted inPlant-13 (DHDT) of Manali Refinery of CPCL.Initially, Base Case data was generated usingneat diesel feed. The feed and treated dieselwere characterized for S, N, Distillation (D-86)density, moisture, free water, lubricity, cetanenumber on daily basis. The schematic diagramof Plant-13 of CPCL Refinery is shown inFigure-1.QuenchrThe complete conversion of Jatropha oil wasconfirmed by absence of Mono/Di/Triglyceridecontent in the co-product, analyzed by GelPermeation Chromatograph (GPC). TheTriglyceride, acid and ester content was alsoanalyzed by IR which indicated absence of allthree components.From the analysis, it can be concluded that byco-processing of Jatropha oil @ 6.5 wt% of totalfeed to DHDS reactor, the overall quality oftreated diesel improved in terms of cetanenumber by ~ 2.0 units, overall diesel yield onvolume basis increasesd by about 0.5 wt% dueto reduction in density and sulphur of treatedproduct was reduced. Other properties ofco-product remained unchanged as comparedto product using neat diesel feed stock. The60

fuel consumption is reduced compared tonormal feed as the furnace firing is decreased(about 1.5 deg C for each % of Vegetable Oilprocessed) to take care of the exothermicity ofthe reaction.ConclusionThere are several benefits of co-processingTechnology in comparison to conventionalTransesterification Technology of biodieselproduction. The co-processing produces highcetane, low density paraffins as compared toFatty Acid Methyl Esters (FAME). Major benefitsof co-processing technology are:1. Utilizes existing Refinery infrastructurewith minor modifications.From the table, it is also concluded that cost ofco-processing product is less than the Biodieselby about Rs 5000/MT. In addition, co-processing product quality is superior tobiodiesel. Co-processing of Jatropha Oil upto6.5% of DHDT feed was successfullydemonstrated at CPCL.2. Does not require separate infrastructurefor Biodiesel Plant.3. Produces better quality product in terms ofcetane, density, oxidation stability, NOxemission etc.4. Can be transported in petroleum pipelinesunlike biodiesel.5. The conversion cost is significantly reducedby ~ 50% in comparison to Biodiesel plant.6. In the refinery unit also, the fuelconsumption is reduced compared tonormal feed as the furnace firing isdecreased (about 1.5 deg C for each % ofVegetable Oil processed) to take care ofthe exothermicity of the reaction.The comparison of total cost of biofuelproduced by co-processing technology vs.biodiesel produced by transesterficationprocess is given in table.# includes cost of methanol *Operating cost of DHDT considered.SnippetsRank of China and India in terms of their bureaucracy being worse among 12 Asiancountries: 8 & 12• Rank of ‘opportunities in private sector’ and ‘lack of recognition’ among five reasons forofficials leaving civil services: 1 & 2Percentage increase in number of demat accounts held by NRIs since 2008: 40Percentage of 1,800 NSE-Listed companies in which NRIs hold shares presently: 80• Percentage of NSE-listed companies in which NRIs held shares in 2008: 69Courtesy : Business India61

Partial Conversion Hydrocracking Processfor Clean FuelsMichael Glenn HunterPrincipal HydrocrackingEngineer, Haldor Topsoe A/SGordon LowTechnology Manager HydrocrackingHaldor Topsoe A/STorkil Ottesen HansenGM (Process Development)Haldor Topsoe A/Sartial conversion or “Mild” hydrocrackingPhas been utilized by refiners for manyyears to produce incremental middle distillateyields while upgrading feedstock for fluidcatalytic cracking (FCC). Initially, specializedcatalysts were adapted to the low or moderatepressure conditions in FCC feed desulfurizersto achieve 20 to 30 percent conversion ofheavy gas oils to diesel and lighter products.The middle distillates from these units wereheavy, highly aromatic with low cetanequality. The promulgation of newspecifications for both gasoline and dieselproducts has put pressure on such processes tomake lighter, lower sulfur products that can fitinto the refinery ultra low sulfur diesel andgasoline (ULSD and ULSG) pools. The continuedgrowth in middle distillate fuel demandcompared to gasoline has re-focused attentionon hydrocracking and particularly partialconversion hydrocracking as a key processoption for adapting to the modern clean fuelsenvironment. Topsoe is investing heavily inpartial conversion hydrocracking technologydevelopment and is positioned to offerinnovative new catalysts and processes for the21st century refiner. This paper will focus onprocess and catalyst technology options forpartial conversion hydrocracking that addressboth gasoline and diesel product quality in themodern clean fuels environment.Conventional “Mild” HydrocrackingApproachA simplified flow diagram for conventionalpartial conversion or MHC unit now utilized inmany refineries around the world is shown inFigure 1.Typically, these units have been designed forpressure levels in the 50 to 100 barg rangedepending on feed quality and cycle lifeobjectives. They have been designed toachieve 20 to 30% net conversion of heavyvacuum gas oil and total sulfur removal ofabout 95% to yield FCC feed suitable for62

making low sulfur gasoline. The processconfiguration has evolved to include hot highpressure separators for better heat integrationand amine absorbers to mitigate the effects ofvery high recycle gas hydrogen sulfidecontent.One significant shortcoming of this technologyhas been the inability to have independentc o n t r o l o f h y d r o - c o n v e r s i o n a n dhydrodesulfurization reaction severity. Thishas required that the units operate at start ofrun with excess HDS in order to account for themore rapid deactivation of the hydrotreatingfunction compared to hydrocracking. End-ofrunis normally determined by product sulfurlimitations as opposed to conversion capacityas illustrated in Table 1.has been to understand and develop economicprocess and catalyst technologies for partialconversion hydrocracking upstream of theFCC. The constraints imposed on theseinvestigations have been to find solutions thatmeet current and expected productspecifications for both gasoline and diesel fuelwithout the need for further processing orcreative blending. Topsoe looked for a way inwhich both hydrogen partial pressure andhydrocracking conversion could be utilized fordiesel uplift, while maintaining the relativelylow overall conversion and HDS severityrequirements dictated by FCC pretreatmentapplications. The culmination of the R&Deffort has been the invention of Staged PartialConversion or SPC hydrocracking technology. Asimplified flow diagram of the SPCconfiguration is shown in Figure 2.Topsoe's new process design incorporates astaged reaction system in which a portion ofthe heavy gas oil product from the leadhydrodesulfurization (HDS) reactor is by-passed on flow control reducing the net chargerate to the second series flow hydrocracking(HDC) reactor. This allows the net conversionlevel in the second reactor to be substantiallyhigher than the overall gross conversionrequirement for producing FCC feed.Increased conversion, as discussed earlier,dramatically improves middle distillateproduct quality, particularly density. Severityin the lead reactor is controlled independentlybased on the minimum HDS requirement forFCC feed to make ultra low sulfur gasoline.Severity in the lag reactor is controlled basedon meeting ultra low sulfur kerosene andWhile the diesel product sulfur can bedecreased to a large extent by applying morehydrotreating catalyst and achieving deeperHDS severity, the only real option for improvingdensity and cetane quality is to increasereactor operating pressure. For the exampleabove, Topsoe data indicates that a reactorpressure of 140 to 160 barg would be necessaryin order to make a diesel product density of845 kg/m3. Such a dramatic increase inreactor pressure will also raise chemicalhydrogen consumption by 70 to 100%. The highcapital and operating cost associated with thislarge increase in hydrogen consumption is asignificant disadvantage for utilizing very highpressure designs to achieve product uplift.New Technology DevelopmentThe focus of hydrocracking research at Topsoe63

diesel fuel requirements including smokepoint, density and cetane quality.The separation of gas and liquid in the bottomof the lead reactor vessel is achieved withoutthe need for any complex internalsarrangement and uses a minimum of reactorheight. Simple flow control is utilized to splitthe liquid phase from the bottom of the leadreactor.The SPC concept has been tested extensivelyin Topsoe's pilot plants. The testing of thisconcept started in 2006 when one of Topsoe'shydrocracking pilot plant was revamped tosimulate the SPC process. Primary pilot plantmodifications included the insertion of a hotflash drum between the treating and crackingreactor. Separate product recovery for thetreating and cracking reactors were alsoadded. The testing was performed withcommercial 1/20” NiMo catalyst in the leadreactor and commercial NiW zeolitichydrocracking catalyst in the lag reactor.The effluent from the hydrotreating reactorwas separated in a vessel by flash, i.e., asimple one-stage separation with no packing oradditional trays. The temperature profile inthe flash separation was carefully controlledto ensure that the gas and liquid phase wereseparated at the reaction temperature. Thefeed to the hydrocracking reactor consisted ofall of the vapour from the flash drum alongwith metered bottoms liquid using a feedpump. In this manner the pilot plant closelysimulated the proposed SPC concept.A variety of operating conditions were testedin the SPC pilot plant including:¦ Feed variations¦ Catalyst variations in R1 and R2¦ Hydrotreating and hydrocracking severityvariations in R1 and R2¦ Unit hydrogen partial pressure product.variations¦ Liquid split ratio of R2 feed and R1A total of 9700 hours of pilot plant testing ofthe SPC concept has been completed. Theresults of the SPC testing have been comparedto a variety of conventional partial conversionhydrocracking tests at varying conversions andpressures. The result of the pilot plant testinghas demonstrated the advantages of the SPCconcept.The data presented in Table 2 illustrate theexpected performance of SPC technology ascompared with a conventional mediumpressure, partial conversion configuration. Inorder to ensure the production of ultra lowsulfur diesel, the conventional MHC mustachieve a very high level of HDS (>99%) on theentire feed stream. This requirementdramatically increases catalyst requirementswithout a significant correspondingimprovement in diesel density.While both the conventional mildhydrocracker and SPC technology yield ultralow sulfur diesel and gasoline products, theMHC simply cannot generate sufficient middledistillate quality uplift at low conversion. TheSPC unit produces turbine fuel qualitykerosene and full range diesel meeting thedifficult Euro V diesel density specification.Full range diesel yield is lower with SPCtechnology because some of the very lowquality distillate produced in the HDS stage isbypassed and sent directly to the FCC unit.Heavy diesel selectivity is also slightly lower atthe higher net conversion conditions in thecracking stage. Total liquid product yield isslightly higher with SPC, and the improveddistillate qualities allow direct sales to highvalued products, including jet fuel. Overallhydrogen consumption is approximately 30%higher for SPC as required to make lowerdensity products.Total catalyst fill requirements can generallybe less for SPC, due to the substantialreduction in total HDS severity to meet FCCpretreatment requirements as compared tothe pretreatment requirements forhydrocracking. Typical catalyst requirementsand reactor configurations for the aboveexample are summarized in Table 3 for a unit64

SPC technology also provides a highly effectiveapproach for adding conversion capacity byrevamping existing FCC feed hydrotreaters. Itis difficult and costly to make very largeimprovements in hydrogen pressure in mostrevamp situations due to mechanical designlimitations. Under such pressure constrainedconditions, the SPC approach can be used toprovide additional product uplift in the form oflower middle distillate density and greatercetane quality. It is practically impossible for aconventional mild hydrocracker operating atless than 80 bar hydrogen pressure and 20 to40% gross conversion to make diesel meetingthe minimum cetane index specification of 46.Economic Comparisonprocessing 5000 tonnes per day.Even though overall catalyst requirements areSubstantial economic incentives exist forapplication of Topsoe's new technology. Asimplified comparison of both mediumpressure (MHC) and high pressure conventionalhydrocracker approaches to SPC hydrocrackingtechnology is shown in Table 4.10% lower for the SPC configuration, catalystfill cost is approximately the same due to thehigher proportion of more expensivehydrocracking catalyst. Operation atincreased net conversion requires oneadditional catalyst bed for SPC as compared tothe conventional design. However, the overallreactor vessel weight is about 10 to 15% lessmaking the reactor costs similar for bothcases.The base case is a conventional MHC unitdesigned at the same pressure level as utilizedfor the Topsoe SPC unit. Sufficient catalyst isused to achieve ULSD sulfur level, but it isimpossible for such a unit to make theequivalent diesel density and cetane quality ascompared to SPC. Increasing hydrogenpressure to achieve sufficient aromaticsaturation to match the diesel density willrequire about 60% higher operating pressurefor the conventional hydrocrackerconfiguration.For a unit processing 5000 tonnes per day oftotal charge, Topsoe SPC technology can save10 to 20 million Euro capital cost compared to65

a high pressure conventional once-throughpartial conversion hydrocracker making thesame product quality. Hydrogen is also usedmore efficiently in the SPC unit resulting in asavings of 250,000 normal cubic meters ofhydrogen per day. The annual operating costsavings based hydrogen demand would be 2 to3 million euro. SPC technology also conservesutilities relative to the high pressurehydrocracker option, mainly as a result ofdecreased hydrogen makeup and recyclecompression requirements.Topsoe Catalyst SystemsThe key functional requirements for partialconversion hydrocracking catalyst systems arelisted below:rrrrrSize and activity grading to minimizefouling and pressure dropDemetallization and carbon residuereductionDeep HDS for FCC feed pretreatmentDeep HDN for hydrocracker pretreatmentHydrocracking with high activity andmiddle distillate selectivityNo single catalyst can possibly be formulatedto maximize performance in each of thesefunctional categories. Topsoe does not believein single multi-function catalyst systems ashistorically employed in several technologies.Stacked catalyst systems provide betteroverall performance and lower cost.Topsoe SPC technology not only incorporatesmultiple catalysts, but also provides reactorenvironments in which these catalysts can beindependently controlled for optimum cyclelife performance. The principal catalystsutilized for partial conversion hydrocrackingare:rrrrrTK-925, NiW, amorphous hydrocrackingcatalystTK-926, NiW, amorphous hydrocrackingcatalystTK-931, NiW, zeolitic hydrocrackingcatalystTK-941, NiW, zeolitic hydrocrackingcatalystTK-951, NiW, zeolitic hydrocrackingcatalystThis family of hydrocracking catalysts providesa substantial range of conversion activity tomatch individual refinery applications. Theselectivity (ratio of yield to conversion)decreases slightly as the activity of thecatalyst is increased creating a trade offbetween reactor size, cycle life and overallmiddle distillate yields.Alternative Co-product ApplicationsThe SPC hydrocracker is also capable ofproducing a very high quality unconverted oilstream that can be used for potentially highervalue applications than FCC feed. The qualityof both lube oil base-stock as measured byViscosity Index (VI) and of steam cracker feedfor ethylene production as measured byBureau of Mines Correlation Index (BMCI) aredramatically improved at high hydrocrackingconversion compared to low conversion. This isillustrated in Figure 3 showing pilot plant datafor operation at 140 bar hydrogen pressure.Operating at only 20 to 30% conversion willsimply not provide sufficient upgrade for therrrTK-560, CoMo, deep HDS with excellentHDN activity for FCC pretreatTK-561, NiMo, deep HDN with excellentHDS activity for FCC pretreatTK-607, NiMo, deep HDN for hydrocrackingpretreatment66

unconverted oil to be suitable for high VI lubeoil or ethylene production. The SPC processconfiguration segregates the HDS product (FCCfeed) from the hydrocracked product allowingsome or all of the unconverted oil to bediverted to either lube oil or ethyleneproduction or as a high valued intermediatespecialty sales product.A simplified block flow diagram for aprocessing scheme to co-produce lube oilbase-stocks together with ULSD and ULSG isshown in Figure 4. In this example,incremental feed is produced by recoveringde-asphalted oil (DAO) from vacuum residue.The SPC hydrocracker provides conversioncapacity for the incremental feedstock whileproducing high quality, high value products.Conclusions¦¦¦¦specifications as well as a way to addincremental heavy oil conversion andincrease the yield of low sulfur middledistillates.Conventional partial conversion “mild”hydrocracking technology simply cannotmeet modern diesel product objectivesunder economical conditions.New technology has been developed byTopsoe to economically uplift productdiesel density, aromatics and cetanequality. This technology allows theindependent control of FCC feed qualityand middle distillate product quality. Allthe process steps are commerciallyproven.Unlike conventional MHC technology,conversion can be changed over relativelywide range while holding product qualityessentially constant. This allows maximumflexibility for manipulating the refinerygasoline to diesel yield ratio in response tomarket demands.A wide range of catalyst options areoffered by Topsoe to address the diversefunctionality necessary for FCCpretreatment and partial conversionhydrocracking.¦Partial conversion hydrocracking upstreamof the FCC is a proven and profitableprocess alternative for improving FCCperformance and meeting gasoline sulfur¦Topsoe's new SPC hydrocrackingtechnology also represents a neweconomical pathway to value addedproducts such as lube oil base-stock.SnippetsPercentage of leisure travellers in India who used budget airlines in last 12 months: 37• Percentage of Leisure travellers in Indonesia and China who used budget airlines in last12 months: 75 & 50Courtesy : Business India67

Reforming Catalyst Enhancement for HigherSelectivity and StabilityPierre-Yves Le-GoffSr. Technical Manager &Project Leader, Axens, FranceJay RossSenior Technology &Marketing Manager, Axens, New JerseyJoseph LopezDevelopment & IndustrialisationEngineer, Axens, FranceOver the next 10 years, global demand foroil products is forecast to increase at anaverage rate of 1.2%/yr through 2020. Demandwill be just below 100 million barrels per day ofoil equivalent (MMbdoe). However, this growthwill not be distributed evenly around theworld.Developed MarketsIn the Organization forEconomic Cooperation andD e v e l o p m e n t ( O E C D )countries, reductions inautomobile fuel consumptionwill decrease oil demand atabout 0.5%/yr, thus creatingrefining overcapacity. Thesituation is completelydifferent in nations withgrowing economies where thegross domestic product (GDP)is increasing rapidly and thepopulation aspires to greatermobility. In these (non-OECD)countries, demand for oilproducts will rise at 2%/yr and will comprise53% of world demand by 2020.Developing MarketsConcerning gasoline demand over the next 10years, strong growth is mainly expected in Asia(+2.1 MMbdoe), the Middle East (+0.3MMbdoe), the Former Soviet Union States(+0.37 MMbdoe) and Latin America (+0.6MMbdoe), as shown in Fig. 1.In these regions ofdeveloping and growing economies, continuedstrong growth is projected for both gasolineand petrochemical polymers.PetrochemicalsWorldwide demand for polymers is growing ata significantly higher pace than oil and gasproduction (Fig. 2) and thus initiating largeexpansions in olefins and aromatics68

complexes. Global paraxylene (PX)consumption is forecast to exceed 40 milliontons (MMton) by 2015 compared to 32 MMtonin 2011.molecules in the feed into high-octanearomatics and branched components, andcoproducing hydrogen needed by otherrefinery units such as hydrotreaters andhydrocrackers. This is accomplished over aheterogeneous catalyst at elevatedtemperature and preferably low pressureaccording to Le Chatelier's principle.StructureReforming catalysts are complex composites ofa highly active precious metal, platinum (Pt),to efficiently perform dehydrogenation andhydrogenation reactions, and an activesupport or carrier to do complementaryreactions. The carrier is a high-purity alumina,with a specific pore structure, designed tohave an acid functionality, which can bemoderated by controlling the amount ofchloride added to the support and/or by theaddition of promoters. Together, these“metal” and “acid” components, as shownschematically in Fig. 3,form a dual-functioncatalytic system capable of transforming lowoctane paraffins and naphthenes into high-octane gasoline, aromatics and by producthydrogen.The additional capacity will be located in theAsia-Pacific region, where PX demand is thehighest, followed by the Middle East. Newaromatic complexes, which include continuouscatalyst regeneration (CCR) reforming units,will be required to meet the growing demandin polyester used for bottles and textiles. Tomeet both aromatics and gasoline demand,capacity additions for light-oil processing areexpected in these regions at about 1.5 MMbpdin combined reforming, isomerization andalkylation capacity by 2020.Catalytic reforming of naphtha is central in theproduction of both high-octane fuel andaromatics to support both rapidly growingmarkets. Accordingly, there is a continuedstrong demand for catalytic reforming unitsand improved catalysts for new and existingunits with a global installed capacity over 13MMbpd. The present annual worldwide marketfor reforming catalyst represents severalthousand metric tons for fixed bed, cyclic andCCR markets.Catalytic Reforming FundamentalsC1FunctionsHCA1MAI-CIMHCAcid Site (C1-Alumina)Metal Site (ex. Pt)HydrocarbonInteractionsThe role of catalytic reforming is fundamentalin transforming low-octane naphtha fromcrude oil and hydroprocessing units into high-octane transportation fuels and aromatics.The process involves transforming orreforming the paraffinic and naphthenicA simplistic representation of the mainreactions is shown in Fig. 4 and is linked to themetallic and acid functions. The importantdehydrogenation reaction to convert acyclohexane component into an aromatic isvery rapid and easily accomplished by themetal function of the catalyst. For many feeds,in particular hydrocracker and coker derivednaphthas, a significant portion of thenaphthenic compounds contain cyclopentaneelements that require the acid-catalyzedreaction of ring extension or conversion into acyclohexane bearing component for69

subsequent dehydrogenation on the metallicsites. Ring extension and dehydrocyclizationof paraffins are all difficult, but they arecritical functions that require highly selectivecatalyst. If the acid and metal functions arenot tuned or properly balanced, undesirableside reactions do occur, leading mainly to acidcracking and hydrogenolysis, and, to a lesserextent, dealkylation. In the reforming unit,these side reactions result in the formation oflight petroleum gas (LPG), light gas and coke;all contribute to nonselective conversion,catalyst deactivation by coke deposition, andlight-ends handling limitations.Catalyst PerformanceThe carrier and highly dispersed Pt metalinteract in a complex way to accomplish thedesired reforming reactions. Performance ofthe catalyst is described in terms of activity,selectivity and stability.Activity is commonly defined in terms oftemperature required to achieve a givenobjective; it is very similar to the definitionused to describe hydrotreating catalysts. Amore active catalyst is able to achieve thesame product yield or severity (gasolineoctane or aromatics yield) at a lower reactortemperature. For fixed-bed units, this meanslonger cycle lengths, and, for CCR units, itmeans greater operating flexibility within unitconstraints.Selectivity. The selectivity of the catalystrefers to the relative yield of desired product,such as C5+ reformate gasoline or aromatics,compared to another catalyst operating withthe same severity target (RONc) under similarprocess parameters (pressure, WHSV, H2/HC).As with most reaction systems, high selectivityis desired, as long as the performance can bemaintained.Stability is a measure of how long a desiredperformance can be maintained, and it usuallyreflects the coking tendency of the catalyst asit affects both activity and selectivity. Higherstability in a fixed-bed catalyst translates intoa longer cycle length while meeting processseverity targets—i.e., more profitable onstream time. For reforming units equippedwith CCR, higher stability means lower cokingtendencies and slower regeneration cycles,thereby adding operational flexibility. Suchoperating flexibility provides opportunities toprocess more demanding feed, such as higherendpoint feed or increased amounts of cokernaphtha, or an increased catalyst life resultingfrom a reduced regeneration frequency.Higher catalyst stability can also allowreducing the recycle gas requirement, thuslowering operating costs.Carrier. The carrier formulation and method ofmetal impregnation have a significant impacton the activity, selectivity and stability ofreforming catalysts. But this is only thebeginning of catalyst design and productiontechnique.Promoters and Enhanced PerformanceIn addition to the essential alumina carrier andPt metal, other elements known as promotersare introduced to influence, moderate orotherwise change the catalyst activity,selectivity and stability. When combinedeffectively, the catalyst system allows therefinery to optimize gasoline yield and cyclelength or regeneration frequency to improveprofitability and operability within unitconstraints.In fixed-bed reformers, promoters have beenused for a long time to increase the stability(on stream time) of the catalyst by moderatingthe coke formation rate. Platinum-Rhenium(Pt-Re) catalysts allow for longer cycles or70

more severe operation at thermodynamically density and location are critical to achievingfavored lower pressure where the coking both the desired metal and acid functions.tendency is greater. Additional promoters are Moderating the acid site strength on theoften added to fine-tune the selectivity and carrier is one important way to limit crackingstability of the catalyst. There are trade-offs reactions, but this is only possible if uniformin performance and response to feed deposition of the promoter(s) is achieved.contaminants, such as sulfur, with these Equally important is the production trialspromoted catalyst systems. The challenge in where proprietary techniques are applied tocatalyst development is to prepare the right produce commercial product meeting both thecatalyst formulation to achieve the best target process chemistry and particleperformance with the least degree of mechanical properties. Detailed particlecompromise. Traditionally, this results in analysis is performed to ensure that thetrading selectivity and introduces a manufacturing method is effective, as shownselectivity-stability barrier, as shown in Fig. 5. in Fig. 7.Metallic and Acid FunctionsUniform distribution of the carrier andmetallic components is important to ensureaccessibility to these precious constituentsand proper function. When the promoter ismainly on the shell of the particle, the metal-to-acid function ratio is not constant along thediameter. Thus, hydrocarbons diffusing intothe particle encounter a higher acid-to-metalratio leading to undesired cracking reactions.This reduces the intrinsic catalyst selectivityand increases coke make. Moreover, when thepromoter is preferentially on the surface, it ismore sensitive to contamination, and itselution increases over time.The interaction between the metallic and acidfunctions is complex, and optimizing therelative importance of each function isfundamental to obtain the desired balance ofselectivity, activity and stability. With theaddition of other promoters, the permutationsof interactions increases, and the relativeaffinity of molecules to either the metal oracid sites can be tuned for the desired effect,as in the case of Pt-Re. Fig. 6 is a catalystsystem with multiple metals and varyingchloride content.Identification of promising promotercombinations requires extensive laboratorywork and pilot testing. The exact formulation,impregnation method and manufacture arehighly proprietary. Ultimately, the active siteWhen the promoters are properly introduced,they remain effective for the service life of thecatalyst, even under harsh operatingconditions found in cyclic and CCR units.Earlier work on promoted systemsdemonstrates that the promoters are robustand do not elute from the catalyst over manyregeneration cycles. Fig. 8 demonstratesexcellent promoter retention, within theanalytical accuracy of the test, for various CCRcatalysts.71

Quad-metallic. In this batch pilot testingstrategy, the unit is operated at a constantRON target to reflect either a constantconversion toward aromatics for aromaticsapplication or a constant octane in the case ofgasoline application. As the test progresses,catalyst selectivity is measured by thereformate yield and stability by the rate ofreformate-yield decay over time as the fixedbatch of catalyst age.Breaking the Selectivity-Stability BarrierWhen targeting specific catalyst performance,there are many choices of promoters, methodof impregnation and design of the carrier. Twofundamentally different catalyst lines usingunique design approaches were recentlycompared leading to a new family of catalyststhat break the selectivity-stability barriercommonly encountered in catalyst design.At the macroscopic level, the two lines ofcatalyst produced similar results, but at themicro level, one exhibited better carrierproduction technique and the other betterpromoter characteristics. There were clearlyopportunities to optimize the systems at themicro level to provide better performance.The first products to be explored were the CCRcatalysts as used in severe, high-profit-marginaromatics units.CCR catalyst formulations are built around aplatinum-tin(Pt-Sn) base system. This providessignificantly greater selectivity over Pt-onlycatalyst, but requires low pressure for bestresults and continuous regeneration toovercome the greater coke formationtendency. Additional metals, other than Pt andSn, can be added as promoters to furtheroptimize the catalyst systems. The importanceof promoter selection can be demonstrated inFig. 9.During the test, coke is progressivelydeposited on the catalyst and the requiredtemperature to maintain the target RONincreases (Fig. 9B). Low coke formation andcatalyst deactivation is indicated by a slowincrease in reactor temperature to maintainthe target RON. A small slope of thetemperature curve indicates high catalyststability, while the duration of the C5+ plateauand the slow rate of yield decay is thecomplementary indicator of the C5+ stabilityof the catalyst. From a commercial unitperspective, the latter part of the test, wheretemperature increases sharply to maintainseverity, defines the ultimate catalyst stability(cycle life) within unit constraints.Pilot-plant testing results are shown in Fig. 9 Aof the C5+reformate yield selectivity over timefor four catalyst systems: Pt+Sn (bimetallic),tri-metallic 1, tri-metallic 2 and optimized72

Looking more closely at Fig. 9, the two trimetallicsystems show initial selectivityperformance higher than the base Pt-Sn, butthe performance falls over time as a result ofthe lower stability (higher coke yield), shownin Fig. 9B, for these systems. When a fourthmetal is properly introduced, the quadmetallic or simply Quad system, a superioryield selectivity and equal stability is attainedrelative to the Pt-Sn system. In this case, theselectivity-stability barrier is broken, andstability does not suffer to attain superiorselectivity. Significantly, this improvementwas obtained while reducing the Pt loading onthe catalyst by 20%, thereby offering asubstantial cost reduction for our customers.bimetallic catalyst. Fig. 11 shows the surfacearea decline over time following such testprotocols. A conventional Pt/Sn catalystreaches its end-of-life surface area(approximately 140 m2/g) relatively quickly,whereas the new Quad catalyst retains ahigher surface area in the range of 160 m2/g.Higher surface area is associated withimproved regeneration (Pt redispersion) andbetter chloride (C1) retention. As aconsequence, the new Quad catalysts willexhibit longer life, reduced salt deposit indownstream units, and lower chloride contentin the hydrogen-rich gas, resulting in longerchloride trap life.When the optimized carrier and promotersystem were applied to the low-density CCRcatalyst platform, a new Quad catalyst wasdeveloped. Fig. 10shows the performance ofthis new system. The reformate yield isincreased by 0.8 wt%; hydrogen increased by0.1 wt% (50 scf/bbl), while the activity andstability are slightly improved.Enhanced Physical PropertiesPlease add the legend as it follows:blue squares – trmetalicred dots – quad-metalicCCR moving bed catalysts also require carefulattention to the physical properties to ensuremechanical strength and surface-area stabilityover many regeneration cycles, which isindicative of catalyst life and chlorineretention.Accelerated aging tests have been performedon the new Quad-metallic catalyst to comparesurface area retention to conventional Pt-SnPut in quantitative terms, the better surfacearea retention and intrinsically higher chlorideretention resulting from a new quad catalystwith a proprietary promoter system results in30% lower chloride injection over the life ofthe catalyst vs. standard Pt/Sn.The mechanical properties of the catalyst arealso important in CCR applications. Unlikefixed-bed catalysts, which are mainlyconcerned about crush strength to endure thestatic load forces within a fixed bed, CCRcatalysts are spherical and designed to resistthe dynamic forces from slow movement in thecatalyst beds to pneumatic lifting betweenreactor and regenerator. These forces lead toparticle attrition and fines production.Although the fines or broken pieces of thecatalyst are captured within the system, theycan lead to fouling of screens and increasepressure drop.73

Highly developed CCR catalysts are morerobust to ensure extended service over 7–9years. New formulations are subjected tolarge-scale circulating test units to accuratelyrepresent commercial conditions and theforces leading to attrition. The new carrier andmulti-promoted catalyst systems have provento be as robust as previous-generationcatalysts with an excellent track record of lowparticle attrition.SnippetsTotal money borrowed by US banks from government emergency programmebetween 1 December, 2007 and 21 July, 2010, in billion dollars: 1,139• Percentage out of this that was borrowed by 10 banks including Bank of America,Citigroup, Morgan Stanley and others: 37Number of countries worldwide who reduced their military spending aspercentage of GDP in 2012: 36Number of countries worldwide where military spending as percentage ofGDP increased in 2012: 59Rank of Muslim countries among least peaceful regions worldwide: 1Rank of European countries among most peaceful regions worldwide: 1Rank of India among 162 countries measured in Global Peace Index: 141Courtesy : Business India74

Computational Fluid Dynamics Applications inTroubleshooting and Safety AnalysisGanesh PrasadGeneral Manager (R&D)Engineers India LimitedD. K. R. NambiarAsst. General Manager (R&D)Engineers India LimitedG. SrivardhanEngineer (R&D)Engineers India Limitedomputational Fluid Dynamics (CFD) hasCemerged as a key diagnostic tool forresolving design and troubleshooting issues inthe oil and gas industry. A CFD simulation,involving as it does the numerical solution offlow and transport equations, providesinformation about flow variables everywherein the domain and is non-invasive, unlikeexperimental probes that alter the flow fieldthey seek to measure. CFD minimizes the costof experimentation – fewer physicalprototypes have to be built. It also allows formore efficient parametric studies.In the industry, one prominent use of CFD is atthe equipment design stage to rapidly screenseveral candidate designs and shortlist themost promising of these for further analysis -either through experimental studies orthrough additional numerical simulations.Experimental prototyping can be reduced tothe bare minimum when complemented with awell-designed program of CFD simulations.The other equally important use of CFD is introuble-shooting – it permits visualization ofthe flow pattern through the equipment andready identification of potential trouble spotssuch as dead pockets or high temperatureregions. Frequently CFD is the only diagnostictool at hand to analyse what-if scenarios inhazardous flow situations such as the onesencountered in nuclear engineering or wherethe cost of actual experimentation would beprohibitive such as in the case of zero-gravityexperiments in space applications. CFD alsofinds extensive use in the area of safetyanalysis. The dispersion of pollutants from fluegas stacks or flammable vapours from safetyvalves provided on storage tanks are classicinstances of leveraging the power of CFD toevolve safer operating protocols. A fewpractical applications of CFD drawn from theoil and gas industry are discussed in thefollowing sections to highlight the versatilityand relevance of this new age diagnostic tool.CFD Analysis of Combustion Air DuctsThe combustion air duct (CAD) of a fired heatermust be designed with some care to ensurethat each of the several burners arrangedalong the floor or the walls of the fireboxreceives the correct amount of air at therequired temperature, pressure and velocity.Any mal-distribution of air can seriouslycompromise heater efficiency besides havingother undesirable consequences such as:Increase in stack pollutantsFlames entering the convection sectionOverheating and coking in radiant sectionTube impingement75

The performance specifications for thecombustion duct are therefore fairly stringent,with the permissible variation in combustionair mass flow rate to any of the burnersgenerally restricted to ±3% of the design value.analysis (Figure 3) helped in evolving arehabilitation plan to use the existingcombustion air duct with the proposed newburners. In this case, blocking plates of varyingdimensions were prescribed at the entry planeof the throats and upstream of burner flangesCFD has today replaced the traditional design to correct the mal-distribution (Figures 4validation methodology hitherto adopted for and 5).combustion air ducts wherein cold flow testsare conducted on a scaled down prototype.CFD offers the twin advantages of being able tomodel the duct geometry to scale and toimpose the actual hot flow conditions at whichthe duct is designed to operate.In the CFD approach, a 3D computer model ofthe duct is first constructed to scale using thefabrication drawings. Explicit modelling of theburner itself is not a cost effective option asthe burner geometry is more often than notextremely complex. Moreover, certain internaldimensions may not be known due to theproprietary nature of the design. Oneapproach is to simply model the burner asoffering a flow resistance proportional to thedynamic head, with the proportionalityconstant calculated from a burner operatingcurve provided by the burner vendor.Should the CFD analysis of the combustion airduct reveal the branch flows to be not withinthe stipulated ±3% of the mean flow, variousoptions for adjusting the branch resistancescan be explored, using additionalcomputational runs, till the deviations arewithin the specified tolerance. Provision ofturning vanes, flow splitters and blockingplates, and changing of duct taper angles aresome of the measures commonly used tocorrect any flow mal-distribution.Figure 1 illustrates the specific case of acombustion air duct for which an adequacycheck was necessitated following a decision toreplace the existing burners in the four heatersbeing serviced by the duct with low NOxburners. CFD simulations of the original ductconfiguration revealed unacceptably highdeviations from the target flow in the burnersof three of the heaters (Figure 2). A closer lookat the flow path lines as revealed by the CFD76

Dispersion Modelling of PSV Release from aLNG Storage Tankprovided on these storage tanks that aredesigned to pop if the pressure in the innertank vapour space exceeds a safety threshold.It is of interest to examine whether the vapourplume so released exhibits any settling from itsinitial release point owing to LNG beinginitially heavier than air at cryogenic dischargetemperatures. An example case that wassimulated is depicted in Figures 6 & 7, whichshow contour plots of LNG concentrationsdownwind of the release point. Detailed CFDmodelling was found to be able to bettercapture the physics of the problem than othersoftware implementing Gaussian plumedispersion models (Figure 8).In particular theCFD analysis was able clearly identify theregion wherein the LNG vapour concentrationsare within the higher and lower flammabilitylimits. As evidenced by the figures, the LNGplume was found to settle at a lower elevationthan initial release height under the combinedaction of wind and higher initial LNG densityat the cryogenic storage temperature.Appreciable LNG concentrations werepredicted even 100 m downwind in the eventof a sustained release following a PSV pop(Figure 7).LNG tanks are usually double walled fullcontainment storage tanks with low operatingpressure (100 to 200 mbarg) and cryogenicooperating temperature (-158 C). PSVs are50 m downwind397 40ppm1987 0ppm156000 ppmEL 55mYZX77

international safety standards in placefor offshore installations that deal withthe safe passage of hot flue gases overthe helideck.The dangers posed by a hot gas plumepassing through the flight path of ahelicopter have been a subject of studyin recent years and are welldocumented.The hot gases impact theengine performance and severelyconstrain the load carrying capacity ofthe helicopter. Sudden changes intemperature can result in momentarystalling of the engines with attendantloss of control. While the risk ofhelicopter stalling varies with helicoptertype, in most cases it increasesStudy Folder Existing PSV& Flare dispersion analysisAudit No: 1464427Model: PSV discharge atO-156 C (HLNG, vertical)Weather: Category 0.8/FMaterial: heavy LNG vaporAveraging Time:Flammable(18.75 s)C/L Offset: 0 mConcentrationTime: 13.57 sCloud Height (m)8580757065605550454035302520151050.18.80212223242536772829010.211.212.213.214.215.216.217.218.219.220.221.222.223.224.225.226.227.228.229.2CFD Analysis of an Offshore PlatformHelideckOn offshore gas platforms, the captive powerrequirement of the complex is met throughhuge gas turbines that utilize a part of the gasproduced. Typically these gas turbine modulesare housed in a separate TG building, which,owing to constraints on space and operationalrequirements, is situated right next to theLiving Quarters (LQ Building) that houses theoperating personnel. The helideck, which iscritical to moving men and material betweenthe shore and the platform complex, is usuallylocated atop the LQ Building. The layout of thegas turbine stacks must conform tosignificantly with a momentary temperatureorise of 3 C or more. The presence of hot airflow in the vicinity of the helideck is a majorrisk to helicopter operations and regulatoryrequirements mandate study of the effect ofhot air flow on the helideck through eithermodel tests or through computational fluiddynamics (CFD). The study is required for allnew constructions in the design phase, and todetermine helicopter operational limitationsfor existing installations.As a specific example, consider areconstruction project undertaken by one ofthe oil and gas majors that envisagedreplacement and re-orientation of the exhaust78

stacks of the turbine generators located on oneof its offshore platforms. In the originalarrangement, shown in Figure 8, the exhaustducts were laid out horizontally at an elevationbelow the elevation of the helideck. Postrevamp, the exhaust was to be routed throughvertical stacks causing the hot flue gas to bedischarged at an elevation above the helideck.CFD analysis was used in this case to map thepassage of the hot gas plume over the helideckfor different wind conditions prevailing at thesite year round, and to confirm that thetemperature rise above the helideck elevationmeets the requirements of NORSOK, that is theotemperature rise is less than 3 C aboveambient up to a height of 15 m above thehelideck. The temperature contours on avertical plane through the helideck center areshown in Figure 12 for a particular combinationof wind speed, wind direction and stack fluegas load.ConclusionIn CFD the practicing engineer has a verypowerful tool for analyzing a potentiallyunlimited range of flow related phenomena.With rapid increase in computational powerand the ease of application afforded bycommercial CFD codes, it is possible today toconvert the desktop computer to a virtual flowlaboratory. Much of the potential of this toolhowever remains untapped. The oil and gasindustry, in particular, offers considerablescope for leveraging the power of this new agediagnostic tool in the areas of design, troubleshooting and safety studies as evidenced bythe examples discussed.79

Members’ News in PicturesShir Sudhir Vasudeva, Chairman & Managing Director, ONGC receiving the Gold Trophy of SCOPE Meritorious Award in the category of ‘Corporate SocialResponsibility and Responsiveness for 2011-12' from Shri Pranab Mukherjee, the Hon'ble President of India on the occasion of Public Sector Day celebrated on26th April at New Delhi in the presence of Shri Praful Patel, Union Minister of Heavy Industries and Public Enterprises. Shri K.S. Jamestin, Director (HR), ONGC(extreme right) accompanied the CMD.Shri Nandan Nilekani, Chairman, UIDAI (left) being felicitated by ShriR.K. Singh, Chairman & Managing Director, BPCL during the nationallaunch of the Direct Benefit Transfer of LPG.The Board meeting of HPCL held on April 24, 2013 approved formation of ajoint venture between HPCL (74%) and Govt. of Rajasthan (26%) to speed upthe setting up of a 9 MMT Refinery at Barmer, Rajasthan. Seated (R-L):Shri S. Roy Choudhury, Chairman & Managing Director, HPCL; Shri L.N. Gupta,Joint Secretary (Refineries), MoP&NG; Shri G.K. Pillai, IndependentDirector; Shri A.C. Mahajan, Independent Director; Shri B. Mukherjee,Director (Finance), HPCL.Oil India Limited and the Centre for Social Responsibility and Leadership signed anMoU for two years (2013-14 & 2014-15) on April 9, 2013 for executingAbhayanand Super 30 programme for providing free residential coaching for IIT/NIT etc. at Guwahati, Jorhat and Dibrugarh in Assam to 90 underprivilegedstudents of Assam and Arunachal Pradesh. The occasion was graced by (R-L): Shri B.N. Talukdar, Director (E&D), Shri T.K. Ananth Kumar, Director (Finance);Shri N. K. Bharali, Director (HR&BD); Shri S.K. Srivastava, Chairman & Managing Director; Shri S.K. Shahi, Director, CSRL; Shri S.R. Krishnan, Company Secretary,OIL; Shri S. Krishnamurti Singh, Executive Director, CSRL; Shri S. Rath, Director (Operations), OIL.80

Shri B.C. Tripathi, Chairman & Managing Director, GAIL receiving theCertificate of Recognition for attaining the Maharatna status fromShri Pranab Mukherjee, Hon'ble President of India in the presence ofShri Praful Patel, Hon'ble Minister for Heavy Industries & Public Enterprises.Shri A.K. Purwaha, C&MD, EIL receiving the prestigious commendationcertificate of “SCOPE Meritorious Award in Specialized Fields 2011-12",under the category of Best Practices in R&D, Technology Development &Innovation for the year 2011-12 from Shri Pranab Mukherjee, theHon'ble President of India at a ceremony held on April 26, 2013 atVigyan Bhawan, New Delhi in the presence of Shri Praful Patel, Union Ministerof Heavy Industries and Public Enterprises.Shri Pranab Mukherjee, the Hon'ble President of India (3rd from right) dedicates ONGC Tripura Power Plant - one of the largest Clean Development MechanismProject in the world-to the nation. Others (L-R): Shri Sudhir Vasudeva, Chairman & Managing Director, ONGC; Smt. Panabaaka Lakshmi, Hon'ble Union Minister ofState for Petroleum & Natural Gas; Dr. M. Veerappa Moily, Hon'ble Union Cabinet Minister for Petroleum & Natural Gas; Mr. Devanand Konwar, Hon'ble Governorof Tripura; Hon'ble Chief Minister of Tripura, Shri Manik Sarkar.Shri R.S. Butola, Chairman, IndianOil receiving the SCOPE awardfor Corporate Governance from the Hon'ble President ofIndia, Shri Pranab Mukherjee. On the extreme right is Dr. R. K. Malhotra,Director (R&D), IndianOil.The Dhirubhai Deepwater KG1 ultra-deepwater drillship of Transoceanwhich recently set a new world water-depth drilling record of 3,165 metersoff the East Coast of India while working for ONGC.81

Mr. R.K. Mehra, Executive Director (International Trade), BPCL (right)exchanging term contract with Kuwait National Petroleum Company and AbuDhabi National Oil Company for procurement of crude oilfor 2013-14 toensure continuous crude oil supplies to BPCL Refineries in Mumbai, Kochi andjoint venture BORL refinery in Bina, Madhya Pradesh. Mr. R.K. Singh,Chairman & Managing Director, BPCL (3rd from left) headed the delegation.Mr. B.K. Datta, Director (Refineries), BPCL (2nd from right) was also present.Shri S. Roy Choudhury, Chairman & Managing Director, HPCL (left) and ShriPushp Joshi, Director (HR), HPCL receiving the coveted 'BML Munjal Award'for excellence in learning and development from the Union Minister of Statefor Human Resources Development, Shri Shashi Tharoor (center) andDr. B. M. L. Munjal, Founding Chairman of Hero Group (2nd from right).Dignitaries at the national launch of the Direct Benefit Transfer of LPG (DBTL)at Tumkur, Karnataka. From (R-L forefront): Shri R. K. Singh, Chairman &Managing Director, BPCL; Shri S. Roy Choudhury, Chairman & ManagingDirector, HPCL; Shri M. Nene, Director (Mktg.), IndianOil.Shri Ram Singh, Director (Finance), Engineers India Limited (2nd from left)receiving the Business Today Best CFO of a PSU (Mid-size) Award 2013 from theHon'ble Union Minister of Commerce & Industry and Textiles (2nd from right).A Punj Lloyd Platform Compressor Facility in ThailandMr. Nilomani Bhakta, Director (Finance), Numaligarh Refinery Limited(2nd from right-front row) exchanging agreement with Mr. P.K. Mohanty,AGM, SBI Guwahati (2nd from left – front row) for raising US $ 90 millionExternal Commercial Borrowing to part finance its ongoing Wax Project.Others (L-R - Front Row): Mr. Mahendra Aditya Sahu, General Manager,SBI and Mr. S. R. Medhi, Director (Technical), NRL.82

Shri Vivek Rae, Secretary, MoP&NG (right) inaugurating ElectricalSub-Station-35 at LLDPE/HDPE Swing & Butene-1 plant at GAIL'sPetrochemical Complex at Pata, UP in presence of Shri B.C Tripathi, CMD,GAIL (India) Ltd.The 600 thousand tonnes per annum capacity LPG Import-Export Terminalof IndianOil-Petronas Private Limited (IPPL, a joint venture of IndianOil andPetronas of Malaysia) was formally inaugurated jointly by Shri M. Nene,Chairman, IPPL & Director (Mktg.), IndianOil and Mr. M. Farid Adnan,Vice President, Refining & Trading, Petronas, Malaysia near Chennai.Pipe Welding underway by Punj Lloyd team at Dabhol Bangalore PipelineProjectThe RO Water Treatment Plant to produce drinking quality waterconstructed at Kanchipuram under CSR initiative of EIL was inaugurated byShri T.K.M. Chinnaiah, the Hon'ble Minister of Animal Husbandry, Tamil Naduon June 5, 2013 at Kanchipuram in Tamil Nadu. Second & third in forefront(L-R) are Ms. Veena Swarup, Director(HR), EIL andShri A.K. Purwaha,C&MD, EIL.Mr. Prashant Modi, President & COO, Great Eastern Energy Corporation Ltd.at company's Gas Gathering Station after completion of doubling of itscapacity.Shri R.S. Butola, Chairman, IndianOil receiving the Institute of CompanySecretaries of India (ICSI) award for Excellence in Corporate Governance2012. Others (R-L): Shri Raju Ranganathan, Company Secretary andShri P.K. Goyal, Director (Finance), IndianOil.83

PetroFed Awards 2012The PetroFed Oil & Gas Industry Awards 2012 W e l c o m i n g p a r t i c i p a n t s e a r l i e r,for excellence in performance in various Shri R.S. Butola, Chairman, PetroFed &categories were presented by the Hon'ble Chairman, IndianOil touched upon theUnion Cabinet Minister for Petroleum & prevailing global and national economicNatural Gas, Dr. M. Veerappa Moily in the conditions and lauded the positive policypresence of Shri Vivek Rae, Secretary, Ministry initiatives taken by the Government in the oilof Petroleum & Natural Gas who presided over & gas sector in the recent past. Similarthe well-attended function at New Delhisentiments were expressed by the Viceon June 28, 2013.Chairman, PetroFed & President(Refining Business), RelianceCongratulating the Award Industries Limited, Shri P.winners the Hon'ble MinisterRaghavendran while proposingsaid that PetroFed had done aa vote of thanks towards thegreat thing in institutingend. A brief on the genesisthese awards to nurtureo f t h e Aw a r d s w a stalent for excellence. Wepresented earlier byneed to prepare the D i r e c t o r G e n e r a l ,ground for posterity toPetroFed, Shri A.K.secure the future for theArora.nation and give upp e s s i m i s m a n dThe scheme of Awards isnegativism, he added.open to all companiesLauding the Awardees,operating in India in thehe said that quite stiffoil & gas sector. Theconditions had beene v a l u a t i o n i sput by the Jury. Weundertaken in line withneed to build anp r e - d e t e r m i n e di n c l u s i v e s o c i e t yweightages assigned tothrough expansion,various parameters fixedinclusion and excellence,after due validation. Eachhe said. Excellence is notaward category mustan island but an ocean andreceive a prescribedthat we must put in a lot ofm i n i m u m n u m b e r o feffort in R&D, the Hon'bleapplications for giving awayMinister said.an award. Each award carries atrophy and a citation. The WomanThe Secretary, Petroleum &Executive of the Year award alsoNatural Gas, Shri Vivek Rae in hisc a r r i e s a c a s h p r i z e o faddress earlier complimented PetroFed` one lakh. The Innovator of the Yearfor praising 'the good' done by individuals, individual award has a cash component of `teams and corporates. He highlighted the two lakh while the team award has a prize of `various initiatives taken by the Government in five lakh with each member of the teamthe oil & Gas sector in the recent past and getting at least ` 50,000/-.added that the Government would create alevel playing field for the private and public The lessons learnt during 'Awards' evaluationsector to foster innovative competition and every year are incorporated. The applicationexcellence.form for each award has been carefullydesigned and validated to minimize84

subjectivity while giving benefit of additionalinitiatives taken. A significant contributionhas been made by PetroFed knowledgep a r t n e r a n d m e m b e r c o m p a n y,PricewaterhouseCoopers in conceptualizingthe Awards scheme and the preliminaryevaluation of applications.The Awards Committee is headed byDr. Prodipto Ghosh, Distinguished Fellow, TERIand former Secretary to the Government ofIndia. The members of the Awards Committeeare Shri B.C. Bora, former CMD, ONGC;Shri M.B. Lal, former Chairman & ManagingDirector, HPCL.; Shri P.K. Agarwal, Director,Human Resources Division & Senior Fellow,TERI & former Director (Marketing) & Director(HR), IndianOil; Shri U.K. Dikshit, Director(Programmes), SCOPE & former ED (HR),IndianOil.T h e J u r y i s h e a d e d b y H o n ' b l eMr. Justice M.N. Venkatachaliah, former ChiefJustice of India. The other members of theJury are Dr. Anil Kakodkar, Chairman, NationalSolar Energy Corporation of India and formerChairman, Atomic Energy Commission andShri Naresh Narad, former Chairman, PublicEnterprises Selection Board and formerSecretary to the Government of India.Winners of PetroFed Awards 2012 forperformance during 2011-12:Leading Oil & Gas Corporate of the YearIndian Oil Corporation LimitedExploration & Production - Company of theYearOil & Natural Gas Corporation LimitedSpecial CommendationCairn India LimitedRefinery of the YearMangalore Refinery & Petrochemicals LimitedSpecial CommendationBharat Petroleum Corporation Limited,Mumbai RefineryOil & Gas Pipeline Transportation - Company ofthe YearGAIL (India) LimitedSpecial CommendationHindustan Petroleum Corporation LimitedOil & Gas Marketing - Company of the YearIndian Oil Corporation LimitedProject Management (`500-2000 crore)Company of the YearGAIL (India) LimitedProject Management (above `2000 crore)Company of the YearOil & Natural Gas Corporation LimitedHuman Resources Management - Company ofthe YearHPCL - Mittal Energy LimitedDrilling Services - Company of the YearTransoceanEnvironmental Sustainability - Company of theYearGAIL (India) LimitedSpecial CommendationIndian Oil Corporation LimitedInnovator of the Year – IndividualSpecial CommendationPrafulla MankarSenior Operations Officer, Hubli LPG Plant,Hindustan Petroleum Corp. LimitedInnovator of the Year – TeamReliance Industries LimitedReliance Technology GroupTeam Led by Dr. Asit Kumar Das, Vice President& HOD (Refining R&D)Team Members: Sukumar Mandal, Asst. VicePresident (Refining R&D); Manoj Yadav,General Manager (Refining R&D)&Oil & Natural Gas Corporation LimitedInstitute of Oil & Gas Production TechnologyTeam Led by Varasala Bhaskar Rao, DeputyGeneral Manager (Production)Team Members: B.V.R.V. Prasad, ChiefEngineer (Production); T.K. Mandal, Chief85

Engineer (Production); S. Bhatt, Dy. GeneralManager (Chemistry)-IEOT; J.D. Ninama,Executive Engineer (Mechanical)- The CentralWorkshopSpecial Commendation- Bharat Petroleum Corporation LimitedTeam Led by Dr. P.S. Viswanathan, Dy. GeneralManager, Corp. R&D CentreTeam Members: Dr. Sudha Tyagi, Manager;Dr. Jaya Rawat, Dy. Manager; V.S. Dhaneesh,Dy. Manager- Indian Oil Corporation Limitedjointly withEngineers India LimitedTeam Led by Dr. R.K. Malhotra, Director(R&D), IndianOilTeam Members: S. Rajagopal, ExecutiveDirector (RT), R&D, IndianOil; Brijesh Kumar,General Manager (RT), R&D, IndianOil;D. Bhattacharyya, Chief Research Manager(RT), R&D, IndianOil; Dr. M. Sau, ChiefResearch Manager (RT), R&D, IndianOil;K. Ramesh, Research Manager, R&D, IndianOil;Reshmi Manna, Research Manager, R&D,IndianOil; Hillol Biswas, Dy. Manager(Research), R&D, IndianOil; D.P. Dolui, SeniorResearch Officer, R&D, IndianOil; J.K. Dixit,Senior Research Officer, R&D, IndianOil;C. Bennet, Senior Research Officer, R&D,IndianOil; B. Harish Kumar, Senior ResearchOfficer, R&D, IndianOil; S.G. Bhanuprasad,Research Officer, R&D, IndianOil; A. Vignesh,Re s e a r c h O f f i c e r, R & D , I n d i a n O i l ;Ajay N. Deshpande, Executive Director(Technical), EIL; Ganesh Prasad, GeneralManager (R&D), EIL; G. Gangadin, GeneralManager (POSD), EIL; Dr. R.N. Maiti, AssistantGeneral Manager (R&D), EIL; Vijay Yalaga,Senior Engineer (R&D), EIL; A. Saran,Executive Director (Bongaigaon Refinery),IndianOil; D. Baishya, Senior ProductionManager (Bongaigaon Refinery), IndianOil;Kaushik Singha, Senior Technical ServicesManager (Bongaigaon Refinery), IndianOil- Engineers India Limitedjointly withChennai Petroleum Corporation LimitedTeam Led by Ajay N. Deshpande, ExecutiveDirector (Technical), EILTeam Members: D.K. Sarkar, Dy. GeneralManager (R&D), EIL; V.K. Jayanti, SeniorEngineer, EIL; Kaushik G. Mazumder, SeniorEngineer, EIL; Praveena V, Senior Engineer, EIL;S . V i s v e s w a r a n , G e n e r a l M a n a g e r(Operations), CPCL; T.N.K. Bapi Raju, ChiefManager (Operations), CPCL; R. Venugopal,Dy. Manager (Operations), CPCLWoman Executive of the Year in the Oil & GasIndustrySandepa TrakrooChief Manager (Corp. Planning), GAIL (India)LimitedSpecial Commendation- Jayati GhoshDGM (Process Design & Development),Engineers India Limited- Jaskinder ShingwekarVice President (Commercial), Corp. Planning& Pricing, Essar Oil LimitedSnippetsTotal number of companies, primarily offshore, registered in British Virgin Islands (BVI) as of31 December, 2012: 4,59,002• Average number of companies for each one of 28,000 citizens of BVI: 16Courtesy : Business India86

Eminent members of the Jury (L-R): Dr. Anil Kakodkar, Chairman, NationalSolar Energy Corporation of India and former Chairman, Atomic EnergyCommission; Hon'ble Mr. Justice M.N. Venkatachaliah, former Chief Justiceof India & Chairman of the Jury; Shri Naresh Narad, former Chairman, PublicEnterprises Selection Board and former Secretary to the Govt. of India.Members of the Awards Committee (L-R): Shri U.K. Dikshit, Director(Programmes), SCOPE & former Executive Director (HR), IndianOil;Shri B.C. Bora, former Chairman & Managing Director, ONGC;Dr. Prodipto Ghosh, Distinguished Fellow, TERI and former Secretary to theGovernment of India (Chairman of the Awards Committee); Shri M.B. Lal,former Chairman & Managing Director, HPCL and former Member Technical(PNG), Appellate Tribunal for Electricity.The Hon'ble Union Cabinet Minister for Petroleum & Natural Gas, Dr. M. Veerappa Moily being honoured by Chairman,PetroFed & Chairman, IndianOil, Shri R.S. Butola by presenting the uttariya.Chairman, PetroFed & Chairman, IndianOil, Shri R.S. Butola (center) andVice Chairman, PetroFed & President (Refinery Business), RelianceIndustries Limited escorting the Hon'ble Union Cabinet Minister forPetroleum & Natural Gas, Dr. M. Veerappa Moily.Shri A.K. Arora, Director General, PetroFed giving details of the awards.Seated (L-R): Shri R.S. Butola, Shri Vivek Rae, Dr. M. Veerappa Moily.87

Shri Vivek Rae, Secretary, Ministry of Petroleum & Natural Gas (left) beinghonoured by Shri R.S. Butola, Chairman, PetroFed & Chairman, IndianOil bypresenting the uttariya.Dr. M. Veerappa Moily going through the PetroFed Awards 2012 brochure.Shri R.S. Butola, Chairman, PetroFed & Chairman, IndianOil deliveringwelcome address.The Hon'ble Union Cabinet Minister for Petroleum & Natural Gas,Dr. M. Veerappa Moily addressing the gathering.Shri Vivek Rae, Secretary, Ministry of Petroleum & Natural Gas deliveringhis addresss.'Leading Oil & Gas Corporate of the Year' Award being received byShri R.S. Butola, Chairman, IndianOil (3rd from left) along with functionalDirectors (R-L): Shri M. Nene, Director (Mktg.); Shri P.K. Goyal, Director(Finance); Shri A. M.K. Sinha, Director (P&BD); Shri R.K. Ghosh, Director(Refineries); Dr. R.K. Malhotra, Director (R&D).88

Shri K.S. Jamestin, Director (HR) & Officiating CMD, ONGC along withShri N.K. Verma, Director (Exploration), ONGC (left) andShri A.K. Banerjee, Director (Finance); ONGC receiving the 'Exploration &Production – Company of the Year' Award.Shri B.C. Tripathi, Chairman & Managing Director, GAIL (India) Limitedreceiving the 'Environmental Sustainability – Company of the Year' Awardalong with Shri Prabhat Singh, Director (Mktg.), GAIL & Member, PetroFedGoverning Council (right) and Shri Santanu Roy, General Manager (CorporatePlanning), GAIL (India) Limited (left).Shri Prabh Das, MD & CEO, HPCL-Mittal Energy Limited (3rd from right)receiving the 'Human Resources Management – Company of the Year' Awardalong with Shri R.R. Handa, Vice President, Projects (left);Shri Ashok Kumar, Vice President, HR (right) and Shri Manu Sehgal, Head,Strategy & Feedstock Supply Group, HMEL.Shri Ranajit Chakraverti, Key Account Director, Transocean receiving the'Drilling Services – Company of the Year' Award.Ms. Sandepa Trakroo, Chief Manager (Corporate Planning), GAIL (India)Limited receiving the 'Woman Executive of the Year' Award.Ms. Jaskinder Shingwekar, Vice President (Commercial), CorporatePlanning & Pricing, Essar Oil Limited receiving the Special CommendationAward for 'Woman Executive of the Year'.89

Ms. Jayati Ghosh, Dy. General Manager (Process Design & Development),Engineers India Limited receiving the Special Commendation Award for'Woman Executive of the Year'.Shri Prafulla Mankar, Senior Operations Officer, Hubli LPG Plant, HindustanPetroleum Corporation Limited receiving the Special Commendation Awardfor 'Innovator of the Year – Individual'. Shri Y.K. Gawali, Executive Director(LPG), HPCL (3rd from right) accompanied Shri Mankar.Shri B. Ganguly, President & Chief Operating Officer, Reliance IndustriesLimited (4th from right) and Shri P. Raghavendran, President (RefineryBusiness), RIL (right) receiving the 'Innovator of the Year – Team' Awardalong with the members of the team.Shri K.S. Jamestin, Director (HR) & Officiating CMD, ONGC receiving the'Innovator of the Year – Team' Award for ONGC won by the Institute of Oil &Gas Production Technology's team led by Shri Varasala Bhaskar Rao,Dy. General Manager (Production)along with the team members.Shri S.P. Gathoo, Director (HR), BPCL (2nd from right) receiving the SpecialCommendation Award for 'Innovator of the Year – Team' along with awardwinning team led by Dr. P.S. Viswanathan, Dy. General Manager, CorporateR&D Centre, BPCL.Shri A.K. Purwaha, Chairman & Managing Director, Engineers India Limited(2nd from right) along with Shri Ajay Deshpande, Director (Technical),Engineers India Limited (right) receiving the Special Commendation Awardfor 'Innovator of the Year – Team'.90

Shri A.S. Basu, Managing Director, Chennai Petroleum Corporation Limited(3rd from right) receiving the Special Commendation Award for 'Innovatorof the Year – Team' along with the team members.Dr. R.K. Malhotra, Director (R&D), Indian Oil Corporation Limited (right)receiving the Special Commendation Award for 'Innovator of the Year – Team'.A group photo of the winners of PetroFed Awards 2012 from IndianOil.Shri B.C. Tripathi, Chairman & Managing Director, GAIL (India) Limited (3rdfrom right) receiving the 'Project Management (`500-2000 crore) – Companyof the Year' Award along with Shri R.D. Goyal, Director (Projects), GAIL andShri Ashutosh Karnatak, Executive Director (Projects), GAIL (right).Shri K.S. Jamestin, Director (HR) & Officiating CMD, ONGC alongwith Shri A.K. Jain, Executive Director-Chief Offshore Engineering Services(right) receiving the 'Project Management (above `2000 crore) - Companyof the Year' Award in the presence of Shri A.K. Banerjee, Director (Finance),ONGC (left) and Shri N.K. Verma, Director (Exploration), ONGC(2nd from left).Shri A.M.K. Sinha, Director (P&BD), IndianOil(3rd from left) andShri B.B. Choudhary, Executive Director, Exploration & Production andRenewable Energy & Sustainable Development, IndianOil receiving theSpecial Commendation Award for 'Environmental Sustainability – Company ofthe Year'.91

Shri M. Nene, Director (Mktg.), IndianOil (3rd from right) & Shri R. S. Butola,Chairman, IndianOil (2nd from right) receiving the 'Oil & Gas Marketing –Company of the Year' Award.Shri S.P. Gathoo, Director (HR), BPCL and Member, PetroFed GoverningCouncil (right) along with Shri S.S. Sunderajan, General Manager(In-charge), Mumbai Refinery, BPCL (3rd from right) and Shri M.B. Pimpale,Dy. General Manager (Projects), BPCL receiving Special CommendationAward for 'Refinery of the Year'.Shri B.C. Tripathi, Chairman & Managing Director, GAIL (India) Limited(3rd from right) receiving the 'Oil & Gas Pipeline Transportation – Companyof the Year' Award along with Shri B.P. Singh, Executive Director (O&M),GAIL (left), Shri P.K. Jain, Director (Finance), GAIL (right) & Shri R.D. Goyal,Director (Projects), GAIL.Shri Anil Pande, Executive Director (Pipelines), HPCL along withShri D. Ramamoorthy, Dy. General Manager (Pipelines), HPCL;Shri Anuj Kumar Jain, Dy. General Manager; and Shri A.K. Mishra, ChiefManager, MDPL receiving the Special Commendation Award for 'Oil & GasPipeline Transportation – Company of the Year'.Mr. Rich Paces, Director Development (2nd from right) and Dr. Sunil Bharati,Head, Corporate Affairs & Communications, Cairn India (right) receiving theSpecial Commendation Award for 'Exploration & Production – Company ofthe Year'.Vice Chairman, PetroFed & President (Refinery Business), RIL prposing avote of thanks.92

Shri K.S. Jamestin, Director (HR)& Officiating CMD, ONGC (3rd from right) along with Shri P.P. Upadhya, Managing Director, MRPL (2nd from right) andShri Vishnu Agrawal, Director (Finance), MRPL (right) receiving the 'Refinery of the Year' Award.PetroFed team with the dignitaries. (L-R): Shri R.S. Butola, Chairman, PetroFed & Chairman, IndianOil; Shri Krishna Murari, Junior Assistant; Shri Sumit Kumar,Assistant Director (Systems); Ms. Sumita Bhatia, Executive Secretary; Ms. Alka Kapoor, Secretary; Shri Vivek Rae, Secretary, MoP&NG; Dr. M. Veerappa Moily,Hon'ble Union Cabinet Minister for Petroleum & Natural Gas; Shri Y. Sahai, Director (Comm. & Mktg.); Ms. Nidhi Suri, Assistant Director (Systems);Ms. Supriya Dhingra, Executive Secretary; Shri P. Raghavendran, Vice Chairman, PetroFed & President (Refinery Business), RIL; Shri S.S. Ramgarhia, Director(Policy & Planning); Shri Biren Das, Joint Director (Upstream); Shri O.P. Thukral, Joint Director (Planning); Shri A.K. Arora, Director General.SnippetsQuantity of gold imported by Indians in 2011, in tonnes: 1,000• Quantity of gold imported by Indians in 2012, in tonnes: 800• Estimated quantity of gold imported by Indians in just one quarter, April-June2013, in tonnes: 300-400Percentage of Indians and Chinese who had access of electricity in 1990,percentage: 51 & 94• Percentage of Indians and Chinese who had access to electricity in2010, in percentage: 75 & 100• Percentage share of renewable energy in total electricity generation inBrazil and China: 85 & 40• Percentage share of renewable energy in total electricity generation inRussia and India: 16 & 14Courtesy : Business India93

EventsAligning Project Management and Organisational StrategyThe distilled experience of several decadeswas imparted in a very interactive andendearing manner by the elderly Dr. TerryCooke-Davies, Group Chairman, HumanSystems International Limited whileaddressing an audience comprising largelyexecutives from the Project departments ofthe power and the oil & gas sectors on April 6,2013 at Noida. The lecture was organized byPetroFed in its series of Guest Lectures andThought Leadership Programmes in associationwith member company the ProjectManagement Institute (PMI) and NTPC.Participants were earlier welcomed by NTPCand the programme was inaugurated by Mr.K.K. Sharma, ED (Project Planning &Monitoring) of NTPC.In a very impressive keynote addressMr. B.K. Datta, Director (Refineries), BPCLbrought out with anecdotes from personalexperience some of the oft-repeated pitfalls inproject management.There was intense debate and a prolonged Q&Asession demonstrated the interest aroused.Seated (L-R) Mr. B.K. Datta, Director (Refineries), BPCL,Dr. Terry Cooke-Davies, Group Chairman, Human SystemsInternational & Mr. K.K. Sharma, ED (Project, Planning &Monitoring) of NTPC.Sh. B.K. Datta delivering keynote address.Dr. Terry Cooke-Davies presenting a book to Mr. B.K. Datta.A section of the audience.94

Dr. Terry Cooke-Davies presenting a book to Mr. K.K. Sharma.Energy Think Tank Meeting on 'Diesel Emission'The increasing serious health & welfareconcerns from Diesel exhausts, which has beendeclared as carcinogen by WHO, was broughtout in a detailed presentation before theEnergy Think Tank by Sh. N.R. Raje, formerDirector (R&D), IndianOil on April 12, 2013 atNew Delhi.Facilitated and hosted by the PetroleumFederation of India, the Energy Think Tankmeeting witnessed intense discussionsbetween senior members present.Members were earlier welcomed by theConvenor, Energy Think Tank, Sh. J.S. Oberoiand addressed by the Chairman, ETT,Sh. T.N.R. Rao, former Secretary, MoP&NG.T h e m e e t i n g d e c i d e d t o s u b m i trecommendations to the Government in thisregard.Sh. J.S. Oberoi (R) welcoming participants.Sh. T.N.R. Rao, former Secretary, MoP&NG (L) delivering openingremarks. Others (L-R) Sh. J.S. Oberoi, Convenor, ETT,Sh. Suresh Mathur, former MD &CEO, Petronet LNG,Dr. C.R. Prasad, CMD, Everest Power Pvt. Ltd. and former CMD, GAIL.95

Sh. N.R. Raje (3rd from left) making his presentation.Dr. R.K. Malhotra, Director (R&D), IndianOil (3rd from right)making a point.Sh. Anil Razdan (R), Director HPCL & former Secretary, Powermaking his observations. Others (R-L) (Forefront) Sh. NirmalSingh, former Secretary, Ministry of Overseas Indian Affairs &former Director General, BIS, Sh. V.S. Jain, former CMD, SAIL andformer Member PESB.Taming Diesel SubsidyDr. B. Sengupta (R), former Member Secretary, Central PollutionControl Board giving his comments on the presentation. Other(R-L) Dr. R.K. Malhotra, Director (R&D), IndianOil, Sh. J.L. Zutshi,former Chairman, IndianOil, Sh. B.D. Gupta, former Director(Finance), IndianOil and former President JM Morgan Stanley Ltd.,Sh. Suresh Mathur, Sh. J.S. Oberoi.The present policy of subsidizing diesel price is Economic Growth' on April 22, 2013 to a selectnot tenable and could have very large audience invited by the Petroleum Federationeconomic costs in the long term. Stating this, of India and the India Energy Forum.Dr. Kirit Parikh, Chairman, IRADe and formerMember, Planning Commission added that the Chairing the session, Shri G.C. Chaturvedi,average inflation rate over three years will be former Secretary, Ministry of Petroleum &6.6% if diesel price is decontrolled but would Natural Gas, in his opening remarks presentedbe 9% if the subsidy continues. The GDP growth a detailed background on the issue.rate would be 8% with price decontrol andonly 6.5% if we continue with the present price The participants were welcomed by Shri P.S.policy and will hurt the poor, whether they use Bami, President, India Energy Forum.diesel or not.During his observations Shri Ashok Dhar,Dr. Parikh was addressing the issue of 'Taming President (Industrial Marketing), RIL andDiesel Subsidy to Curtail Inflation and Foster Distinguished Fellow, Observer Research96

Foundation stated that he saw a parallel The event witnessed intense discussion and abetween the IRADe report on the subject and healthy debate.an earlier PetroFed report produced in A vote of thanks was proposed by Shri Y. Sahai,knowledge partnership with NCAER. Director (Comm. & Mktg.), PetroFed.Shri G.C. Chaturvedi, former Secretary, MoP&NG being welcomedby Shri P. S. Bami, President, India Energy Forum.Dr. Kirit Parikh, Chairman, IRADe and former Member, PlanningCommission being welcomed by Shri P.S. Bami.Shri P.S. Bami (2nd from Right) delivering welcome address. Others (L-R): Shri Amarjit Singh, Secretary General, India Energy Forum;Shri Ashok Dhar, President, (Industrial Marketing), RIL; Dr. Kirit Parikh, Chairman, IRADe and former Member, Planning Commission;Shri G.C. Chaturvedi, former Secretary, MoP&NG; Shri Y. Sahai, Director (C&M), PetroFed.Shri G.C. Chaturvedi, former Secretary, MoP&G deliveringopening remarks.Dr. Kirit Parikh (L) making his presentation. Others(L-R) Shri G.C. Chaturvedi, former Secretary, MoP&NG;Shri P.S. Bami, President, India Energy Forum; Shri Y. Sahai,Director (C&M), PetroFed.97

A section of the participants.Shri Ashok Dhar, President, (Industrial Marketing), RIL sharing hisperspective..Shri R.M. Sodhi, Convenor, India Energy Forum presenting amemento to Dr. Kirit Parikh.2nd National Pipelines ConferenceThe changing complexities in the laying,operations and maintenance of oil & gaspipelines within the country was brilliantlybrought out in a comprehensive overview bySh. V.S. Okhde, Director (Pipelines), IndianOilwhile inaugurating the 2nd National PipelinesConference during April 25-26, 2013 at NewDelhi. He also touched upon the new Acts andpolicies likely to come into force as well as thenew technological challenges.Organised by the Petroleum Federation ofIndia in association with IndianOil and supportfrom Bharat Petroleum Corporation Ltd. andHindustan Petroleum Corporation Ltd. the 1 ½-day conference covered all key aspects ofpipeline projects, operations & maintenanceand oil spills management and safety.Delivering the theme address Sh. S. Rath,Director (Operations), Oil India Ltd. traced thegrowth of the pipelines industry in the countryand projected the dimensions of the vast taskthat lies ahead in expansion of pipelineinfrastructure in the country to meet thegrowing energy demand for a healthyeconomy.Participants were earlier welcomed bySh. A.K. Arora, Director General, PetroFedwho emphasized on the need for taking up keyindustry issues with policy makers andregulators for the growth of the industry. It98

was only persistent effort spread over severalyears, he added, that an amendment to thePipelines Regulation Act had been achieved byPetroFed in association with the industry toprovide deterrent punishment for pilferagefrom pipelines.The conference witnessed 27 presentationscovering all aspects of the pipelines industry infive sessions spread over 1 ½ days. Eminentexperts who chaired the sessions includedSh. K.K. Jha, Member (Technical), PNGRB,Sh. S.N. Jha, President, IOT Infrastructure Ltd.and former Director (Pipelines), IOCL,Sh. Hirak Dutta, ED, OISD and Sh. L.K. Vijh, ED(Technical), EIL.At the end of the programme specialmementoes were presented by DirectorGeneral, PetroFed to Sh. J P Ojha, ExecutiveDirector(Operations), IndianOil PipelinesDivision, Sh. Anurag Deepak, ExecutiveDirector (Pipelines), Bharat PetroleumCorporation Ltd. & Sh. Anil Pandey, ExecutiveDirector (Pipelines), Hindustan PetroleumCorporation Ltd. who rendered immensesupport in conceptualizing and implementingthe programme.Sh. V.S. Okhde, Director (Pipelines), IndianOil being welcomed bySh. A.K. Arora, Director General, PetroFed with a bouquet offlowers.Sh. S. Rath, Director (Ops), OIL being greeted by Sh. A.K. Arora,Director General, PetroFed with a bouquet of flowers.Sh. A.K. Arora welcoming participants.Sh. S. Rath, Director (Ops.), OIL delivering theme address.99

Sh. V.S. Okhde, Director (Pipelines), IndianOil delivering inauguraladdress.A section of the participants.Sh. L.K. Vijh, ED (Technical), EIL (Centre) delivering opening remarks while chairing Session I on 'Technology Advancements'. Others (L-R)Sh. Rajiv Prakash, Maintenance Manager, WR, Rajkot, IOCL; Shri Viswanath Indi, Sr. VP, RIL; Sh. Sivaji, DGM, SCADA, ECIL; Sh. Amitava Paul,General Manager, Punj Lloyd; Sh. Surajit Ghosal, AGM, EIL; and Sh. R. Uprety, Ch. Project Mgr. , IOCL.Session in progress.Sh. S.N. Jha (Centre), President, IOT Infrastructure & EnergyServices Ltd. and former Director (Pipelines), IndianOil deliveringopening remarks while chairing Session II on 'Operation andMaintenance' (Part I). Others (L-R) Sh. Vasant Patel, National SalesManager, TD Williamson; Sh. Srivatsan K. Iyengar, Sales Manager-Offshore, TD Williamson; Sh. S.N. Jalali, DGM (Maint), MMBPL,BPCL; Sh. J.P. Sinha, DGM (Tech.), IOCL.100

Sh. S.N. Jha (Centre), President, IOT Infrastructure & Energy Services Ltd. and former Director (Pipelines), IndianOil delivering openingremarks while chairing Session II on 'Operation and Maintenance' (Part II). Others (L-R) Sh. A.K. Mishra, Sr. MDPL, HPCL (Reformate Naptha);Sh. K. Navinsankaran, Mgr. Plg. & Coord.,IOCL; Sh. Sandip Goswami, Ch. Engineer (Pipeline), OIL; Sh. Jagdeep Chhaya, Head-MidstreamProjects, Land Acquisition & JV Relationship, Cairn; Sh. Rajendra Kumar, DGM (Construction-PRRPL), IOCL; Sh. S.S. Gupta, Ch. InspectionMgr. IOCL; Sh. Subrata Mutsuddi, Dy. Ch. Engineer (Pipeline), OIL; and Sh. Pradeep Agarwal, Sr. Manager Services, BPCL.Demonstration of a new Pipeline valve.Sh. Hirak Dutta, Executive Director, OISD (Centre) deliveringopening remarks while chairing Session III on 'Oil SpillsManagement & Safety' on Day II. Others (L-R)Sh. Raghu Raman Iyer, Dy. Mgr., MMBPCL (ROU & Safety), BPCL;Sh. Manoj Jadhaw, Dy. Mgr. (ROU) Pipelines, BPCL;S h . V. K . T h a k r a l , G M ( Pr o d u c t i o n ) , O N G C ; a n dSh. Sandeep Deedwania, Sr. Mgr.-Security Coord., MDPL, HPCL.Sh. K.K. Jha, Member (Technical), PNGRB delivering openingremarks while chairing Session IV on 'Challenges in Execution ofPipeline Projects' on Day II. Others (L-R) Sh. U.K. Dhoot, DGM(Project Monitoring), IOCL; Sh. N.S. Parthasarathy, GM(RegulatoryAffairs), GAIL; Sh. A.S. Malik, ED (Construction) PRRPL, IOCL; andSh. M.K. Moharana, Sr. Manager (Projects), HPCL.A section of the participants.101

Sh. A.K. Arora (R) presenting a memento to Sh. K.K. Jha.Sh. A.K. Arora (R) presenting a special memento to Sh. J.P. Ojha,Executive Director(Operations), Pipelines Division, Indian OilCorporation Limited.ETT Meeting on Relative Economics of Gas based Power GenerationWith domestic coal production continuing to The results are part of a study commissionedfall substantially short of demand the need for by PetroFed through TERI on the 'Relativeincreased import of Natural Gas will be an Environment Economics of Natural Gas andunavoidable necessity in the years to come to other Fossil Fuels for Power Generation andmeet the envisaged trends of, either GDP Policy Options for India'.growth or provide electricity to the remotestcorners of the country.ETT members were earlier welcomed by theConvenor Shri J.S. Oberoi who requestedThis was stated in a presentation to the Shri Prabir Sengupta to Chair the meeting inmembers of Energy Think Tank by Ms. Anmol the absence of ETT Chairman, Shri T N R Rao.Soni, Research Associate and Area Convenor,Centre for Research on Energy Security under ETT members deliberated the issue andthe guidance of Shri Prabir Sengupta, pointed out that there are several issues likeDistinguished Fellow, TERI and member, pricing which need policy direction.Energy Think Tank on May 1, 2013 at New Delhi.Shri J.S. Oberoi, Convenor, ETT welcoming participants. Others(L-R) Shri Prabir Sengupta, Distinguished Fellow, TERI and formerSecretary, Ministry of Petroleum & Natural Gas; Shri A.K. Arora,Director General, PetroFed.Shri A.K. Arora, Director General, PetroFed( R) making a point.102

Ms. Anmol Soni, (L) Research Associate and Area Convenor, Centrefor Research on Energy Security, TERI making the presentation.Shri Prabir Sengupta (centre) elaborating a point during thepresentation.Seated (L-R) Shri M.C. Verma, former Technical Adviser, UNDP;Shri Suresh Mathur, Former CEO & MD Petronet LNG Ltd.;Dr. C.R. Prasad, Former CMD, GAIL; Shri B.C. Bora, Former CMD,ONGC; Shri S.K. Manglik, Former CMD, ONGC; Shri N.R. Raje,former Director (R&D), IndianOil; and Shri P. Dasgupta, former MD& CEO, Petronet LNG Ltd.Session in progress.Environmental Issues With Reference to Oil IndustryA comprehensive overview of keyenvironmental issues and Acts as they unfoldedin the country was provided by Dr. ProdiptoGhosh while chairing a session on 'CurrentEnvironmental Issues in India with SpecialReference to Oil Industry' on May 1, 2013 atNew Delhi. Dr. Ghosh, a Distinguished Fellow atTERI serves as Member of the Prime Minister'sCouncil on Climate Change and the NationalExpert Committee on Climate Change and isalso the Principal author of India's NationalClimate Change Action Plan. He was earlierSecretary in the Ministry of Environment andForests.The lecture session to an invited audience byDr. B. Sengupta, former Member Secretary,Central Pollution Control Board was organizedby PetroFed under its series of Guest Lecturesand Thought Leadership Programmes.In a very detailed presentation, Dr. Senguptaenumerated the major environmental Acts,Rules and Policy initiatives of the Governmentand drew attention in a focussed manner onthe key concerns affecting individuals. Heidentified research needs as well as policy andimplementation issues as crucial for enhancingenvironment protection.In the prolonged Q&A session the Speaker andSession Chairperson clarified a host of doubtsthat were raised.103

Dr. Prodipto Ghosh, Distinguished Fellow, TERI being welcomedby Sh. A.K. Arora, Director General, PetroFed with a bouquetof flowers.Dr. B. Sengupta, former Member Secretary, Central PollutionControl Board being welcomed by Sh. A.K. Arora, DirectorGeneral, PetroFed with a bouquet of flowers.Dr. Prodipto Ghosh, Distinguished Fellow, TERI delivering openingremarks (Centre). Others (L-R) Sh. A.K. Arora, Director General,PetroFed; and Dr. B. Sengupta, former Member Secretary, CentralPollution Control Board.Dr. B. Sengupta making his presentation.A query being raised by Dr. Avinash Chandra, Member, EnergyThink Tank.A query being raised by Shri M.B. Lal, former CMD, HPCL & formermember Technical (PNG), Appellate Tribunal for Electricity.104

Automation TechnologiesThe increasing importance of processautomation technologies, wireless networksand virtualization in pipelines and otheroperations was brought out with examplesfrom his personal experience by Dr. B.D. Yadav,Executive Director (Northern Region –Pipelines) of IndianOil while chairing a sessionat New Delhi on May 8, 2013.Organised by the Petroleum Federation ofIndia in association with the Lovraj KumarMemorial Trust and Honeywell the session on'New Age Automation Technologies for the Oil &Gas Industry' was addressed by Mr. DavidEisner, Chief Engineer & Senior EngineeringFellow, Honeywell Process Solutions, USA.Mr. Eisner, who has been managing processautomation solutions R&D for over 35 yearswas on a brief visit to India. He elaborated onthe business challenges and technologicaltrends, virtualization and other emergingtechnologies.Participants were earlier welcomed byMr. S.L. Das, Director (BD&C), PetroFed.A vote of thanks was proposed byProf. K. Vasudeva, Trustee & Secretary,Lovraj Kumar Memorial Trust.Dr. B.D. Yadav, Executive Director (Northern Region –Pipelines),IndianOil being welcomed by Prof. K. Vasudeva, Trustee &Secretary, Lovraj Kumar Memorial Trust with a bouquet of flowers.Mr. David Eisner, Chief Engineer & Senior Engineering Fellow,Honeywell Process Solutions, USA being welcomed byMr. S.L. Das, Director (BD&C), PetroFed with a bouquet of flowers.Dr. B.D. Yadav, Executive Director (Northern Region–Pipelines),IndianOil delivering opening remarks (Centre). Others (L-R)Prof. K. Vasudeva, Trustee & Secretary, Lovraj Kumar MemorialTrust; Mr. David Eisner, Chief Engineer & Senior EngineeringFellow, Honeywell Process Solutions, USA; Mr. S.L. Das, Director(BD&C), PetroFed.A section of the participants.105

Session in progress.Mr. David Eisner making his presentation.Prof. K. Vasudeva proposing a vote of thanks.A section of the participants.Reviving Growth in IndiaGiven the lowest GDP growth of 5% in the lastfiscal during a decade it is imperative thatgood economics and good politics shouldconverage stated Sh. Suresh Mathur, formerCEO, Petronet LNG while Chairing a Session atNew Delhi on May 31, 2013.During the session, organized by PetroFed in itsseries of Guest Lectures and ThoughtL e a d e r s h i p Pr o g r a m m e s , D r. N . R .Bhanumurthy, Professor, National Institute ofPublic Finance and Policy (NIPFP) addressedthe issue of 'Reviving Growth in India:C h a l l e n g e s & Po l i c y I m p e r a t i v e s ' .Dr. Bhanumurthy, a Ph.d in internationalfinance with nearly 50 research papers andseveral books to his credit, not onlyenumerated the global and domesticconstraints in growth recovery but alsoprovided a prescription for growth.He recommended not only financial sectorreforms but enhancing investment ininfrastructure to increase share ofmanufacturing besides the need toincorporate the role of land and energy, betterpricing of public utilities, and reforms insubsidy through targeting. His analyticalapproach elicited intense interaction.106

Sh. Suresh Mathur, former CEO, Petronet LNG being welcomed bySh. S.L. Das, Director (BD&C), PetroFed with a bouquet of flowers.Dr. N.R. Bhanumurthy, Professor, National Institute of PublicFinance and Policy (NIPFP) being welcomed by Sh. Suresh Mathurwith a bouquet of flowers.Sh. Suresh Mathur, former CEO, Petronet LNG delivering openingremarks (Centre). Others (L-R) Dr. N.R. Bhanumurthy, Professor,National Institute of Public Finance and Policy (NIPFP); andSh. S.L. Das, Director (BD&C), PetroFed.Dr. N.R. Bhanumurthy making his presentation.A query being raised by Dr. C.R. Prasad, Chairman, Everest Powerand former CMD, GAIL.Dr. N.R. Bhanumurthy replying to a query107

Global SustainabilityIn an erudite interpretation of ancient andhistorical texts and contemporary studiesvarious dimensions of global sustainabilitywere brilliantly brought out by Dr. ProdiptoGhosh, Distinguished fellow, TERI & formerSecretary, Ministry of Environment and Forestson June 5, 2013 at New Delhi.Organised by PetroFed to commemorate WorldEnvironment Day the lecture addressed 'GlobalSustainability: What do we mean by it and whyshould we care'.While the theme for this year's WorldEnvironment Day was 'Think. Eat. Save', allissues of sustainability address the basic issueof how long a specific resource will last. Andthe study of use of sources over time is the cruxof global sustainability. Dr. Ghosh addressedthe issue in all its dimensions and elaboratedon what can be done to create a humaneconomy that provides sufficiently for all.The enthusiastic response that the lecturereceived was evident by the intense floorparticipation.Dr. Prodipto Ghosh, Distinguished fellow, TERI & former Secretary,Ministry of Environment and Forests being welcomed bySh. S.L. Das, Director (BD&C), PetroFed with a bouquet of flowers.Dr. Prodipto Ghosh making his presentation.A section of the participants.Session in progress.108

A query being raised by Dr. C.R. Prasad, Chairman, Everest Powerand former CMD, GAIL.Dr. Prodipto Ghosh replying to a query.Russian LNG for Asia and Global TrendsA very comprehensive overview of the NaturalGas scenario in India, particularly LNG, waspresented in a global context during hisopening remarks by session chairmanShri R.K. Garg, Director (Finance), PetronetLNG Ltd. on June 13, 2013 at New Delhi.Organised under PetroFed's ongoing series ofGuest Lectures and Thought LeadershipProgrammes, the session featured a lecture on'Russian LNG for Asia: Global Trends in LNGSupply Chain' by Dr. Thane Gustafson, SeniorDirector of Russian and Caspian Energy, IHS,CERA USA. Advantage had been taken byPetroFed of the brief visit of Dr. Gustafson toDelhi to share with industry professionals hisvast experience in the area.Dr. Gustafson's recent book 'Wheel of Fortune :The Battle for Oil & Power in Russia' has beenwidely acclaimed. A copy of the same waspresented by him to the Session Chairperson.Dr. Gustafson presented various scenarios andprobabilities in natural gas and LNGmovements and candidly answered a host ofquestions addressed to him.Shri R.K. Garg, Director (Fin.), Petronet LNG Ltd. (L) beingwelcomed by Shri S.L. Das, Director (BD&C), PetroFed with abouquet of flowers.Dr. Thane Gustafson, Senior Director of Russian and CaspianEnergy, IHS, CERA USA being welcomed by Shri S.L. Das, Director(BD&C), PetroFed with a bouquet of flowers.109

Shri R.K. Garg, Director (Fin.), Petronet LNG Ltd. deliveringopening remarks. Others (L-R) Dr. Thane Gustafson, SeniorDirector of Russian and Caspian Energy, IHS, CERA USA;Shri S.L. Das, Director (BD&C), PetroFed.Dr. Gustafson presenting his book 'Wheel of Fortune : The Battlefor Oil & Power in Russia' to Shri R.K. Garg, Director (F),Petronet LNG Ltd.Dr. Gustafson making his presentation.A query being raised by Shri R.P. Sharma, President (Gas), RIL.Dr. Gustafson replying to a query.110

Industry Academia Interface on FCC TechnologyA half-day Industry Academia Interface Addressing the participants, Prof. K. Vasudeva,workshop on “FCC Process Technology and Trustee, LKMT, elaborated on theModelling” was organised by the Petroleum developmental history of FCC process andFederation of India in association with the opined that technology developments areLovraj Kumar Memorial Trust (LKMT) and Indian always very challenging and called upon theOil Corporation Ltd ( R&D Division) on June teaching faculty to impart it to students. The21,2013 at the IndianOil Institute of Petroleum teaching faculty have to be role models andManagement (IIPM), Gurgaon.need to develop high level of excellence toexcite the students to create ideas forThe objective of the workshop was sharing ofinnovation, he added.experience by Oil & Gas professionals on FCCprocess with teaching faculty of various Welcoming participants, Shri Vergheseacademic institutions to enhance and update Cherian, Executive Director, IIPM, spoke abouttheir knowledge for imparting to the students. the glaring gaps observed during campusinterviews in the students' knowledge asNineteen participants from seven engineeringcompared to the industry's requirements andcolleges & universities from the states of UP,expectations and the urgent need to bridgeHaryana, Delhi, and Uttarakhand and fivethis gap through curriculum upgradation &industry members from BPCL & IOCLknowledge sharing with industry.participated in the workshop. There was noparticipation fee and administrative The participants were briefed on thearrangements including boarding and lodging background and objectives of the PetroFed(selectively) were provided by IIPM ,Gurgaon. Industry-Academia Interface Programmes byShri S.S. Ramgarhia, Director (P&P) PetroFedThe lectures were delivered by experts fromwho also proposed a vote of thanks.IndianOil & Aspen Tech India Pvt. LimitedInaugurating the workshop, Shri S. Rajagopal, All participants were presented Certificates ofExecutive Director (RT), IOCL(R&D) Participation.complimented PetroFed for taking up the topicThe overall programme effectiveness wasof FCC process . He brought out the differencerated by participants at 82%.between the fluidized and fixed bed catalystand explained the development of variousmodels of FCC processes and the challengesinvolved.Shri Verghese Cherian, ED, IIPM presenting a bouquet of flowers toShri S. Rajagopal, ED(RT), IOCL (R&D).Shri Verghese Cherian, ED, IIPM presenting a bouquet of flowers toProf. K. Vasudeva, Trustee, LKMT.111

Shri Verghese Cherian, ED, IIPM delivering welcome address.Seated (L-R) Shri S. Rajagopal, Prof. K. Vasudeva,Shri S.S. Ramgarhia, Director(P&P), PetroFed.Prof. K. Vasudeva addressing participants..Shri S. Rajagopal delivering inaugural address.Group Photograph.SnippetsAverage number of questions that children ask their mothers everyday: 300• Average questions asked by girls aged 4, ranked as being most curious: 390Courtesy : Business India112

Member OrganisationsS. No. Organisation CEO1. Adani Gas Ltd. Mr. Rajeev Sharma2. Adani Welspun Exploration Ltd. Mr. Atul Sathe3. Axens India Pvt. Limited Mr. Jean Paul Margotin4. Bharat Petroleum Corp. Ltd. Mr. R. K. Singh5. BP Exploration (Alpha) Ltd. Mr. Sashi Mukundan6. British Gas India Pvt. Ltd. Mr. Shaleen Sharma7. Bharat Heavy Electricals Ltd. Mr. B.P. Rao8. Bharat Oman Refineries Limited Dr. B.K. Das9. Cairn India Ltd. Mr. P. Elango10. Chennai Petroleum Corp. Ltd. Mr. A.S. Basu11. Chemtrols Industries Limited Mr. K. Nandakumar12. Deloitte Touche Tohmatsu India Pvt. Ltd. Mr. Udayan Sen13. Deepwater Drilling & Services Pvt. Ltd. Mr. S.M. Malhotra14. Engineers India Ltd. Mr. A.K. Purwaha15. Ernst & Young LLP Mr. Rajiv Memani16. Essar Oil Ltd. Mr. Lalit Kumar Gupta17. ExxonMobil Gas (India) Pvt. Ltd. Mr. K.S. Kim18. East India Petroleum Pvt. Ltd. Mr. K. Sharath Choudary19. GAIL (India) Ltd. Mr. B.C. Tripathi20. Great Eastern Energy Corporation Ltd. Mr. Yogendra Kumar Modi21. GSPC LNG Limited Mr. D.J. Pandian22. Gujarat State Petroleum Corporation Limited Mr. Tapan Ray23. Gujarat Power Corporation Ltd. Mr. D.J. Pandian24. Gulf Publishing Company Mr. John T. Royall25. Hindustan Petroleum Corp. Ltd. Mr. S. Roy Choudhury26. HLS Asia Ltd. Mr. Rajeev Grover27. Honeywell Automation India Ltd. Mr. Anant Maheshwari28. HPCL Mittal Energy Ltd. Mr. Prabh Das29. Haldor Topsoe India Pvt. Ltd. Mr. Dilip K. Dutta30. IMC Ltd. Mr. A. Mallesh Rao31. Indian Oil Corp. Ltd. Mr. R.S. Butola32. Indraprastha Gas Ltd. Mr. Narendra Kumar33. Industrial Development Services Pvt. Ltd. Mr. R.K. Gupta34. IHS CERA Mr. James Burkhard35. IOT Infrastructure & Energy Services Limited Mr. Jayanta Bhuyan36. Jindal Drilling & Industries Limited Mr. Raghav Jindal37. Jubilant Oil & Gas Pvt. Ltd. Mr. Vipul Agarwal113

38. KEI-RSOS Petroleum & Energy Ltd. Lieutenant J.V.S.S. Murthy39. KPMG Mr. Richard Rekhy40. Kellogg Brown & Root Engineering Mr. Vinayak Pai& Construction India Pvt. Ltd41. LanzaTech-NZ Limited Dr. Jennifer Holmgren42. Lanco Infratech Ltd. Mr. L. Madhusudhan Rao43. Mangalore Refinery and Petrochemicals Ltd. Mr. P.P. Upadhya44. Mitsui Chemicals India Private Limited Mr. Shingo Shibata45. Mitco Labuan India Pvt. ltd. Mr. Roney Zaidell46. Nagarjuna Oil Corp. Ltd. Mr. S. Ramasundaram47. Niko Resources Ltd. Mr. Larry Fisher48. Numaligarh Refinery Ltd. Mr. Dipak Chakravarty49. Oil & Natural Gas Corporation Ltd. Mr. Sudhir Vasudeva50. Oil India Ltd. Mr S.K. Srivastava51. Petronet LNG Ltd. Dr. A.K. Balyan52. PFC Energy Mr. J. Robinson West53. PMI Organization Centre Pvt Ltd. Mr. Raj Kalady54. Praj Industries Limited Mr. Gajanan Nabar55. PricewaterhouseCoopers Pvt. Ltd. Mr. Deepak Kapoor56. Prize Petroleum Co. Ltd. Mr. M.K. Surana57. Punj Lloyd Ltd. Mr. Atul Punj58. Pandit Deendayal Petroleum University Dr. Anirbid Sircar59. Reliance Industries Ltd. Mr. Mukesh Ambani60. Santos International Operations Pty. Ltd. Mr. Mark Shimmield61. SAP India Pvt. Ltd. Mr. Suprakash Choudhury62. SAS Institute (India) Pvt. Ltd. Mr. Sudipta K. Sen63. Schlumberger Asia Services Limited Mr. S. Ramamurthy64. Shell India Pvt. Ltd. Dr. Yasmine Hilton65. Sud-Chemie India Pvt. Ltd. Ms. Arshia A. Lalljee66. Shiv-Vani Oil & Gas Exploration Services Ltd. Mr. Prem Singhee67. Tata Petrodyne Ltd. Mr. Anupam Mathur68. Tecnimont ICB Pvt. Ltd. Mr. E. Rolandelli69. Total Oil India Pvt. Ltd. Mr. B. Vijay Kumar70. Transocean Offshore International Ventures Ltd. Mr. Sanjaya Sood71. University of Petroleum & Energy Studies (UPES) Dr. S.J. Chopra72. UOP India Pvt. Ltd. Mr. Mark S Turowicz73. World L.P. Gas Association Mr. James Rockall114

Governing CouncilNAME DESIGNATION ORGANISATIONMr. R. S. Butola Chairman Chairman,Indian Oil Corporation LimitedMr. P. Raghavendran Vice President (Refinery Business),Chairman Reliance Industries LimitedMr. S.P. Gathoo Member Director (HR),Bharat Petroleum Corporation LimitedMr. T. S. Ramachandran Member Director (Technical),Chennai Petroleum Corporation LimitedMr. Prabhat Singh Member Director (Marketing),GAIL (India) LimitedMs. Nishi Vasudeva Member Director (Marketing),Hindustan Petroleum Corporation LimitedMr. Dipak Chakravarty Member Managing Director,Numaligarh Refinery LimitedMr. T. K. Ananth Kumar Member Director (Finance),Oil India LimitedMr. P. K. Borthakur Member Director (Offshore),Oil & Natural Gas Corporation LimitedMr. M. A. Pathan Honorary Chairman,Member Jabal EILIOT Co. Ltd., Al-Khobar, Saudi ArabiaMr. Sarthak Behuria Honorary Group President,Member Modi EnterprisesMr. A. K. Arora Member Director General, PetroFedSecretary115

Journal CoordinatorsMs. Marianne KarmarkarMr. S. VaidyanathanMr. Jignesh VasavadaMr. Sushanta DharMs. Radhika OjhaIMs. Anubhuti PandaMr. H K NathMr. Pramode SethMr. P.N. BaruaMr. Deepak MahurkarBharat Petroleum Corporation LimitedChennai Petroleum Corporation LimitedGAIL (India) LimitedHindustan Petroleum Corporation LimitedOT Infrastructure & Energy Services LimitedIndian Oil Corporation LimitedNumaligarh Refinery LimitedOil & Natural Gas Corporation LimitedOil India LimitedPricewaterhouseCoopers Private LimitedEditorial BoardEditor : Y. SahaiMember : A. K. AroraS.L. DasS.S. RamgarhiaO.P. ThukralBiren DasNo part of this journal shall be reproduced in whole or in part by any means withoutpermission from PetroFed.The views expressed by various authors and the information provided by them aresolely from their sources. The publishers and editors are in no way responsible forthese views and may not necessarily subscribe to these views.