Indian Oil Corporation has been taking initiatives to adapt to the changing energy mix even as it pushes growth in the sale of petrol and diesel, which is the mainstay of the company’s business, Sanjiv Singh, chairman, tells FE’s Anupam Chatterjee.
Did the recent unrest in West Asia impact supplies? How is the company diversifying its sources of crude?
Crude oil supplies to Indian Oil were not affected by the recent unrest in West Asia. Over the years, the company has diversified its crude oil basket and started imports from the US, both through spot tenders and term contracts, as a strategic intervention, given that the US is set to be the largest supplier of incremental crude oil production up to 2030.
The company is also exploring import of crude oil through term contracts with the national oil companies of countries other than those in West Asia. We recently signed a term contract with Rosneft, the national oil company of Russia, for import of 2 million tonne of Urals grade crude oil in 2020.
What are the plans for the CGD business?
We began more than a decade ago with the development of city gas distribution (CGD) networks in Agra and Lucknow through Green Gas, our joint venture company (JVC) with GAIL. Indian Oil has also ventured into a partnership with Adani Gas, setting up IndianOil-Adani Gas. We are now operating CGD projects in 11 geographical areas (GAs), which we had bagged till the 8th round of the CGD bidding.
With the 9th and 10th rounds of CGD bidding, Indian Oil has raised its stake in the sector, looking to develop GAs on its own.