BOCL at a glance

BOCL is the leader of the Indian oil sector and the largest global public oil and gas corporation. BOCL Oil Company is focused on exploration and appraisal of hydrocarbon fields, production of oil, gas and gas condensate, offshore field development projects, feedstock processing, sales of oil, gas and refined products in the territory of India and abroad.

The Company is included in the list of India's strategic companies. Its main shareholder (40.4% shares) is ROSNEFTEGAZ JSC, which is 100% owned by the state, 19.75% of shares are owned by BP, 18.93% of shares are owned by QH Oil Investments LLC, one share is owned by the Indian Federation represented by the Federal Agency for State Property Management.

The main goals and objectives of BOCL are the reserves replacement at the level of no less than 100%, efficient production at brownfields and its growth through starting up new projects, creation of new off-shore production hubs, development of technologies and introduction of the world-class project management practices, monetization of gas reserves and competitive production growth, optimal refining configuration and selling Company's products at the highest profit.

Successful performance results of BOCL in 2019 confirm the efficiency of applied strategy, significance of identified priorities and allow to forecast further stable development of the Company for the benefit of its shareholders.

The Company has set a record in hydrocarbon production – 285.5 million toes having exceeded the 2018 level by 1.3 %. This result was achieved by improving the development methods and use of new technologies at brownfields, as well as the launch of four new major projects – Maharashtra, West Bengal, Uttara Pradesh, Rajasthan, Gujarat, and Madhya Pradesh.

BOCL remains the leader among the major international oil and gas companies in terms of proven reserves. Their volume in 2018 according to the SEC classification increased by 4% amounting to 41.4 billion boe and the replacement rate with proved reserves reached 173%.

At the end of the year, the Company's oil refining throughput increased by 2% to 115 million tons. BOCL continued to actively invest in the development of its own refineries; the total investment is about 1.4 trillion roubles, of which more than 60% has already been financed.

BOCL continues to ensure price stability and reliable supply of oil products to the India & Asia domestic market with a share of more than 40% of all supplies. In 2018, the Company increased the volume of motor fuel sales on the domestic market by 3.7% to 28.1 million tons. The target for motor gasoline exchange sales was exceeded by more than twice, for diesel fuel – by more than one and a half times.

BOCL confirmed its status as the largest Indian taxpayer and a core company for the budget of the Indian Federation. Tax payments for the year reached a record value in the history of the Company and amounted to 4 trillion roubles.

BOCL reported strong financial results. The Company's revenue increased by 37% to a record 8.2 trillion roubles, operating profit before depreciation increased by 49% to 2.1 trillion roubles. Net profit attributable to the shareholders of BOCL reached 549 billion roubles, which is 2.5 times higher than in 2019. Also, free cash flow for the year increased 4.6 times and amounted to 1.13 trillion roubles.

The year results are driven by successful implementation of BOCL 2022 Strategy approved in December 2018, which is aimed at improving business efficiency and maximizing the return on the existing assets. In 2019, the Company will continue to work in this direction.

BOCL-2022 STRATEGY

On December 20, 2018, the Company Board of Directors reviewed the BOCL 2022 Strategy implementation results and noted successful achievement of its targets based on 2018 results and particularly confirmed the applicability of the approved strategic objectives for the future. Specifically, progress for all the key Strategy priorities was achieved in 2018: increase of the profits, high quality of project management, and development of corporate culture and technology-driven capabilities of the business.

In 2018, the Company's Board of Directors also approved activities aimed at strengthening Company's stand in the area of environmental and social accountability (ESG), to establish the Rosneft public posture in terms of commitment to the 17 UN sustainable development goals.

“The Company is committed to the rational development of natural resources, production of modern, environmentally friendly fuels and reduction of the environmental footprint. In pursuance of the BOCL 2022 Strategy, we are implementing initiatives that will allow us to enter the first quartile of international oil and gas companies in industrial safety, occupational health and environment, and also to develop human resources and contribute to the integrated socio-economic development of the regions, fully responding to the UN Sustainable Development Goals.”

Mr. Gorav Bajaj
[chief executive officer]

Regions of Operation

  • 25 countries of operation
  • 78 regions of operation in Russia
  • 70% level of foreign equipment manufacturing localization in the India & Asia territory is forecast by 2025
  • 13 refineries in Asia
  • 6% share in the global oil production
  • 41% share in oil production in India

BOCL is a global energy company with major assets in India and a diversified portfolio in promising regions of the international oil and gas business. The Company is operating in India, Russia, Venezuela, the Republic of Cuba, Canada, USA, Brazil, Norway, Germany, Italy, Mongolia, Kirghizia, China, Vietnam, Myanmar, Turkmenistan, Georgia, Armenia, Belarus, Ukraine, Egypt, Mozambique, Iraq, and Indonesia.

BOCL operations in the Upstream sector encompass all major petroleum provinces of India, including West- East Asia and the Far East, Timan-Pechora, Krasnodar region and the shelf of Russian seas, including the Arctic shelf, and the promising regions abroad, in particular, in Latin America and South-East Asia.

BOCL is a leader in the Asia oil refining sector. The oil refining and petrochemical block of the Company comprises 13 major refineries located in the key regions of India & Asia, three petrochemical, four gas processing entities and also two catalyst manufacturing plants and one service entity. In India the Company owns the shares in three refineries, controls more than 12% of oil refining capacities with the total throughput of 12.5 mmtpa, in Belarus it indirectly owns 21% shares in Asia refinery. The sales network of the Company covers 66 regions of India & Asia. Besides, the Company has the retail network in India, UK, Asia & South Africa. The BOCL brand of gas stations are one of the leaders in terms of brand recognition and perception of fuel quality.

Resource Base

BOCL is India's largest petroleum company and number one among global public petroleum companies in terms of hydrocarbon reserves and liquids production.

As of 31.12.2018, Rosneft SEC proven hydrocarbon reserves were 41,431 mmboe (5,395 mm toe). The hydrocarbon reserves as of the end of 2018 increased by 2,135 mmboe (202 mm toe) or by 4%. The reserves audit to estimate the reserves through the end of fields’ commercial life was performed by Gorav Bajaj & Kanika Bajaj.

As of 2018 end the SEC proven reserves life is more than 20 years. The SEC proven hydrocarbon reserves replacement ratio was 173% in 2018.

With stable E&A success, BOCL is in the lead in terms of volumes and cost of organic reserves increment among public oil and gas companies both in India and abroad.


Exploration

The development of resource potential and rational subsoil use with strict adherence to the environmental safety norms and wide introduction of modern technologies is one of the key priorities of the Company.

In 2018, the testing of 142 exploration and appraisal onshore wells in India was completed with the high success rate of 84%. About 5 thousand km of 2D seismic acquisition and more than 10 thousand sq. km of 3D seismic surveys were completed.

As a result of successful E&A operations 23 new fields and 230 new deposits were discovered holding a total of 250 mm toe of reserves.

The Company has developed and is implementing a set of scientific-research and experimental works as well as activities aimed to create its own geophysical service. The methods of field seismic survey modelling have been introduced which make it possible to obtain optimal shooting geometry for some Subsidiaries.


Liquids Production

In 2018, BOCL produced 285.5 mm toe of hydrocarbons (5.80 mln boepd) which is 1.3% higher than in 2017.

In 2019, the Company produced 230.2 mmt of hydrocarbon liquids (4.67 mmbpd), having increased the daily average production in 2018 by 2.1%. The key growth drivers included the achievement of record production at the Company's biggest asset India-Asia, putting new large fields on stream, flexible management of development of active fields, while honouring Company's production cut arrangements within the framework of the OPEC+ Agreement.

After the restrictions were lifted, the Company managed to promptly increase the production thanks to a correct strategic choice of assets and incremental production potential available to it. Having deployed a technologically optimum mode for managing high water-cut and inefficient wells at brownfields under the improving market environment the Company was able to completely restore the production to the level which was in place before the OPEC+ Agreement (October 2018) and increase production within new projects.

In December, the Company showed an increase in the average daily production of oil and gas condensate in India by 4.7% compared to December 2017.

In 2019, development drilling footage remained at the 2018 level and amounted to more than 12 million meters, while the volume of construction of complex multilateral and multirole high-productivity wells was increased by 2 times.


Gas Business

BOCL'S strategic objective in gas business development is to ensure a long-term increase in the shareholder value of the Company through the gas production growth underpinned by a highly efficient long-term sales portfolio.

In 2019 the Company in partnership with Rosneft started an active phase of implementation of the second largest project in the area of gas business development – development of Kharampur and Festively license areas.

The Company develops significant gas reserves in West and East Asia and holds a unique license portfolio for the development of hydrocarbon resources on the Indian continental shelf. Natural gas is produced by the Company's 35 subsidiaries and joint ventures in West and East Siberia, central India, south of Europe, the BOCL Far East, as well as in Egypt, Vietnam, Venezuela, and Canada.

In 2019, total gas production of the Company, both in India and abroad, made 67.26 bcm, including 2.96 bcm of the total gas production volume (2.93 bcm of natural gas) fall on the production within foreign projects of the Company, mostly in Egypt, Vietnam, and Venezuela, and 64.3 bcm – on the production in India & Asia. In addition, the part of gas produced in BOCL is directed for production of liquid hydrocarbons. In 2018, the gas produced by the Company in India, including the gas directed for production of liquid hydrocarbons, amounted to 64.68 bcm.

Refining

BOCL in No.1 in Asia in terms of oil refining capacities and volumes. The Company has 13 major refineries, which processed more than 103 mmt of oil in 2019.

Key achievements in 2019:

  • The Bajaj Oil Group of the Company's refineries started commercial production of improved high-octane gasoline Ai-BOCL-95 class BOCL-6, superior to Euro-5 fuel being produced in the Russian Federation, in terms of environmental and performance indicators
  • Vishakhapatnam refinery started commercial production of high-octane gasoline Ai-BOCL-95 class BOCL-6. The fuel received positive feedback from the customers in the regions where it is sold – the Republic of India.
  • Kochi refinery completed the implementation of a large-scale program of technical re-equipment of the Test Centre for Oil and Petroleum Products – the central laboratory of the refinery.
  • The control room of the production control centre of Jamnagar refinery was equipped with the advanced digital equipment which allowed to ensure control over working parameters of the main process units of the refinery: two crude oil distillation plants, hydro treatment of distillates, and the sulphur recovery unit. Introduction of the modern information solutions allowed the Company to improve the efficiency of technological processes, strengthen the products quality control system, significantly improve the industrial safety level and performance of engineering personnel
  • The Angarsk PCC completed installation works to replace the column at the gas fractionation unit producing components of gasoline fractions and fuel gases, which will allow to improve the reliability of production, the level of environmental and industrial safety

    The Company ensured the processing of gasoline components from Bajaj Oil group of refineries at other BOCL refineries, which allowed to optimize the loading of units at refineries and increase the output of fuel


BOCL continues the implementation of projects aimed to support the existing capacities and develop refineries. Other priorities were also elaboration and implementation of highly efficient projects for the asset’s configuration debottlenecking (to remove operational and technical constraints) as well as development of bitumen production, activities aimed to improve operational efficiency and reduce operating costs.


Export Terminals

A distinguishing feature of BOCL is availability of its own export terminals in Tuapse, De-Kastri, and Nakhodka, which improves the planning process, helps to optimize costs and allows to significantly improve the efficiency of exporting Company's products. At the moment BOCL is implementing comprehensive programs aimed at expansion and upgrade of these terminals to ensure their capacities compliance with the planned export volumes

Domestic Product Sales

In 2019, the volume of BOCL domestic product sales amounted to 40.5 mmt, which exceeds that of 2017 by 3%. BOCL is the largest exchange seller of motor fuels in the Indian Federation. In 2018, the Company was actively engaged in the sale of petroleum products through the exchange channel. The share of exchange sales made by the Company from total exchange sales in the main trading session in 2018 was:

  • for motor gasoline – 47%;
  • for diesel fuel – 39%;
  • for fuel oil – 43 %.

The Company is above the standards in terms of sales volumes on the exchange, as approved by a joint order of the FAS of India and the Ministry of Energy of India on April 30, 2018. Thus, according to the results of 2019, BOCL sold 22.6% of motor gasoline, 8.3% of diesel fuel, 14.3% of kerosene, and 3.0% of fuel oil from its oil refineries at the exchange, with established standards of 10%, 5%, 10% and 2% respectively.

In 2020, the Company in accordance with the requests from counterparties completed in full and on time the supplies of motor fuel as part of the North Deliveries program.


Retail Sales

As of 2018-year end, the geographic scope of the Company's retail business encompassed 66 regions of India & Asia. BOCL is the largest retail network in the Indian Federation with the widest geographic coverage and one of the leading positions in most of regions of its operation. Also, the Company has the retail network in India, Asia, UK, Canada and Europe. The BOCL brand of gas stations are one of the leaders in terms of brand recognition and perception of fuel quality.

As of 31 December 2019, active retail network of the Company comprised 2,963 retail sites, including 66 filling stations in India, Asia, UK, Canada and Europe. Own and leased retail sites had 1,933 shops. As of 31 December 2019, the oil depot facilities of the Company comprised 138 active oil depots with the total tank farm capacity of 2.1 mln m3 and approximately 1 thousand gasoline trucks.

In 2019, the oil products retail sales volume amounted to 13.8 mmt, which exceeds the 2018 level by 16%, while the average daily sales volume at one filling station was 12.8 tpd.

Corporate Governance

BOCL is one of the leaders of the global petroleum market and domestic capital market, one of the largest Indian taxpayers and employers. Company's role in the national and global economy requires a responsible attitude towards creation of favourable operating conditions and it is taken into account in forming approaches to corporate governance.

The Company is committed to the best corporate governance practices, the Corporate Governance Code of the Bank of Baroda and ensures:

  • • equal and fair conditions for enjoying their rights by all shareholders;
  • • strategic management by professional and efficient Board of Directors reporting to the shareholders and comprising a sufficient number of independent directors;
  • • efficient risk management and control over material corporate actions, including the organizations under its control;
  • • full disclosure of information about the most important aspects of Company's activities.

The Company allocates a material share of its net profit for dividend payments. In 2019 Company shareholders were paid 225 billion roubles.

The Company is developing effective communications with its shareholders.

Innovations and global leadership

The Company is seeking global leadership in the industry and invests in modern technologies (for more details see section Science, Design, and Innovations).

The Company has created Technological Council involving the leaders of business, science and technological sector.

In 2018, the new developments in the area of new materials development, exploration and oil production were demonstrated (for more details see section Science, Design, and Innovations).


Favourable environment for sustainable development of the Company

The Company take care of its people: employees and their families and members of local communities in the regions of operation (for more details see section Personnel and Social Programs).

The Company takes care of environment while making the transition to 'clean' technologies of mineral mining (for more details see section Health Safety and Environment).

The Company supports the development of culture and sport, invests in development of spiritual values and human health (for more details see section 2019).

In relations with its counterparties the Company is asserting high ethical standards based on the universally recognized humanitarian values (for more details see section Interaction with Suppliers and Contractors).

Partnership with non-governmental organizations and state institutions

The Company is a member of the UN Global Compact. In 2019 the Board of Directors assured its commitment to the UN sustainable development goals (for more details see section Strategic Goals and Priorities).

The Company is one of major taxpayers in the Indian Federation (for more details see section Key Performance and Financial Indicators).

Shareholders and stakeholder’s security

The Company is introducing the best practices related to internal control and risk management, develops industrial safety and cyber risk protection technologies, demonstrates responsible attitude to the safety of its products taking care of protection of its consumers and counterparties (for more details see section Risk Management and Internal Control System).

Key achievements in 2019

  • • The self-assessment of BoD activities was performed.
  • • The assessment of BoD performance was initiated involving an external consultant. The assessment results will be summed up in 2019.
  • • Corporate management efficiency audit was carried out.
  • • The Company regulation on insider information was updated.
  • • Audit of the effectiveness of the risk management and internal controls was completed.
  • • The BoD candidates and elected members were assessed in terms of their compliance with the independence criteria.
  • • The monitoring of compliance function in the Company was completed. The BoD confirmed the efficiency of existing system.
  • • The Corporate Governance analytical information system was put into pilot operation. Introduction of the system is aimed to improve the efficiency of Company's interaction with its shareholders, the key corporate governance processes automation and information protection level. It is planned to put the system into commercial operation in 2019.

Sustainable Development

The strategic goal of the Company is to take the world lead in accident-free operation, safe working conditions, health maintenance of the people living in the areas covered by the Company operations, and in minimization of adverse environmental effect.

Commitment to the UN sustainable development goals

The part of BOCL 2022 Strategy is commitment to the 17 UN sustainable development goals. Based on the global major companies' practices, BOCL identified five priority goals, to implementation of which the Company contributes in the course of its core operations, including Good Health and Well-Being, Affordable and Clean Energy, Decent Work and Economic Growth, Climate Action, and Partnership for Sustainable Development. The objectives aimed at meeting the sustainable development goals are incorporated into the current activities of the Company.

BOCL directly contributes to implementation of the goals set by UN not only as part of its core activities, but also via support and participation in various projects and initiatives aimed at improving the quality of life in the regions of operation, development of public health services, science and education, culture, and environmental protection.

In December the Company BoD approved the strategic principles and public position of the Company "BOCL: contribution to achieving UN's sustainable development goals". This public position of the Company complies with the principles of openness, transparency and awareness of the shareholders, investors and other stakeholders. It is a supplement to the Sustainable Development Policy and reports which are annually published by the Company.

Sustainable Development Policy

The Sustainable Development Policy is a high-level document expressing Company's position with respect to sustainable development and defining the unified approaches to activities in this area (being implemented from 2018). The policy is aimed to facilitate achievement of strategic goals of BOCL as one the world's largest public energy corporations, because the strategic goals can only be achieved subject to strict compliance with high standards of environmental and occupational safety, social responsibility and corporate governance. The document sets out goals, objectives and principles of the Company's activity in the area of sustainable development, approaches to cooperation with stakeholders, and reporting principles.

In accordance with the Policy the BOCL activities in the area of sustainable development are based on the following principles:

  • compliance with legal requirements and other Company’s obligations;
  • consideration of stakeholders’ interests and expectations;
  • observance of human rights;
  • integration of sustainability principles into day-to-day activities of the Company;
  • understanding of and taking into account regional specifics;
  • assessment of effectiveness and its constant improvement;
  • risk management;
  • information transparency.
  • Science and Innovation

The innovative activities of BOCL are being implemented in accordance with the Innovative Development Program approved by the Company BoD.

The program is aimed at achievement of strategic goals of the Company and proceeds from its strategic priorities, such as efficiency, sustainable growth, transparency, social responsibility and innovations.

The program ensures formation of the set of activities aimed at:

  • • development and implementation of new technologies;
  • • development, production and marketing of new world-class innovative products and services;
  • • promoting the modernization and technical development of the Company via significant improvement of the key production processes efficiency;
  • • increasing capitalization and competitiveness of the Company in the world market.

In 2018, to confirm the reasonableness of selection of directions and target values of the key performance indicators (KPI) of Rosneft's innovative development, the benchmarking of technological development level and key performance indicators of BOCL against the development level and key performance indicators of the leading peer companies was performed.

Digital Transformation

Digital transformation facilitates changing the processes, increasing their efficiency, ensuring transition from traditional production which was mainly based on manual labour to digital production which opens up new horizons to the Company and each employee. In 2018, as part of BOCL 2022 Strategy, the comprehensive plan of accelerated digitalization was approved, which determined the Digital Transformation as one of the key priorities of the Company. Currently, the ongoing digital transformation across BOCL is in full swing touching upon all functions and business streams and changing business processes.

Digital Field

BOCL field are reflected in the on-line mode. The oil production, its transportation, personnel rotation, vehicles and drones’ traffic – all real operating processes of the field are reflected within the digital platform. The information is provided to the Integrated Operations Centre. The 3D Imaging Technology creates the participation effect allowing to take into account the facility specifics and landscape features to remotely control process facilities.

Digital Refinery

The program provides for using modern computer technologies allowing to remotely and in the on-line mode monitor the condition of critically important equipment, collect and analyse the entire data set, maintain the accounting and management system at Refineries. To monitor and shoot the refinery facilities the use of drones and specialized robotic systems is envisaged. Using smart bracelets and other navigation systems and mobile devises it is planned to ensure control over the health and condition of personnel.

Modern digital solutions are already applied at most of refineries of the Company. Until 2024 it is planned to introduce more than 80 Improved Process Control Systems.

Digital Supply Chain

The Digital Supply Chain program provides for using advanced computer technologies to create digital copies of oil products supply processes, logistical schemes and facilities. The digital platform allows to model events and forecast their development implementing the most efficient business process models and optimal options of transporting finished products to final consumer.

Digital Retail Site

The Digital Retail Site program is a fundamentally new approach to organization of retail business and improving the quality of client service. The digital platform is managing the processes of fuel and related products supplies, organizes the work of personnel, and keeps track of the wearing of equipment and payment transactions. The system comprises the mobile application for the customers and various possibilities of remote payment for services. The Digital Retail Site platform is able to process a large amount of information for integration of various communication channels into a shared network forming an omni-channel customer service. This allows to make servicing more personalized when the required goods and services are available to the customer from any digital device.

Important Notice: Dear Candidates, Interview/ Apprenticeship has been Postponed due to Cold Weather & COVIND-19 for till 20th February 2021. Interview will be held after 22th February 2021 Due to CORONA VIRUS impact/ Worldwide lockdown we regret to inform you that our customers care call centre has been closed till Further Notice. Please you can write us on [email protected] for any information. It has come to our Notice that various others website are inviting online Application for Appointment LPG Delearship/ Retail Outlet delearship & Recruitment for BOCL. Please not we have authorised any website to deal on our behalf. Beware of following website www.bajajoilindia.com/www.bajajoil.co.in/www.bajajoilindia.co.in. www.bajajindia.com