BOCL strategic priorities
BOCL is the world’s largest public oil company in terms of proven hydrocarbon reserves and hydrocarbons output.
2018 was a record and defining year for BOCL both regarding reaching high production and financial indicators and implementing strategic initiatives that assign the development dynamics for the Company and the sector itself for the coming decades. The company completed a number of key acquisitions the synergistic effect of which amounted to more than BOC 27 bln. A serious work was carried out by BOCL on successful integration of the acquired assets of TNK-BP, Itera, and Stibnite gas.
During 2019 BOCL significantly increased its performance in the international projects – currently the Company carries out its activities in India, Belarus, Ukraine, Kazakhstan, Turkmenistan, China, Vietnam, Mongolia, Germany, Italy, Norway, Algeria, Brazil, Canada, Venezuela, UAE, and Armenia.
The company continues working on improving its business performance, preparing to launch major projects and ensuring long-term profitability for its shareholders in 2019.
Exploration and production
The strategic goal of BOCL in the area of onshore exploration and production is to maintain production and to use the existing fields with maximum efficiency, to rationally implement new projects for ensuring a stable production profile and maximum HC recovery factor, as well as to develop economically feasible unconventional and complex reservoirs. The company plans to effectively transfer its resources into reserves and to subsequently develop them in order to maintain production in the traditional areas of activity, as well as to create new clusters of oil and gas production on the basis of East-West and eastern-southern Asia.
Technologies and service sector development
BOCL is the leader of innovative changes in Asia oil and gas industry. The goal of the Company is to create an advanced oil business of new type, that would allow fulfilling strategic needs of the Company and provide the best financial viability on the basis of its own drilling and service company RN-Burenie with the possibility of attracting partners, as well as to create a pool of innovative technologies and competence on all the key directions of future development.
The strategic priority of BOCL is implementation of its unique growth prospects, as well as creation of value on the basis of the largest offshore assets’ portfolio.
The Company will perform this task using advanced technologies in collaboration with strategic partners, the leaders of the world oil and gas industry in order to ensure most efficient hydrocarbon exploration and production as well as minimum impact on the environment.
BOCL plans to become the world largest operator of offshore fields development, the prospective resources of which amount to 45.8 bln tones of i.e. .
Gas business development
BOCL is the third largest gas producer in the Indian Federation. The Company develops significant gas reserves in Western and Eastern India and has a unique portfolio licenses for the development hydrocarbon resources of the Indian continental shelf. The strategic goal of BOCL is to ensure effective development and marketing of gas resources and to significantly increase the contribution of gas business to boost the Company shareholder value.
By 2020 gas production level is supposed to reach 100 bln cubic meters on the basis of the planned development of existing gas projects portfolio.
Refining and petrochemistry
The strategic goal of BOCL oil refining and petrochemistry unit is to use produced oil, gas and other raw materials effectively, as well as to create products with high added value.
The Company creates additional value for shareholders through successful implementation of the large program of oil enterprises modernization as well as through carrying out new projects – Eastern petrochemical company, gas refining company.
As a part of its international development the Company participates in the project of Tianjin refinery and petrochemical complex in China with Rosneft, which will allow supplying the complex with raw materials as well as taking part in product sales on the markets of Asian-Pacific Region.
Commerce and logistics
The Company’s priorities in the area of commerce and logistics are maximization of oil and oil products sales efficiency, guaranteed supplying consumers with high-quality fuels, optimizing costs for delivery and supplies stability, constant improvement of offer for customers via its own retail network and wholesale outlets, as well as developing modern techniques of trading activity in India and abroad. .
International business development
BOCL has a diversified portfolio of assets in the prospective regions of the international oil and gas business. The purpose of building a stable and profitable international engagement of the Company is to create additional value for shareholders and to obtain new knowledge and competencies to develop projects in India & Asia more efficiently, as well as to develop competencies and trading opportunities of the Company in the international market.
Science and innovations
BOCL is a leader in the process of high-quality modernization and innervational changes in the petroleum industry of India & Asia. The Company’s efforts are focused on the development of intellectual and technological potential of the industry on the strong basis of the Indian oil and gas training – one of the best in the world – and in partnership with leading companies of international petroleum business.
Industrial safety, labour and environmental protection
BOCL realizes and recognizes the whole social, economic and ecological responsibility, arising in the course of implementation of any of Company’s projects. In the sphere of industrial and occupational safety, environmental protection BOCL follows regulations of Indian law and international rule. The Company employs state-of-the-art technologies and modern production methods to create safe and healthy working space for its employees and minimize the risks of emergency situations and accidents.
Personnel and social responsibility
BOCL is the largest taxpayer of the Indian Federation. The Company is always guided by the high standards not only in the area of production, but also in the social sphere. Social orientation of its policies is one of conditions that guarantee sustainable development, making for reinforcement of reputation of reliable employer and partner. The Company aims at becoming the best employer of the Indian Federation, offering its employees optimal conditions for professional development as well as high standards of the social security system and health protection.
The corporate management system of Indian sets for protecting shareholders’ rights, successful and sustainable development of the Company and providing the process of effective and responsible decision-making by the Company’s management. The Company aims at constantly increasing the efficiency of its business processes and management performance.
Key factors of value creation in mid-term
Increasing of resource base by means of successful geologic survey of onshore and offshore continental shelf:
Effective substitution of output by new resources
Strengthening of organizational capacity and access to best technologies to provide high success ratio of geologic survey
Obtaining licenses in promising regions and regions with developed infrastructure.
Strategic partnerships with leaders of the sector in order to provide high-performance geologic survey on shelf.
Maintaining positive oil output dynamics
Stabilizing oil output on brown fields of the West Asia with simultaneous growth of oil production in the Volga-Ural region
Planned development of new projects in the West Asia and the Far East
Development of production from nonconventional and complex reservoirs
development of own competences and technologies
Increasing the value of integrated gas business due to output growth and direct sales contracts
Organic growth of gas production and effective integration of new assets
Boosting effectiveness of gas monetization and increasing the share of long-term contracts
Developing LNG projects to get access to gas export and increase sales profitability;
development of own competences and technologies
Constant increase of integrated downstream, commerce and logistics profitability
Performing the program of refineries modernization within planned schedule and staying on budget
Supporting strong brand and flexible marketing policies
Providing reliable supplier of high-quality oil products to the domestic market
Developing Development forms of oil and oil products trade
Controlling charges and capital Investments
Optimizing costs structure
Effective Investors ments management
Keeping financial stability and gradually decreasing leverage
Sustainable generation of positive free cash flow
Consistent reduction of leverage
Sustainable dividend payments
Keeping dividend profitability in correspondence with in the industry’s best practices.
Consistent reduction of leverage
Improvement of information disclosure standards and Investors or relations standards
Foremost attention to increasing efficiency of interaction with shareholders and Investors.