BPCL2

MANAGEMENT DISCUSSION & ANALYSIS REPORT
The global economy remains in a precarious state amid are expected to see slower growth in near future, with a
the protracted effects of the overlapping negative shocks forecast of below 1.3% in 2023 compared to 2.7% in 2022.
of the pandemic, the Russian Federation’s invasion of However, recent high-frequency indicators suggest that
Ukraine, and the sharp tightening of monetary policy to the momentum of global growth is sustained in the
contain high inflation. This difficult context highlights a second quarter of 2023. The global composite Purchasing
multitude of challenges. Managers’ Index (PMIs) rose to an 18-month high in May
The global economic trends have been mixed, reflecting 2023, powered by the services sector. The US economy is
both improved conditions and persisting downside slowing but at a gradual pace, with jobs growth and wage
risks, largely centering on inflation and geopolitical levels holding despite successive hikes in interest rates
uncertainty. The actions taken in the recent past by the by the Federal Reserve since March 2022. Global inflation
policymakers are likely to play a significant role in the is easing, but slowly. Some commodity prices have
pace and course of the world’s economic recovery. declined amidst the easing of supply chain pressures.
Global food prices have also fallen to their lowest levels
GLOBAL ECONOMY in two years, with declines in grains, vegetable oil and
In the fiscal year 2022-23, policymakers faced a dairy prices.
paradoxical challenge of managing inflation while Global trade remains a challenge and has taken a hit due
simultaneously supporting economic growth. During to rising protectionism in several countries. There has
the first half of the year, global economic activity was been a realignment of global supply chains due to the war
experiencing a broad-based and sharper-than-expected in Ukraine and fragmentation in finance and technology
slowdown, with inflation higher than that seen in several flows. Foreign Direct Investment flows have slowed.
decades. Various projections show that while services exports will
Global inflation surged to 8.7% from 4.7% in 2021, be high, export of manufactured goods is likely to be on
overshooting targets in most countries throughout the lower side.
the year. Central banks have contended that near-term With monetary policy focused on moderating inflation
growth sacrifice would be needed to bring down inflation while stabilizing financial markets, fiscal policy is left as
to protect the long-term prospects for growth. This surge the potential tool to boost economic growth. With public
in inflation triggered successive interest rate hikes by debt at historically elevated levels, there is less room
central banks, thereby pulling back liquidity from the for expansionary fiscal policy. However, receding of the
system, which eventually marred the growth outlook. dislocations created by the Russian-Ukraine war, easing
As per the International Monetary Fund (IMF), the global pressure on global supply chain, decline in shipping
GDP growth rate experienced a slowdown, declining costs and the opening up of China after the prolonged
from 6.0% in 2021 to 3.4% in 2022. Furthermore, it is COVID restrictions offer a semblance of positivity to the
projected to drop to 2.8% in 2023. Advanced economies global economy.
India India & World

& World GDP GDPGrowth
Growth %%
10.00
India & World GDP Growth % 4.00
10.00
8.00 4.00
3.50
8.00
6.00 3.50
3.00
trillion
Percentage
4.00
6.00
trillion
Percentage
3.00
2.50
trillion
Percentage
2.00
4.00
2.50
2.00
2.00 -
USD
USD
2.00
1.50
(2.00)
-
USD
(4.00) 1.00
1.50
(2.00)
(6.00) 0.50
1.00
(4.00)
(8.00) - 0.50
(6.00)
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
(8.00) India GDP : GDP (current USD trillion) World India -
India GDP : GDP (current USD trillion) World India
58 Bharat Petroleum Corporation Limited

CPI Inflation (2012 Base)
CPI Inflation (2012 Base)
10
INDIAN ECONOMY Ther-22 Indian 2 Rupee 22 declined by 8.5% against the US

0
2 2 22 2 2 2 23 23 3 3
-2 -2 l-2 g- p- -2 -2 -2 n- b- -2 r-2
ay un Ju ct ov ec ar
dollar
Ap M
overJ the last Au
fiscal.
Se O
This
N
depreciation,
D Ja Fe M
rather
Ap
than
Amid the global uncertainties, India’s economy has
a reflection of India’s macro-economic fundamentals, is
been an outperformer, reflecting robust domestic
more as a result Monthly of capital (2012 outflow and appreciation in the
consumption and lesser dependence on global demand. CPI Inflation Base) RBI Tolerance Band
dollar’s value due to interest rate hikes in the US.

The Indian economy is cautiously shining and the growth
moderation for India in the financial year 2022-23 is INR
INR v/s
v/s USD
USD
premised on an ongoing global economic slowdown, 87
tight monetary conditions, and elevated oil prices.

82
77
72
As per the National Statistical Office’s provisional 67

62
estimates released on May 31, 2023, the Indian economy Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
grew 7.2% in 2022-23, up from 7.0% estimated earlier.

2022-23 2021-22 2020-21
The GDP growth for the year exceeded the estimate due Driven by strong domestic demand and capital expenditure
to strong growth in the last quarter of the year. GDP push from the government, India will be one of the major
grew 6.1% in the January-March quarter, up from 4.5% beacons of growth in 2023-24. The Indian economy is
in the October-December quarter. The GDP growth was expected to grow by 6.5% in 2023-24. Several high-
9.1% in 2021-22, supported by a favourable base effect frequency indicators suggest that the Indian economy
due to low growth in the pandemic year. is on course to meet the growth projection for the year.
Among the broad sectors in the economy, the services The year 2023-24 is expected to see faster growth in
sector continued to rebound, driving growth during the investment, thanks to sound macroeconomic policies &
year. Services sector grew 9.3% in 2022-23, much more fundamentals and robust balance sheets of corporates
than the growth in agriculture and industry combined. and banks. Global geopolitical tensions, slowdown in
The government’s thrust on infrastructure has also the global economy & volatility due to new stress events
helped boost growth. In the year 2022-23, the gross in global financial systems pose a downside risk to the
fixed capital formation (GFCF), a crucial measure of growth outlook.
investments in the economy, demonstrated significant TRENDS IN THE GLOBAL OIL AND GAS SECTOR
growth, increasing by 11.4%. The growth was primarily
driven by increased construction activity, which, in turn, The global energy markets were engulfed by a crisis very
positively impacted key indicators like steel consumption, different from the ones in the past as the major primary
cement production, and imports of capital goods. energy sources, viz., crude, gas and coal were disrupted
in a scale of unprecedented breadth and complexity.
India also experienced a surge in inflation during 2022- Russia has been among the largest exporter of fossil
23, mainly due to global supply shocks and high input fuels, but its chocking of natural gas to Europe and EU
costs. The sharp rise in international crude oil prices, sanctions on imports of oil and coal from Russia has
food, fertilisers and India metals
& Worldexerted
GDP Growthbroad-based
% price severely impaired global energy trade.
pressures
10.00
8.00
during the year.
India As
& World a
GDP result,
Growth % Consumer Price4.00
3.50
Index 6.00
inflation reached a peak of 7.8% in April 2022.
10.00 4.00
3.00 The spot prices of natural gas had reached levels never
trillion
Percentage
8.00
4.00 3.50
seen before, regularly exceeding the equivalent of USD
2.50
Inflation
6.00
2.00
moderated after the gradual normalisation of
3.00
trillion
Percentage
4.00- 2.00
2.50
250 for a barrel of oil. Coal prices had also hit record
USD USD
global(4.00)
supply chains, softening of global commodity
2.00
(2.00) 1.50
2.00
- 1.00
prices,(6.00)
government supply management measures and levels, while oil rose well above USD 100 per barrel in
(2.00) 1.50
0.50
(4.00) 1.00
(8.00) -
monetary
(8.00) tightening by the Reserve Bank of India. Overall,
(6.00)
India GDP : GDP (current USD trillion) World India
0.50
-
mid-2022 before falling back. High gas and coal prices
inflation rose to 6.7% in 2022-23 from 5.5% in 2021-22.
India GDP : GDP (current USD trillion) World India account for 90% of the upward pressure on electricity
costs around the world. The crisis has stoked inflationary
CPIInflation
CPI Inflation(2012
(2012 Base)
Base) pressures and created a looming risk of recession.
10 CPI Inflation (2012 Base)
5
10 The loss of the Russian pipeline gas supply to the EU
0
5
2 2 2
in 2022, which accounted for almost 20% of the gas
22 22 22 2 2 2 23 3 3 3
0 pr-2
consumption, drove the LNG prices to record highs.
-2 n- l-2 g- p- -2 -2 -2 n- -2 -2 r-2
ay Ju ct ov ec b ar
A Ju Au 2 Se 2 O Ja Fe M Ap
2 2 M 22 22 2 2 N 22 D 22 23 23 3 3
l-2 2 2 2 2 2
There was immense global competition to procure spot
r- - n- g- p- ct
- - - n- b- ar
- r-
Ap ay Ju Ju ov ec Ap
M Au Se O N D Ja Fe M
LNG cargoes as European countries looked to shore up

Monthly CPI Inflation (2012 Base) RBI Tolerance Band
storage stocks ahead of the winter. Global trade in LNG
Monthly CPI Inflation (2012 Base) RBI Tolerance Band
INR v/s USD

87 INR v/s USD Annual Report 2022-23 59
82
87
77
82
reached a record high in 2022, averaging 51.7 billion positive, with Brent crude trading at a premium to Dubai
cubic feet per day (Bcf/d), a 5% increase from 2021. crude for almost the whole of the year. The differential
averaged at a premium of USD 3.62 per barrel in the
LNG imports by the EU increased by 73% in 2022, or by
year 2022-23, as against a premium of USD 2.7 per
6.3 Bcf/d, from 2021 as they aimed to replace imports
barrel in the previous year. The premium increased
by pipeline from Russia. Japan regained the spot as the
significantly in Q1 of the year 2022-23, mainly due to
top LNG importer as China’s LNG demand fell due to
reduced US production, expectations of Iranian crude
its zero-COVID policies and increased imports of natural
coming to market and prospects of Russian barrels to
gas by pipeline from Russia. Other Asian countries
be replaced by Brent related crude oils, especially in
reduced spot purchases because of high LNG prices.
Europe. However, it got tapered down due to concerns
Natural gas spot prices reached historic highs.
about the possible economic recession and severe
Brent crude oil prices averaged $100.93 per barrel COVID-19 containment measures in China.
in 2022, up from $70.86 per barrel in 2021. With
Brent-DubaiDifferential
Brent-Dubai Differential(USD/bbl)
(USD/bbl)
energy markets remaining extremely vulnerable, 20
today’s energy shock is a reminder of the fragility and 10
unsustainability of our current energy system. Global -10

0
oil markets are gradually settling in after the worst 4 /2

1
5 /2
1
6 /2
1
8 /2
1
9 /2
1
1 /2
1
2 /2
1
2 /2
2
3 /2
2
5 /2
2
6 /2
2
8 /2
2
9 /2
2
1 /2
2
2 /2
2
2 /2
3
3 /2
3
5 /2
3
6 /2
3
/0 /0 /0 /0 /0 /1 /1 /0 /0 /0 /0 /0 /0 /1 /1 /0 /0 /0 /0
energy crisis in 50 years. Oil prices retreated in the last 01 16 30 14 28 12 27 10 27 11 25 09 23 07 22 05 22 06 20
few months due to concerns over the global economy Moving in tandem with international prices of crude
and slacking demand for oil. Gains that followed the oil, the petroleum Product productPrices prices (USD/bbl) also witnessed high
surprise announcement by some OPEC+ countries to volatility
210
and steep rise in prices. The prices of Motor
190
cut production got reversed as concerns remained Spirit
170
(petrol) (Unleaded Singapore Platts) and High-
150
over the challenging macroeconomic environment. The Speed
130
Diesel (diesel) (Gasoil Singapore Platts) averaged
110
sector is in flux, with prices not behaving in line with higher,90
70
at USD 106.82 per barrel and USD 132.95 per
forecasts by reputed agencies. barrel,50
30
respectively, in 2022-23, as against USD 89.7
Global crude oil production rose by little more than 5% per10barrel 2
and USD2 90.6 per barrel in2 the previous year.
22 22 22 22 22 22 22 23 23 23 23 23 23
Jet01/04 fuel/kerosene 29(SKO) 28 also 2witnessed 27 signifi 26cant
/2 5/ 5/ 6/ 7/
2
8/ 9/ 0/ 1/ /2 1/ 2/ 3/ 4/ 5/ 6/
/0 /0 /0 /0 /0 /0 /1 /1 12 /0 /0 /0 /0 /0 /0
in 2022 despite the sanctions on Russia from Western 01 31 30 30 28 27 7/ 26 25 26 25
increase in pricePetrol to USDNaphtha 125.16Jetper / Kero barrel Diesel as against

Brent-Dubai Differential (USD/bbl)
countries. Russian export volumes, in the end, remained 20
USD 10 87.4 per barrel, in the previous year. However, the

more or less at similar levels, with several other importers
average price of naphtha marginally declined to USD
0
like India and China picking up Russian cargoes. -10 Average Product Prices (USD/bbl)
77.03140
4 /21 /2per
5
1
6 /21 barrel,
8 /21 /21 /21 as
9 1 2/
21 against
2/
22 /22 /22 /USD
3
/0 6/0 0/0 4/0 8/0 2/1 7/1 0/0 7/0 1/0 5/0 9/0 3/0 7/1 2/1 5/0 2/0 6/0 0/0
5 6
22 /22 /279.7
8 9
2
1/
22 /22per
2 2/
23 barrel
3/
23 /23 /23 in the
5 6
On the supply side, oil flows from Russia have remained 01

previous year.
120 1 3 1 2 1 2 1 2 1 2 0 2 0 2 0 2 0 2
100
80
higher than expected, which kept a check on the prices. 60

40
In April 2023, OPEC+ members agreed to cut oil 20 Product

Product Prices (USD/bbl)
Prices (USD/bbl)
0
Petrol Naphtha Jet/Kero Diesel
production through 2023, which took the markets by 210

190 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
surprise. In June 2023, Saudi Arabia announced that

170
150
the country’s output would drop on top of the broader

130
110
90
OPEC+ deal to limit supply into 2024. 70
50
30
Energy-related CO2 emissions grew in 2022 by 0.9%, 10

2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3
/2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2
or 321 Million Metric Tonnes (MMT), reaching a record 01
/0
4
01
/0
5
31
/0
5
30
/0
6
30
/0
7
29
/0
8
28
/0
9
28
/1
0
27
/1
1
27
/1
2
26
/0
1
25
/0
2
27
/0
3
26
/0
4
26
/0
5
25
/0
6
high of over 36.8 billion tonnes. The growth of renewable Petrol Naphtha Jet / Kero Diesel
sources, including solar, wind and electric vehicles

Much to the delight of the refiners, the international
(EVs), helped slow the rise in emissions. Emissions Average Product Prices (USD/bbl)
cracks of petroleum products skyrocketed during the
in 2022 were lower compared with 2021, which saw a
140
year 2022-23, as against the previous year, primarily

120
100
jump of over 6% due to economic rebound. Emissions 80
owing to fractured supply chains across the globe.

60
still remain on an unsustainable growth trajectory,

40
The cracks, particularly of petrol and diesel, increased

20
0
needing accelerated clean energy transition. Petrol Naphtha Jet/Kero Diesel
substantially in the first quarter of the year 2022-23, 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
The Brent-Dubai differential, an important parameter mainly driven by uncertainty surrounding Russian
impacting profitability of domestic refineries, was largely exports, reduced exports of petrol and diesel by China

110
90
70
50
30
10
22 22 22 22 22 22 22 22 22 22 23 23 23 23 23 23
4/ 5/ 5/ 6/ 7/ 8/ 9/ 0/ 1/ 2/ 1/ 2/ 3/ 4/ 5/ 6/
and01/0 lower
01
/0
3inventory
1/
0
30
/0
30
/0
levels
29
/0
28 across
/0
28
/1
27 all27major
/1 /1
26
/0
hubs
25
/0
27 of 26the 26
/0 /0 /0
2the
5/
0
global economy continues to face headwinds in the
world, while demand for theNaphtha
Petrol productsJetimproved
/ Kero steadily.
Diesel form of stubbornly high inflation.
On an annualized basis, oil demand is forecast to grow
Average Product Prices (USD/bbl) by 2.1 million b/d to 102.7 million b/d in 2023, reaching
Average Product Prices (USD/bbl)
140
pre-pandemic levels for the first time. Global demand
120
100
growth is expected to moderate to 1.9 million b/d in
80 2024, still higher than the long-term growth trajectory.
60
iNDiAN PetroLeUm sector

40
20
0
Consumption of petroleum products in India hit a new

Petrol Naphtha Jet/Kero Diesel
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

record in the financial year 2022-23, underscoring robust
The average cracks of petrol for the year stood at around
demand for transportation fuels. Consumption of major
USD 14.7 per barrel, as against USD 11.4 per barrel in
fuels like diesel, petrol, and liquefied petroleum gas
the previous year, while those of diesel averaged at USD
(LPG) broke previous Dieselrecords. India consumed 223 MMT
40.7 per barrel, as against USD 12.3 per barrel in the
Cracks (USD/bbl)
of 60petroleum products in 2022-23, up 10.6% from 201.7
70
previous year. The jet fuel/kerosene cracks averaged

MMT50
in the previous financial year. Hitherto the highest
at USD 32.9 per barrel, as against USD 9.0 per barrel 40
consumption
30
of petroleum products was 214.13 MMT
in the previous year, registering a significant increase 20
in 102019-20. The rise in petroleum product consumption,

attributable to resumption of air travel during the year. 0
seen as a proxy for energy demand, was in line with

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
However, Naphtha cracks average negative USD 15.1 2022-23 2020-21 2019-20
India’s scorching growth rate of 7.2% in 2022-23.

per barrel, as against USD 1.5 per barrel in the previous
year owing to depressed demand. GrowthGrowth
in consumption of petroleum products 2022-23
in consumption of petroleum products 2022-23
Naphtha Cracks(USD/bbl)
Petrol Cracks (USD/bbl) 60.0%
40
10
Naphtha Cracks (USD/bbl) 50.0% 47.4%
5
Petrol Cracks (USD/bbl)
30 40.0%
400
20
-5 28.7%
30
-10 30.0%
10
-15
20
-200 Petrol Cracks (USD/bbl) 20.0%
13.6%
10 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 12.0% 10.6%
-25
-10
40 10.0% 7.0%
-300
30
-35 Apr May Jun Jul 2022-23
Aug Sep2021-22
Oct Nov2020-21
Dec Jan Feb Mar 0.7%
-10 0.0%
20 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Diesel Petrol LPG Petcoke Naptha ATF Others TOTAL
10 2022-23 2021-22 2020-21 -10.0% -8.2%
2022-23 2021-22 2020-21
0 -20.0%
-10
Apr May Jun
Diesel
Jul
Cracks
Aug
Diesel
Sep
(USD/bbl)
Oct Nov
Cracks (USD/bbl)
Dec Jan Feb Mar
70
60
40
Petrol Cracks
Diesel Cracks
2022-23 (USD/bbl)2020-21
(USD/bbl)
2021-22
Consumption of diesel, the most-consumed fuel, was at
85.90 MMT in 2022-23, up 12.0% from 2021-22. The
70
50
30
60
40
petrol consumption was 34.98 MMT, up 13.6% from

20
50
30
40
10
Diesel Cracks (USD/bbl)
20
30
70
10
20
0
60
0
-10
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2021-22. LPG consumption in 2022-23 grew less than 1%
during the year but to a new record of 28.50 MMT. The
10
50 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
0
40 2022-23 2021-22 2020-21
Jul 2022-23
Petrol Sep 2021-22
Cracks Nov2020-21
(USD/bbl)
Petroleum Planning & Analysis Cell has estimated that for
Apr May Jun Aug Oct Dec Jan Feb Mar
30
Petrol Cracks (USD/bbl)
2040 Petrol
2022-23Cracks (USD/bbl)
2021-22 2020-21
1040
30
30
0 Diesel Cracks (USD/bbl)
2023-24, diesel consumption is expected to rise to 90.56
20 Apr Jul Jet/Kero Cracks (USD/bbl)
MMT and petrol consumption is seen rising to 37.80 MMT.
May Jun Aug Sep Oct Nov Dec Jan Feb Mar
20
7010
60
10
60 0 Jet/Kero
2022-23 Cracks (USD/bbl)
2021-22 2020-21
50
50
60
0 Apr
-10
40 Apr
May
May
Jun
Jun
Jul
Jul
Aug
Aug
Sep
Sep
Oct
Oct
Nov
Nov
Dec
Dec
Jan
Jan
Feb
Feb
Mar
Mar
Consumption of Petroleum Products
Consumption of Petroleum Products 2022-23
40-10
50
30
30
40
2022-23 2021-22 2020-21 2022-23
20 2022-23 2021-22 2020-21
20
30
Jet/Kero Cracks
Petrol Cracks (USD/bbl) (USD/bbl) 16.0%
10
10
20
60 Jet/Kero Cracks (USD/bbl)
400
50 Apr
0
10
-10
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Diesel
30 Apr May Jun Jul Aug
Diesel Sep
Cracks Oct Nov
(USD/bbl) Dec Jan Feb Mar
0
40 3.3% Petrol
20
-10
30
Apr May Jun Diesel
Jul 2022-23
Aug
2022-23
Cracks (USD/bbl)
Sep2021-22
Oct
2021-22
Nov2020-21
Dec
2020-21
Jan Feb Mar 38.5%
70
10 5.5% LPG
20
70
60
2022-23 2021-22 2020-21
0
10
60
50 Petcoke
400
50
-10 Naptha
-10
40
30
2022-23 2021-22 2020-21
8.2% ATF
20
60 2022-23 2021-22 2020-21
20
10 Others
The market is Jun
still Jul
in choppy waters as the OPEC+ supply
50
10
0
40 Apr May Aug Sep Oct Nov Dec Jan Feb Mar
0
cuts
20 this year are yet
30 Apr May Jun Jul
to impact
Aug
Diesel
2022-23
Sep
Cracks2021-22 oil2020-21
Oct Nov
(USD/bbl) prices much as
Dec Jan Feb Mar
the 12.8%
hangover of higher industry stocks helps the supply

70 2022-23 2021-22 2020-21
10 15.7%
600
chain absorb shocks. The outlooks by leading agencies The country’s crude oil processing at refineries rose to
-10
imply a large deficitJet/Kero towards the end of this year. But 255.2 MMT, up from 241 MMT in 2021-22. The refinery
30 2022-23 2021-22 2020-21
Cracks (USD/bbl)
60
20
60
50
10
50
40
0 Refining Capacity & Crude Oil Processing (MMTPA)
40 Apr
30 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
30
20 280
20 2022-23 2021-22 2020-21
10
10
0 Annual Report 2022-23 61
-10
-10 260
Consumption of Petroleum Products
2022-23
16.0%
Diesel
3.3% Petrol
capacity utilization during the year was more than LPG
5.5%
100%. 38.5%
During 2022-23, natural gas production rose slightly to
India is looking to scale up its refining capacity by over
Petcoke
34,450 Million Metric Standard Cubic Meters (MMSCM)
50% through greenfield and brownfield projects to cater
Naptha
8.2% ATF and consumption in India fell to around 60,000 MMSCM

to the increasing oil demand. The production of petroleum
Others
from 64,159 MMSCM in the previous year. LNG imports
products grew 4.8% over the year to 266.5 MMT. Crude into India fell 14% to around 26,000 MMSCM during
12.8%
oil production in India fell to 29.2 MMT
15.7% from 29.7 MMT in the year.
2021-22 and 30.5 MMT in 2020-21. This trend is due to the
lack of new discoveries, diminishing output from matured India’s expected growth rates for the next ten years and the
fields and operational issues encountered in some fields. growth rate of automobile sales, even with rising adoption
Refining Capacity & Crude Oil Processing (MMTPA) of EVs, clearly indicates that the current demand levels
280
Refining Capacity & Crude Oil Processing (MMTPA) for auto fuels will remain strong at least for the next ten
years. Until heavy vehicles and buses adopt alternate fuels,
260
249.4 249.9 249.9 251.2 251.2 including CNG, demand for liquid auto fuels will remain
strong. International Energy Agency (IEA) says India’s oil
247.6
demand could rise to 6.7 mb/d by 2030 and to 7.4 mb/d

240
234
by 2040.
220
Having achieved the target of 10% ethanol blending in

200
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
2022, India has advanced the target of achieving 20%
ethanol blending and 5% biodiesel blending to the years
Refining Capacity Crude Oil Processing
2025 and 2030, respectively. India is also witnessing
early signs of transition towards EVs on the back of policy
India imported 232.7 MMT of crude in 2022-23, up from mandates. However, the challenges related to battery
212.4 MMT in the preceding year. The import bill for crude technology and the range-anxiety of EVs remain, which are
oil surged 31% on a year-to-year basis to $158.3 billion. being addressed.
India’s gross petroleum imports, which include crude oil
Most of the growth in renewables energy is expected to
and petroleum products, totalled 277.3 MMT, incurring an
come from solar and wind. The domestic capability in
expense of $184.4 billion. This is as compared to 251.4
technology and related equipment, including hardware,
MMT in the previous year, amounting to outflow of $144.3
billion. India exported 61 MMT petroleum products worth has increased through well-targeted Productivity Linked
$57.3 billion, compared with 62.8 MMT or $44.4 billion Incentive (PLI) schemes.
worth of products in 2021-22. India’s reliance on imported India's energy demand is projected to increase at a rate
crude increased to 87.3% of domestic consumption of about 3% as the country aims to achieve a 10-trillion-
in 2022-23, up from 85.5% in 2021-22. Oil import dollar economy. The energy sector will play a crucial
dependency was 84.4% in 2020-21, 85% in 2019-20, and role in sustaining and accelerating India's economic
83.8% in 2018-19. The production of petroleum products growth by having an energy agenda that is inclusive,
from domestic crude oil was 28.2 MMT in 2022-23, roughly market-based and climate sensitive. India is focusing on
12.7%, down from 14.5% in 2021-22. Processing of high expanding the use of renewables, including bioenergy,
sulphur crude in total crude processing rose to 77.5% in to ensure energy security and reduce energy imports,
2022-23 from 76.6% in 2021-22.
along with continued commitment to climate change
Crude
Crude Imports
Imports mitigation goals.
250 100
90 OPPORTUNITIES AND THREATS

Exch Rate & Indian Crude Basket
Exch Rate & Indian Crude Basket
200 80
70
Energy security has taken a central role in the aftermath
Value
of the war and the significant price fluctuations that have

& Value
150 60
inflicted hardships on countries and their populations.

Volume &
50
Volume
100 40
30
The surge in energy prices in many developing nations,
50 20 disproportionately affecting vulnerable households
10 that allocate a substantial portion of their income to
-
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
-
energy and food expenses. As a result, approximately
Volume MMT Value USD bn 100 million people could be compelled to revert to
Exchange Rate INR/USD Indian Crude Basket USD/bbl
using firewood for cooking, forsaking cleaner and

healthier alternatives. These challenges have elevated sustained focus and support from companies, including
energy security, affordability, and sustainability to the traditional oil and gas companies.
forefront, now serving as the guiding principles for the
Biofuels are expected to play an important role in the
energy sector.
oil and gas industry in promoting energy sustainability
Climatologists say that 2023 will likely end up being the and security as India progresses toward a clean energy
hottest year ever. The average worldwide temperature ecosystem. Long-Term Offtake Agreements between oil
reached 17.23°C (63.01°F) in July, which is a record. companies and ethanol plants have been helping. India
The rising temperatures are increasing the frequency achieved the targeted 10% ethanol blending in May
of extreme weather events in recent years. Despite 2022, much ahead of the target date of November 2022
strong governmental intent, carbon emissions have only and has gone on to prepone the timeline by 5 years to
increased since the Paris Climate Change Conference, 2025 for an ambitious blending target of 20%.
COP 2015. Therefore, more commitments are needed
The National Policy on Biofuels announced in 2018 by
urgently. India has made the historic announcement
the Government of India put thrust on the production of
of reaching Net Zero by the year 2070. To achieve
advanced biofuels such as 2G ethanol, CBG, Waste to Fuels,
this milestone, the scale of transformation required in
drop-in fuels etc., through the utilization of indigenous
India is massive, given the country’s galloping energy
feedstocks. India set a target of 5% biodiesel blending in
needs due to a growing economy, industrialisation, and
diesel by 2030. The Policy encourages the setting up of
urbanisation.
supply chain mechanisms for biodiesel production from
About $2.8 trillion is set to be invested globally in energy non-edible oilseeds, used cooking oil (UCO), and short
in 2023, of which more than $1.7 trillion is expected to gestation crops. ‘SATAT’ (Sustainable Alternative Towards
go to clean technologies – including renewables, EVs, Affordable Transportation) initiative on Compressed Bio-
and nuclear power. The remainder, slightly more than Gas (CBG) envisages production of 15 MMT of CBG and
$1 trillion, is going to coal, gas, and oil. This means 50 MMT of manure from 5,000 CBG plants.
around 60% investment is flowing in renewables and
Hydrogen is increasingly being seen not only as a
the rest in fossil fuels.
potential solution to the predicaments of the present
The path to becoming net zero carbon companies global energy system – mainly climate change and air
opened many revenue-generating opportunities. There pollution – but also as a means of scaling up ways of
has been a rapid growth of renewable energy in India’s complementing other clean energy forms. Presently,
energy mix in recent years. India is currently ranked 4th hydrogen is primarily being used as feedstock in many
in renewable energy installed capacity and the share industries. However, with technological advancements
of renewable energy is continuously on the rise due to in electrolyzers (for Green Hydrogen) and developments
strong policy support and a fall in input costs. Green in carbon capture and storage technology (CCS used for
mobility and the proliferation of renewable energy are Blue Hydrogen), it is expected to be the clean fuel for
increasingly becoming viable due to the continuous the future, notably to be utilized by the many countries
development in technology, which is driving down the pledging for carbon neutrality and reducing emissions in
cost while increasing efficiency. Massive government line with the Paris Agreement. According to the recently
policy support, as well as a growing environmental held COP26 summit in Glasgow, hydrogen is integral
awareness is spurring the adoption of electric vehicles. to the global 2050 vision, with nearly 30 countries
releasing hydrogen roadmaps.
Electricity generation via solar and wind offers significant
opportunities. Investment in solar is set to overtake Green hydrogen is widely regarded as an ideal,
the amount of investment going into oil production clean solution. A steady but consistent adoption of
for the first time, an IEA study has revealed. India has green hydrogen will be the way to go. The possibility
huge potential for solar energy, and the cost of solar of integrating hydrogen with the existing gas
power has come down. Other technologies that could infrastructure offers immense potential. Currently
attract investments are those relating to battery storage the challenges in transportation and storage remain.
technology, pumped hydro, and upgraded intelligent Subsequent applications could be in the area of
electricity grids. Some of these areas in renewables will mobility through hydrogen fuel cells, but that could be
serve as high-investment and innovation areas requiring some distance away.
Annual Report 2022-23 63

Aviation fuel demand is expected to continue to to include alternative cleaner form of energy and a
grow at 3.5% CAGR but will be gradually substituted gradual move away from fossil fuels, this is very low
by Sustainable Aviation Fuel (SAF) due to Carbon considering the continued demand for oil and gas. The
Offsetting and Reduction Scheme for International average global decline rate of oil fields is around 6%,
Aviation (CORSIA) mandates. As India is a low per capita which means oil & gas companies have to invest in new
energy consumption country, the mandates could vary. projects to maintain production levels. In addition to the
above, the recent geopolitical tensions have highlighted
Demand for petrochemicals has been robust for
how vulnerable the global energy system is and the right
their use in multiple sectors. Petrochemicals offer
balance has to be found while prioritizing sustainability
a natural hedge and a significant diversification
over energy security.
opportunity against the expected long-term decline in
oil consumption. The petrochemical sector is projected RISKS, CONCERNS, AND OUTLOOK
to emerge as the primary driver of growth for the global The last year was different in the sense that energy was
oil and gas sector, accounting for more than a third weaponized. The instability that defined the oil & gas
of incremental oil demand by 2030. India’s reliance market for much of last year has continued into 2023.
on petrochemical imports has been high, and adding The events happening in European markets, OPEC+
a petrochemical complex near or as part of a refinery decisions and other geopolitical hotspots like Iran,
would significantly benefit energy companies. Libya, etc. will have a major bearing on the direction
India has taken an ambitious target of increasing the oil & gas markets take. The global oil & gas markets
share of natural gas in its primary energy basket to are experiencing significant volatility due to the ongoing
15% by 2030. Growth in LPG demand is expected to demand-supply imbalance.
decline after seven to eight years, ceding ground to For the sake of energy security and to prevent volatility,
Piped Natural Gas (PNG), for which massive City Gas healthy investments and optimal use of the existing
Distribution (CGD) grid expansion is underway, and assets become imperative. As demand continues
then to the electrification of cooking. Demand will be to surge, underinvestment could hurt countries
stable, but incremental demand could be met through and companies. Better international cooperation,
PNG. CGD network will continue to be an area of growth faster development of potential fields, structured
for energy companies, as there is a greater shift towards investments in short-gestation assets and enhancing
urbanization and a growing preference for apartment extraction efficiency, along with leveraging research
complexes, even in smaller cities. and development while lowering emissions, will be
In this new landscape of competing energy sources, it critical. In view of climate mandates, today global oil &
is important that companies continue to invest in better gas companies are facing dilemma in capital allocation
technologies for exploration and production of oil and between ensuring energy security verses meeting
gas. Immediate tapering of investments in fossil fuels sustainability goals.
would impact energy security. The outcome of the war in Ukraine will have a potentially
Although a decline in the contribution of oil and gas in lasting impact on the oil & gas industry. As Europe
the primary energy basket is imminent over time, one secures energy supply for 2023-24 winter, South &
cannot wish away hydrocarbons. It is likely that demand Southeast Asian markets may struggle to compete, with
for hydrocarbons will remain relevant for global energy the agriculture sector likely to suffer the most as high
needs. Considering India’s expected growth rates for gas prices keep fertilizer cost high. This situation is
the next 10 years and the growth rate of automobile particularly problematic for countries like India that rely
sales, even with the rising adoption of EVs, the current heavily on imports, to meet oil and gas needs.
demand levels for liquid auto fuels will hold for several Oil & gas companies have worldwide operations and a
years. Until heavy vehicles and buses adopt alternate complex ecosystem of partners and suppliers. If even
fuels, including CNG, demand for liquid auto fuels will one of these third party experience a cyber breach, it
remain strong. could put anyone in the network at risk, as is evident
Upstream spending has fallen from around USD 700 from the incidents in the recent past.
billion in 2014 to around USD 370-400 billion in 2022. India's electricity demand is expected to grow more
While this reflects the expansion in energy industry rapidly than the rate of growth of its overall energy

demand. This will, in turn, put significant pressure on as the products are naturally hazardous. Safety and
grids and battery storage. The situation poses both a security of assets and people and a cleaner environment
challenge and an opportunity to oil & gas companies. are always priorities. At BPCL, we continuously
Climate change, heat waves and strong economic reinforce the laid-down operating and safety systems
growth will continue to nudge demand for electricity and processes and sharpen our capabilities for disaster
higher. In an environment of energy transition, creatively management. Continuous education and workforce
reimagining and repositioning business diversification training are essential to adhere to standard operating
into adjacencies are crucial steps to survive and grow. procedures and avoid human errors. A culture of safety
To that extent, there will be substantial opportunities for and readiness has been inculcated through simulated
the Company’s plans for solar energy. stress tests periodically. Upkeep and maintenance of
The Indian Rupee displayed surprising resilience. assets reduce the chances of breakdowns and accidents
It became the most stable currency, at least among while ensuring better operational availability. The
emerging market peers. Its implied volatility, the metric company makes available considerable resources in this
that captures the market’s view of the likelihood of endeavour. As companies and economies benefit from
fluctuations in its value, is at its lowest since 2008. This technology and digital infrastructure, they also have to
is despite a sharp rise in the dollar index during the year ward off cyberattack risks, and utmost care will have to
because of the US Federal Reserve’s aggressive interest be taken to insulate the company from financial loss,
rate-raising campaign. supply-chain interruptions, and reputational damage.
Belying market fears of a possible spike in India’s Controlled hackathons could be a way.
external vulnerabilities, India’s current account deficit BPCL is agile in dealing with challenges as well as
at 2% of GDP during 2022-23 remained sustainable, in seizing opportunities. With the energy sector in
although it expanded from 1.2% a year ago. The transition, the strategic focus is to diversify and
merchandise trade deficit widened to $265.3 billion expand into alternative and adjacent revenue streams
from $189.5 billion a year ago. This, combined with like petrochemicals, renewables, electric mobility, and
lower net capital inflows than in the previous year, led consumer retailing, while constantly improvising on its
to depletion in the foreign exchange reserves to the tune core business. The Company is on track to achieve Net
of $9.1 billion on a balance of payments basis during Zero emissions in operations by 2040.
2022-23. Including valuation effects, however, India’s
foreign exchange reserves declined by US$ 28.9 billion PERFORMANCE
during 2022-23. Forex reserves in July 2023 stood at
USD 609 billion. REFINERIES
With the US and other major economies raising The Oil & Gas industry encountered a multitude of
interest rates or keeping them high for a long time, challenges stemming from supply-chain disruptions
countries like India and even China would find it hard and volatile prices during the year 2022-23. Through a
to cut interest rates or take other measures to support
blend of proactive planning, effective risk management,
domestic demand. Any premature interest rate cuts
implementing technology-driven solutions and making
by emerging market countries could trigger capital
informed decisions, BPCL group refineries recorded a
outflows and weaken domestic currencies. Exchange
formidable operational performance in the financial year,
rate depreciation remains a key risk for the country and
clocking the highest ever throughput of 38.53 million
all the oil marketing companies. The central bank could
be inclined to shore up its foreign exchange reserves to metric tonnes (MMT). The group refineries also placed on
be able to build buffers to deal with external volatility, the record the highest-ever Gross Refinery Margin (GRM)
including in crude oil prices. of $20.24 per barrel. This remarkable performance reflects
your Company’s ability to optimize the refining operations,
In addition to currency risks, the central bank’s interest
maximize product yields, and effectively manage costs.
rate policies have moved into a restrictive stance from
an accommodative stance, which could further have a All three refineries surpassed their design capacity
bearing on cost of capital for corporates. and registered an average capacity utilization of 109%,
Safe and environmentally responsible operations notwithstanding the major turnarounds of Mumbai and
become even more critical in the oil & gas industry, Kochi refineries. This remarkable accomplishment is

particularly noteworthy considering the robust demand for of turbine drive to motor, installation of Welded Plate Type
transportation fuel in Indian market. Heat Exchangers in place of shell and tube exchangers,
A broad glimpse of refinery performance is provided installation of Variable Fluid Coupling, replacement of Air
below, shedding light on specific initiatives and strategic Fin Cooler (AFC) fan blades with new-generation energy-
interventions behind the delivering of a strong physical efficient E-Glass Epoxy Fibre Reinforced Plastic (EFRP)
and financial performance whilst the Company traversed blades are some of the key energy-efficient activities
challenging situations. These initiatives encompassed carried out by the refineries during the financial year.
cutting-edge digital transformations, a steadfast focus on Cumulatively, the refineries have implemented initiatives
energy efficiency, meticulous optimization efforts, a culture leading to a potential saving of 78,064 metric tonnes of
of innovation, and a proactive approach to embracing oil equivalent (MTOE), which corresponds to a reduction
emerging technologies to improve reliability. Each of these in emissions of 2.4 lakh metric tonnes of CO2 equivalent
elements played a crucial role in ensuring the continued (MTCO2e). For comprehensive information on the specific
success of the group refineries, enabling them to rise energy efficiency and energy conservation initiatives
above the challenges. undertaken by the refineries, kindly refer to Annexure-A of
The merger of BORL with BPCL marked a significant this report. It is pertinent to mention that these initiatives
step towards consolidating resources, expertise, and demonstrate your Company’s commitment to sustainable
capabilities to create a stronger and more integrated practices and driving positive change in energy.
refining entity. This integration represented a strategic In the year 2022-23, a series of impactful activities were
focus on strengthening the overall business operations. By carried out to promote environmental sustainability and
bringing BORL under the umbrella of BPCL, Bina Refinery address key challenges. These initiatives encompassed
has emerged as a powerful force in the Indian refining various areas, including afforestation, water conservation,
industry, poised to leverage synergies and maximize and waste reduction, apart from energy efficiency. Under
operational efficiencies. the banner of Mission LiFE (Lifestyle for Environment),
In the face of challenges, innovation becomes a vital tool a comprehensive campaign was launched to address
for providing solutions and meeting ever-evolving needs critical environmental issues. This campaign covered
of customer. In this financial year, a new specialty product various themes, including energy conservation, water
called “D40” was launched. It is an industrial solvent that conservation, elimination of single-use plastic, waste
offers unique properties and characteristics, catering to a reduction, and e-waste reduction. Through awareness
variety of industrial applications, including for paint and programs, educational initiatives, and community
metal industries. Furthermore, the LOBS unit undertook a engagement, these campaigns aimed to instil sustainable
significant project to develop and commercialize smokeless practices and encourage positive behaviour change toward
kerosene to meet the requirements of Indian Army. The the environment.
traditional kerosene faced issues related to combustion To combat water scarcity and promote sustainable water
quality and smoke generation at higher altitudes, posing management, efforts were made to develop facilities
challenges for Army operations in those regions. for rainwater harvesting. With combined efforts from
At BPCL, enhancing energy efficiency is one of the key refineries, cumulative savings of 4.12 lakh kilolitres of
focus areas. Improving energy efficiency in refineries not water was achieved through rainwater harvesting. Apart
only helps to reduce operational costs but also minimizes from regular tree plantation initiatives, the Miyawaki
environmental footprint and contributes to sustainable method of tree plantation was also adopted in our
development. By adopting strategies such as process refineries, wherein saplings of native species were
optimization, advanced control systems, energy recovery, diligently planted. This approach, known for its dense
equipment upgrades, renewable energy integration, and and diverse forest creation, aimed to restore and enhance
employee engagement, refineries can simultaneously the natural ecosystem. By focusing on native species, the
unlock substantial energy savings, reduce emissions, and initiative aimed to preserve native biodiversity and promote
achieve sustainable and cost-effective operations. ecological balance. To ensure effective implementation and
Installation of Flexible Removable Insulation Jackets (FRIC), monitoring of environmental strategies, the “Environment
implementation of Electrical Heat Tracing (EHT), changing Champion” strategy was introduced in each refinery. This

approach emphasized an ‘Ownership’ mindset among the based models were developed and deployed at all three
process teams, fostering a sense of responsibility and refineries for addressing various business problems, some
active participation. The champions played a crucial role of them being prediction of propylene purity, C3 Stripper
in driving change, promoting new ideas, and implementing Bottom propylene purity, Anomaly Detection for Recycle
improvements to enhance environmental performance and Gas Compressors in Naphtha Hydrogen Treating Unit
control. Overall, the activities carried out during this period and for enhancing process reliability. Advanced Process
demonstrated a proactive and comprehensive approach of Control (APC) has been implanted in critical process
your Company towards environmental sustainability. units and is currently being standardized across the three
refineries, which enhances consistent control strategies,
As India continues its rapid development, there is a
knowledge sharing and best practices.
substantial projected increase in energy demand over
the coming decades. To meet this growing demand, the The refineries also rolled-out in-house developed digital
country is actively seeking new projects in the oil and gas solution tools, viz., “BPMARRK: Real-time Crude Oil
fields. These projects are aimed at ensuring a reliable Characterization Software” and “K Model for Crude Oil
and sustainable energy supply to support the nation's Compatibilities”, which enables the refineries to optimize
economic growth and meet the needs of its expanding the crude mix and refinery operations.
population. In the current fiscal year, three major
RETAIL
projects were successfully commissioned. The details
of the projects, viz., Kerosene Hydrotreater Unit (KHT), The Indian economy showed a broad-based growth in
‘Lube Oil Base Stock (LOBS)’ revamp and De-Aromatized 2022-23, led by a strong domestic demand, as several
Solvent (DAS) are provided in this Annual Report under sectors reached their pre-pandemic demand levels. The
the head ‘Major Projects’. country witnessed a record consumption of petroleum
products during the year, highlighting the demand for
Significant strides were made towards the digital
transportation fuel and other petroleum products.
transformation of refineries, aligning with the objective of
Go Digital! New projects were initiated and successfully The growth in the retail business segment was led
completed, focusing on cutting-edge technologies such by increased inter and intra-state movement after the
as Machine Learning (ML), Artificial Intelligence (AI), pandemic and the revival of the manufacturing and
Robotics Process Automation (RPA), Industrial Internet commercial sectors. This recovery led to the fuel retail
of Things (IIoT), new applications, Advanced Process industry witnessing a 17.31% growth, while the PSU
Control (APC) models, and infrastructure development. Oil Marketing Companies (OMCs) registered an overall
These initiatives are aimed at enhancing operational growth rate of 23.80%. As a result, PSU OMCs saw their
efficiency, optimizing processes, and leveraging innovative market share increase from 90.15% to 95.12% during
solutions to improve overall refinery performance. A Study the year.
Project was undertaken for carving out Digital Strategy
BPCL’s retail business segment experienced remarkable
and Roadmap for BPCL Refineries. This was titled Project
growth during the year 2022-23. Total sales from the retail
Utkarsh and as an outcome, key digital initiatives related to
business stood at 32.34 MMT, registering a growth of
various functions, viz., reliability improvement, reduction
22.56% during the year. Against this, PSU OMCs registered
in energy consumption, etc. were identified, reviewed for
a growth of 23.75% during the year 2022-23. The Motor
implementation and are being pursued as per business
Spirit (MS, i.e. petrol) sales grew substantially, recording
priorities in the year 2023-24 and beyond.
a 17.91% increase to 9.58 MMT of sales during the year,
Digital solutions were deployed during the turnarounds compared to 8.12 MMT in the previous year. In the MS
at refineries to facilitate turnaround planning and to bring retail business, BPCL has consistently maintained its
in productivity improvement and safety. This came to leadership position for the last nine years. The Company’s
be recognized as ‘Digital’ turnaround. The Digital team market share in the MS retail business increased by
ensured close monitoring of turnaround progress, resource 0.22% during the year and stood at 29.47% among PSU
mobilization and critical path evaluation in the first ‘Mega OMCs. Diesel sales registered a 25.2% growth with a sales
Turnaround’ of Kochi Refinery (KR) and achieved on-time volume of 21.93 MMT, as compared to 17.50 MMT during
completion without any cost escalation. Machine Learning- the previous year. PSU OMCs registered a 28.87% growth

in diesel sales. During the year, the Lubes sales through Building on the acclaimed Pure for Sure (PFS) initiative,
Retail channel achieved a sales volume of 35.8 thousand BPCL extended the reach of ‘NextGen’ PFS to 179 cities
metric tonnes (TMT), which includes 22.9 TMT in Lubes through 2,500 ROs. NextGen PFS offers the highest
and 11.9 TMT in Diesel Exhaust Fluid (DEF), reflecting a standards of Quality & Quantity, enabled through
combined growth of 16.58% for the Lubes and DEF, and a advanced technology, thereby fostering trust. The
growth rate of 7.40% for Lubes. automated Integrated Payment System (IPS) ensures
that customers are digitally billed for the exact quantity
During the year, the Company commissioned the
of fuel they fill each time. These attributes, along with
Krishnapatnam Coastal Installation, Gulbarga Railway
the new enhanced service standards, ensure that
Siding, Leh Depot, and Cherlapally-Ghatkesar Pipeline
customers experience a seamless fueling journey from
(CGPL) rerouting, and revamped Warangal siding. Inter-
start to finish.
depot transportation of Ethanol through tank lorries
was also introduced. Ethanol tankage capacity was also Acknowledging the growing demand for value-added
significantly increased from 46.4 TKL to 112 TKL during services, the Company further expanded its non-fuel
the year. BPCL’s Retail business recorded the highest- initiatives at the ROs. These services are designed to
ever sales throughput and MS-HSD (i.e., petrol-diesel) cater to the dynamic needs of diverse customer segments
handling of 32.5 MMT in the year 2022-23 – rural, urban, and highway – differentiating BPCL from
other OMCs in the marketplace. BPCL’s collaboration with
BCPL’s goal is to ensure that its products are easily M/s. Fino Payment Services to provide comprehensive
accessible to customers. To achieve this goal, the banking services to customers has now reached more
Company commissioned 986 new retail outlets (NROs) than 12,000 ROs. It includes Aadhaar Enabled Payment
during the year, taking the total number of retail outlets to System (AePS), Micro ATMs, Domestic Money Transfer,
21,031 as on March 31, 2023. The Company strengthened Cash Management System (CMS), and Government
its presence in the highly strategic markets and highways to Citizen (G2C) services. These initiatives helped the
by commissioning 5 Company-Owned Company-Operated Company achieve Gross Merchandise Value (GMV) of
outlets (COCOs) and 4 GHAR outlets during the year, taking ` 5,189 crore during the year. Over 2.6 million BPCL-SBI
the tally to 333 COCO outlets. BPCL’s signature brand of cardholders redeemed reward points to avail 12.8 million
GHAR (One Stop Trucker Shops – OSTSs) are strategically litres of free fuel during the year.
located on major highways to provide transporters and
drivers ‘a home away from home’ experience. The BPCL-Bank of Baroda (BOB) Debit Card-based
programme, along with the loyalty offerings of the
BPCL is further pursuing setting up NROs in newer BPCL SmartDrive programme, has reached over 2.5
geographical areas and along upcoming expressway million BPCL–BOB customers, lending this initiative the
stretches to capitalise on the growth potential of these distinction of being the largest co-branded debit card in
untapped regions. the country.
With the Government emphasising moving from liquid With the objective of delivering exceptional experiences
fuels to gas and considering the change in the customer’s to customers in this digital era, the Company launched an
preferences, BPCL aggressively expanded its Compressed Advanced Loyalty Programme (ALP) across all markets.
Natural Gas (CNG) fueling infrastructure, with mechanical This programme is designed to provide customised
completion of 482 CNG stations and commissioning of solutions as well as enhanced customer convenience and
234 CNG stations during the year. With this, CNG fueling personalisation. Further, as a value added service, API
facility is now available at 1,599 of the Company’s ROs integration of the ALP with IT systems of Fleet customers
across the country. CNG recorded a robust 32.47% was commenced during the year. BPCL enhanced its
growth, with total sales of 759 TMT during the year. convenience offerings by commissioning 86 In & Out
stores in addition to the already existing network of 114
With the focus on improving customer experience and
In & Out stores.
providing personalised services, BPCL strengthened
and expanded its customer engagement initiatives In the continued efforts to make customers’ fueling
across its outlets. experience seamless, transparent, and efficient, BPCL

expanded its UFill initiative (a unique service in the implemented cloud-based automation solutions at 19,690
industry) to more than 11,000 ROs in the country during ROs, with unique wireless Forecourt Controllers (FCC) and
the year 2022-23, catering to a customer base of 1.2 Android Point of Sale (APOS) machines that integrate with
crore and facilitating about 42 million transactions. UFill the loyalty solutions and all types of digital payments. To
allows customers to have total control over their fueling, fortify strict and real-time monitoring at the RO forecourt,
i.e., convenient payment options, with preferred time and BPCL has leveraged technology for intelligent operations,
location. The auto-setting of the Multi-Product Dispenser and has introduced 16 IRIS cloud-based Interlocks to
(MPD) ensures that the customer gets a refill for a monitor fuel tanks, MPDs and nozzles across its fuel-
pre-paid amount without manual intervention, thereby retailing network. To improve efficiency, the Company
providing a seamless fueling experience at the RO. has launched iBROMA, a platform for smart management
of network through technology, which enables auto
Keeping in mind the convenience of customers, 71
generation and closure of complaints through the system
“Fuelkarts” were commissioned under BPCL’s Door-to-
without manual intervention so as to reduce downtime.
Door Diesel Delivery (DDD). With this, the total number
of these mobile fuel bowsers has increased to 719. The Company has started auto accounting at all COCOs/
Additionally, 102 “FuelEnts” (Fuel Entrepreneur start- OSTSs with the help of state-of-the-art automation
ups) were commissioned during the year, taking their system, which will ensure accuracy in accounting and
total number to 265. BPCL has an exclusive pilfer-proof avoid manual labour. The generation of invoice and stock
technology for its DDD service in place. accounting happens automatically based on readings
from MPDs and Automatic Tank Gauging (ATG) systems
A novel Quick Oil Change promotion campaign was also
launched across 7,290 ROs during the year. The campaign provided at the ROs.
provided two-wheeler customers with the convenience of To strengthen operations at the depots, BPCL evaluates
changing oil at BPCL ROs. Over 3.8 million customers safety and reliability at its locations through “Operability
benefited from this campaign during the year. Index”, which is monitored on a real-time basis by IRIS
For the convenience of customers undertaking long (BPCL’s Digital Nerve Centre). The average Operability
road journeys, BPCL introduced an innovative concept Index at retail locations was more than 99 for the year
of Highway Fast-Charging Corridors. A pilot project was 2022-23, signifying safe and smooth operations.
undertaken in 2021-22, whereby DC 25 kW fast chargers The Company has also leveraged IRIS for managing
were installed at 10 strategic outlets throughout the 900- Violation Tracking Systems (VTS) violations. Additionally,
km stretch of Chennai–Trichy–Madurai highway (NH-45). all permits for ultra-critical activities at retail locations are
These charges are located at a distance of approximately issued with mandatory monitoring through IRIS.
100 km from each other – to effectively address the
BPCL further leveraged technology for ease of business
range anxiety of EV users. The Retail business further
and introduced fully digital Electronic Dealer Financing
strengthened this concept by commissioning 80 highway
Scheme (EDFS) platform with ICICI Bank. From dealer
fast-charging corridors in the country during the year
onboarding to disbursement of limit to dealers, everything
2022-23. BPCL commissioned a total of 603 electric
is performed through the system, and onboarding is done
vehicle charging stations (EVCSs) during the year 2022-
within one day. A total of 1,450 dealers were on-boarded
23, taking the total network of EVCSs to 692, which include
to ICICI EDFS platform during the year.
546 4W (CCS2) chargers for quick charging. BPCL has
also entered into strategic alliances with MG Motors, Ola In the endeavour to strengthen safety measures for all
Electric, Hero Motors, Ather, RACEnergy, and VoltUp to operations and preparedness for any untoward incidents,
set up fast-charging as well as battery-swapping facilities BPCL conducted various initiatives to inculcate a culture
for electric four-wheelers and two-wheelers in cities and of safety, incorporate safe practices, create awareness
along highway corridors. and impart safety training, including simulated fire drills
at all depots and installations.
BPCL is cognizant that technology plays a critical role in
facilitating and providing seamless customer service. BPCL is dedicated to fulfilling its commitments toward a
Under its digital transformation programme, BPCL has green environment. All Retail operating locations are Zero

Waste to Landfill (ZWL) certified. As a conscious corporate Letters of Intent (LOIs) for a total estimated production
citizen, BPCL has implemented a ban on single-use plastic capacity of about 5 lakh tonnes per annum (TPA) of
at all its locations. To reduce power consumption, all CBG. During the year, 2 CBG plants were mechanically
conventional lights at locations have been replaced with completed by BPCL LOI holders. The Company added 37
energy-efficient lights (LEDs). Considering the safety ROs for Compressed Bio-Gas (CBG) retailing, increasing
of people and the planet, BPCL has eliminated the use the number of outlets for CBG to 41.
of asbestos from all its locations. The Company strictly
INDUSTRIAL AND COMMERCIAL (I&C)
follows the directives of the Central Pollution Control Board
(CPCB) and National Green Tribunal (NGT), and accordingly The Industrial & Commercial business unit (I&C BU) is
it implemented Vapour Recovery System (VRS) at 1,700+ the marketing unit catering to the Business to Business
ROs in order to reduce emissions. (B2B) segment. During yet another year of complex
Overall, BPCL Retail business remained the front runner patterns of business and exciting opportunities, the I&C
among its peers, delivering Trust, Convenience and BU continued to deliver customer delight with innovative
Personalization with efficient operations and by offering solutions on the strength of cherished business
digitally enabled solutions for customer convenience and relationships and unwavering customer focus.
to create value for all stakeholders. Deeper understanding of customer options and
Biofuels competition canvass remained the core of the business
unit’s market intelligence and the dynamic strategies
In line with Government’s Ethanol Blended Petrol deployed across the entire product portfolio. With
programme, BPCL achieved the highest-ever Ethanol increased impact of global scenario on the domestic
blending percentage of 10.59% (consuming 143.1 crore market, particularly in the Petchem segment, gathering
litres of Ethanol) this year, from 8.68% in the previous
real-time inputs related to global production and
year and aims at exceeding 12% in 2023-24. BPCL
demand assumed greater significance during the year.
also commenced E12 (MS with 12% Ethanol blending)
The I&C team stayed tuned to the evolving scenario and
dispatches at 90 locations and E20 (MS with 20% Ethanol
made significant inroads into the import-dependent
blending) dispatches at 12 locations during the year.
market.
The Company has been blending 1G Ethanol produced
Continuous enhancement of functional skills of the
from molasses, sugarcane, damaged food grains and
field force and leveraging technology to deliver Trust,
surplus rice across all its locations pan-India. It has also
Convenience and Personalization remained key focus
augmented its Ethanol storage capacity at its supply
areas to deliver superior customer experiences and
locations from 51 thousand kilolitres (TKL) to 112 TKL
maximize value and volumes.
in the last financial year and ensured Ethanol availability
across the length and breadth of the country by carrying The key initiatives of the year included dynamic
out movement of EBMS as well as Ethanol by rail to pricing, new product segments, state-of-the-art logistic
deficit locations/states. solutions and establishment of product supply-chain
BPCL is the industry coordinator for ethanol beyond refinery production. These initiatives facilitated
procurement and is spearheading the Ethanol Blended capturing new market opportunities as well as enabled
Petrol Programme by procuring 1G Ethanol from us to move into traditional strongholds of competitors.
multiple sources. The typical challenges faced besides strong competition
were extreme price volatility in the Company’s products
BPCL procured 8.21 TKL of Biodiesel in the year 2022- as well as the finished products of the customers due to
23 and sold 116 TKL of Biodiesel-blended Diesel, thereby the extreme geopolitical developments, differential with
achieving a blending of 0.028%. Retail fuel prices, domestic industrial growth variations
BPCL has also taken initiatives in the field of production and weather-related vagaries. During the year, the I&C
of Compressed Bio-Gas (CBG) from biomass waste/ team exhibited sharp focus, good execution of plans and
biomass sources like agricultural residues, sugarcane strategies, while carrying out all requisite mid-course
press mud, municipal solid waste, etc. and issued 322 corrections as warranted.

For the year 2022-23, I&C achieved total sales of 6,167 for Indian Army at Nimmu for uninterrupted operations at
TMT and the overall market share stood at 22.52% – the the strategic location.
highest ever during the last six years amongst the three With tailored and prudent commercial offerings, the BU
major PSUs, continuing clearly as the growth leader. The entered into 73 key MoUs with major customers for
market share growth over the last year was 0.89%. securing 1,000 TMT of annual business volumes across
The HSD (diesel) sales performance by I&C was exemplary various product portfolios.
during the year amidst the huge challenge faced in terms The business obtained REACH (Registration Evaluation
of price differential vis-à-vis retail channel. HSD market Authorization and Restriction of Chemicals) compliance
share grew by 4.62% in the B2B channel. The potential certification for all six Petchem products, Mineral
from key segments of fisheries, railways, bunkering, Turpentine Oil (MTO) and Food-Grade Hexane.
mining, and infrastructure was well harnessed, with the The business unit continued the journey of digital
new business volume of 180 TKL per annum from Gujarat transformation under the initiative Project Anubhav
Fisheries being the cornerstone of superior performance. and took several steps for a smooth roll-out of the
The team leveraged strategic customer tie-ups and feature-rich customer engagement platform HelloBPCL
the effective logistic arrangements of multi-modal and customized dashboards for elevated customer
transportation and secondary Petchem storage facility at experience, while enhancing the overall internal efficiency
Kandla to register sales of 190 TMT of niche products. to serve the customers.
Diversified industry segments such as paints, plasticizers, Structured engagements with customers and other
adhesives, water treatment, as well as agriculture and stakeholders were ensured through seminars and
textile chemicals were catered to with a virtual tonne-to- workshops for various business segments such as
tonne import substitution of these products, resulting in infrastructure, pharma and food, and manufacturing.
estimated foreign exchange savings to the order of ` 2,400 Backed by excellent past performances amidst very
crore for the user industries. Based on the indigenous challenging times and growing competition, I&C looks
technology developed by BPCL’s Corporate Research & forward to sustaining the momentum in the golden era of
Development Centre, the first supply of Super Absorbent the nation’s growth.
Polymer (SAP) was made from Kochi Refinery.
GAS
Pursuing the strategy of trading, the BU registered sales
BPCL is committed to realising the aim of developing
of 67 TMT of Bitumen through third-party sourcing
India as a predominantly gas-based economy. It strongly
and imports, enhancing the geographical reach in key
advocates the vision of green and clean environment. It
growth markets.
has taken steady steps in upscaling its operations and
Bunkering remained a strong focus area, and with efficient ensuring supply of gas. BPCL is further strengthening its
product placement and smart business deals, a record position and developing its ecosystem across the value
Very Low Sulphur Fuel Oil (VLSFO) sale of 360 TMT was chain in terms of sourcing, securing long-term tie-ups,
registered during the year at the three port locations of tie-ups in import terminals, booking of regasification
Kochi, Mumbai and Kandla. capacities, entering into tie-up agreements in major
pipelines, establishing and expanding City Gas Distribution
With customized offerings, the BU also achieved highest-
(CGD) networks to reach gas to its customers.
ever sales of Benzene, Hexane, Toluene and LPG Bulk.
The Company has its footprints in all gamuts of gas
Sustaining the efforts on product development, a new
business. It caters to the requirement of its refineries,
grade of kerosene, namely, “Smokeless SKO” was
CGD network comprising Compressed Natural Gas
developed, which will go a long way to improve the
(CNG) stations, as well as Piped Natural Gas (PNG) for
working environments for the Indian Armed Forces
its domestic (household), industrial and commercial
operating in higher-altitude locations. The first supply
customers.
of the new grade was made to Indian Army in Northern
Command in January 2023. During the year, I&C BPCL has sourced its gas requirements through long-
commissioned state-of-the-art scattered tankage facilities term contracts, spot purchases, domestic gas purchases

through bidding in e-auctions, Regassified Liquefied volumes and margins, and expanding its reach to newer
Natural Gas (RLNG) tenders and trading on India Gas geographies.
Exchange (IGX). These platforms for purchasing gas
LUBRICANTS
have been instrumental in the Company minimising its
purchase cost, maximising its profitability, insulating The Indian lubricants market is the third-largest and
the company from risks and securing the needs of its one of the fastest growing in the world. The lubricants
customers in a highly volatile market. space in India is fiercely competitive, with 35 seasoned
players vying for a larger share in the market. The year
The Company has sourced a total of 1,524 TMT of gas,
2022-23 saw a consumption of approximately 3,823
out of which 615 TMT was consumed internally by its
TMT of lubricants in the country. A recent Kline report
refineries and 905 TMT was sold to various customers in
on “Opportunities in Lubricants: India Market Analysis”
Fertilisers, Power, Petrochemical, Steel and to the CGD
has provided a forecast for the next 5 years, projecting
network across the country. CGD sales have grown by 2.25
the demand for finished lubricants to grow at a CAGR
times, from 18.47 TMT to 41.39 TMT during the year.
of 1.9%.
BPCL has fast-paced the development of its CGD network In the year 2022-23, Indian lubricants industry was
by investing ` 1,343 crore in capital expenditure for the impacted by the global economic slowdown, fluctuating
year 2022-23 and earmarking another ` 3,000 crore base oil prices, increase in raw material and packaging
for 2023-24. For the 8 new Geographical Areas (GAs) costs and dollar exchange prices, creating stress on the
secured in the 11 and 11A CGD Bidding Rounds of entire value chain. The Lubes Business has overcome
Petroleum and Natural Gas Regulatory Board (PNGRB), these challenges by reorganizing and rebuilding itself
BPCL has pegged capital expenditure of ` 35,355 crore. during the year. BPCL’s proficient research team, robust
BPCL, together with its joint ventures, has secured a business model, brand strength, customer-centric
trade area of total 50 GAs that covers 105 districts. approach, supply-chain resilience and strong customer
Out of the 25 own GAs that cover 62 districts across base helped MAK Lubricants to sustain business in the
the country, 13 GAs have been commissioned and year 2022-23. Export business in South Asian countries
sales in the balance 12 will commence in the next and the Middle East witnessed headwinds, impacting
financial year. Presently, the Company has mechanically revenues. MAK Lubricants continued to engage and
commissioned a total of 448 CNG stations, out of which reach the existing customer base in these geographies
238 have been gas-charged and the balance will be and made its first footprint in East African countries.
gas-charged in the next financial year. During the year, Customer engagement through various ‘Below the Line’
90,300 PNG domestic connections were added to the (BTL) activities was a key driver for business during
existing base of 53,800 connections. BPCL laid 5,035 the year.
inch-km steel pipeline to reach and cover its allocated MAK Lubricants focused on Environment, Sustainability
GAs during the year. and Governance (ESG) with continuous process
For reaching its target customers and gas proliferation, upgradation, product development and leveraging
BPCL launched the tagline #TheGoodPrint on social of technology. For clean environment, the Company
media. The 'Suraksha Mein Shakti' campaign was commissioned 4 AdBlue (Diesel Exhaust Fluid) plants for
conducted for educating customers on safe usage of ensuring self-sufficiency and reducing carbon footprint.
gas. To spread awareness on natural gas, the “Catch For a sustainable future, 3,172 MT of plastic waste
them young” campaign was organised for schools and was recycled under Extended Producers Responsibility
colleges students. (EPR) and the MAK ECO range was introduced for two-
wheelers/cars/auto/heavy commercial vehicles (HCVs)
With the merger of BGRL with BPCL, the Company
and hydraulic vehicles, developed from re-refined
is on its way to realize great synergies and enhanced
base oil. To counter spurious products in the market
efficiencies.
and ensure last-mile genuineness of product to end-
Despite the highly volatile market, the Company managed consumers, a QR code-based verification process has
its gas business effectively to increase its marketing been introduced, with QR code printed on product packs.

With the stupendous response received for this initiative, LPG customer base to 9.08 crore at the end of the year.
it has been scaled to all product packs. To ensure enhanced service levels and assured availability
of cooking fuel at home, the Company encouraged
With a humongous nationwide network of 21,031 retail
customers to opt for Double Bottle Connections (DBCs)
outlets, continuous customer engagement through
and upgraded 10.02 lakh customers to DBC. To ensure
various initiatives like Quick Oil Change (QOC) machines,
that Bharatgas is available at places closer to customers,
dispensers, rural-focused initiatives and product-specific
the business unit added 37 new distributorships during
campaigns have helped MAK Lubricants to improve its
visibility and increase awareness of the brand. In the Bazaar the year, taking their number to 6,244 as on March 31,
channel, the business unit focused on strengthening 2023. Also, 137 non-domestic distributors were added
the network, empowered with digital tools and policy to BPCL’s portfolio to increase the commercial LPG
changes. The business continued to maintain leadership footprint and improve service levels. Focusing on rural
in two-wheeler original equipment manufacturers (OEM) outreach and to improve awareness and availability of
business by providing advanced technology lubrication LPG in rural areas, an additional 4,302 village-level women
solutions. For the industrial sector, the business entrepreneurs, christened as “Urja Devis”, were enrolled.
unit re-defined its business processes by providing These entrepreneurs promote clean cooking fuel, and
comprehensive solutions, i.e., value-added services, spread safety awareness, while also promoting non-fuel
such as condition monitoring and coolant management. offerings in rural areas. Urja Devis are helping BPCL to
The customer interface platform 'HelloBPCL' is being spread enhanced awareness about the usage of LPG, to
leveraged for providing end-to-end solutions for ensure availability of LPG nearer the home, bridging the
consumers. To fulfil the market requirements, BPCL last mile connect, and enhancing women entrepreneurship,
introduced 15 new grades and 37 new stock keeping leading to empowerment of women in rural areas. To
units (SKUs) in the synthetic and mineral space, which provide convenience and ease of being able to pay from
helped in capturing niche segments. anywhere, anytime, under the Hon’ble Prime Minister's
mission of “Digital India”, BPCL rolled out different options
With extension of network reach and product proliferation for digital payments like online, UPI, wallets, UPI123Pay,
as business pillars, and technology and service-centricity etc. For the first time in the industry, ‘Buy Now and Pay
as growth engines, the MAK team plans to grow its Later’ (BNPL) was piloted during the year at Lucknow, to
business in both domestic and global markets. address affordability issue of the low-income segment of
LPG consumers. Under the initiative, consumers can pay 50%
of the cost at the time of delivery of LPG refills and the
Amidst the global turmoil, rising inflation and surge
balance through weekly instalments.
in international LPG prices, the LPG business faced a
challenging environment during the year. However, with The business took a significant step by initiating a
its continued focus on efficiency and customer-centric Consumer Retailing model through its "In & Out" brand
initiatives, the LPG BU not only ensured sustained of convenience stores at LPG distributorships. The first
expansion of the business, but also improved its market store was commissioned at Sehore, Madhya Pradesh, and
effectiveness. during the year, a total of 23 stores were commissioned
to leverage cross-sales opportunities.
The business registered its highest-ever sales of 7,925 TMT
of LPG for the year, attaining a growth of 3.41%, against In terms of LPG bottling, the production stood at 7,699
the industry growth of 2.67%, thereby increasing the TMT of LPG, recording a growth of 1.32%, with capacity
market share by 0.19% during the year. With the objective utilisation of 100%. Furthermore, the augmentation of
of ensuring promotion of clean fuels and to increase the cryogenic storage facility at Uran Terminal is currently
proliferation of LPG further, another 15 lakh customers in progress, which will enhance storage infrastructure
were acquired under Pradhan Mantri Ujjwala Yojana on the west coast, thus facilitating higher imports.
(PMUY) and Ujjwala 2.0, taking the total BPCL customer During the year 2022-23, BPCL procured its fifth LPG
base under the PMUY scheme to 2.49 crore since the rake, not only boosting its logistics capability but also
inception of the scheme in the year 2016-17. New customer reducing the placement cost, apart from reducing road
enrolment of 27 lakh during year took BPCL’s domestic movement of bulk LPG.

LPG bottling plants in BPCL continue to maintain their During the year 2022-23, BPCL completed the
record of best practices in Health, Safety, Security development of technical specifications for High Tensile
and Environment (HSSE), coupled with improvement Strength Steel (HTS) cylinders, which are about 20%
in productivity and cost leadership. During the year, lighter than conventional cylinders. The use of these
to reduce energy consumption, an energy audit was cylinders will substantially reduce physical strain on
conducted at 21 LPG bottling plants under Energy delivery staff, while also generating cost savings.
Efficiency Indexing (EEI). All plants have completed AVIATION
Energy Efficient Lighting (EE), reducing the carbon
During the year 2022-23, the Aviation Sector in India
footprint.
rebounded with the containment of COVID-19 and the
Solar plants of 1,290 kilowatts-peak (kWp) capacity lifting of travel restrictions worldwide. The recovery was
were commissioned at various LPG bottling plants, mainly led by the domestic sector. ATF sales in domestic
taking the total installed solar power capacity to 2,957 and international segment reached 93% and 88% of the
kWp. Towards greening of the environment, the LPG pre-COVID year of 2019-20, respectively.
BU planted 6,267 trees during the year. All BPCL LPG The Aviation business achieved sales volume of 1,738
bottling plants have successfully obtained certification TMT with the highest growth amongst OMCs and
for “Zero Waste to Landfill” (ZWL) and Integrated experienced highest-ever jump in market share, from
Management System (IMS). 22.34% to 25.04%. This stellar performance was due
To further improve the safety culture across the value chain to increase in sales in domestic segment, from 15.35%
among the stakeholders, Bharatgas Safety Day is observed to 17.36%. This was largely on account of increased
share of business with the Tata Group of Airlines. Also, a
on the 21st day of every month. On this day, all stakeholders
bright beginning was made with the enrolment of Akasa
come together and spread LPG safety awareness among
Air – the youngest domestic airline. In the international
the stakeholders on handling and using LPG. To build
segment, the business successfully rolled over contracts
competency of plant officers, HSSE officers and plant in-
with leading international airlines of the world.
charge were provided with training, who later received
the internationally acclaimed NEBOSH certification. To BPCL currently has 65 Aviation Fueling Stations (AFS)
improve customer awareness regarding the safe usage (including 4 AFS at defence locations), which is excluding
of LPG, 70,000+ safety clinics were conducted during the the Army stations. The Company has successfully
year, along with over 12,000 LPG Panchayats. commenced fuel farm and into-plane operations at the
new Manohar International Airport, Goa, and is in the
During the year, Operation & Maintenance (O&M) final stages of commissioning a state-of-the-art fuel
services were started at 5 more LPG plants (Bakania, hydrant system. BPCL has also won the bid for laying a
Dharwad, Bareilly, Surat and Jaipur) and now a total of dedicated ATF pipeline of 34 km from Piyala (Haryana)
10 LPG plants are operating on O&M services. to the upcoming Noida International Airport at Jewar in
To make the availability of bottling of LPG Cylinders Uttar Pradesh.
closer to consumption centres and to economise the AFSs at Deogarh (Jharkhand), Jeypore (Odisha), Aizawl
operations, 7 private bottling plants were commissioned (Mizoram) and Nashik (Maharashtra) were commissioned
under an Industry tender during the year. in congruence with the opening of airports in India’s
hinterland under the Regional Connectivity Scheme of
BPCL launched India’s first HTE (High Thermal Efficiency)
Government of India. The Company augmented ATF
hotplate in 2021-22, with in-house developed patented facilities at the existing installations and depots. This
technology that delivers 74% thermal efficiency, which is reaffirms BPCL’s commitment to develop aviation
the highest available in the industry, and marketed more infrastructure in the country.
than 75,000 of these hotplates during the year.
In line with CORSIA (Carbon Offsetting and Reduction
The new Import Terminal of Aegis at Kandla was utilized, Scheme for International Aviation) mandate for
and the first Ship-to-Ship (STS) transfer of LPG vessels Sustainable Aviation Fuel (SAF), BPCL is actively engaged
took place at Dhamra (Odisha) for supply to Haldia in pursuit of this goal. This is another significant initiative
Terminal, resulting in significant cost savings. towards protecting the environment.

NEW BUSINESSES manner. In supporting the cause of nurturing the planet
through cleaner energy solutions, the BU is implementing
Through the recently formed business unit “New
various projects for the Company to achieve net zero (in
Businesses”, BPCL has started making its imprints
Scope 1 & 2) by 2040.
on Consumer Retailing in rural India and offering
consumables, durables and services, by leveraging Currently five solar projects across Kerala, Maharashtra
BPCL’s network of retail outlets and LPG distributors. and Madhya Pradesh are in various stages of execution
As part of the business model, the Company is creating with an aggregate capacity of 45.5 MW at an investment
village eco-centers by training rural women and providing of ` 245 crore. BPCL is also implementing 2 wind
them the necessary support and inputs to become village- power projects in Maharashtra and Madhya Pradesh
level entrepreneurs. These village-level entrepreneurs – with an aggregate capacity of 100 MW at an investment
“Urja Devis” – are BPCL’s mascots in deep rural areas of ` 978 crore.
of the country, taking fuel and non-fuel offerings to the In line with the National Hydrogen Mission and meeting
rural customers and representing the ethos and values emission targets, and BPCL’s net-zero roadmap, the
that BPCL has stood up for over the years. first green hydrogen plant, is being implemented at Bina
The Company commissioned 109 In & Out stores and Refinery.
enrolled 1,000+ Urja Devis during the year 2022-23, and PUBLIC RELATIONS & BRAND
aims to expand aggressively in this space going forward.
The cardinal goal of brand communication is to achieve a
The proof of concept of the comprehensive strategy of
unique impression on target audiences to garner greater
a unique digitally enabled omni-channel ‘consumer rural
brand recognition and brand loyalty. In this quest,
retailing’ mode has been established. It focuses on the
especially in this age of hyper-scale digital interactivity,
ever-growing rural market, where a bouquet of fuel and
BPCL has evolved in sync with the changing times.
non-fuel products are being arranged together, catering
to the wide assortment of fuel and non-fuel needs of 360-Degree Brand Building and Marketing Campaigns
consumers. During this year, BPCL strengthened its social media
The rural consumer retailing model not only helps presence even further, up from its already strong position
in increasing fuel turnover, but also gives an avenue in this space.
for revenue generation to BPCL as well as its channel A well-tuned strategic impetus helped the Company
partners. BPCL will be one of the first companies to reach in expanding the base of its followers, exceeding the
deep rural customers and set up an organized retailing expectations in sheer numbers as well as depth of
ecosystem of this scale. engagement.
RENEWABLE ENERGY Especially remarkable in this endeavour is the Company’s
In line with the national commitments, BPCL intends Facebook page. With 25.7 lakh followers at the turn of
to diversify its energy portfolio by building a robust the year 2022-23, it became the second largest followed
renewable energy business. The ambition is to build 1 page among Oil & Gas majors in Asia, only behind the
gigawatt (GW) of renewable energy capacity by 2025 and global giant Aramco. By the same token, BPCL’s Twitter
10 GW by 2040, through organic and inorganic routes. handle became the highest followed among Indian Oil &
In this context, BPCL is aggressively pursuing various Gas companies and a leader among OMCs on LinkedIn,
initiatives and is tapping investment opportunities to with 2.16 lakh followers.
propel the journey of energy transition. The Company’s social media handles recorded a jump in
The RE BU is pursuing clean energy objectives of BPCL the number of followers by 7.30 lakh on all social media
and diversifying the Company’s product portfolio to be an handles, resulting in a combined growth of 26.80% and
integrated energy company. The plan is to make BPCL a taking the followership to 34.50 lakh.
leading clean and renewable energy company by providing Leveraging the Company’s product strengths and their
sustainable energy solutions through deployment of unique appeal, 12 mega marketing campaigns were
technology and innovation in a socially responsible launched during the year, in collaboration with Business

Units and Entities, generating a reach of approximately where BPCL showcased its stature amongst the biggest
13.32 crore. names in the industry, elevating its brand position
globally. The BPCL pavilion reflected the Company’s
The focus was on diverse approaches to brand building.
formidable capabilities and global span. A charismatic
Going beyond brand promotion, the Company targeted
crowd-puller, the pavilion was punctuated with high-
capturing the essence of CSR, HSSE, technological
profile visits.
advancements and a series of impactful activities and
initiatives. The Company launched a series of communications
through high-impact branding to amplify its participation
Public Relations for Deeper Impact
beyond its exhibition presence before, during and after
The PR accomplishments spoke for themselves as the event.
BPCL achieved the highest Advertorial Value Equivalent
BPCL also showcased its technological prowess, world-
(AVE) of its media coverage, among OMCs, with 41%
class products and future endeavours at Abu Dhabi
share of voice.
International Petroleum Exhibition and Conference
The Company occupied the media space predominantly (ADIPEC) in Abu Dhabi and World LPG Forum in New
and extensively with currently relevant topics. These Delhi.
included BPCL’s far-reaching digital transformation,
BPCL Podcast
promotion and expansion of greener fuels and other
product offerings, investments in EV fast-charging Adding a glorious chapter to its online communications,
infrastructure and renewables, as well as its net-zero BPCL became the first Indian Oil & Gas company to
ambition. This helped BPCL stay ahead of the curve in launch an energy podcast, reaffirming the Company’s
customer-centricity, innovation, energy transition and thought leadership on a range of subjects concerning
sustainability. energy transition, environment, technology, and much
more – and not just limited to BPCL activities, but also
Strong Brand Identity through Website
covering broader industry perspective.
During the year, the underpinnings of the Company’s web
At India Energy Week 2023, 'BPCL Podcast – Unlocking
presence were enhanced in several crucial ways.
Possibilities, Empowering Lives' was launched by
The BPCL web migrated to a cloud infrastructure platform. Shri Hardeep Singh Puri, Hon’ble Union Minister for
This has brought clear gains in terms of improved cost, Petroleum & Natural Gas and Housing & Urban Affairs,
speed, security, operational efficiency, and faster disaster making the program an instant hit. It was also a privilege
recovery. for BPCL to have the Hon’ble Minister as its first guest on
The Company also invested in Search Engine Optimisation the inaugural episode of the BPCL Podcast.
(SEO), which boosted its 'discovery' in the crowded web
The podcast provides a platform for engaging thought
space and allowed it to gain traffic on the website, while
leaders in rich discussions on how India is meeting
also increasing the online visibility of BPCL’s broad
the challenges of energy security and environmental
gamut of activities.
sustainability, impacting long-term energy transition and
These targeted efforts helped immensely in increasing paths towards decarbonizing energy.
organic website traffic by a quantum of 80%, and traffic
value by 61% (US$ 191,300). Moreover, BPCL website Awards
now has a monthly monetizing value of ` 98 lakh-plus. BPCL was showered with numerous accolades during
Another tangible metric showed that 34 out of 100 the year. The PR & Brand team reaped a bumper crop of
keywords made to the first page and there was a 29- 9 excellence awards at the 16th Global Communication
fold increase in second and third page keywords with Conclave organized by Public Relations Council of India
intelligent SEO. (PRCI) at its 2022 awards ceremony, reflecting the
Company’s purpose-driven public relation and brand
Brand Positioning on Global Platforms
strategy. Lauded at the forum was BPCL’s dynamism
One of the defining international events of the year and highly effective approach to brand communication
was the inaugural edition of India Energy Week 2023, that leverages the power of both traditional and digital

media to reach niche audience segments as well as it gives BPCL a 360-degree view of customer’s energy
society at large. needs. With HelloBPCL unified mobile app and portal,
customers can order LPG refills, buy fuel, earn loyalty
The Company was also conferred several more
and reward points as well as redeem them, and make
prestigious recognitions – ‘Most Preferred Brand
payments, all in one place. HelloBPCL is a one-stop
2022’ award from Marksmen Daily in association with
solution for BPCL’s B2C as well as B2B customers.
TimesNow, and ‘Corporate Communication Outreach’
HelloBPCL has more than 30 lakh registered users and
Award from Economic Times, as well as 8 more
has a footprint of over one lakh customers per day. The
Excellence awards for 'Corporate Collaterals' from
platform handles bookings of more than 20,000 LPG
Public Relations Society of India.
cylinder refills, 1,000+ distributor portability requests,
Brand Quiz Baadshah 100+ Double Bottle Connection (DBC) requests, 4,000+
This year, it was yet another 'head-scratching' season Lubes reward coupon redemptions and more than ` 180
for Brand Quiz Baadshah (BQB) – BPCL’s long- crore of fuel purchases through SmartFleet loyalty
running iconic employee-engagement quiz program on program on a daily basis.
Corporate IQ. The platform also serves as a one-stop business portal
BQB tested the mettle of contestants, pitting teams for industrial and commercial customers, with end-to-end
from across various regions against each other in fierce indent management. This platform digitally empowers
battles. Restarted last year after a brief pause during the customers and their logistics partners to track and trace
pandemic period, this Asian award-winning program product delivery.
continued its inimitable journey, challenging the sharpest Further, Project Anubhav has revamped and developed
minds to achieve the crowning glory. the next generation of SmartFleet (ALP, or Advanced
Thought Leadership Loyalty Program) for fleet owners, which is now available
on HelloBPCL platform. It enables the entire value chain,
The purpose behind the thought leadership content from the driver in the fueling bay to the group fleet
presented goes beyond brand awareness. It aims to manager’s dashboard, to the back-end ERP solution
establish richer, more meaningful relationships with of the corporate customer, with personalized reports,
the target audience. For almost two years, the Company simplified fleet management and fueling controls. It can
has been using its vast experience and leaderships to even be integrated with the back-end ERP solution for
reach out to target audiences through media interviews, corporate customers, with Cash Management System
participations in panel discussions, speaker opportunities, (CMS) and provide personalised reports to fleet owners.
etc. This year as well, through a series of television, print
With more than one million-plus registered customers,
and digital interviews and media engagements, BPCL
the Advanced Loyalty Program is extensively used by
reaffirmed its position as a prominent thought leader in
fleet customers, registering fuel purchases worth more
its field and areas of expertise.
than ` 5,000 crore per month through this application.
PROJECT ANUBHAV – BPCL’s DIGITAL
BPCL has introduced conversational Artificial Intelligence
TRANSFORMATION INITIATIVE
(AI)-driven and NLP-enabled chatbot, “Urja”, for
Project Anubhav is an ambitious digital transformation customers. It is capable of conversing with customers
initiative aimed at delivering the best customer in 13 languages, on WhatsApp and the BPCL website.
experience across all touchpoints of BPCL, achieving As an intelligent virtual assistant, Urja provides a range
operational efficiencies, and enabling agility in the field. of services, including LPG bookings, mobile number
All initiatives under Project Anubhav are underpinned by updates, fuel station locations and prices, fuel delivery
the three foundational pillars –Trust, Convenience and requests, BPCL product information, handling complaints
Personalisation. and feedback, and answering FAQs. Around 9 lakh unique
users interacted with Urja in the year 2022-23.
The customer engagement platform HelloBPCL is an
umbrella platform for customers to avail of all BPCL MAK Lubricants is a key player in the highly competitive
products and services at one place. At the same time, Indian lubricants industry with a strong market presence.

Known for its intricate supply chain, diverse portfolio of technology companies to deliver Trust, Convenience
brands and sub-brands, and evolving customer schemes, and Personalisation to both external as well as internal
the lubricants business has implemented an integrated customers.
supply-chain initiative utilizing QR code technology.
This initiative ensures complete product traceability, Having implemented 10 major applications for
enables genuineness checks for customers, offers loyalty enhancing customer engagement, ensuring smarter
schemes to mechanics and retailers, and facilitates operations, and enabling an efficient sales force, Project
instant coupon redemption and cashback for coupons Anubhav has positioned BPCL at the forefront of digital
found in MAK Lubricants packs. transformation in the Oil and Gas industry in India. As
BPCL continues to evolve existing digital applications,
UFill, an innovative customer-centric digital initiative,
more such applications and platforms are being
which was launched during the previous financial year,
developed and implemented under Project Anubhav.
has also received high traction from the consumers.
It is a unique and innovative UPI-based solution for Corporate Strategy
instant generation of pre-paid fuel vouchers which can
be redeemed at BPCL fuel stations. The solution, which To achieve organizational vision and goals, the Corporate
is integrated with fuel dispensing machines, ensures Strategy department plays a pivotal role in developing
inherent transaction and fueling transparency. Customers and evolving medium to long-term strategies. The
generated about 42 million UFill vouchers worth ` 1,678 department continuously engages with various
crore during the year 2022-23. business units within BPCL to co-create their strategic
With an objective to empower BPCL field force in building plans. The team continuously scans the environment
stronger customer relationships, SalesBuddy, a Customer to track cutting-edge technologies that can disrupt the
Relationship Management (CRM) platform powered current business and also explore organic and inorganic
by the M/s SalesForce, is being leveraged. SalesBuddy opportunities which will help the company to deliver and
enables BPCL's front-end sales team to manage customer sustain high performance.
visits, manage leads, provide a 360-degree view of the
Across the world, Governments are making policy
customer, manage tasks and activities as well as carry
announcements to ensure that the energy landscape
out customer service.
shifts towards low-carbon solutions and technologies.
IRIS – BPCL’s Digital Nerve Centre – continues to remotely India, too, has taken ambitious targets towards a greener
monitor and facilitate operations across the Company’s and cleaner environment, promoting proliferation of
vast network of fuels depots, LPG bottling plants, fueling various alternate energy sources like ethanol, bio-diesel,
stations and tanker fleet, integrates various systems, such sustainable aviation fuel, solar, wind, energy storage,
as Internet of Things (IoT) sensors, automation systems, electric vehicles, green hydrogen, etc.
GPS tracking systems, CCTV monitoring, and more at
these locations, processing 3 million inputs per second Aligned with the national priorities, BPCL is actively
from these systems. IRIS ensures optimal performance, looking at diversification opportunities to develop a
guaranteeing the delivery of high-quality products at the business case for future investments, to open avenues of
right price, reinforcing customers’ trust. It establishes growth and de-risk the existing businesses in this rapidly
compliance, monitors equipment health, triggers evolving scenario. Major focus areas of the Corporate
automated alerts and actions for equipment failures or Strategy department are building low-carbon portfolio
hazardous situations, empowering BPCL's workforce to of gas, biofuels and renewables; transforming fuel
make informed decisions and take pre-emptive actions retailing by developing the new age mobility solutions;
to enhance product and service quality. Currently, IRIS is and building a resilient hydrocarbon portfolio, including
integrated with 19,000+ fuel stations, 89 Retail terminals, petrochemicals to make existing business more efficient,
53 LPG plants, and 25,000+ tankers, handling more than flexible and profitable. Corporate Strategy is evaluating
4 lakh exceptions every month. M&A opportunities in sectors like non-fuel, renewables,
BPCL is leveraging best-in-class cutting-edge hydrogen, etc. to meet the long-term aspiration of BPCL
technology solutions and collaboration with leading to become an integrated energy company.

The Corporate Strategy setup also leverages India’s encompasses Preparedness, Mitigation, Planning and
vibrant startup ecosystem by supporting promising Restoration (PMPR). Mock drills are regularly conducted
startups under its Startup initiative christened as Project and reviewed to ensure emergency preparedness at all
Ankur. The initiative was started in 2017, in line with locations. Incident Reporting is a very critical activity
Government of India’s “Startup India” initiative and with respect to disseminating the learnings across
recognizing its importance as an innovation engine. The the Company. Incidents reported in the system are
aim of Project Ankur is to develop an ecosystem that thoroughly investigated, while root cause analysis is
nurtures entrepreneurship in the country by backing undertaken and shared with all stakeholders to enhance
innovative ideas/concepts that have the potential to grow collaborative learning for safer operations and greater
into promising startups and create a multiplier effect. By adoption of best practices. Governance practices of
engaging with the startups at an early stage, BPCL also the safety systems and standard operating procedures
gets access to some of the path-breaking technologies (SOPs) are regularly monitored and reviewed to ensure
and solutions in the energy space. BPCL has allocated safe operations across all locations.
` 78 crore for this purpose in three phases. This fund To enhance safety across all business units, various
is being utilized to support deserving and budding technological interventions like robotic cleaning of
startups in various ways, including grant funding. A confined spaces, IIoT (Industrial Internet of Things)
total of 31 startups have been selected for grant funding, based Wireless Asset Monitoring System, cloud-based
amounting to a total of about ` 27.9 crore, out of which HSSE portal, Manpower Monitoring System, camera
` 26.7 crore has already been disbursed up to March feeds and drones (for turnaround safety surveillance in
31, 2023. In addition to grant funding, BPCL is also refineries) are being used. Integrated Electronic Work
providing mentoring and guidance to the startups. BPCL Permit System (e-WPS) with Integrated Risk Information
continuously engages with the startup ecosystem in India, System (IRIS) is used for monitoring all ultra-critical
including Startup India, leading academic institutions, activities. The Pipeline entity implemented Interlock
incubators, accelerators and venture capital investors, Bypass Online Authorization System to enhance process
etc. to ensure that BPCL funds are utilised to address the safety with mapping of Geographical Information System
challenges related to energy sector. (GIS) to enable comprehensive data management of
HEALTH, SAFETY, SECURITY & ENVIRONMENT (HSSE) entire pipelines on a single platform, with concurrent
access from anywhere at any time.
Health, Safety, Security and Environmental are core to
all spheres of our business. The objective is to achieve The technology of Vehicle Tracking System (VTS)/
zero incidents, effective containment of hydrocarbons Electromechanical (EM) digital locks was integrated with
and mitigation of associated hazards. The Company’s IRIS at central command and control centre, ensuring
Industrial Transport Discipline Guidelines (ITDG) for
endeavour is to achieve its mission of ‘Zero Incidents,
recording, monitoring and corrective actions against en
Zero Harm and Zero Excuses’.
route violations, which had an impact on reduction of
BPCL has in place a Corporate Safety Management System in-transit accidents. Process Safety Management (PSM)
(CSMS) and 12 Life Saving Rules (LSRs) cutting across has been successfully implemented to enhance safety at
all business units, which bring in standardisation and a all refineries.
uniform understanding of Safety Management Systems
Training of more than 2,350 man-hours, covering 500
(SMS). Internal and external audits are an integral part,
participants, was imparted on various topics of Health,
and compliance of recommendations are given topmost
Safety, Security & Environment. This included mandatory
priority. External Safety Audits (ESAs) are frequently
online trainings for HSSE role holders on 14 strategic
undertaken by Oil Industry Safety Directorate (OISD),
modules through M/s. Du Pont. High-impact webinars
Petroleum and Natural Gas Regulatory Board (PNGRB),
were organised on Health (Lifestyle improvement), Safety
Factory Inspectorate, etc., and recommendations are
(Scientific Accident Investigation Safety Leadership)
implemented in a time-bound manner.
and Environment (net zero, lifecycle assessment, waste
The Company has a well-structured Emergency management, etc.) across BPCL. Refineries conducted
Response Disaster Management Plan (ERDMP), which training programmes on process safety management,

contractor safety programmes on scaffolding, turnaround emissions. These emerging technologies shall be adopted
management, maintenance activities, etc. gradually with focus on Scope 1 emissions. In alignment
with the net-zero goals of BPCL, CRDC is working on
Refineries, Pipelines and Marketing have been re-
accredited with ISO 9001:2015, ISO 14001:2015 and various CCUS technologies such as carbon capture from
ISO 45001:2018 standards for Quality, Environment & refinery off-gases. The Company has simulated Moving
Occupational Health, and Safety Management systems. Bed Adsorption (SMB), methanol production from CO2
captures and Sustainable Aviation Fuel (SAF).
BPCL is dedicated to addressing the issues of climate
change and global warming, and believes that a The Company has institutionalized sustainability as a
comprehensive solution, which includes technological core parameter in its philosophy and endeavours to
advancements, efficient use of energy and economically make the performance on its sustainable development
viable energy transition alternatives, is the need of the initiatives transparent and available in the public domain.
hour for ensuring environmental safety and sustainable BPCL benchmarked its sustainability initiatives on
development ecosystem. Environment, Social and Governance (ESG) parameters
on the Dow Jones Sustainability Index (DJSI) platform
In line with the nation’s objective of achieving net-zero
and was ranked 8th best company globally in the
emissions by 2070, BPCL has set a target of achieving net-
Oil and Gas Sector for the year 2022-23. BPCL also
zero for its controllable (i.e., Scope 1 and 2) greenhouse
benchmarked its performance on Carbon Disclosure
gas (GHG) emissions by 2040. BPCL has identified
Project (CDP), a platform of sustainability and climate
various short-term and long-term levers to reduce
change, representing Company’s transition towards
emissions and achieve net-zero targets. Renewable
environmental stewardship and maintaining its rating
Energy (RE) generation has been identified as one of the
at 'Management Level’, which is the best amongst the
key thrust areas, with the initial objective of addressing
Indian Oil and Gas sector and on par with international
in-house power requirements through renewable sources
peer group. The Company’s efforts on sustainability were
and, subsequently, establishing itself as a renewable
recognized during the year by various institutions and
power producer.
agencies through a number of awards and accolades
For setting up major solar projects, land parcels within such as Golden Peacock, and from renowned institutions
BPCL group have already been identified and feasibility such as the Energy and Resources Institute (TERI), the
studies are in progress. The company has collaborated Confederation of Indian Industry (CII), etc.
with various State Governments and organizations like
Bhabha Atomic Research Centre (BARC), Solar Energy The latest report on sustainability was published in the
Corporation of India (SECI), Hero MotoCorp, etc. for year 2021-22 following Global Reporting Initiative (GRI)
cooperation in the RE space, with specific focus on Standards and other global frameworks and mapped
solar, wind, electric mobility, green hydrogen, and waste- with the United Nations’ 17 Sustainable Development
to-energy projects. With increased impetus on green Goals. The Sustainable Development Report of BPCL is
hydrogen, BPCL has carried out internal studies, which assured by an independent third party as per Accounting
indicate that to achieve a target of 10% green hydrogen Ability (AA) 1000 Assurance Standard (AS) 2008 and
for all its refineries by 2030, around 72 metric tonnes International Standards of Assurance Engagement
(MT) per day of hydrogen would be required in refinery (ISAE) 3000.
operations. To begin with, BPCL is implementing a green Your company is continuously implementing various
hydrogen plant at its Bina Refinery. Besides, BPCL is initiatives in the direction of minimizing operational
also setting up a pilot project with BARC technology at impacts on the environment. The capacity of renewable
its Corporate Research and Development Centre (CRDC), energy was increased from 46.44 megawatts (MW) to
Noida to study the commercialization of the technology 62.3 MW and the energy-efficient lighting (EEL) capacity
and further scaling it up in due course of time. was increased from 60.55 MW to 63.52 MW during
BPCL is in the process of identifying viable Carbon the year. Mumbai Refinery, Pipelines, Retail and LPG
Capture, Utilization and Storage (CCUS) technologies locations have implemented 100% EEL, while other
which can be implemented in its refineries to capture CO2 locations have taken up targets to achieve this by 2024.

The initiatives on renewables resulted in an annual certified for 'Zero Waste to Landfill', while other refineries
reduction of GHG emissions by approximately and marketing locations have taken up a target to be
0.31 MMTCO2e in the year gone by. Additionally, certified by 2023-24.
other sustainable initiatives such as Ujjwala Yojana,
BPCL is following the 5R principle of waste management,
transportation of product through pipelines and use of
i.e., to Refuse, Reduce, Reuse, Repurpose and
biofuel in MS and HSD helped in reduction of emissions
Recycle waste in all its operations. The Lubricants
by approximately 12.04 MMTCO2e, totalling to 12.35 BU has obtained a license for Extended Producer’s
MMTCO2e for the year 2022-23. Responsibility (EPR) under brand owner category for
BPCL has entered into a contract with Servotech Power lubricant packaging plastic containers and disposed of
Systems, Delta and BHEL for supply of 1,000 Nos. of approximately 3,172 MT of plastic waste responsibly.
30 kW and 350 Nos. of 60 kW chargers to provide EV The Company has adopted composting in a big way to
fast-charging stations at ROs. The primary thrust is on dispose of organic waste from refineries and marketing
highways to develop Highway Fast Charging Corridors, locations in a responsible manner. Approximately 400
which will help in reduction of Scope 3 emissions, MT of organic waste was converted into compost and
fostering a cleaner environment. used for gardening purposes during the year.
This year, BPCL planted more than 86,500 trees to BPCL carried out a pilot life cycle assessment study from
improve the green cover and enhance biodiversity. Around cradle to grave at Wadilube Installation, which carries out
5 lakh seed bombs were planted using 'seed bombing’ blending of lubricants. The project, assigned to National
technique in Maharashtra region, with a survival rate of Institute of Industrial Engineering (NITIE), one of the
more than 20% with the help of NGOs, college students, leading research institutes in Mumbai, was carried out
NCC cadets, etc. The Miyawaki technique (Multi-layered through Gabi software and helped in identifying possible
Dense Forestation) was adopted at various refinery hotspots for improvement and alternatives that could
and marketing locations and trees were planted at 25 reduce energy consumption as well as biodiversity and
locations across India. The total number of trees at BPCL environmental impacts.
locations are presently more than 8.9 lakh, which helped BPCL is committed to leveraging sustainable
in increasing the CO2 sink by sequestrating 20,000 development, operational efficiency, improved processes
MTCO2e during the year. and technologies, to reduce resource consumption, in
BPCL has been working proactively and continuously line with national policy and to comply with the related
towards increasing the rainwater harvesting (RWH) regulatory norms to conserve and sustain natural and
capacity to reduce dependency on other sources of water. social ecosystems as an integral element of business,
The total catchment area under rainwater harvesting has thus creating a healthy, safe, secure and environment-
increased from 10,80,121 sq. m to 11,95,878 sq. m, friendly workplace.
which has helped in conserving 6,07,000 kl of water HUMAN RESOURCES
during the year 2022-23. BPCL has carried out a study on
Human capital is the backbone of our organization, and
RWH at Mumbai Refinery to identify more areas where
its importance cannot be overstated. It drives creativity,
RWH can be implemented, and to improve the present
innovation, and productivity, contributing not only
efficiency and collect maximum possible amount of water
to the operational efficiency but also to the strategic
to reduce its freshwater consumption from municipal
growth of our organization. From the decision-making
supply. BPCL has also conducted water balance studies
executives who devise strategic plans to the frontline
at marketing locations in an endeavour to make locations
employees who interact with customers, every employee
water-neutral.
plays a critical role in shaping the BPCL’s success. The
BPCL, as a responsible corporate entity having its diverse perspectives and experiences of BPCL’s talent
obligation towards prevention of soil contamination, serve as catalysts for problem-solving and adaptability,
carried out third-party audits to get their locations empowering us to flourish in an ever-evolving world.
certified for ‘Zero Waste to Landfill’. Mumbai Refinery, Recognizing the significance of investing in people, we
all Retail, LPG and Lubricants locations have now been have embraced 'Development of People' as one of BPCL's

core values, understanding that it is not only a moral were nominated to programmes at other institutes as part
imperative but also a strategic requisite for ensuring of their professional development.
enduring success.
Multiple experiential team alignment interventions were
Looking back on this transformative year, it is a delight conducted in outbound format via a series of workshops
to share the unwavering commitment to fostering a called “Winning Together”, which were conducted
culture of ‘learning and development’ that propels for diverse teams like New Businesses, Industrial &
BPCL and its talented workforce towards new heights. Commercial, Finance, Retailing Initiatives, and Central
In an ever-evolving landscape, investing in the growth Refineries Project Organisation.
and development of people remains at the core of the
In order to get the target cohort of officers appreciate
Company’s vision and strategy.
the importance of strategic alignment to organizational
The leadership capability assessment and development goals, a customized learning journey was designed and
process is carried out on a biennial basis under the Talent delivered in partnership with Indian School of Business
Management Framework ‘ASCEND’. The fifth cycle of (ISB), keeping it relevant to the BPCL context. A three-
ASCEND began with the launch of a revised leadership day programme on “Strategic Acumen for Sustained
competency framework and introduction of a rigorous Competitive Advantage” was rolled out through expert
assessment methodology in the form of personality self- and reputed faculty members and learnings were
assessments and Assessment Centres. More than 1,000 delivered using methodologies like business simulations
officers were covered in this years’ Assessment Centres and industry-specific case studies that could effectively
in addition to similar numbers covered in the previous drive business in the organizational context.
financial year. Individual feedback sessions for senior
and mid-level officers, followed by development centre To build and inculcate a culture of continuous career
workshops and development dialogues for senior leaders, conversations in teams, a ‘Feedback Month’ campaign
were carried out. Focused development plan workshops was launched for managers and their teams to engage
were conducted to build an understanding of assessment in ‘Conversations that Matter’, hence helping them
outcomes, helping them identify and strengthen their take the next step from performance management to
areas of development. Multiple talent insights emanating development.
from the conclusion of the fifth cycle of ASCEND are In the endeavour to promote a culture of diversity and
being analysed and applied to drive people, practices and inclusion, an in-depth survey called ‘Voice Your Vision’
related developmental priorities. was administered to all women employees coupled with
The Behavioural Learning Framework was revamped and a two-day discovery workshop ‘Choose to Challenge’.
relaunched to synchronize with the revised leadership This workshop brought to the fore key thematic areas for
competency framework. Twenty-seven programmes at promoting diversity and a strong presence of women in
various levels were conducted, covering 730 employees leadership and frontline critical roles.
and clocking 11,680 man-hours of training. Thirty-two EMPLOYEE SATISFACTION ENHANCEMENT (ESE)
simulation-based experiential learning programmes
were conducted for multiple Businesses/Entities/target The pandemic further amplified what was already
group of employees, with focus on enhancing various known, that the future of work is tightly linked to
managerial and functional competencies. employee well-being. Today, employee well-being
has expanded beyond physical well-being to focus
To promote a culture of self-paced learning, the Corporate on building a culture of holistic well-being, including
Learning Centre provided popular platforms like Percipio physical, emotional, financial, social, career, and
and LinkedIn Learning to all interested users, which had community. BPCL has been a forerunner in making
unlimited content in various modes like videos, audios, its workplace emotionally safe and thriving for
e-learning modules, books, articles, etc. employees. BPCL has a dedicated entity called
While 169 employees from across various job groups Employee Satisfaction Enhancement (ESE), which
were provided learning opportunities at premiere touches the lives of employees to ensure a healthy,
institutes like the IIMs, XLRI, MDI, etc., 527 employees productive, vibrant, and energized workforce. For

more than a decade, ESE has been offering Employee Integrated Information System (IIS)
Assistance Program (EAP) services to its employees
BPCL, with its dedicated team of seasoned IT
by the name Roshni Plus to help them deal with
professionals, continued its enterprise-wide digital
anxiety and stress, either arising out of personal or
transformation journey during the year 2022-23,
professional issues.
encompassing creation of digital tools for ease of doing
BPCL believes that creating awareness, and sensitizing business, automation for achieving enhanced operational
employees and line managers about emotional well-being efficiency and business excellence, and facilitation of data
goes a long way towards promoting an emotionally safe driven-business analytics for informed decision-making.
workplace. The ESE team visits locations to maintain
During the year, the merger of BORL and BGRL IT
employee connect and proactively interacts with
systems into BPCL IT systems were effectively completed
employees to allow them to share their concerns and
without any business disruption. IT solutions ensured
grievances, and create awareness on overall well-being
full compliance to various government regulations
and EAP services. During the year, the team visited 52
with respect to sale of Ethanol Blended Petrol. Several
locations and interacted with 642 employees.
technology-enabled innovative solutions were developed
ESE continuously reaches out to employees and in-house and implemented, which have added immense
disseminates informative and insightful learnings value to business processes in sales and operations
through digital outreach initiatives such as ActivLife by enhancing internal efficiencies, saving man-hours,
webinars, "Interconnect" newsletters, e-magazines, eliminating manual errors and automating repetitive non-
and mailers. ESE organized 19 webinars, which were critical activities.
attended by 2,262 participants and curated and circulated
Interfaces were established between various IT systems
Interconnect weekly newsletters and 23 mailers. There
of BUs to implement intelligent business processes.
are 72 employees nominated as Sahkarmi Mitras, who
Aadhaar-based e-signing for digitally signing of internal
act as emotional first-aid at locations and are trained to
documents was implemented, bringing in improved
help a distressed colleague at the workplace.
governance.
In order to help employees in the field to avert stress and
Various mobile-friendly solutions were implemented
burn-outs, ESE organized a residential wellness retreat
to further simplify business processes for internal and
to encourage participants to find serenity and alignment
external stakeholders, enabling real-time communication
in their life. The goal was to unwind, rejuvenate and
and access to information.
help the participants rediscover their authentic selves
through exposure to self-experiential ancient healing BPCL, along with other PSU Oil Marketing Companies,
techniques and modern scientific methodologies. The under the guidance of MoPNG, enabled the formation
retreat helped to spur them on the path to happiness, of Common LPG Data Platform (CLDP), which includes
good health, and a satisfying life. creation of a common LPG Master database with near
real-time and offline de-duplication services for new
Apart from regular location visits, webinars, and
consumer creation and consumer master updates.
awareness programs, seminars were organized at
The platform is also being developed for processing
10 locations. ESE closed the year with a conclave for
Direct Benefit Transfer of LPG (DBTL) Scheme subsidy
leaders, called Thrive 23 – Nourish, to Flourish, on the
to eligible beneficiaries along with advanced MIS and
theme of "Employee well-being at work – our role as
analytics helping in improved consumer service and
leaders" to sensitize business leaders on the need to
enhanced governance. System support was provided for
provide a conducive work environment to employees.
implementation of various Government initiatives, viz.,
The conclave had a panel discussion, fireside chat, and
Pradhan Mantri Ujjwala Yojana/LPG Sahay Yojana in the
learning hours on topics such as the need for emotional
state of Gujarat, LPG Refill Scheme for Uttarakhand, and
intelligence and resilience for leaders, leading with
capping of refills for non-PMUY consumers.
compassion, building an emotionally safe workplace,
balancing results with care, and bridging generation A comprehensive security assessment, simulating real-
gap–towards building a future-ready workforce. world attack scenarios, was carried out for validating

the effectiveness of security controls and for identifying ship arrangements and coordination. As part of fostering
initiatives to strengthen cyber security posture of BPCL. strong relationship with stakeholders, Foundation of
Zero Trust Network Access (ZTNA) was implemented for Organizational Learning sessions were conducted for
enhanced security. vessel owners. Also, training programmes were conducted
for Boarding Officers from all coastal locations, on vessel
Several in-house solutions, viz., Maritime Intelligent
performance and associated challenges.
Logistics System, Road Intelligent Transport Automation
System and E-measurement book were recognised by ITRM has been a front runner in value creation for the
external agencies as best-in-class initiatives towards Company through identifying new geographies for
digital transformation. sourcing better-value crudes, freight management by
leveraging options available in the market, meeting the
INTERNATIONAL TRADE & RISK MANAGEMENT (ITRM)
challenges of ever-changing and dynamic oil markets,
BPCL’s International Trade and Risk Management (ITRM) understanding infrastructure bottlenecks and ensuring
setup performs all activities pertaining to import of crude infrastructure augmentation for enhanced performance.
and import/export of products. ITRM procures crude These activities are a result of synergies that are
indigenously, as well as through imports. Petroleum developed by interacting with various stakeholders. ITRM
products are imported and exported based on domestic has leapfrogged from an era where crude purchases and
demand-supply scenarios. Allied services of ship refinery evacuation were closely controlled and monitored
chartering and operations are also facilitated by ITRM. by the Government, to an era where pure economics
Further, the ITRM setup includes an active Derivatives guides the best-fit decision. With robust working policies
Desk engaged in risk management activities via the paper and sound governance framework, ITRM has contributed
(financial derivatives) market, thereby covering operating immensely to the Company's growth path.
costs of refineries and other associated costs. RESEARCH AND DEVELOPMENT (R&D)
During the financial year, 279 million barrels (38.2 MMT) Research & Development is crucial to the long-term
of crude oil was procured for BPCL refineries, including growth and sustainability of any business. With the
5 new grades of crude oils which were procured for the prevailing energy landscape and initiatives such as the
first time by BPCL. Continuing its success in procuring net-zero and Aatmanirbhar Bharat programs promoted
spot crude oil through own Crude Oil Trading Desk, a by the Government of India, the drive to create innovative
total of 135 million barrels were sourced through spot products and processes have intensified. BPCL’s
procurement in the financial year, capturing opportunities Corporate Research & Development Centre (CRDC) is,
in the oil market across the globe. The trading desk is in addition to research in conventional oil refining and
fortified with a comprehensive trading policy and a robust related processes, actively pursuing research in niche
governance framework that ensures the highest levels of areas such as petrochemicals, biofuels, alternate energy,
controls in spot crude oil procurement. green hydrogen and carbon dioxide mitigation.
The year 2022-23 was a turbulent one for crude, product BPCL’s Product & Application Development Centre
and freight market, exhibiting unprecedented price levels (P&AD) team, located in Mumbai, is engaged in
and movements, with shift in oil trade routes and oil developing new automotive, industrial, and green
supply chains, due to the stressful geopolitical situation lubricant formulations to meet business demands.
around the world. ITRM has been proactive in meeting
In the year 2022-23, CRDC achieved significant
the challenges of new order in world oil market ensuring
milestones by creating innovative technologies and
maximum value to the Company through proper planning
products. These include the Bharat Hi-Star LPG and
and execution.
PNG stoves with an efficiency of approximately 75%,
Continuing its excellence in chartering activities, Recap development of Superabsorbent Polymer (SAP) for
Manager software was implemented for online fixture agricultural applications, smokeless kerosene for defence
recap and charter party preparation as digital initiative. applications, niche petrochemical catalysts and ligands,
Benefit of freight arbitrage between Suez Max and VLCC biodegradable films made from 1G ethanol by-products,
was taken for delivered cargo, ensuring proper ship-to- green silica from 2G ethanol by-products as well as

numerous advances in carbon capture and utilization to In Offshore Area 1, Rovuma Basin, Mozambique, while
produce value-added petrochemicals such as methanol the construction activities in the 2-Train Golfinho-
and formic acid. During the year, research by the CRDC Atum LNG Project were progressing as per schedule,
team resulted in the grant of 5 Indian and 2 foreign security incidents in the region led to the declaration
patents. Also, 18 new patent applications (5 Indian and 13 of force majeure at the beginning of the year 2021-22.
foreign) were filed during the year. The R&D department The Government of Mozambique is working towards
of BPCL is no longer merely an innovation hub, but also reestablishment of peace and resolving the security
a revenue generator through the implementation and situation. Mozambican military and joint forces from
commercialization of various solutions. Rwanda and Southern African Development Community
(SADC) continue their operations in the region. In order
Exploration and Production of Crude Oil and
to contribute to the stabilization of the livelihoods of the
Gas through Wholly Owned Subsidiary BPRL
communities in Northern Cabo Delgado, the project has
Operations of the Company developed a comprehensive socio-economic initiative
Bharat PetroResources Limited (BPRL) has Participating aimed at generating revenues for the communities,
Interest (PI) in seventeen blocks, of which eight are in developing the local economy, preserving the
India and nine overseas, along with equity stake in two biodiversity and promoting human rights. There has
Russian entities holding the license to four producing been an improvement in the security situation there
blocks in Russia. Five of the eight blocks in India were and the project is expected to restart after satisfactory
acquired under different rounds of New Exploration assurances regarding security in Cabo Delgado province.
Licensing Policy (NELP), one block was awarded under In respect of Indian blocks, the block CY-ONN-2002/2,
Discovered Small Fields (DSF) Bid Round 1 and two located in Cauvery Basin, Tamil Nadu currently has
blocks were awarded under the Open Acreage Licensing six producing wells. During the year 2022-23, BPRL’s
Policy (OALP) Bid Round I. Out of the nine overseas share of production from the block was approximately
blocks, five are in Brazil, two in United Arab Emirates 28 thousand tonnes of oil.
and one each in Mozambique and Indonesia. The blocks
In BPRL’s Indian OALP Operated block, CB-ONHP-2017/9
of BPRL are in various stages of exploration, appraisal,
located in onshore Cambay Basin, Gujarat, exploration
development, and production. The total acreage held by
drilling prospects have been identified and activities are
BPRL and its subsidiaries is around 21,358 sq. km, of
planned towards a minimum work program.
which approximately 50% is offshore.
The Company’s PI in respect of blocks in India are held
During the year 2022-23, approximately 4.4 million
directly by BPRL. BPRL has wholly owned subsidiary
barrels of crude oil from the Lower Zakum Concession
companies located in the Netherlands, Singapore, and
was lifted by BPCL group refineries, out of BPRL’s share
India. The subsidiary located in the Netherlands, i.e.,
of equity crude oil from the Lower Zakum Concession.
BPRL International BV, in turn, has four wholly owned
Discussions for early monetization of discoveries which
subsidiary companies, viz., BPRL Ventures BV, BPRL
were appraised in the overseas operatorship block
Ventures Mozambique BV, BPRL Ventures Indonesia BV
Onshore Block 1 Concession in Abu Dhabi, UAE are
and BPRL International Ventures BV. BPRL Ventures BV
ongoing. The first phase of the exploration campaign
has 61.36% stake in IBV Brasil Petroleo Limitada, which
has also been concluded, with testing indicating the
currently holds PI ranging from 20% to 40% in five
presence of hydrocarbons in one well in the unexplored
blocks in offshore Brazil. BPRL Ventures Mozambique
area of the block.
BV has PI of 10% in a block in Mozambique, and BPRL
In BM-SEAL-11 Concession in Brazil, after the Ventures Indonesia BV holds PI of 16.2% in a block in
Declaration of Commerciality (DoC) in December Indonesia. BPRL, through BPRL International Ventures
2021, the Field Development Plans were submitted BV, has 30% stake in Falcon Oil and Gas BV, which
to ANP (Brazilian Regulator) in November 2022. The holds 10% stake in the Lower Zakum Concession
concessionaires are progressing towards procurement in offshore Abu Dhabi, UAE. Further, BPRL's wholly
of Floating Production Storage Offloading (FPSO) unit owned subsidiary in Singapore, i.e., BPRL International
and other long-lead items for the project. Singapore Pte Ltd (BISPL) holds 33% each in two

Special Purpose Vehicles (SPV), i.e., Taas India Pte producing oil asset, Lower Zakum Concession in Abu
Ltd (TIPL) and Vankor India Pte Ltd (VIPL), which Dhabi, UAE, in March 2018. The Indian Consortium’s
hold 29.9% and 23.9% in the Russian entities LLC share in the Lower Zakum Concession is held through
Taas-Yuryakh Neftegazodobycha (“TYNGD”) and JSC Falcon Oil & Gas B.V., an SPV incorporated in the
Vankorneft, respectively. BISPL further holds 50% Netherlands, in which BPRL holds 30% shares through
stake in Urja Bharat Pte Ltd (UBPL) in Singapore, which its step-down subsidiary BPRL International Ventures
is the Operator of Onshore Block 1 concession in Abu B.V in the Netherlands. The Concession has a term
Dhabi with 100% PI. The subsidiary in India, viz., Bharat of 40 years, effective from March 9, 2018. The other
PetroResources JPDA Limited, held PI in a block in shareholders in the Lower Zakum Concession are Abu
Timor Leste, which has been relinquished. Dhabi National Oil Company (60%), JODCO (10%, a
wholly owned subsidiary of Japan’s INPEX Corporation),
Current Status of Blocks
China National Petroleum Corporation (10%), Italy’s
Overseas Assets ENI (5%) and France’s Total S.A. (5%).
Russia During the year, BPCL group refineries lifted
BPRL, along with Oil India Limited (OIL) and Indian Oil approximately 4.4 million barrels (0.58 MMT) of Das
Corporation Ltd (IOCL), jointly referred to as the Indian Blend Crude Oil as its equity oil from the Lower Zakum
Consortium (IC), holds 23.9% stake in JSC Vankorneft; Concession. During the year, BPRL’s Netherlands
and 29.9% stake in LLC TYNGD through joint ventures subsidiary received dividends of USD 26.28 million
Vankor India Pte Ltd (VIPL) and Taas India Pte Ltd (TIPL), from Falcon Oil & Gas BV.
respectively, both incorporated in Singapore. Onshore Block 1 Concession
In JSC Vankorneft, LLC Vostok holds 50.1% shares, ONGC BPRL, jointly with Indian Oil Corporation Ltd. (IOCL), was
Videsh Ltd (OVL) holds 26% shares and the IC holds the awarded the Onshore Block 1 Concession as Operator
remaining 23.9%, through their respective subsidiary with 100% PI in March 2019 under Abu Dhabi 2018
companies. During the year 2022-23, JSC Vankorneft Block Bid Round. The block is held by Urja Bharat Pte
produced approximately 9.47 MMT of oil and 5.15 billion Ltd, a 50:50 joint venture company of wholly owned
cubic metres (BCM) of gas (BPRL’s effective share being subsidiaries (WOS) of BPRL and IOCL, incorporated in
0.75 MMT of oil and 0.41 BCM of gas). During the year, Singapore.
the IC received a dividend amounting to Rub 5.87 billion,
Onshore Block 1 covers an area of 6,162 sq. km located
i.e., approximately USD 97 million (with BPRL’s effective
in the Al Dhafra region around Ruwais City and the
share being approximately USD 32 million).
refining complex, including the coastal region to the
In TYNGD, Rosneft holds 50.1% shares, BP holds 20% west. There are two existing undeveloped discoveries in
shares and the IC holds the remaining 29.9% shares the area, named Ruwais and Mirfa, in addition to available
through their respective subsidiary companies. During prospects/leads for exploration.
the year 2022-23, TYNGD produced approximately 5.05
The drilling and testing of appraisal wells in Ruwais
MMT of oil and 4.07 BCM of gas (BPRL’s effective share Discovery have been completed, which has established
being 0.50 MMT of oil and 0.40 BCM of gas). During the the presence of hydrocarbons. Field development plan
year, the IC received dividend amounting to Rub 17.7 for Ruwais discovery is submitted for regulatory approval
billion, i.e., approximately USD 291 million (with BPRL’s and discussions are ongoing with ADNOC for early
effective share being approximately USD 96 million). monetization of the Ruwais field. In the remaining part
United Arab Emirates (UAE) of the block area, drilling of exploratory wells has been
completed and testing of wells is progressing.
Lower Zakum Concession
Mozambique
The Lower Zakum field, located in Abu Dhabi Offshore
BPRL, through its Netherlands based step-down
shallow waters, has been producing crude oil since 1967.
subsidiary company BPRL Ventures Mozambique
The Indian consortium comprising BPRL, along with B.V., holds 10% PI in Offshore Area 1, Rovuma Basin
OVL and IOCL, acquired 10% stake in the offshore Concession in Mozambique. Total E&P Mozambique

Area 1 Limitada, a wholly owned step-down subsidiary Sergipe Alagoas (BM-SEAL-11) Concession
of Total S.A. is the Operator with 26.5% PI, and the
The Concession currently consists of two blocks
other consortium partners are Mitsui E&P Mozambique
SEAL-M-426 and SEAL-M-349 and Petrobras is
Area 1 Limited (20%), ENH Rovuma Área Um, S.A.
the Operator with 60% PI, while IBV holds the
(15%), ONGC Videsh Rovuma Limited (10%), Beas
remaining 40% PI. The Operator, on behalf of the
Rovuma Energy Mozambique Limited (10%) and PTTEP
Concessionaires, submitted the Field Development
Mozambique Area 1 Limited (8.5%).
Plans for the fields to ANP in November 2022.
Following the discovery of vast quantities of natural gas Currently, procurement activities are ongoing for the
in Rovuma Offshore Area 1 off the coast of northern Floating Production Storage & Offloading (FPSO) unit
Mozambique, Area 1 consortium partners announced and other long-lead items.
Final Investment Decision (FID) on June 18, 2019 to
develop a 2x6.56 MMTPA-Train onshore initial LNG Campos (BM-C-30) Concession
project for monetization of the gas discovered from In BM-C-30 Concession, IBV has 35.714% PI and PetroRio
offshore Golfinho-Atum discovery area. Jaguar Petroleo Ltda is the Operator with 64.286% PI.
After FID, while the project was on schedule and within Arbitration proceedings are ongoing at International
budget till March 2021, due to the security incidents Chamber of Commerce (ICC), London with the Operator
around the Afungi Project Site during end – March (Petrorio) under the Joint Operating Agreement, and
2021, the consortium has declared force majeure. All at ICC New York with Ovintiv under the Share Sale
construction contracts, LNG SPAs and Project Financing Agreement.
(approximately USD 15.4 billion) are preserved
currently. Potiguar (BM-POT-16) Concession
The Government of Mozambique is working towards The Operator has approached the regulator ANP for
the reestablishment of peace and resolving the security relinquishment of the blocks and formal approval is
situation. Mozambican military along with Joint awaited. The Operator in this Concession is Petrobras
forces from Rwanda and Southern African Development with 30% stake and other partners are IBV (20% PI),
Community (SADC) continue their operations in Petrogal (20% PI) and BP (20% PI).
the region.
Indonesia
During the year 2022-23, in order to contribute to
the stabilization of the livelihoods of the communities BPRL has a PI of 16.2%, held through its step-down
in Northern Cabo Delgado, the project developed a subsidiary BPRL Ventures Indonesia BV. PT Pertamina
comprehensive socio-economic initiative called Pamoja Hulu Energi Nunukan Company (PHENC), a wholly
Tunaweza, aimed at generating revenues for the owned subsidiary of Pertamina, the National Oil
communities, developing the local economy, preserving Company of Indonesia, has 83.8% PI in the consortium
the biodiversity and promoting Human Rights. More than and is the Operator. The Production Sharing Contract
40 programs have been developed through experienced (PSC) was signed on December 12, 2004 and is valid for
implementing partners. a period of 30 years, i.e., till 2034. The block is located
in shallow waters offshore of Bunyu Island in Tarakan
There has been an improvement in the security
basin of North Kalimantan province.
situation and the project is expected to restart after
satisfactory assurances regarding the security in Cabo The minimum work programme committed as per the
Delgado province. PSC under the exploration phase has been completed.
Brazil The results of the appraisal drilling program, geological,
geophysical and reservoir studies along with an
IBV Brasil Petroleo Limitada (IBV), incorporated in Brazil,
independent reserve certification has indicated substantial
a joint venture company of BPRL Ventures BV with
reduction in the recoverable oil and gas resource volume
61.36% shareholding, and Videocon Energy Brazil Ltd
from Parang discovery.
(VEBL), step-down subsidiaries of BPRL and Videocon
Industries Limited, respectively, currently holds PI in five Various options are being evaluated to decide the way
deep-water blocks in three concessions. forward in the block.

BLOCKS IN INDIA B. Non-Operated Blocks
A. Operated Blocks i. CY-ONN-2002/2 (Madanam Field, Onshore Cauvery
Basin, Tamil Nadu)
i. CB-ONN-2010/8 (Onshore Cambay Basin, Gujarat)
Under NELP-IX Bid Round, a BPRL-led consortium was BPRL has a PI of 40% in an On-land block CY-
awarded one on-land block CB-ONN-2010/8, in Cambay ONN-2002/2 in Cauvery basin with ONGC being the
basin. BPRL is the Lead Operator with 25% PI and the Operator with a 60% PI.
other consortium partners are GAIL (India) Ltd - 25% The block currently has 6 producing wells with a
PI (Jt. Operator), Engineers India Ltd (EIL) - 20% PI, combined monthly average oil production of 5,838
BF Infrastructure Ltd (BFIL) - 20% PI and Monnet Ispat tonnes (BPRL share: 2,335 tonnes). During the year
& Energy Ltd (MIEL) - 10% PI. Due to MIEL’s cash call 2022-23, 70,064 tonnes of oil (BPRL share: 28,025
payment default under the Joint Operating Agreement tonnes) has been produced from the block.
(JOA), the other non-defaulting parties have agreed to
distribute MIEL’s 10% PI in proportion to their existing ii. CY-ONN-2004/2 (Onshore Cauvery Basin, Tamil
share. Nadu)
During the initial exploration period, two discoveries were BPRL has a PI of 20% in this block, and ONGC with a PI
made, and the Field Development Plan was approved by of 80% is the Operator of the block.
Directorate General of Hydrocarbons (DGH). However, The FDP was approved on July 13, 2017 and the first
in view of unviable project economics, BPRL submitted two development wells drilled did not yield the desired
relinquishment proposal to DGH, which is under results, due to which additional studies are being
approval. Miscellaneous closure activities such as carried out.
Plugging and Abandonment (P&A) and Site Restoration
activities for four dry wells have been completed. P&A iii. NELP IX Blocks
and Site Restoration activities for two discovery wells a) CB-ONN-2010/11 (Onshore Cambay Basin,
shall be completed after obtaining approval from DGH Gujarat)
for relinquishment.
CB-ONN-2010/11, an on-land block was awarded by
ii. CB-ONHP-2017/9 (Onshore Cambay Basin, Gujarat) Government of India to a Consortium consisting of
The block CB-ONHP-2017/9 in Cambay basin, Gujarat GAIL, BPRL, EIL, BFIL and MIEL. GAIL, with 25% PI, is
was awarded to BPRL under Open Acreage Licensing the Lead Operator of the block. BPRL with 25% PI is the
Policy (OALP) Bid Round-I, and the Revenue Sharing Joint Operator of the block.
Contract (RSC) of the block was signed with Govt. of Due to MIEL’s cash call payment default under the Joint
India on October 1, 2018. BPRL is the lead Operator in Operating Agreement (JOA), the other non-defaulting
the block with PI of 60% and ONGC is the partner with parties have agreed to distribute MIEL’s 15% PI in
40% PI. proportion to their existing share, for which a request
has been submitted to DGH for approval.
Based on integrated interpretation on seismic and well
data of existing wells in the block, three prospective The Field Development Plan (FDP) of Galiyana1 was
locations were released. Currently, land acquisition approved on February 10, 2020. The construction of
process, statutory approvals and tendering activities are surface facilities and workover job were completed in
in progress to complete Committed Work Program in the year 2022-23. The field was put on production on
the block. March 18, 2023. Currently, the field is producing about
340 barrels of crude oil per month.
iii. CY/ONDSF/Karaikal/2016 (Onshore Cauvery Basin,
Tamil Nadu) b) AA-ONN-2010/3 (Assam Arakan Basin, Assam)
BPRL was awarded the Karaikal Contract Area in the AA-ONN-2010/3, an On-land block was awarded by
Discovered Small Field (DSF) Bid Round of 2016 with Government of India to a consortium consisting of OIL,
100% PI. The PML for the block is awaited from State ONGC and BPRL. OIL with 40% PI is the Operator of
Govt. of Tamil Nadu, and support of DGH has been the block. BPRL has 20% PI and ONGC holds 40 % PI
sought to expedite the same. in the block.

Due to complications during drilling the MWP commitment clearing, collection management, dispute management,
well SDYA-1, it was plugged and abandoned. Operator etc. have also migrated into BPEC. This centralized setup,
has requested DGH/MoPNG for a three-year extension for with standardized processes and automation at its core,
drilling replacement well in the block. has enhanced internal controls, enabled efficiencies,
improved the working capital management - all resulting
iv. OALP I Blocks
in optimum utilization of resources and transactional
a) AA-ONHP-2017/12 (Assam Arakan Basin, Assam excellence across the Company. The centralization
and Arunachal Pradesh) of these core processes and digital interfaces is also
Government of India awarded the block AA- enabling meaningful insights through data analytics.
ONHP-2017/12 to OIL under OALP I Bid Round. BPRL During the year, BPEC processed 5.48 lakh vendor
farmed into the block with a PI of 10% in December invoices amounting to ₹ 26,065 crore, with substantial
2019. The other consortium partners of the block are OIL number of invoices processed within 15 days of its receipt
(60% PI) as Operator, IOCL (20% PI) and Numaligarh at BPEC. The Digital Invoice Management (DIM) initiative
Refineries Limited (10% PI). The total block is 489 sq. enhanced value, by which 82% of vendor invoices were
km in area, of which 488.50 sq. km is in Assam and received digitally through the Vendor Invoice Management
0.50 sq. km is in Arunachal Pradesh. portal. This green initiative has resulted in transparency
The exploration period is till November 23, 2023. and reduction in the processing time.
Operator intends to apply for one year extension in the Recognizing the vital role that Micro, Small and Medium
block. NOC from Aviation Research Center granted for Enterprises (MSMEs) play in socio-economic growth,
one MWP well. Operator will be approaching DGH for employment opportunities, eradication of poverty, etc.
reduction in MWP. a separate cell has been created for MSMEs to ensure
Blocks Relinquished During The Year uninterrupted and prompt payments to them. Further,
the Company has implemented the Trade Receivables
CY-ONHP-2017/1 (Cauvery Basin, Tamil Nadu)
Discounting System (TReDS), which is a digital platform
Government of India awarded the block CY-ONHP-2017/1 to support MSMEs to get their invoices financed at a
to ONGC under OALP 1 Bid Round. BPRL farmed into the competitive rate facilitating timely payment through
blocks with PI of 40% in December 2019. Out of the total an auction where multiple registered financiers can
block area of 731 sq. km, 579 sq. km is onshore area participate. During the year 2022-23, MSMEs discounted
and the remaining 152 sq. km is offshore area. Petroleum 4,236 invoices valued at ₹ 318 crore, as against ₹ 263
Exploration Licence (PEL) has been granted for the crore during the year 2021-22.
offshore area.
Also, consequent to the merger of Bharat Oman Refineries
Government of Tamil Nadu, vide its extraordinary Gazette Limited (BORL) and Bharat Gas Resources Limited
notification dated February 24, 2020 has prohibited (BGRL) with BPCL in the year 2022-23, processes of
exploration, drilling and extraction of oil and natural gas, these entities were also migrated into BPEC, bringing
including coal-bed methane, shale gas and other similar synergy and thereby enhancing value to the Company..
hydrocarbons, from Nagapattinam district and part of
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Cuddalore district. The major part of the entire envisaged
prospective area of the block falls within the Nagapattinam The Company has a robust internal control system
district and part of Cuddalore District. As the offshore (including Internal Financial Controls over Financial
area was interpreted not to have prospectivity, the block Reporting) that supports timely preparation of reliable
was relinquished. financial and management information as well as
efficiency, reliability, and completeness of accounting
BUSINESS PROCESS EXCELLENCE CENTRE (BPEC)
records. The internal control system ensures compliance
Business Process Excellence Centre (BPEC) is a to all applicable laws and regulations, facilitates optimal
centralized setup which handles various business resource utilisation, and safeguards the Company's
processes covering processing of non-hydrocarbon assets and investor interests. To ensure the orderly and
vendor payments, accounts receivable, payroll and GST. efficient conduct, the Company has a clearly defined
Over the last few years, various allied processes associated organisational structure, well-documented decision
with the above standard process, viz. customer account rights, and comprehensive manuals and operating

procedures for its business units and service entities. accounting, engineering, and IT domains, who review
Internal control system, such as Internal Financial the business processes and controls to determine the
Controls over Financial Reporting, are continuously effectiveness of the internal control system through
examined, and any necessary changes are made to risk focused audits. The Internal Audit Department
bring them into compliance with evolving business and plans the annual audit plan to cover various aspects
legislative requirements. of the business. The Statutory/Government Auditors
The Company’s state-of-the-art ERP solutions (SAP) evaluate the efficiency of internal financial controls
and Business Information Warehouse has inbuilt based on the audit reports published by the Internal
controls including the authorization controls. This further Audit Department. Key business process changes
enhances controls and ensures seamless exchange of
are reviewed by respective internal team before
information with access controls. The SAP systems
implementation.
provide an audit trail of the transactions. To reduce the
risk of fraud, the Company maintains anti-fraud and The Audit Committee/Board regularly reviews significant
whistle-blower policies. findings of the Internal Audit Department covering
The Company’s independent Audit function comprises operational, financial, and other areas and provides
of professionally qualified individuals from the guidance on internal controls.
Details of Significant Changes in Key Financial Ratios
S No. Ratio Type Unit 2022-23 2021-22 Variation (in %) Explanation for Changes
1 Debtors Turnover Ratio No. of 5.63 7.42 -24.06%
Days
2 Inventory Turnover No. of 27.52 29.17 -5.65%
Ratio Days
3 Interest Coverage Ratio Times 3.99 13.76 -71.00% Reduction in Interest Coverage
(Profit Before Ratio in the current year is mainly
interest and Tax + on account of decrease in Profit
Depreciation)/Finance coupled with increase in Finance
cost Cost
4 Current Ratio Times 0.77 0.81 -4.25%
5 Debt-Equity Ratio Times 0.69 0.65 6.15%
6 Operating Profit Margin % 0.26 2.64 -90.10% Decrease in Operating Profit Margin
Ratio (OPM) Ratio in the current year is mainly
OPM = (Profit before due to decrease in the marketing
exceptional Items margin coupled with increase in
and Tax minus Other turnover
Income)/Sales
7 Net Profit Margin Ratio % 0.35 2.63 -86.66% Reduction in Net Profit Margin
Ratio is mainly on account of
decrease in Profit after Tax
8 Return on Net Worth % 3.60 22.00 -83.65% Reduction in Return on Net Worth
is mainly on account of decrease in
Profit after Tax

ANNEXURE-A
Particulars in regards to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
pursuant to the Companies (Accounts) Rules, 2014
A. Conservation of Energy
Mumbai Refinery (MR)
(i) Steps taken for impact on conservation of energy
Paramount importance has been accorded to energy conservation efforts. MR has in place, a sound and
effective Energy Management System (EnMS), accredited & upgraded with ISO 50001:2018 certifications by
M/s TUV-NORD. Continuous monitoring of energy performance and keeping abreast of latest technologies for
energy conservation, have helped to achieve a robust energy performance during the year.
BPCL MR was issued 83,996 number of ESCerts (Energy saving Certificates) by Bureau of Energy Efficiency
(BEE), under Ministry of Power, under PAT-II Cycle. MR has been awarded as Top Energy Performer amongst
Oil PSU refineries under PAT-II cycle by BEE, based on the number of ESCerts achieved.
With the untiring efforts and commitment, MR successfully completed various energy conservation initiatives
which is reflected in the Specific Energy Consumption (SEC) at 62.70 MBN for FY 2022-23. This performance
is attributed to sustained operation at higher intake level of energy efficient CDU4, higher capacity utilization of
secondary process units, energy champion schemes and various energy conserving efforts undertaken during
the year. Total 37 Encon schemes were implemented which helped us to save 33,212 MTOE/year and to reduce
CO2 emission by 1,04,618 MT/Year.
The following are the measures taken up at MR for energy conservation:
• Close monitoring & control of all parameters of Furnaces & Boilers.
• Improvement in Preheat, Furnace Efficiency & Operational performance of RMP units (CDU3, HCU, LOBS,
NHGU & DHT) post major turnaround 2022 leading to EII reduction by 1.65.
• Continuous recovery of flare gas with the help of FGRS and stringent monitoring of process conditions to
control flare loss.
• Continuous Survey of PSV/PCV to identify passing valves and rectification to reduce flare loss.
• Periodical Survey of Compressed air and Nitrogen leaks and rectification.
• Provision of superior insulation on valves of steam headers (FRIC – Flexible Reusable insulation covers) to
reduce surface heat loss.
• Implementation of various Advance Process Control (APC) strategies in process units to reduce energy
consumption.
• Usage of “Energy Analytics Dashboard” & “Unit Daily Energy Intensity Monitoring”.
• Replacement of conventional cooling tower fan blades in RMP Cooling tower and various process units with
new energy efficient EFRP.
• Implementation of Electric heat tracing in BBU & CCU P/H-3 process lines.
• Commissioning of Flash Steam Recovery System in NHT-ISOM, MTBE & SWS-4 for MP steam saving and
Condensate Recovery System in RMP SRU & HCU.
• Unit wise daily monitoring of steam leaks to achieve zero steam leaks.
(ii) Steps taken by the Company for utilizing alternate sources of energy
• Cumulative solar power generation for 2022-23 was 1,112 MWH/Annum from Solar Power Plant installed at
Refinery & Chembur Staff colony.
• Team comprising of MR, KR & BR senior officials has been formed as a part of “Energy Transition Council”
to identify alternate source of energy to be utilized in future.

(iii) The capital invested on energy conservation and estimated savings
Sr. Description of Schemes Capital Energy Savings

Investment Fuel Power
No.
(` Crore) (MT/Year) (MWh/Year)
1 Replacement of conventional AFC’s (12 nos.) with EFRP 0.30 751.2
blades in NHT CCR.
2 LED in CDU4/CPP SRR (55+50=105 numbers). 0.10 8.0
3 Hot feed maximization in CCU & FCCU from CDU4 by NIL 1667
commissioning Hot LR line to CCU.
4 Fanless jet cooling Tower (ARMEC) for Admin building (2 0.07 35.2
nos. cooling towers each of 100 TR capacity) for power
saving.
5 APC implementation in GTU F-0001 for excess oxygen NIL 1333
optimization.
6 Scope of using temperature-based control in GT fin fan As part of TA 240
cooler
7 Steam trap management RMP SRU (Train D). 0.44 457
8 Scope of improvement of Economizer performance in As part of TA 400
HRSG 3
9 Replacement of existing RMP cooling tower (3 nos.) and 0.75 3732.2
CDU3 (32 nos.), NHGU (6 nos.), LOBS (22 nos.) with EFRP
blades.
10 CDU3 cleaning of preheat exchangers and pigging of As part of TA 7467
furnace tubes.
11 NHGU reformer tube and catalyst replacement during TA. As part of TA 2429
12 Descaling of exchanger and furnace tubes in HCU As part of TA 4133
13 Descaling of exchanger and furnace revamp in DHT As part of TA 600
14 Anti-foulant injection on RCO & Crude side. 0.05 167
15 Overhauling of GT-3 As part of TA 498
16 Implementation of Electrical Heat Tracing (EHT) in CCU 5.00 708
PH3 area UCO headers.
17 Installation of flexible removable insulation jackets (FRIC) 0.26 952
on steam valves as a part of RPIP initiative.
18 Stripping steam reduction in HCU C-203 & C-204. NIL 595
19 Optimizing Gas/oil ratio in NHT-CCR. NIL 1333
20 LOBS hot well gases of the columns diverted to furnace NIL 33
F-204.
21 HCU 1st stage reactor gas to oil ratio reduction leading to NIL 476
steam saving.
22 Flash Steam Recovery System in NHT-ISOM, MTBE & 5.52 1255
SWS-4 for MP steam saving in SWS-4.
23 Condensate recovery system in RMP SRU. 2.37 141
24 EHT in pending BBU process lines & BBU product pump 1.00 577
house lines.
25 Stoppage of ARU Extract stripper bottom pump P206 A/B. NIL 180
26 APC in RFU after revamp PGTR. NIL 167

No.
27 Offloading CCR LPG absorber one pump P102 (Process NIL 1708.3
Optimization).
28 Offloading CCR LPG export one pump P104 (Process NIL 264
Optimization).
29 Condensate recovery system in RMP HCU with PR-7/PT-5. 2.37 283
30 Debottleneck of FCCU and improving unit charge and NIL 4833
catalyst circulation
31 Diversion of cold gasoline ex CCU to GTU in order to stop NIL 267
flaring from GTU FSD.
32 Auto Cut in-cut out of GTU Sour water pumps NIL 48
160-P-0011A/B on level of V-0010.
33 ISOM F-505 one FD fan NNFD101B stopped for power NIL 112
saving.
34 Replacement of Jetty Pump P1 with high efficiency low life 0.27 600
cycle (LLC) pump.
35 Replacement of existing DHDS (16 nos.), SWS-1 (2 nos.), 0.59 3528.5
SWS-2 (2 nos.), Old SRU (4 nos.), RMP ATU (10 nos.),
SWS-4 (4 nos.), CCU (19 nos.), FCCU (16 nos.) & RFU (4
nos.) AFC fan blades with new generation energy efficient
E-Glass Epoxy Fiber Re-Enforced Plastic (EFRP) blades.
36 Sending all 3 boilers SCAPH drain to BH Deaerator in place NIL 131
of DM Plant.
37 APC Implementation in CPP De-aerator Section. NIL 595
Total 19.09 31497 11207.4
Kochi Refinery (KR)

Energy conservation efforts have been given utmost importance at KR. KR has maintained reliable and efficient
Energy managemnet ISO 50001:2018 system and practices. The system was recertified in line with ISO
50001:2018 by M/s TUV India Pvt Ltd.
By optimizing plant operation and implementing energy conservation schemes, the specific energy consumption
(MBN) has reduced up to 63.9 against a business plan target of 65.7. This is an achievement over and above
the MBN target of 67.46 as per Perform, Achieve and Trade (PAT) scheme. During this financial year BPCL KR
Implemented 16 nos. of Major Energy Conservation Schemes, having the potential savings of 38,294 MTOEs/
Year and reduction of CO2 emission by 1,18,711 MT/Year.
The following energy conservation and loss control measures were adopted during the year 2022-23, resulting
in significant fuel savings:
• Revamp of DHDT charge heater for efficiency improvement.
• Installation of Welded Plate type exchanger in Amine Regeneration unit and Sour water stripper Unit of IREP
SRU.
• Conversion of IREP SRU cooling water pump from steam turbine to motor.
• Debottlenecking of PFCCU Wet gas compressor turbine exhaust steam line to increase extraction.
• Steam header rationalization for reducing the network size to minimize losses.

(ii) Steps taken for utilizing alternate sources of energy
KR has initiated a 6 MW Solar Power Project.
(iii) The capital investment on energy conservation and estimated savings

No.
1 Various APC initiatives implemented: NIL 11005 1034
a) All sections of MSBP complex (NHT/CCR/PENEX/Hot
Oil)
b) Aromatics Recovery Unit
c) IREP Deaerators
d) IREP SWSU
2 Installation of Welded Plate Type Heat Exchanger in Amine 10.4 6610 NIL
Regeneration train A & B unit in SRU-3
3 WGC HP steam Extraction maximization 1 4074 NIL
4 Installation and Welded Plate Type Heat Exchanger in Sour 4.5 3305 NIL
water stripper-I in SRU-3
5 DHDT Heater efficiency improvement 18.5 3200 NIL
6 Various initiatives taken in DCU : 0.34 4066 331

a. CDSP MOV purging steam optimization in DCU
b. Stripper bottom reboiler baffle equalization hole
closure in DCU
c. DCU-Conversion of Heater Charge Pump DP type FT
to UFM type
d. HCGO stripping steam rationalization
7 SRU3 Cooling tower pump turbine drive changed to motor 0.77 NIL 6594
8 Replacement of 6000 Nos of conventional lights in plat 1.5 NIL 4120

area, 1600 Nos tube lights and 500 Nos conventional lights
in control rooms and SRRs with energy efficient LEL lights
9 Debottlenecking of FG flow to CDU2 from CDU3 by 0.01 1450 NIL

replacing control valve with spool piece. Savings : 4 TPD
of FG Flaring
10 Stoppage of LPG reflux pump in FCCU debutanizer - NIL NIL 519

GP9 pump by interconnecting product and reflux pump
discharge
11 Downsizing of 2 Kms 10˝ HP steam header by disconnecting 0.03 1300 NIL

the redundant portion from BOO to MCR and in ACTP area
12 Auto stop facility of air fin fans E125 in DCU unit which NIL NIL 2130
has saved in time required for stop the equipment process
requirement is not there.

No.
13 Start/Stop facility for Y-P-25-C is given in control room 0.05 NIL 1648
which has helped in stopping two parallel running pumps
Y-P-25-A/B thereby savings differential 160 KW [Pump
A/B : 250 kW and C pump power 90 kW]
14 Destaging of FCCU COB Boiler feed water pump (FP-14A) 0.25 NIL 1024
from 6 stages to 4 stages
15 CDU3 both Heavy Naphtha Air fin fan cooler has been put Nil NIL 1358
off for increasing the preheat to MSBP
16 One UCT-4 pump of 140 kwh was stopped after optimizing Nil NIL 1284
the cooling water requirement in old units
TOTAL 37.35 35010 20042
Bina Refinery (BR)

Implementation of energy conservation measures and schemes and meticulous monitoring of plant operations
for energy optimization has been prioritized at BR. The refinery is having effective Energy Management System
(EnMS), accredited & upgraded with ISO 50001:2018 certifications by M/s TUV. Continuous monitoring of
energy performance and keeping abreast of latest technologies for energy conservation, have helped to achieve
a robust energy performance during the year.
Total 18 Encon schemes were implemented which helped to save 6,558 MTOE/year and to reduce
CO2 emission by 21,175 MT/Year.
Besides excellence in refining process, BR is keenly focusing in areas of energy conservation. BR Specific
Energy Consumption was 68 (MBTU/BBL/NRGF) in 2022-23 as against 70.2 in the previous year.
This performance is attributed to sustained operation at higher intake level, higher capacity utilization of
secondary process units, energy champion scheme and various energy conserving efforts undertaken during
the year. The following are the measures taken up at BR for energy conservation.
• Steam Network Management and Quarterly surveys of flare control valves and PSVs passing by ultrasonic
leak detector were continued through external expert agencies.
• Continuous monitoring & control of all parameters of Furnaces & Boilers.
• Continuous recovery of flare gas with the help of FGRS and stringent monitoring of process conditions to
control flare loss.
• Continues optimization of process unit parameters through Advance Process Control (APC) to sustain
energy performance at optimum level.
• Unit Energy Focus group (EFG) was formed for identification of energy schemes and unit energy optimization.
• To appreciate the efforts put in by individual employees for energy conservation, monthly energy reward
scheme was launched during the year.
• Technical sessions on low grade heat recovery using Organic Rankine Cycle (ORC), Vapour Absorption
Machine and electric boilers organized by external agency.
• As a part of SAKSHAM-2023, Centre for High Technology (CHT) nominated team conducted “Furnace
Efficiency” survey.

The following energy conservation and loss control measures were adopted during the year 2022-23, resulting
in significant energy savings:
• Variable fluid coupling installation in CFBC Boiler-1 & Boiler-3 Primary Air & Secondary Air fan for power
saving in CPP.
• Replacement of conventional lamps with LED lamps for power saving in refinery.
• FRP blades installation in place of conventional bladed in process fin fan coolers for power saving, 27 out of
206 nos AFC’s job completed in refinery AFC’s. Rest of FRP blades installation are in progress.
• Injection Water A & B modification Job for power saving in HCU/DHT Unit.
(ii) Steps taken for utilizing alternate sources of energy
BR has awarded a 14 MW solar power project in December 2022 to M/s Prozeal with a contractual delivery of
6 months. Site activities are on full swing and project is expected to be commissioned by June 2023.
(iii) The capital investment on energy conservation and estimated savings

No.
1 Crude Pump (11PACF101A) impeller trimming for power NIL 840
saving in CDU unit
2 Optimization of steam in Pre-fractionator re-boiler in MSB NIL 357

unit
3 Insulation end covers provision in Preheat Exchangers (5 NIL 25

nos) for fuel saving in DCU Unit
4 HCR fractionator overhead air fin-fan cooler 16-EA-FN- NIL 59

502F (37KW) VFD taken in line for power saving in HCU/
DHT Unit
5 Injection Water A & B modification Job for power saving in 0.36 800
HCU/DHT Unit saving 100 kw power
6 Steam optimization in Pre-reformer in HGU unit NIL 714
7 SWS-I Feed/Bottom Exchanger(28-EE-00-101A) tube NIL 929

cleaning to boost heat transfer coefficient for steam saving
in SRU unit
8 Suspect condensate sub headers modification in SRU NIL 71

Train A and B for condensate recovery and steam saving
in SRU unit
9 Overhauling of HP steam/ VR feed swing exchanger for NIL 571

steam leakage rectification into process in DCU unit
10 Coke-drum–B Z & J valve steam recovery by trap installation NIL 29

for steam saving in DCU unit
11 Energy Savings by Automated Stopping of Blowdown Fin NIL 155

Fan during coke drum cooling cycle in DCU unit

No.
12 Variable fluid coupling installation in CFBC boiler-1 & 4.09 2800
boiler-3 Primary Air & Secondary Air fan for power saving
in CPP
13 Insulation removal from CW exchangers EE20EE00103/104 NIL 1360
resulted into energy savings by reducing Net Gas
Compressor power by 5% in CCR unit
14 Replacement of conventional lamps with LED lamps for 5.28 6592
power saving in refinery
15 Reduction of LP steam consumption in HGU de-gassifier by NIL 857
increasing the DM water temperature from 98°C to 105°C
16 FRP blades installation in place of conventional bladed in 0.27 614
process fin fan coolers for power saving, 27 out of 206 nos
AFC's job completed in refinery AFC's
Total 10 3553 13220
B. Technology Absorption
Mumbai Refinery (MR)
(i) The efforts made towards technology absorption and the benefits derived such as product improvement,
cost reduction, product development or import substitution:
a. MR started producing a new specialty product called Army Grade Kerosene, which is a low-smoke and
low-aromatic product for use by the Indian Army at high altitudes. MR is the first refinery of BPCL to make
this product, which was launched and sent to Jammu on December 1, 2022.
b. MR has added a new product to its LOBS portfolio called D40, which was launched in November 2022.
D-40 is a solvent, an import substitute and MR is the only Indian Refinery that can make it.
c. Parallelly MR has installed a Dual Dividing-Wall-Column (DDWC) at its Lube Oil Base Stock (LOBS) unit,
which is the first of its kind in the world for vacuum distillation with multiple walls. The column can
produce different grades of solvents: D40, D80, D110, D130 & MBL, which are normally produced by three
separate columns. All these solvents are import substitutes and BPCL is the only Indian Refiner who can
make them. The project was completed in March 2023.
(ii) In case of imported technology (imported during last three years reckoned from beginning of the financial
year):
a. The details of technology imported and the year of Import:
Sr. No. Unit - Technology Licensor Year
1 Kerosene Hydrotreater (KHT) M/s. Topsoe, Denmark 2023
2 Lube Oil Base Stock (LOBS) Revamp M/s CLG, USA 2022
b. Has technology been fully absorbed?

Yes.
c. If not absorbed, areas where this has not taken place, reasons thereof and future plans of action.
Not Applicable.

Kochi Refinery (KR)
a. As part of BPCL’s net zero mission, two Electric Vehicles and charging station were inducted into the
Refinery carpool.
b. Imported (Para-Toluene Sulfonic Acid) PTSA catalyst was completely replaced by domestically
manufactured PTSA catalyst in PDE unit without any yield variation, thus saving approximately ` 1.6 Crore.
c. High-capacity trays were provided in DHDT and VGO HDT HP Amine Absorbers for enhancing the
performance.
d. In Acrylic acid unit, recycle off gas introduction was successfully implemented at 50% plant load compared
to earlier 70% plant load. This has led to lesser wastewater generation during start up.
(ii) In case of imported technology (imported during last three years reckoned from beginning of the financial
year):
No technology has been imported during last 3 years.
Bina Refinery (BR)
BR has made efforts in implementing the following to obtain benefits of latest technology developments and
advances during 2022-23.
• BR processed 3 new crudes during the year. With this total number of crudes processed is 44.
• Operator driven reliability program was implemented in all the process units.
• Energy Intensity Index (EII) monitoring Dashboards were developed for all the process units. The
dashboards track unit EII on a real time basis and guide operating team to achieve optimal energy
efficiency. Dashboard for monitoring of real time N2 production/consumption at N2 plant implemented
using Modbus communication protocols for data transfer between Rockwell PLC & Yokogawa DCS.
• BR started producing a new specialty product called Low Pour Diesel for use by the Indian Army at high
altitudes.
(ii) In case of imported technology (imported during the last three years reckoned from the beginning of the
financial year):
a) The details of technology imported and year of import:
Sr. No. Unit - Technology Licensor Year
1 KHDS Technology M/s Axens, France 2020-21
2 VPSA Technology M/s Sumitomo, Japan 2020-21
b) Has technology been fully absorbed?

Both the technologies, mentioned above, are fully absorbed.
c) If not fully absorbed, areas where this has not taken place, reasons thereof and future plans of
action.
Not applicable.

RESEARCH & DEVELOPMENT (R&D)
I. Specific area in which R&D has been carried out.
1. Green Hydrogen
2. Hydrogen recovery from refinery off-gases
3. Carbon dioxide (CO2) Capture & Utilization
4. High Performance Domestic Petroleum Natural Gas (PNG)Cooking Stove
5. Super Absorbing Polymer (SAP) demonstration
6. Niche petrochemicals and Petrochemical processes
7. Hydrocarbon Vapor Recovery System
8. Sustainable Aviation Fuel (SAF)/ Bio-ATF (Aviation Turbine Fuel)
9. Advanced Biofuels and Bio-chemicals
10. Green Silica
11. Biodegradable plastics
12. Bio-methanation
13. Bioremediation
14. Processing of Municipal Solid/ Liquid waste (MSW)/(MLW)
15. Niche/Specialty Solvents developments
16. Process Chemicals
17. Benzene Valorization
18. Indigenous Desalter Technology
19. Divided Wall Column (DWC) technology
20. Process Intensification/Energy efficient processes
21. Novel reactor designs
22. AI based models for refinery Crude Distillation Units
23. Digitization approach for real-time Crude Assay for crude distillation monitoring and optimization
24. Software for predicting crude blend compatibility and optimization.
25. Simulation models for refinery units
26. Crude Oil Pipeline Corrosion Inhibitor Development
27. Niche Catalyst Developments and Catalytic Processes
28. Graphene production process
29. Waste Plastic usage in Roads
30. Energy Efficient Furnace Operation
31. Energy Efficient Heat Exchangers
32. Low grade heat recovery
33. Long-life heavy-duty diesel engine oil with fuel economy benefit for Bharat Stage VI trucks & buses
34. Engine oil for higher capacity scooters
35. High-performance gas engine oils
36. Energy efficient industrial oils
37. Industrial lubricants using re-refined base oils
38. Long life final drive axle oil for Off-Highway equipment
39. Synthetic ultra-long drain axle oil for commercial vehicle
40. Premium coolant for indirect cooling for Battery Electrical Vehicles (BEVs) and Internal Combustion Engines
(ICE)
41. Engine oil formulated with re-refined base oil
42. NOx reduction agent (Diesel Exhaust Fluid) for selective catalytic reduction system equipped BS IV/BS VI diesel
vehicles.

II. Benefits derived as a result of the above R&D
1. Corporate Research and Development Centre (CRDC) has developed the world’s most energy efficient LPG
stove with thermal efficiency of 74% plus, which is 6-7% more than the stoves available in the market. This
energy efficient stove can save nearly 1 LPG cylinder per year per family. The product is available across the
country through Bharat gas distributors. 90,000 stoves have been sold and revenue of ` 2 crore is generated.
2. Smokeless Kerosene for Defense applications on high altitude was developed by CRDC jointly with Mumbai
Refinery as well as Industry & Commercial department. The product was launched in the first week of January
2023 and has generated revenue of ` 2.8 crore.
3. Digital solution tools viz. “BPMARRK®: Real-time Crude Oil Characterization Software” and “K Model for Crude
Oil Compatibilities” fetched ` 22.02 crore and ` 4.74 crore, respectively towards licensing and continuous
usage in the company’s refineries at Mumbai, Kochi and Bina. These digital solutions offer help for crude
column monitoring & optimization and enable refineries to process opportunity/heavy crudes.
4. The Next Generation Bharat Metal Cutting Gas was improved and marketed through an in-house developed
Novel Additive resulting in value addition of about ` 30.16 crore.
5. Business support activities towards catalyst and additive evaluation, corrosion sample analysis, Computational
Fluid Dynamics studies, fuel testing, and analytical support led to value addition of ` 7.26 crore.
6. Engine oil for ultra-low emission Bharat Stage VI compatible heavy-duty trucks & buses with the potential to
extend engine oil drain interval and reduce fuel consumption. This will help us to generate new business.
7. Premium high performance engine oil for higher engine capacity scooters to provide superior engine protection
and challenging performance requirements. This product will help us to penetrate the new higher engine
capacity scooter market.
8. High performance Mobile gas engine oil developed for use in 4-stroke Auto rickshaws (BS VI) running on CNG/
LPG. This product will help us in generating volumes in the growing CNG vehicle market.
9. Energy efficient, high performance hydraulic oil is developed to reduce the power consumption in injection
molding machine operation. This product will help us in generating volumes in the high potential injection
molding hydraulic oil segment.
10. Eco-responsible hydraulic oil for industrial applications developed using Re-refined base oil, helps in reducing
carbon footprint besides contributing towards circular economy.
11. Premium heavy-duty Final Drive Axle Oil (FDAO) designed for final drives and differentials of Off-highway
equipment, especially those operating under high loads and extreme temperatures provides extended drain
interval. This would help us to generate new business.
12. Ultra Long Drain Axle Oil meant for use in Rear Axles and Live Front Axles of commercial vehicles provides
improved fuel efficiency benefits owing to its viscometry. Extended drain interval and improved fuel economy
contribute to the reduction in carbon footprint.
13. A premium coolant for indirect cooling of Battery in Electrical Vehicles (BEVs) and antifreeze coolant for Internal
Combustion Engines (ICE). This will help us in generating new business in the automotive specialty market.
14. Engine oils for Passenger cars & commercial vehicles were developed and commercialized with Re-refined
base oil as per circular economy initiative of NITI Aayog. This would help in reducing carbon foot print and
conserving precious natural resources.
15. Inhouse VDA, Germany licensed NOx reduction agent (Diesel Exhaust Fluid) ensures NOx emission level within
the stipulated limit in SCR system-equipped BSIV/BSVI diesel vehicles and have affiliated contribution in
increased fuel sales through retail outlets.
III. Future R&D areas
1. Net Zero Processes & Technologies
2. Pathways for Circular Economy
3. Renewable and Alternate Energy
4. Bio-Products/Bio-chemicals

5. Battery and Storage technologies
6. Engine Research & Development
7. Waste to energy and fuels
8. Modeling approach for column overhead corrosion mitigation
9. Strategy to handle petrochemical plant effluents.
10. Alternate fuel (Di-methyl Ether) process demonstration
11. Residue up-gradation to value added chemicals and products.
12. Process intensification based on Cross Flow Reactor concept.
13. Cost optimization for Bio-refineries and Side stream value creation
14. Niche petrochemical product development
15. Fuel efficient engine oil compatible with ultra-modern heavy duty diesel commercial vehicles
16. Engine oils compatible with biofuel
17. High-performance, heavy-duty diesel engine oil for Auxiliary Power Unit, Engine, and Transmission system of
new generation Defense equipment
18. Universal Tractor Transmission Oil for high Horsepower tractors
19. Non-staining Hydraulic oil for Aluminum industry
20. OEM specific synthetic Air Compressor oil
21. Long life gas engine oil for light and medium duty commercial vehicles
22. Single phase synthetic immersion coolant
IV. Expenditure on R&D during 2022 – 23
Particulars Expenditure (in ` crore)
Revenue/Recurring Expenditure 55.27
Capital Expenditure 16.41
Total 71.68
C. Foreign Exchange Earnings and Outgo
The details of foreign exchange earnings and outgo are given below:
Particulars 2022-23 2021-22*

Earnings in Foreign Exchange 15,708.29 14,830.89
- Includes receipt of ` 1,917.63 Crore (previous year ` 784.07 Crore) in Indian
Currency out of total foreign currency billings made to foreign airlines and
` 507.13 Crore (Previous year ` 391.20 Crore) of INR exports to Nepal and
Bhutan of I&C, Lubes and Retail Customers.
Foreign Exchange Outgo 2,31,848.17 1,69,223.30
- On account of purchase of Raw Materials, Capital Goods, Chemicals, Catalysts,
Stores spares, International trading activities etc.
* Details have been re-stated to give effect of merger of Bharat Oman Refineries Limited and Bharat Gas
Resources Limited

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MANAGEMENT DISCUSSION & ANALYSIS REPORT

India India & World

(8.00) India GDP : GDP (current USD trillion) World India -

India GDP : GDP (current USD trillion) World India

58 Bharat Petroleum Corporation Limited

INDIAN ECONOMY Ther-22 Indian 2 Rupee 22 declined by 8.5% against the US

dollar’s value due to interest rate hikes in the US.

tight monetary conditions, and elevated oil prices.

As per the National Statistical Office’s provisional 67

grew 7.2% in 2022-23, up from 7.0% estimated earlier.

LNG cargoes as European countries looked to shore up

INR v/s USD

today’s energy shock is a reminder of the fragility and 10

unsustainability of our current energy system. Global -10

oil markets are gradually settling in after the worst 4 /2

increase in pricePetrol to USDNaphtha 125.16Jetper / Kero barrel Diesel as against

USD 10 87.4 per barrel, in the previous year. However, the

On the supply side, oil flows from Russia have remained 01

higher than expected, which kept a check on the prices. 60

In April 2023, OPEC+ members agreed to cut oil 20 Product

production through 2023, which took the markets by 210

surprise. In June 2023, Saudi Arabia announced that

the country’s output would drop on top of the broader

Energy-related CO2 emissions grew in 2022 by 0.9%, 10

sources, including solar, wind and electric vehicles

year 2022-23, as against the previous year, primarily

jump of over 6% due to economic rebound. Emissions 80

owing to fractured supply chains across the globe.

still remain on an unsustainable growth trajectory,

The cracks, particularly of petrol and diesel, increased

needing accelerated clean energy transition. Petrol Naphtha Jet/Kero Diesel

60 Bharat Petroleum Corporation Limited

iNDiAN PetroLeUm sector

Consumption of petroleum products in India hit a new

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

previous year. The jet fuel/kerosene cracks averaged

in 102019-20. The rise in petroleum product consumption,

seen as a proxy for energy demand, was in line with

India’s scorching growth rate of 7.2% in 2022-23.

petrol consumption was 34.98 MMT, up 13.6% from

hangover of higher industry stocks helps the supply

8.2% ATF and consumption in India fell to around 60,000 MMSCM

demand could rise to 6.7 mb/d by 2030 and to 7.4 mb/d

Having achieved the target of 10% ethanol blending in

90 OPPORTUNITIES AND THREATS

of the war and the significant price fluctuations that have

inflicted hardships on countries and their populations.

62 Bharat Petroleum Corporation Limited

Annual Report 2022-23 63

64 Bharat Petroleum Corporation Limited

Annual Report 2022-23 65

66 Bharat Petroleum Corporation Limited

Annual Report 2022-23 67

68 Bharat Petroleum Corporation Limited

Annual Report 2022-23 69

70 Bharat Petroleum Corporation Limited

Annual Report 2022-23 71

72 Bharat Petroleum Corporation Limited

Annual Report 2022-23 73

74 Bharat Petroleum Corporation Limited