ACKNOWLEDGEMENT

It is our privilege to thank ESSAR OIL LTD., for providing facilities for undergoing research work as required for our university syllabi.

I heartily thank to Mr. Manoj Kumar (Senior HR) for accepting my request for summer internship project at ESSAR OIL LTD. I would like to thank Mr. Srinivasan (Project Guide) for his kind and valuable support in terms of theoretical as well as practical knowledge and also share his experience with me. I would like to thank Mr. Bharat Kakkad (Head HR) for his guidance in the knowing the companys profile and also for the valuable time. I sincerely thank to Mr. Rajbir Sethi (Faculty Guide) Lovely professional University, Phagwara (Punjab) for his guidance and suggestions on the project and the learning aspects. I am thankful to my University for allowing me to do my Summer Internship at ESSAR OIL LTD., Jamnagar (Gujarat) and providing me all kind of facility which was required for the completion of my project. I would like to thank all my colleagues who directly or indirectly guided me and gave strength to do my work better and in most effective way.

( Abhishek Gaurav

DECLARATION

I undersigned ABHISHEK GAURAV, a student of MBA (IB) -3rd Semesters declares that I have prepared this project report on Study of Documentation for export of different products at ESSAR OIL LTD. Under the guidance of Mr. Manoj Kumar (Company Guide) and Mr. Rajbir Sethi (University Guide).

I also declare that this project report is my own preparation and not copied from anywhere else.

Signature Manoj Kumar

Signature Abhishek Gaurav

Date : Place:

INDUSTRY OVERVIEW

According to a survey, World Crude Oil Refining Capacity was 83.1 million barrels per day before five years. But, to keep pace with the rising demand this capacity has to reach the level of 93 million barrel per day by 2010. And now the capacity has reached the mark of million barrel per day. This means that the Global Oil Refinery Industry has to grow at an average Growth rate of 1.8% per year. Oil Refinery Industry holds immense importance for all the oil producing countries. If we focus on the global trend of this Oil refinery Industry then we will see that this industry has experienced a lot of ups and downs over the decades. In the period from 1970s to 1990s considerable amount of investment was made in the oil refinery industry. But because of the oil shocks of 1973-74 and 1979-80 and because of the Asian Financial Crisis, the market demand was quite low. This resulted in surplus refining capacity of global oil Refinery Industry. But, the present scenario is different. As the demand for refined Petroleum and other refined products is increasing, Surplus Refining Capacity of the industry is diminishing very fast. So, in todays world, the Oil Refinery Industry has to concentrate on additional capacity building so that the growing market. This additional capacity building naturally requires Heavy Investment. But because of the uncertainty of the investment returns from the oil refinery were very low last three decades. Demand can be met accordingly. But many companies are not willing to invest in new oil refinery plants may be because of the factor that any Oil Refinery Plant requires at least five years to be established and this long period increases the risk of investing. But, the good news is that in the recent years the rates of return are improving. At present, the average margin per barrel has reached a level which is enough to cover the Capital Cost.