Nayara Energy Limited

Nayara Energy Limited Unlisted Share - Company Overview

Nayara Energy Limited (formerly Essar Oil Limited) is a globally integrated oil refining company that covers the entire hydrocarbon value chain from refining to production and marketing, across segments, including retail. The company has positioned itself to fulfill about 10% of India’s petro products demand. In 2016, Rosneft along with an investment consortium comprising global commodity trading companies Trafigura & UCP Investment Group acquired Essar Oil Limited.

Nayara Energy Limited owns the Vadinar refinery of Gujarat, which is India’s second-largest single site, a state-of-the-art refinery. It constitutes approximately 8% of India’s refining capacity. The Vadinar refinery is one of the most modern and complex refineries in the world having a Nelson Complexity index of 11.8. The refinery has an annual capacity of 20 million metric tonnes (MMT) or 405,000 barrels per day (BPD). It is capable of processing some of the toughest crudes and yet produces high-quality Euro IV and Euro VI grade products. They are now producing high-quality Bharat Stage (BS-VI) compliant fuels that meet international standards.

The company is known for business across the entire hydrocarbon value chain from refining to retail and is working with a vision to deliver crude to chemicals. Nayara Energy Limited has a well-developed Process Safety Management (PSM) system, which covers the monitoring of multiple vital aspects of the Refinery functions, including Chemical Safety Management, Hazard Identification & Risk Analysis, Management of Change, and Asset Reliability.

Nayara Energy Limited is planning to invest Rs. 1.3 Lakh Crore to expand its capacity from 20 million metric tonnes (MMT) per annum to an additional 26 million metric tonnes (MMT) and a 10.75 million metric tonnes per annum (MMTPA) petrochemical complex. The expansion project is estimated to be completed by 2022 to 2024.

Nayara Energy Unlisted Share Details as of March 31, 2022

Nayara Energy Incorporation Details

Nayara Energy Principal Business Activities

Particulars of Subsidiary Companies of Nayara Energy

Shareholding Pattern of Nayara Energy (As of 31-03-2022)

Board of Directors of Nayara Energy

Charles Anthony Fountain (Executive Chairman)

Chin Hwee Tan (Non-Executive Director)

Victoria Cunningham (Non-Executive Director)

Avril Conroy (Non-Executive Director)

Alexander Romanov (Non-Executive Director)

Deepak Kapoor (Independent Director)

Naina Lal Kidwai (Independent Director)

Alexey Lizunov (Non-Executive Director)

Prasad K Panicker (Director & Head of Refinery)

Sachin Gupta (Non-Executive Director)

Andrey Bogatenkov (Non-Executive Director)

Energy Industry Outlook

The India oil and gas market is expected to register a CAGR of more than 3% during the forecast period (2022-2027). The COVID-19 pandemic negatively affected the market. The revenue of oil and gas companies declined due to unexpected lockdown. The demand for diesel, the most used fuel in the country, has fallen due to a significant reduction in traffic volumes on the roads. Factors such as the increasing natural gas pipeline capacity and the increasing demand for petroleum products are expected to drive the India oil and gas market during the forecast period. However, a huge dependence on imports of crude oil and natural gas for satisfying domestic demand and high volatility of crude oil prices are expected to hinder the growth of the Indian oil and gas market.

The refining capacity has been growing considerably over the recent past, owing to the expansion of several refinery projects. Therefore, the downstream sector is expected to witness growth during the forecast period.

There have been significant gas hydrate discoveries in the KG Basin. Economically feasible extraction of the gas hydrates may create immense opportunities for the companies, which may become a boom in natural gas production.

Owing to the increase in gas imports, the Indian government is increasing the investments in oil and gas pipelines and LNG terminals across the country. Therefore, the increasing investments in the midstream oil and gas sector are expected to drive the market.

The Indian energy demand is anticipated to grow by 50% in the next two decades. This growth in demand can be attributed to the growing world population and an improvement in living standards in developing countries. Even though new and renewable energy sources are gaining popularity around the world, petroleum fuel remains a major energy source globally. This trend is expected to continue for the next few decades and favor the growth of the oil and gas downstream market.

New refineries were set to be established in various parts of the country. For instance, in August 2021, Indian Oil Corporation Limited announced its plan to invest USD 15 billion to increase its refining capacity three times by 2025.

In January 2021, the state-run oil refiner Indian Oil’s board of directors approved setting up a new refinery in Nagapattinam in Tamil Nadu. The refinery is expected to have an annual refining capacity of 9 million metric ton and an investment of INR 31,500 crore.

FAQs 

Q1. Is Nayara Energy a wise financial decision?

A1. No, Nayara Energy is not a wise financial decision.

Q2: What is the Nayara Energy share price?

A2.Nayara Energy Share Price used to fluctuate on a daily basis. To know more Contact us .

Q3.What was Nayara's previous name?

A3. Essar oil limited.