OVERVIEW
Global Vectra Helicorp Limited (GVHL) is the largest private sector
helicopter operator in India. GVHL is listed on the National Stock Exchange of India
Limited and the Bombay Stock Exchange Limited and is an ISO 9001-2015, ISO 14001-2015, and
OHSAS 45001-2018 certified Company. These certifications overarch all GVHL activities,
including flight operations, engineering, safety, quality control and commercial systems.
GVHL is also proud to be a long-term Corporate Member of the Rotary Wing Society of India
(RWSI).
The vision of GVHL is to continue to deliver world class standards of
safety and service to Indias helicopter industry and to be the leader in Offshore Oil
& Gas operations. We are positively disposed to the evolution of the helicopter
industry in India and abroad. To capitalize on this, GVHL will continue to tailor its
fleet and adapt its services to meet the dynamic needs of offshore and onshore markets.
OPERATIONS AND SAFETY
Being the largest private sector helicopter operator in India, GVHL has
always ensured that safety is paramount in its operations and has recorded over 3,20,000
accident-free hours to date and has also been commended for our safety initiatives,
including being awarded "Operator of the Year" in 2016 and 2017 by the India
Business Aircraft Operators Association. The unblemished safety track record of GVHL also
makes it preferred supplier for the top rung of the country for corporate, religious and
leisure travel. It has world class maintenance facilities having highly skilled engineers
and experienced pilots to ensure safe, secure and uninterrupted services to the nation.
MAINTENANCE & PERSONNEL
The major maintenance base for offshore fleet is Mumbai where all
maintenance work is carried out including 5000 hours / 05 years check on its Bell 412 and
1200 hours / 04 years check on AW 139 fleet of aircraft in a 6600 sqm state-of-the-art
hangar. This facility meets international quality standards and maintains all relevant
certifications from the Directorate General Civil Aviation (DGCA) as a CAR 145 & CAR-M
sub part G approved organization.
GVHL has a total staff of over 387 personnel, including pilots,
engineers and support staff.
AUDITS
GVHL is actively involved in regular and stringent audit activities
from some of the most prominent oil companies in the world, including British Petroleum,
Total, British Gas, ONGC, Reliance, Dolphin Geo, CGG and Cairn, through their renowned
auditing agencies like Hart Aviation, GSR, Airclaim Services, Schlumberger Asia Services
Limited and Aviation Management Services. It is also fully compliant with all Indian
Directorate General Civil Aviation (DGCA) auditing schedules (Operations, Maintenance,
Safety and Quality) and also follows a rigorous
Internal Audit program. Further, GVHL undergoes thorough, independent
financial auditing on a quarterly and annual basis.
SERVICES
With a modern and technologically advanced fleet of helicopters, Global
Vectra Helicorp Limited has a wide range of capability to provide essential offshore and
onshore services to strategic sectors:
• Oil and Gas
• Geophysical Survey
• Corporate and VVIP flights
• Aerial Photography
• Religious Tourism
• Emergency services
• Underslung operations
• Power Grid Construction and Maintenance CLIENTS
Our offshore team is dedicated to providing Air logistics services to
the Oil & Gas industry majors like Oil and Natural Gas Corporation (ONGC), Cairn
India, Reliance Industries Limited (RIL), Transocean (TSF), Shelf Drilling, British
Petroleum, Schlumberger Asia Services Limited, Baker Hughes, Jindal Drilling, Aban, ADES
and many more, under long term contracts with a major market share in the offshore
helicopter market in India.
Dolphin Geo, Shearwater, Polarcus, Fugro, CGG Veritas, Results Marine
& Western Geco have been our major Seismic partners for whom we have flown on the East
and West Coast of India in the recent past and are hopeful for the same in the near future
as well.
GVHL provides services to its clients under long-term contracts. These
contracts range from one to five and seven to ten years including the extension options.
Companies involved in offshore Exploration & Production activities have to use
helicopter services extensively for Crew Change, Production, Cargo and Medevac tasks.
BASES
GVHL has its main operations and maintenance base at Juhu Airport,
Mumbai with sub bases in various parts of India including: Juhu (Mumbai), S. Yanam,
Rajahmundry, Suvali, Gadimoga, Imphal, Porbandar, Hyderabad, Itanagar, Katra, Raipur,
Neelgrath and Vishakhapatnam.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
GVHL is totally committed to maintaining the highest possible standards
in its operations, maintenance and safety. GVHL introduced in India a full and formal
Safety Management System (SMS) as per international recommendations and requirements of
the Global Oil/Gas Industry and International Civil Aviation Organisation.
As part of our efforts to enhance our management systems, we have
implemented an ERP (Enterprise Resource Planning) System from IFS AB, a Swedish company
and one of the worlds leading providers of business software. Through this system we have
integrated the management data of Flight Operations, Maintenance, Repair and Overhaul
(MRO) processes, Quality Control, Logistics, Inventory Management and Finance.
MISSION STATEMENT
Global Vectra Helicorp Limited shall provide safe, efficient and
reliable helicopter services and we shall remain recognised as the operator of choice in
our region. We shall also grow our brand internationally, by further enhancing our safety,
quality and compliance functions, in line with internationally recognised standards and
best practice principles for our industry.
• We are the first choice for helicopter services in India.
• Our commitment to maintaining our safety focus underpins all
that we do.
• We deliver safe operations.
• We are cost effective and reliable, commensurate with high
quality of service provided.
• We shall exceed our customer expectations.
• We shall achieve our objectives - because we know where we are
today and where we are going tomorrow.
Our Mission is driven by our Management Team - but delivery comes from
every member of our Company.
OIL AND GAS INDUSTRY IN INDIA INTRODUCTION
The Oil and Gas Sector is among the eight core industries in India and
plays a major role in influencing the decision-making for all the other important sections
of the economy.
Indias economic growth is closely related to its energy demand,
therefore, the need for oil and gas is projected to increase, thereby making the sector
conducive for investments. As of 2022, India retained its spot as the third-largest
consumer of oil in the world.
The Government has adopted several policies to fulfil the increasing
demand. It has allowed 100% foreign direct investment (FDI) in many segments of the
sector, including natural gas, petroleum products and refineries, among others. The FDI
limit for public sector refining projects has been raised to 49% without any disinvestment
or dilution of domestic equity in existing PSUs. Today, it attracts both domestic and
foreign investment, as attested by the presence of companies such as Reliance Industries
Ltd (RIL) and Cairn India. India is already a refining hub with 23 refineries, and
expansion is planned for tapping foreign investment in export-oriented infrastructure,
including product pipelines and export terminals.
Indias crude oil production in FY2022-23 stood at 29.2 MMT.
Indias demand for energy is growing faster than any other major
economy and the same trend is expected to continue.
Growth will come in all sectors due to favourable demographics
supported by urbanization and industrialization.
The consumption of petroleum products during FY 2022-23 was at 223 MMT,
with a growth of about 12% over the previous year. This growth in the petroleum products
has been driven by growth in HSD at 12.1%, the largest contributor with 85.9 MMT and MS
with 34.9 MMT consumption during 2022-23 at a growth rate of 13.4% over the previous year.
In both cases, volumes not only crossed pre-covid consumption by a
margin but are also highest consumption in history, till date. The growth momentum
continues in current year too.
Despite robust demand from the petrochem and aviation, annual demand
growth is expected to decline from 2.4 mb/d in 2023 to just 0.4 mb/d in 2028, putting a
peak in demand in sight, notably China and India, will continue to register growth
throughout the forecast.
Around three-quarters of the 2022-28 increase will come from Asia, with
India expected to surpass China as the main source of growth by 2027.
INDIAN OIL AND GAS SECTOR
Upstream segment - exploration and production
• State-owned ONGC dominates the upstream segment.
• It is the largest upstream company in the exploration and
production (E&P) segment, accounting for approximately 70% of the countrys total oil
and gas output.
Midstream segment - storage and transportation
• IOCL operates a 14,701 km network of crude, gas and product
pipelines, with a capacity of 94.6 MMTPA of oil and 20.0 MMSCMD of gas.
Downstream segment - refining, processing and marketing
• IOCL is the largest company, controls 11 out of 22 Indian
refineries, and has a combined capacity of 80.7 MTPA.
• Reliance launched Indias 1st privately owned refinery in 1999
and has gained considerable market share (30%). In January 2021, the company operated its
plant at 96.1% capacity.
• Nayara Energy Limiteds (NELs) Vadinar refinery has a capacity
of 20 MMTPA, accounting for almost 10% of the total refining capacity.
MARKET SIZE
The estimated conventional hydrocarbon resources in 26 sedimentary
basins stood at 41.87 bn tonnes (oil and oil equivalent of gas), an enormous increase of
about 49% in comparison to the earlier estimate of 28.08 bn tonnes.
India retained its spot as the third-largest consumer of oil in the
world, as of 2021. Indias consumption of petrol products stood at 204.23 MMT in FY22,
while crude oil production stood at 29.7 MMT. Assam, Gujarat and Rajasthan account for
more than 96% of oil production in India. India has about 10,420 kms of crude pipeline
network, with a capacity of 147.9 MMTPA.
India has 23 refineries - 18 are in the public sector, two in the joint
sector and three in the private sector. Indias state refineries have upgraded their
facilities to comply with a new government requirement to produce oil products with the
equivalent of Euro VI emission standards. Indias total installed provisional refinery
capacity stands at 249.21 MMT, making it the second-largest refiner in Asia. Private
companies own about 35% of the total refining capacity.
India is one of the largest exporters of refinery products due to the
presence of various refineries. In terms of trade, exports of petroleum products from
India reached 62.7 MMT in FY22. The value of these exported crude oil and petroleum
products stood at US$ 44.41 billion. In FY22, crude oil imports stood at 4.24 MBPD, which
was worth US$ 120.4 billion.
According to the International Energy Agency (IEA), Indias medium-term
outlook for natural gas consumption remains solid due to rising infrastructure and
supportive environment policies. Industrial consumers are expected to account for 40% of
Indias net demand growth. The demand is also expected to be driven by sectors such as
residential, transport and energy.
INVESTMENTS
According to the data released by Department for Promotion of Industry
and Internal Trade (DPIIT), FDI inflows in Indias petroleum and natural gas sector stood
at US$ 7.98 billion between April 2000-March 2022.
49% FDI is allowed in petroleum refining by the Public Sector
Undertakings (PSU), without any disinvestment or dilution of domestic equity in the
existing PSUs under automatic route.
Following are some of the major investments and developments in the oil
and gas sector:
• In May 2022, ONGC announced plans to invest US$ 4 billion from
FY22-25 to increase its exploration efforts in India.
• As of May 1,2022, India had 10,420 kms of crude pipeline
network, with a capacity of 147.9 MMTPA.
• The total number of OMC retail outlets increased to 83,208, as
of May 1,2022, from 59,595 in FY17.
• Exports of petroleum products from India reached 62.7 MMT in
FY22. The value of these crude oil and petroleum products stood at US$ 44.41 billion. In
FY22, crude oil imports stood at 4.24 MBPD, which was worth US$ 120.4 billion.
• In March 2022, the Board of IOCL approved plans to invest Rs.
7,282 crore (US$ 932.6 million) for the development of City Gas Distribution (CGD) network
in 9 geographical areas (GAs).
• In March 2022, the Board of Oil India approved an investment of
Rs. 6,555 crore (US$ 839.49 million) for Numaligarh petrochemical project.
• As of March, 2022, the oil sectors total installed provisional
refinery capacity stood at 249.21 MMT, and IOC emerged as the largest domestic refiner
with a capacity of 70.05 MMT.
• In January 2022, Indian Oil Corp. Ltd. (IOCL) announced plans to
expand its city gas distribution (CGD) business, looking to invest Rs. 7,000 crore (US$
918.6 million).
• In January 2022, Adani Total Gas Ltd (ATGL), a joint venture
between the Adani Group and Total Energies, won licences to expand its City Gas
Distribution (CGD) network to 14 new geographical areas, with an investment of Rs. 20,000
crore (US$ 2.62 billion).
• In November 2021, Oil and Natural Gas Corp. Ltd (ONGC) announced
that it invested up to Rs. 6,000 crore (US$ 800 million) in its petrochemicals arm (ONGC
Petro Additions Ltd.) to meet its equity requirements.
• Under the Hydrocarbon Exploration & Licensing Policy (HELP),
the exploration acreage has now reached to about 2,15,000 sq. km. after 4 successful
bidding rounds of Open Acreage Licensing Programme (OALP). The future exploratory work
commitment comprises the following:
• 29,270 line km of 2D Seismic Survey o 43,272 square km of 3D
Seismic Survey o 369 Exploratory Wells
• 290 core analysis to establish Shale Resources
These commitments have a potential to generate an investment of about
USD 2.35 Bn in exploratory work alone.
GOVERNMENT INITIATIVES
Some of the major initiatives taken by the Government of India to
promote oil and gas sector are:
• On May 21,2022, the Government announced a reduction in excise
duty of Rs. 8 (US$ 0.10) per litre on petrol and Rs. 6 (US$ 0.077) per litre on diesel.
• In the Union Budget 2022-23, the customs duty on certain
critical chemicals such as methanol, acetic acid and heavy feed stocks for petroleum
refining were reduced.
• India will more than double its exploration area of oil and gas
to 0.5 million sq. km. by 2025 and to 1 million sq. km. by 2030 with a view to increase
domestic output, around 15,766 sq. km. has been offered to investors.
ROAD AHEAD
• Locating new fields for exploration: 78% of the countrys
sedimentary area is yet to be explored.
• Increasing the share of natural gas: The government is working
towards increasing the share of gas from 6.3% (July 2022) to 15% of the energy mix by
2030.
• Development of unconventional resources: CBM fields in the deep
sea.
• Opportunities for secondary/tertiary oil producing techniques.
ADVANTAGE TO INDIA
GROWING DEMAND
India is the worlds third-largest energy consumer globally.
• In February 2023, Indias oil demand rose to a 24-year high,
which resulted due to a boost in the industrial activity. It was the 15th consecutive
year-on-year rise in demand.
• Diesel demand in India is expected to double to 163 MT by
2029-30, with diesel and petrol covering 58% of Indias oil demand by 2045.
• Oil demand in India is projected to register a 2x growth to
reach 11 million barrels by 2045.
• Consumption of natural gas in India is expected to grow by 25
billion cubic metres (BCM), registering an average annual growth of 9% until 2024.Energy
demand of India is anticipated to grow faster than energy demand of all major economies on
the back of continuous robust economic growth. Moreover, the countrys share in global
primary energy consumption is projected to increase to two-fold by 2035.
RAPID ExPANSION
India aims to commercialise 50% of its SPR (strategic petroleum
reserves) to raise funds and build additional storage tanks to offset high oil prices.
• Indian government approved oil and gas projects worth Rs. 1 lakh
crore (US$ 13.46 billion) in Northeast India. These projects are expected to be completed
by 2025.
• Government of India plans to invest Rs. 7.5 trillion (US$ 102.49
billion) on oil and gas infrastructure in the next five years.
• The industry is expected to attract US$ 25 billion investment in
exploration and production. Refining capacity in the country is expected to increase to
667 MTPA by 2040.
SUPPORTIVE FDI GUIDELINES
The FDI limit for public sector refining projects has been raised to
49% without any disinvestment or dilution of domestic equity in existing PSUs.
POLICY SUPPORT
• In the Union Budget 2022-23, the customs duty on certain
critical chemicals such as methanol, acetic acid and heavy feed stocks for petroleum
refining were reduced.
• High-Speed Diesel was the most consumed oil product in India and
accounted for 38.6% of petroleum product consumption in FY23. It is used primarily for
commercial transportation and further, in the industrial and agricultural sectors.
• Indias consumption of petroleum products stood at 4.44 MBPD in
FY23, up from 4.05 MBPD in FY22.
• Indias oil consumption is forecast to rise from 4.8 MBPD in
2019 to 7.2 MBPD in 2030 and 9.2 MBPD in 2050.
• Rapid economic growth is leading to greater outputs, which in
turn is increasing the demand of oil for production and transportation.
• In FY23, crude oil imports stood at 4.67 MBPD.
GAS SUPPLY AND DEMAND IN INDIA
• Demand is not likely to simmer down anytime soon, given strong
economic growth and rising urbanisation.
• Gas consumption is projected to reach 143.08 BCM by 2040. The
Government is planning to invest US$ 2.86 billion in upstream oil and gas production to
double the natural gas production to 60 BCM and drill more than 120 exploration wells by
2022.
• According to the International Energy Agency (IEA), Indias
medium-term outlook for natural gas consumption remains solid due to rising infrastructure
and supportive environment policies. Industrial consumers are expected to account for 40%
of Indias net demand growth. The demand is also expected to be driven by sectors such as
residential, transport and energy.
• Indias natural gas imports increased at a CAGR of 3.2% between
FY16 and FY23.
Post COVID-19 And Russia - Ukraine War - Impact on the Oil & Gas
industry - A Perspective & its Recovery
It bears noting that 2023 marks the last Covid-19 transition year for
global oil demand, with China the final major country to lift lockdown restrictions in
December 2022 leading to a post pandemic oil demand rebound in the first half of 2023.
Global oil markets are gradually recalibrating after three turbulent years in which they
were upended first by the Covid-19 pandemic and then by the Russias invasion of Ukraine
which sparked a surge in oil prices and brought security of supply concerns to the fore,
helping accelerate deployment of clean energy technologies. Benchmark crude oil prices are
back below pre-war levels and refined product cracks have now come off all-time highs
after rising supplies coincided with a marked slowdown in oil demand growth in advanced
economies.
The subsequent surge in mobility that prompted a release of pent-up oil
demand appeared to be cresting in mid-2023 and is expected to lose momentum during the
remainder of the year, thereby normalising baselines from 2024 onwards. In parallel,
global supply-chain constraints and cross-border restrictions that characterised 2020-22
have also abated.
On a macroeconomic level, the impact of Covid-19 will be felt for years
to come now that the unprecedented monetary and fiscal stimulus prompted by the pandemic
is being withdrawn. Although direct Covid-19 fiscal support measures have largely been
unwound, the immense spending programmes launched at the height of the pandemic will
continue to stretch government finances, as debts undertaken will have to be repaid
eventually. This is particularly acute in the current high interest rate environment as
central bank liquidity is being withdrawn.
Aviation jet fuel use is forecast to complete the explosive phase of
its rebound from Covid-era travel restrictions before the end of 2024. Thereafter,
structurally increasing demand for longdistance travel, strongly associated with higher
GDP in middle- income countries, will remain a key pillar of overall growth. Total
jet/kerosene demand will rise by almost 2 mb/d between 2022 and 2028, but a substantial
improvement in aircraft fuel efficiencies mean that it will take until 2027 to recover
beyond 2019 levels. Similarly, fuel oil and gasoil demand for marine bunkers will continue
to gain ground (+300 kb/d) in line with rising global GDP.
However, efficiency gains, spurred by progressively tightening
International Maritime Organization (IMO) measures to reduce greenhouse gas emissions,
will once again temper growth. On a regional basis, the expansion in global demand will be
powered by faster-growing economies in the developing world - especially in Asia - while
oil use in advanced countries contracts. Around three-quarters of the 2022-28 increase
will come from Asia, with India surpassing China as the main source of growth by 2027.
Projections assume major oil producers maintain their plans to build up
capacity even as demand growth slows. A resulting spare capacity cushion of at least 3.8
mb/d, concentrated in the Middle East, should ensure that world oil markets are adequately
supplied throughout. Uncertain global economic conditions, the direction of OPEC+
decisions and Beijings refining industry policy will play a crucial role in the balancing
of crude oil and product markets.
RUSSIA UKRAINE WAR AND ITS IMPACT ON THE INDIAN HELICOPTER INDUSTRY
Although, India had taken a neutral stance, born of its historic
strategic partnership with Russia, yet, it could not shield India from the ravages of a
war of such scale.
Despite Indias limited direct exposure to the war, the combination of
escalated supply disruptions and uncertainties due to the war deteriorated the situation
and aggravated the challenges of the offshore helicopter industry in the country with
escalated costs all around.
It had a direct adverse impact on all the related services especially
the movement of aircrafts and ships which resulted in increased costs of transportation
and insurance in addition to facing unprecedented delays in the mobilisation of
helicopters to the clients, importing spare parts and undertaking overseas maintenance
activities of the contractual helicopters.
GVHL -OUTLOOK FOR FUTURE
Long Range Heucopters
Oil and Gas companies have started exploring options for deep- sea
drilling and exploration of oil and gas on the countrys east (including Andaman) and west
coasts for helicopters serving long range missions like H175 (650 NM), AW 189 (490 NM), H
225 Super Puma (450 NM), S 92 (540 NM), Bell 525 (580 NM) etc will be required in the near
future.
UAVS OR DRONES
The newly introduced UAV (Drone) technology is likely to play an
important role in the future of offshore oil & as drones can get safe access to
difficult locations and can do live streaming.
Drones can be utilized by oil and gas industry for remote monitoring,
security and surveillance, maritime search and rescue, rust and corrosion detection,
transport of mail, documents and material, gathering data for inspection purposes.
Other possibilities like predictive maintenance of critical
infrastructure assets, offshore wind farm & power stations, drilling rigs, pipelines
& transmission network, oil spill detection & oil spill damage assessment, oil/gas
pipeline surveillance incident mapping, gas leak detection, facility security etc.
INTERNAL CONTROL SYSTEMS AND ADEQUACY:-
The Company has an appropriate system of internal controls to ensure
that all activities are monitored and controlled against any unauthorized use or
disposition of the assets and those transactions are authorized, recorded and reported
correctly.
The Company ensures adherence to all internal control policies and
procedures as well as compliance with all regulatory guidelines. The Audit Committee of
the Board of Directors appraises the adequacy of internal controls.
HUMAN RESOURCES:-
The Company takes pride in the commitment, competence and dedication
shown by its employees in all areas of business. Various HR initiatives are taken to align
the HR Policies to the requirement of the business.
As on March 31, 2023 the Company has a total workforce of over 387
employees.
CAUTIONARY STATEMENT:-
Statements in this Report on Management Discussion and Analysis,
describing the Companys objectives, projections, estimates, figures and expectation may
constitute "forward looking statements" within the meaning of applicable laws
and regulations. Actual results might differ materially from those expressed or implied.
The company assumes no responsibility in respect of forwardlooking
statements herein, which may undergo changes in future on the basis of subsequent
developments, information or events.
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