By Rishi Ranjan Kala
Copyright thehindubusinessline
State-run Oil India (OIL) will acquire seismic data for 40,000 sq km of area spread over Mahanadi and KG Basin in the current financial year.
The oil and gas exploration & production (E&P) company, after establishing prospects in these regions, will go for drilling of wells in the coming years.
“Our focus on cost optimisation is to how to enhance production. In FY26, we will carry out seismic data acquisition for this 40,000 sq km. After we establish prospects, we will go for drilling in deep and ultra-deep water by engaging drill ships in one or two years down the line,” Ranjit Rath, Chairman & Managing Director, OIL, told businessline.
Talking about the Maharatna company’s E&P efforts jn FY25, Rath noted that OIL competed drilling of 57 wells.
“Besides, last fiscal year, we made two discoveries in the Mechaki petroleum mining lease (PML) in Assam. One oil and one gas discovery was made,” he noted.
Operational performance
On the operational performance of the company, the cumulative production of oil and gas in FY25 reached a record level of 6.710 million metric tonne oil equivalent (MMTOE).
“Your company recorded its highest-ever oil and oil-equivalent gas production of 6.710 MMTOE since inception, along with the highest-ever natural gas production of 3,252 MMSCM. Crude oil production also maintained consistent year-on-year growth, rising from 3.01 MMT in FY22 to 3.458 MMT in FY25 — an increase of nearly 15 per cent over three years,” Rath informed the shareholders at the company’s AGM on Thursday.
The cumulative capex estimated for this fiscal (FY26) is around ₹17,000 crore, he told the media post the AGM; last fiscal, it was around ₹8,500 crore. The company has set a target of ₹1.3 lakh crore worth of cumulative capital expenditure by the end of the decade.
Overseas business
Oil India has received about $942 million representing over 91 per cent of its original investment in Vankorneft and Taas Yuryakh projects, and expects full recovery in the coming financial year, Rath said.
Currently, about $330 million worth of dividends are stuck in its bank accounts in Russia. Oil India had made an investment of about $1 billion in these two projects.
“Your company maintains a strong presence in overseas producing and developing assets across Russia, Venezuela and Mozambique through joint ventures. These assets contribute significantly to your company’s reserves and production portfolio, with cumulative production of 2.097 MMTOE during FY25 primarily from Russia. A highlight of the year was the robust dividend flow from Russian assets, amounting to $942 million, representing over 91 per cent of our original investment in Vankorneft and Taas Yuryakh, with full recovery expected in the coming year,” he added.
Published on September 18, 2025
