Global Vectra Helicorp Ltd Management Discussions

annual output by 2030. RIL, Adani invest in green H2

electrolysers; SIGHT programme has a 17,490 crore outlay Ministry of Petroleum & Natural Gas mentioned that vast offshore acreage of more than 1 Million Sq. Km. has been made available in recent past for E&P operations. Currently, only about 10% of Indian Sedimentary Basin Area is under active exploration. However, with the initiatives of Government, more areas are coming under exploration, and it is estimated that after award of blocks under OALP-IX and X Bid Rounds, about 5,60,000 Sq. Km. area will come under exploration by end of year 2025.

Under OALP-IX BidRound,atotal offeredfor 28blockswere bidding comprising an area of approximately 1,36,596 Sq. Km., spread across 8 Sedimentary Basins and included 11 Onland blocks, 10 Shallow Water blocks, and 7 Ultra Deep-Water blocks. These blocks received multiple bids from companies including ONGC, Oil India Ltd., Vedanta Ltd., and the ONGC–Reliance–BP consortium. The blocks were awarded in April 2025, and the estimated investments for the committed exploration work programme are under finalization.

Under OALP-X Bid Round, launched in February 2025, a total of 25 blocks has been offered for bidding comprising an area of 1,91,986 Sq. Km., spread across 13 Sedimentary Basins and include 6 Onland blocks, 6 Shallow Water blocks, 1 Deep Water block, and 12 Ultra Deep-Water blocks. This is the largest ever acreage offered in a single OALP round. The bid submission window is open till 31st July 2025, and block awards are expected later in the year. The round is expected to attract substantial investment and significantly boost domestic exploration.

In continuation to its aggressive acceleration of E&P activities and adhering to the prescribed timelines, the Government has now launched OALP Bid Round-X for International Competitive Bidding on 11th February 2025. In this bid round, 25 blocks, with an area of approximately 1,91,986 Sq. Km., are on offer for bidding.

Various initiatives are being undertaken by the Government to reduce import dependence and increase domestic crude oil production. These include:

Discovered Small Field (DSF) Policy

Reforms in Hydrocarbon Exploration and Licensing Policy (HELP) for enhancing domestic exploration and production of Oil & Gas (2019)

Natural Gas Marketing Reforms (2020)

Policy to promote and incentivize Enhanced Recovery methods for Oil and Gas

Redevelopment of existing mature fields and development of new/marginal fields

Revival of Sick Wells

Improving recovery factors through implementation of Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) techniques These comprehensive measures are aimed at boosting domestic output, improving energy security, and encouraging participation of both national and international players in Indias upstream sector.

The hydrocarbon resource assessment for 15 sedimentary basins (combining Category-I, II and III basins) was carried out approx. two decades ago and became overdue at present in light of enormous data acquired during Pre-NELP and NELP rounds of G&G activities. During the course of implementation of work program in Pre-NELP Blocks, NELP Blocks, nominations blocks awarded to NOCs and other exploration and production activities, substantial geo-scientific data have been generated.

To re-assess the hydrocarbon resources of India, Government has constituted a Multi Organization Team (MOT) with updated information on Indian sedimentary basins. The exercise will cover all the 26 sedimentary basins of India. It will generate better understanding of Indian sedimentary basins with integration of data and new interpretation techniques. These relook at basins will assist in future planning of exploration activities. Currently Mumbai Offshore, Satpura-South Rewa,

Kerala-Konkan, Krishna-Godavari, Mahanadi, Cambay, Rajasthan and Vindhyan basin are under study.

Seven proposals have been received for generation of approx.

107386 LKM 2D Seismic data, under the policy for Geo-scientific data generation for hydrocarbons in Indian sedimentary Basins, through Non-exclusive Multi-Client Geo-scientific surveys/

Activities. All the seven proposals have received clearances from Ministry of Defence (MOD) and Ministry of Home Affairs

(MOHA). DGH has issued provisional letter of consent to all the proposals.

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. Also, development of unconventional resources CBM fields in the deep sea.

These developments show Indias hydrocarbon sector is gaining for real with frontier-level discoveries, rapid acreage expansion, gas ecosystem growth, infrastructure build-out, and streamlined licensing. The next few years look poised for transformative change in national energy capability and resilience.

India is set to maintain its position as a key exporter of transportation fuels to markets in Asia and the Atlantic Basin.

Continued investment in refining capacity and complexity is expected to boost production of light and middle distillates, even as refiners increasingly process heavier and sour crude blends. Since 2022, Indias role as a global swing supplier has grown, especially after the decline of Russian product exports to Europe, which led to an increased westward pull for Asian diesel and jet fuel.

In 2024, India was the fourth-largest exporter of middle distillates globally and the sixth-largest refinery product exporter, with volumes reaching approximately 1.25 million barrels per day

(mb/d). New refining capacity additions, including ongoing projects at Paradip, Barmer, and Ratnagiri, are expected to raise export volumes to 1.4 mb/d through 2026, before gradually tapering to 1.2 mb/d by 2030 due to rising domestic demand. Oil demand in India is projected to double, reaching 11 million barrels per day by 2045, driven by population growth, urbanization, and rising income levels. Natural gas consumption is expected to increase by over 25 billion cubic metres (BCM), maintaining an average annual growth rate of around 9% through 2025, supported by expanding city gas distribution and industrial use.

Indias energy demand is anticipated to grow faster than any major economy, backed by sustained economic growth. The countrys share in global primary energy consumption is projected to double by 2035, highlighting its central role in and global energy dynamics and the urgency of diversified sustainable energy strategies.

Indian oil companies are investing heavily in the refining sector to meet the continued rise in domestic oil demand. Over the next seven years, India is expected to add around 1 million barrels per day (mb/d) of new refinery distillation capacity more than any country in the world outside of China. Several large-scale projects, such as those in Barmer (HPCL), Paradip (IOC), Ratnagiri (RRPCL) and Nagapattinam (CPCL) are under various stages of development and may push total capacity beyond the currently projected 6.8 mb/d.

India aims to commercialise 50% of its Strategic Petroleum Reserves (SPR) to raise funds for building additional underground and above-ground storage facilities, aiming to enhance energy security and buffer against global oil price volatility.

The Indian Government has also approved oil and gas infrastructure projects worth 1 lakh crore (US$ 13.46 billion) in the Northeast Region, with a focus on refining, pipelines, and exploration. These projects are being fast-tracked for completion by the end of 2025, under the Hydrocarbon Vision 2030 initiative.

The exploration and production (E&P) segment is expected to attract investments of up to US$ 25 billion, supported by ongoing bidding rounds under the Hydrocarbon Exploration and Licensing Policy (HELP), increasing private sector participation, and improved fiscal and regulatory frameworks.

As India continues efforts to reduce import dependency in the petroleum and hydrocarbon sector, the Government has reinforced a set of business-friendly reforms and policy enablers. These include easier licensing requirements, an investor-friendly revenue sharing model, and an FDI policy that permits 100% foreign direct investment under the automatic route across upstream, midstream, and downstream segments, including exploration, refining (in the private sector), pipelines, and marketing infrastructure.

The National Data Repository (NDR) has been further enhanced with AI-enabled geoscientific tools and cloud-based access, offering seamless and real-time availability of exploration and production data to prospective investors. This transparency and ease of access significantly reduce entry barriers and improve decision-making for global and domestic players.

These progressive measures provide immense opportunities for international oil majors and independent E&P firms to enter or expand in the Indian market, supported by a stable fiscal regime, simplified approvals, and a high-growth energy demand outlook.

1. Crude Oil Price Volatility

Global wars, especially in key oil-producing regions such as the Middle East, Russia, or Eastern Europe, often lead to uncertainty in supply chains. This typically results in:

Spikes in global crude oil prices, directly impacting Indias import bill (India imports ~85% of its crude oil requirements).

Increased retail fuel prices in India, affecting inflation and transportation costs.

2. Energy Security Concerns

Indias heavy dependence on imported oil and gas makes it highly vulnerable to:

Supply disruptions, especially from politically unstable regions like the Persian Gulf.

The need to diversify import sources, including efforts to secure long-term contracts with countries in Africa, Latin America, and the U.S.

3. Strategic Petroleum Reserves (SPR)

Global conflicts often push India to expand its Strategic Petroleum Reserves, ensuring a buffer against prolonged disruptions.

Recent efforts have seen India collaborating with countries like the UAE and the U.S. for joint reserve management.

4. LNG and Natural Gas Market Disruption

Wars involving major LNG exporters (like Russia) disrupt global LNG supply routes and raise spot market prices, affecting Indias gas-based industries and power plants.

India shifts toward long-term LNG contracts to reduce exposure to volatile spot prices.

5. Currency Depreciation

War-driven global uncertainty often weakens the Indian Rupee, making oil imports costlier and putting pressure on the trade deficit and fiscal balance.

6. Push for Domestic Production & Renewables

Geopolitical instability acts as a catalyst for self-reliance, encouraging:

Expansion of domestic E&P (exploration & production) activities.

Investment in biofuels, green hydrogen, and solar energy as part of the energy transition.

Boost to ethanol blending and electric mobility initiatives.

7. Investment Climate

Global wars create risk aversion among foreign investors.

However, Indias stable domestic market and consistent demand can also attract counter-cyclical investments into refining, storage, and downstream sectors.

While India has largely maintained a non-aligned or neutral stance in ongoing global conflicts,the Indian helicopter industry, integrally linked to international aviation supply chains, has been significantly impacted. The Helicopter Industry, which depend on foreign OEMs for aircraft acquisition, leasing, maintenance support and spares provisioning. Recent geopolitical events have heightened costs, disrupted timelines and introduced systemic uncertainty into operations.

The Russia Ukraine war triggered a ripple effect across global oil markets, pushing aviation turbine fuel (ATF) prices upward and inflating day-to-day operating costs for Indian helicopter operators. Sanctions on Russian lessors and insurers further reduced access to affordable leasing options, driving up lease rentals and tightening contract conditions globally. The war also disrupted the global supply of helicopter parts and caused delays in major component overhauls, leading to increased aircraft downtime. Volatility in foreign exchange rates added another layer of complexity for Indian operators engaged in contracts or leases denominated in USD or EUR. Additionally, war-risk insurance premiums rose sharply, increasing the cost burden for helicopter industry operators.

The Israel Hamas conflict and broader Middle East tensions have further strained helicopter logistics. With key MRO hubs and OEM supply centers located in Dubai, Bahrain and other Gulf cities, Indian companies have experienced shipping delays and rising handling costs. Airspace restrictions and geopolitical overflight risks have complicated ferrying of leased helicopters to and from international locations, affecting timelines for deployment and redelivery. Meanwhile, heightened security at logistics choke points has impacted the movement of avionics, tooling, and composite components that transit via these Gulf-based supply routes.

The crisis in the Red Sea, marked by Houthi attacks on commercial shipping, has had a direct effect on maritime cargo routes, particularly those via the Suez Canal. Many Indian operators rely on components and equipment sourced from Europe, which typically transit via this route. Disruptions have led to the rerouting of vessels around the Cape of Good Hope, increasing freight costs and delaying deliveries by several weeks. These extended shipping timelines have impacted time-sensitive helicopter mobilizations for offshore and remote contracts. Lease deliveries and spare parts shipment schedules have been affected, especially for medium- and heavy-class helicopters.

Cumulatively, the Indian helicopter industry is grappling with higher lease costs, longer aircraft delivery lead times and rising premiums across all categories of aviation insurance. Shipping and logistics disruptions have delayed the arrival of essential spare parts and equipment, increasing AOG durations and affecting aircraft availability for time-sensitive missions.

ATF price volatility, longer customs clearance processes, and exchange rate fluctuations have further eroded operational margins. These issues are compounded by the increased cost of skilled manpower and technical resources, both of which are also subject to international competition and availability constraints.

In conclusion, while the Indian helicopter industry has remained resilient in the face of these global disruptions, it continues to absorb cost shocks, logistical delays, and operational constraints driven by factors far beyond its control. Without adaptive strategies and policy support, the long-term sustainability of this high-capex, low-margin sector could come under strain.

There is currently a shortage of qualified pilots and aircraft maintenance engineers (AMEs) in the aviation industry. GVHL has traditionally sourced a significant number of its pilots from a defence background; however, this pool has been steadily declining as many ex-defence personnel are opting for more lucrative or flexible opportunities outside. Additionally, the industry is facing a dearth of licensed AMEs, making recruitment and retention of skilled technical manpower increasingly challenging.

With oil and gas companies expanding exploration and deep-sea drilling activities along Indias eastern (including Andaman) and western coasts, there is a growing demand for long-range helicopters capable of supporting extended offshore missions.

GVHL is strategically positioned to respond to this need by evaluating the potential deployment of advanced rotorcraft such as:

H175 – Range: 650 NM

AW189 – Range: 490 NM

H225 Super Puma – Range: 450 NM

S-92 – Range: 540 NM

Bell 525 – Range: 580 NM

These aircraft are expected to play a crucial role in ensuring safe and efficient connectivity between onshore bases and deep-water installations.

The emerging Unmanned Aerial Vehicle (UAV) technology is poised to become integral to the helicopter service industry.

Drones offer safe, efficient access to hazardous or hard-to-reach areas, while providing real-time data and surveillance. Key Applications Include:

Remote monitoring and surveillance

Maritime search and rescue

Rust and corrosion detection

Transport of mail, documents, and materials

Inspection data acquisition

Predictive maintenance for infrastructure

Surveillance of offshore rigs, pipelines, and networks

Oil spill detection and assessment

Gas leak detection and incident mapping

Facility and perimeter security

Helicopter service industries are also witnessing a surge in drone-based solutions, a trend expected to continue with technological advances and improved product availability.

GVHL is closely monitoring the development of Advanced Air Mobility (AAM) technologies, which include eVTOL (electric vertical take-off and landing) and eSTOL (electric short take-off and landing) platforms. These systems offer transformational potential, particularly in:

Urban congestion reduction

Lowering transportation-related pollution

Improved access to remote and underserved regions

Efficient regional logistics and passenger mobility

India has ambitious plans to become a pioneer in AAM, with initial eVTOL operations expected as early as 2025. Urban routes like Bengaluru Airport to City are test cases already under implementation.

Electrification & alternative propulsion

Infrastructure: Vertiports, charging stations, navigation aids

Regulations: Certification, airspace management, safety standards

Public adoption: Addressing noise, reliability, and service integration According to global projections, the Urban Air Mobility (UAM) market is set to grow at 30% annually till 2040. In India, this growth will be propelled by increasing urbanization, rising e-commerce, and the need for fast, point-to-point logistics and passenger movement.

To remain competitive and relevant, GVHL will focus on:

Integrating new generation aircraft for long-range offshore missions.

Investing in UAV operations and data analytics capabilities.

Collaborating in the eVTOL ecosystem for urban and regional air mobility solutions.

Building operational readiness for next-generation aviation technologies.

Statements in this Report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, figures and expectations, may constitute "forward-looking statements" under applicable laws and regulations.

Actual results may differ materially from those expressed or implied.

The company assumes no responsibility for forward-looking statements herein, which may undergo changes in future based on subsequent developments, events, or available information.