oil india ltd share price Management discussions


Its a closely connected world. Global events are increasingly making their effects felt on the Indian economy. This was evident from the global Covid-19 pandemic, which affected almost all countries, some more severely than others. Conicts in distant lands, semiconductor shortages, slowdown in some of the large economies etc. cause repercussions that have the potential to disrupt entire sectors, nay the Indian economy as a whole.

The IMF prediction for the world economy remains positive for the next two years, with growth projected at around 3.0 percent. Global headline ination in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices. The decline in underlying (core) ination is also set to decline, albeit slowly, with expectations of returning to target ?gures by 2025 in most cases.

Growth in the Indian Economy-

The Indian economy is a continuous success story since FY2020-21.Thebrakesontheeconomyappliedduringthe pandemic was released, and now it is one of the fastest growing economy in the world, with a GDP growth rate of (estimated) 7% in FY 2022-23, driven by robust domestic demand and the governments stress on infrastructure development. This growth was supported vigorously by private investment and a comeback in economic activity across all sectors. Almost all projections agree that this growth rate in GDP shall endure, and exceed 6% for the coming year.

Concurrently, the ?scal de?cit for FY 2022-23 maintained the decreasing trend for the past few years, settling at below 6.5% for FY 2022-23. However, a point of concern remains the ination rate, especially the retail ination which remained high despite aggressive intervention by RBI. However, we have seen a downtrend in the retail Headline ination rate since Q2 of FY 2022-23, remaining within the upper tolerance limit of 6%.

Strong economic growth has helped India overcome the United Kingdom to become the ?fth-largest economy in the world, with it projected to rise even further in the coming years.

The Energy Sector

A major development in the energy sector in recent years is the increasing need for environment friendly low-carbon fuels, and the transition strategy adopted by various countries to become net-zero. India has declared its commitment to achieve net-zero status by 2070. The east-European conict coupled with OPEC production rate variations, and improvement in world economies since the historical lows of the pandemic era remained the dominant factors in energy trades. Following the conict, Gas ows to western Europe, which depended on Russia fell drastically below requirement. Sanctions were imposed on oil movement from Russia through tankers. These drove prices northward, particularly for Natural Gas, with Crude Oil following suit.

During the parleys to achieve carbon neutrality, Coal was labelled as the rotten apple in the basket of fossil fuels, and plans were underway for its consumption to be reduced. However, with the current situation, production couldnt keep up with demand and this ensured that coal prices also remained strong during the year.

Opportunities in O&G

Energy security, supply diversi?cation, and low-carbon transition appear to be mutually contradictory, but these contronyms can provide equanimity to the industry over the coming years. Although battered with supply disruptions and price volatility, the O&G situation today, is unique and exceptional. The years ahead are sure to stress on clean, low-carbon energy to address the mounting concern about global climate change. But the era of oil and gas shall adapt, carry on for the foreseeable future.

The Indian saga

For any country, the growth in GDP has to be supported by a proportionate increase in energy security. Energy security concerns dictate an increased preference for locally available energy sources and a concurrent lowering of energy imports. Growing environmental concerns also affect the choice of energy sources, with a gradual shift to lower-carbon and cleaner forms of energy.

The energy sector plays a crucial role in sustaining and accelerating Indias economic growth. Indias gross energy demand is projected to increase at a rate of 3% till 2040 as the country aims to achieve a 10 trillion-dollar economy. The O&G sector is a major player in this growth scenario. The demand for crude oil and natural gas is expected to increase in the near term, with a major portion being met from imports.

The BP Energy Outlook for 2023, compared to its earlier iterations, has lowered the O&G import projections as a share of primary energy for India in the long term, primarily due to Energy security and environmental concerns. India currently imports about 85% of oil and about 50% gas that it consumes. For India, the major energy source for the past few years has remained coal, primarily due to its large availability within the nation. Fuelled by the fast growth in GDP, the rising demand for fuel has resulted in India importing almost 87% of its domestic consumption in FY 2022-23. The fall in Russian crude oil prices have resulted in almost doubling the imports from Russia over the past year, making Russia the single largest supplier of crude oil to India, accounting for over a third of all oil that India imports. Though coal retains the primary spot in the Indian energy basket, the Oil and Gas sector fared quite well. The country is an exporter of petroleum products. The production of crude oil and natural gas within the country is about 10% of the total demand. There is a stress on increasing domestic production, supported by various initiatives like National Seismic Program (NSP), opening up of "No-Go" areas for exploration in the Exclusive Economic Zones of Indian Offshore – Eastern & Western and the Andaman & Nicobar Basin, Discovered Small Fields (DSF), National Data Repository (NDR), collaborative efforts with IOCs, focus on unconventional petroleum resources, promoting ease of doing business, etc.

With an increased stress on energy security and lower carbon energy sources, the share of Natural gas in the Indian energy basket is also set to grow substantially in the coming years (15% by 2030 compared to about 6% at present) as a cleaner fuel source. This expansion is supported by increase in infrastructures like the National Gas grid, CGD networks, LNG terminals, etc. and initiatives like SATAT (Sustainable Alternative towards affordable transportation) and marketing and pricing freedom for gas from certain areas.

India is a price sensitive market and this holds true even in energy sector. Domestic consumption and imports of natural gas by India fell by 6% and 14.1% respectively in FY 2022-23 in the face of soaring gas prices in the international market. The value of gas imports, however, rose to $17.9 billion in FY 2022-23 from $13.5 billion in the previous year due to higher prices. As imports fell at a steeper pace than local demand, the countrys import dependence for natural gas dropped to 44.2% in FY 2022-23 from 48.4% in the previous year. Domestic gas production rose by 1.3% in FY 2022-23.

Considering all of the above, it is clear that the sector represents a strong demand and a ready market with immediate consumption of all produced products. It portends well for the upstream O&G sector in India in the near future.

Through camaraderie, the OIL Mast will soar high.

Oil India Ltd. has embarked on the journey towards "Mission 4 plus", i.e., the strategic vision to produce 4 MMT of crude oil & 5 BCM of gas in the coming years, while also endorsing within its framework, novel initiatives towards ‘reducing, ‘recycling, ‘reusing, and ‘removing CO2 and other GHG emissions to achieve carbon neutrality or net-zero in its operations by 2040. Both the focuses will complement each other through an array of advanced technology adoptions and diversi?cations of its portfolios ranging from increased thrust on exploration for petroleum resources and exploring opportunities in solar, wind, Green Hydrogen and bioenergy sectors. Oil Indias indomitable spirit towards ful?lling the energy needs of the country pursued with achieving climate change goals will pave the way towards achieving hegemony in the sector. This is reected by Oil Indias "excellent" MoU rating in FY 2021-22.



Exploration policies in-country- Govt. of Indias plan to 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 will have far reaching rami?cations for the energy landscape of the country. In this regard, the Government has taken some important decisions on reducing ‘No-Go areas in the Indian offshore by 99%. In this context, and with a view to accelerate E&P activities, enhance the ease of doing business and promote fresh investments in the E&P sector, the Government has recently effected signi?cant changes in the contractual framework and incentive structure. As a Company with E&P as its core business, this will bring enormous opportunities in future to play a key role in enhancing energy security for the country. Companys effort to build partnerships with International Oil Companies (IOCs), National Oil Companies (NOCs), and technology providers to boost exploration in India offered under upcoming OALP bid rounds and explore options for enhancement of value from Companys existing acreages including OALP and DSF blocks.

Energy mix and energy transition in- country- In line with the sustainable development goals and its commitment to net-zero and energy independence, Indias energy mix is rapidly shifting towards a more signi?cant share of new and renewable energy. Today, India is the worlds third largest producer of renewable energy, with 40% of its installed electricity capacity coming from non-fossil fuel sources. The energy sectors are witnessing transformation with disruptions like green hydrogen, EVs, penetration of clean energy in buildings, transportation, and industry segments. The above developments supported by a futuristic and development-oriented policy guidelines at central and state govt. level such as, the Solar Park scheme, the National Bioenergy Programme, Sustainable Alternative Towards Affordable Transportation" (SATAT), PM-KUSUM scheme etc. has created enabling ambience for Indias energy transition. These will enable Company to embrace and build a green energy portfolio covering green hydrogen, Compressed Biogas, Solar energy and bioethanol etc. while making adequate efforts for decarbonisation through carbon capture, usage and storage initiatives. In this direction the Company has made tie-ups with several academic and research institutions and State Govts. to become a key player in production of green energy. Indias clean energy transition is rapidly underway with the budget for FY 2023-24 providing a consistent and balanced intervention to promote the long-term growth and sustainability of energy goals. In the mainstream domain, allocation of 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security, outlay of 19,700 crore for the Green Hydrogen Mission, establishment of 500 new ‘waste to wealth plants under the new GOBARdhan scheme and viability gap funding for 4,000 MWh battery energy storage systems and formulation of a detailed framework for pump storage projects etc. will enable sectoral growth and are expected to provide a push and pull effect for promoting newer cleaner technologies.

Increase in energy demand- According to the reports of the US Energy Information Administration, the total worlds energy consumption will increase by 40% by the year 2040. ET says Indias oil demand in 2023 was expected to be 6% above levels in 2019, before rising to about 12% in 2024. The Company will be ready to take control of the potential demands of the future. Biofuels and Hydrogen: By 2030, India plans green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW. The Company has drawn up plans for entering into CBG, CBM & Biogas. Advances in technology: By exploiting Arti?cial Intelligence and data analytics, Company is all set to build upon its technical advances. ESG practices: To build up on its reputation in the prevailing market, new markets and across all stakeholders, Company plans to outrun its ESG goals to meet the growing demand for sustainable and ethical business practices.

Carbon Capture and Storage: Carbon-dioxide capture and storage (CCS) and carbon dioxide capture, utilization and storage (CCUS), are the emerging technologies for carbon emission reduction and climate change mitigation and are gaining foothold. CCS and CCUS technologies will enable Company to progress toward a net zero future.

Legacy: Historically having its presence as a strong brand nationally and internationally, Companys diversi?ed operations in the oil and gas industry are helping the Company mitigate risks and capitalize on opportunities. With a long history of innovation and investment in research and development the Company has concentrated its operations using advanced technology and expertise.

Threats/Risks and Concerns

Volatile prices- As an O&G Company, price volatility will continue to affect the revenue and pro?ts of the Company. Climate Changes– With energy demands increasing carbon emissions are set to signi?cantly increase with increased production and upstream companies must ?nd ways to reduce the emission of carbon dioxide countering the increased operational costs and stricter regulations. Conscious consumers- New generation consumers are aware of environmental and social issues and are increasingly demanding sustainable and equitable products. This may put future demand for fossil fuel at risk. Geopolitical risks- Wars, government changes, geopolitical tensions or economic instability will continue to affect the companys international operations and pro?tability.

High capital expenditures- The oil and gas industry requires intensive capital expenditures to explore, develop and produce hydrocarbon. Finances are invested and parked for long durations before returns can materialize, subject to the legendary risks involved.

Limited diversi?cation window- While Company has taken steps to diversify within the energy sector, diversi?cation outside this sector is a big challenge riding with restricted mindsets within the industry. As India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023, the theme of Indias G20 Presidency is - "VasudhaivaKutumbakam" or "One Earth, One Family. One Future". The immediate priorities are Green Development, Climate Finance & Life style for Environment, along with Accelerated, Inclusive & Resilient Growth and Accelerating progress on Sustainable Development Goals, Technological Transformation & Digital Public Infrastructure, which will surely open many windows of opportunity and risks but will indisputably open the doors towards a World based on sustainable development.


i. Crude Oil

During FY 2022-23, Crude oil production was 3.176 MMT inclusive of Companys share from Kharsang and Dirok JVs) as against the production in the previous year 3.010 MMT. The crude oil sale was 3.067 MMT as compared to 2.891 MMT in the previous year.

Most of the oil?elds are highly matured (more than 25 years) and are in natural decline phase. Therefore, maintaining the current level of production in present producing ?elds is a major challenge for the Company. Still, Company has been able to increase its production in the last ?nancial year by use of various IOR/EOR techniques and induction of technology in its ?elds. OIL has taken up various short term and long-term initiatives to intensify exploration activities for enhancing domestic production of oil and gas. The Company has also embarked upon a strategic vision to produce 4 MMT of oil & 5 BCM of gas in the coming years. MISSION 4+ was initiated with the sole purpose of enhancing Companys current level of production by fast-track development of ?elds and accelerated drilling campaign that includes drilling in complex geological formation in deeper horizon. Extensive infrastructure development projects are also under implementation in its operational areas. Projects of Central Bowser Unloading Station (CBUS)

& Pipeline Rehabilitation Project of 575 Kms were mechanically completed/commissioned this year.

New and ?t for purpose technology implementation was given utmost importance for enhancement of operational eciencies & production. As a part of Companys effort for enhancement of production from its nominated ?eld, OIL has planned to tender few of its ?elds for Production Enhancement Contract (PEC). Also, the Company has taken up a resource build-up exercise, viz. increase in Workover rigs, replacement of existing Drilling rigs with VFD Technology, increasing the arti?cial lifting capabilities etc.

Besides increased exploration and drilling activities, increase in crude oil production is also planned by implementing state of art technologies like Electrical Submersible Pump (ESP), Hydro fracturing, Gravel Pack jobs, Radial Drilling, Extended Reach Drilling, Chemical water Shut-off, Acidization, Comingled Production, Electric Downhole heating etc. Technologies like Steam Gun perforation, Side Tracking of old wells, Downhole heating cables etc. are also being implemented for enhancing production from the matured ?elds. Company has come up with a plan for Quick monetization of sick wells through technology support.

Enhanced Oil Recovery (EOR) is a medium to long term focus area, where a number of initiatives are being undertaken, to increase production. EOR Policy of Government of India has provided boost to the EOR projects. Actions have been initiated for implementation of following projects, which are in different phases: a. Polymer Flooding in Naharkatia Field b. Carbonated Water Injection c. Capturing, liquefaction, storage, transportation

and pumping of CO2.

Cyclic Steam Stimulation (CSS) is being implemented in all other thermally completed wells of Baghewala Field after successful commissioning the technology for enhancement of heavy oil production. CSS technology has signi?cantly improved heavy oil production from Baghewala ?eld. Also wells with Electric downhole heater (EDH) and arti?cial lift were completed successfully in Baghewala Field

. ii. Natural Gas

During FY 2022-23, Natural Gas production is 3180 MMSCM (including Companys share of Dirok JV Gas) which is higher than the 3045 MMSCM in FY 2021-22. The Company registered the highest ever gas production in its history till date in the FY 2022-23. Considering Companys commitment for gas supply to its existing as well as new customers, action plans have been initiated for progressively building up gas potential in its producing areas. Company has plans for monetization of stranded gas from remote unconnected production areas through use of CNG /LNG Mode. Following infrastructural projects, including drilling of NAG wells, work-over, building of pipeline infrastructure etc. are underway in pursuance of the above goal. Upon completion, these infrastructure projects are expected to give substantial gain in natural gas production potential of the Company:

(a) A Group Gathering Station at east KhagorXan, along with pipeline infrastructure

(b) Field Gas Gathering Station at Baghjan

(c) Kumchai – KusXan Gas Pipeline for monetisation of stranded gas at Arunachal Pradesh In Rajasthan, produced gas is uplifted by GAIL for power generation at Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL). At present, the gas upliftment is to the tune of 0.5 to 0.7 MMSCMD, although the current gas potential is about 1.0 MMSCMD. The Company is exploring the market for customers for the stranded gas and work is in progress for enhancing the capacity of the existing plant and doing necessary modi?cation in the plant for supply of additional gas

. iii. Lique?ed Petroleum Gas (LPG)

In the FY 2022-23, the availability of the LPG Recovery Plant was 99.40% and the plant eciency in terms of butane recovery was 99.51% compared to the design ?gure of 98%. The plant processed an average of 1.86 MMSCMD (67.22 MMSCFD) gas with an average butane of 1.00% (v/v) in the feed gas in the Financial Year 2022-23 as against 1.86 MMSCMD (67.16 MMSCFD) gas with an average butane of 1.06% (v/v) in feed gas processed in the previous year. The LPG Recovery Plant was in operation for 333 days and 32,100 metric tons of LPG was produced during the year. Along with LPG, 20440 metric tons of Condensate was also recovered as by-product. LPG Filling Plant was in operation for 291 days

. iv. Pipeline

The Company owns and operates 1,157 km long fully automated crude oil trunk pipeline between Naharkatia-Barauni. The Naharkatia-Barauni crude oil pipeline runs through the states of Assam, West Bengal and Bihar traversing hostile terrain, dense forests and cuts across 78 rivers including the mighty Brahmaputra. This pipeline has two segments. The 557 KM Duliajan- Guwahati-

Bongaigaon segment transports crude oil produced from oil?elds in Upper Assam to the public sector re?neries at Numaligarh, Guwahati and Bongaigaon. The second segment of 600 km between Bongaigaon and Barauni has been re-engineered to enable oil ow in reverse direction and is now transporting imported crude from Barauni to Bongaigaon. In addition to above, the Company also operates a 35 KM pipeline for supply of crude oil from Duliajan to Digboi Re?nery. The Company also operates a 654 km long pipeline for evacuation of ?nished products from Numaligarh Re?nery to Siliguri Terminal in West Bengal. The Crude Oil upliftment by OIL in FY 2022-23 was 6.796 MMT, which is the highest recorded upliftment till date.

The pumping stations of Naharkatia-Barauni cross country pipelines have been operating continuously for over six decades. In a two phased project, all pump stations and all receipt terminals have been upgraded with new technology to bring eciency, enhanced safety and reliability of operations. The entire project has been completed and commissioned in 2021. In the 2nd phase of the project, the facility for reverse pumping of imported crude oil has been augmented upto Guwahati Re?nery. In order to further achieve the objective of continued safe and reliable operation and enhancing life of the trunk pipeline by about 30 years, a rehabilitation project of 575 Km of pipeline under Phase-I was implemented which includes complete refurbishment of pipeline coating, re-designing of catholic protection system, mitigation of shorted cased crossings, recoating of buried Block valves, repair/replacement of shorted Insulating Joints, repair of defective Pipeline Sections.


During the year, the Company has earned highest ever total revenue of 24,757.85 crore as against 16,427.65 crore in the previous year 2021-22. The Net pro?t margin of the Company for FY 2022-23 was 29.26%. The Pro?t Before Tax (PBT) in the year 2022-23 was 8,857.04 crore against PBT of 4,986.50 crore in the previous year. The Company had registered highest ever Pro?t After Tax (PAT) at 6,810.40 crore during FY 2022-23 against 3,887.31 crore in the previous year. PAT for the FY 2022-23 has increased by 2,923.09 crore as compared to FY 2021-22 primarily due to improved crude oil price realization of US$ 95.47/bbl (Previous year US$ 78.96/bbl) and improved crude oil and natural gas production.

Some important indicators of Companys strong ?nancial performance are highlighted below :


FY 2022-23 FY 2021-22
1 Debtors Turnover 12.68 11.27
2 Inventory Turnover 18.75 12.35
3 Interest Coverage Ratio 18.90 12.33
4 Current Ratio 1.88 1.32
5 Debt Equity Ratio 0.32:1 0.39:1
6 Operating Pro?t Margin (%) 34.79% 26.65%
7 Net Pro?t Margin (%) 29.26% 26.75%


Internal Audit in the Company is a corporate and reporting function having independent status within the Company. The purpose of Internal Audit is to determine whether internal controls, risk management and governance process, as designed and implemented by the management are adequate and effective.

The Audit & Ethics Committee and Board of Directors supervise and monitor the systems at regular intervals to safeguard the interest of stakeholders.

It is a methodology to control and mitigate risks as per the "Audit Universe" covering businesses processes and operational activities of the Company based on a risk based approach. The Company has digitized the Audit process and implemented online Audit System to ensure better control and smooth reporting of issues for early compliance and maintaining transparency in a paperless environment.


The Company is committed to ensure a strong focus on Health, Safety and Environment (HSE) within the organizationbyprioritizingHSEriskmanagement,ensuring compliance with regulations, engage employees through training and communication, monitor performance for continuous improvement, establish emergency preparedness measures and effectively manage suppliers and contractors. Continuous improvement of the HSE Management system remains a top priority along with meeting all the compliances of regulatory ecosystem. The Company upholds core principles of Inspection, Investigation and Enforcement, implementing HSE focused strategies to address gaps, which has resulted in improvement of HSE performance and yielded a Lost Time Injury Frequency Rate (LTIF) of 0.143.

Project KAVACH, launched by the Company is a transformative HSE and ESG (Environmental, Social, and Governance) initiative that embodies the Key to Awareness, Value Creation, and Change. This comprehensive endeavor encompasses ten strategic goals, each designed to elevate HSE performance and sustainability practices. The initiative entails strengthening the HSE Management System, conducting HSE Culture assessments, establishing a comprehensive HSE audit universe & asset integrity management, benchmarking HSE Parameters against national and international best practices and standards, integrating technology to enhance the HSE Management System, establishing an Emergency Response Centre, achieving Net Zero and conducting an Occupational Health Survey. Project KAVACH serves as a catalyst for positive transformation within Company, reinforcing a robust HSE framework and fostering responsible business practices in alignment with global standards.

OILs unwavering commitment to environment management is reected in our robust waste management practices, placing a strong emphasis on achieving Zero Liquid Discharge (ZLD) to the environment and promoting the principles of SDG 12 - Responsible Consumption and Production. In our pursuit of ZLD, we have taken up cutting-edge Produced Water Re-Injection (PWRI) project, integrating advanced technologies and high-capacity centralized Euent Treatment Plants (ETPs). This allows us to eciently treat produced water, meeting stringent quality standards for underground disposal while minimizing environmental impact. Moreover, our focus on reuse and reclamation is evident in various initiatives. We responsibly manage oily sludge from storage tank bottoms by recovering crude oil through ecient processing, and the remaining sludge undergoes bioremediation, reducing waste and promoting resource recovery. Additionally, we actively recycle a major portion of drilling/workover uid to reclaim drill cuttings and recycle drilling uids.

Our practices extend to the management of non-hazardous waste, e-waste, bio-medical waste, and other scrap. Through approved recyclers and specialized incinerators, we ensure proper disposal and promote circular economy principles. By integrating Zero Liquid Discharge , reuse, and reclamation strategies into our waste management approach, we strive to achieve responsible consumption and production patterns, contributing to a sustainable and greener future.

Mission LiFE 2023

The 50th World Environment Day marked a signi?cant milestone in the global efforts to raise awareness and take action for environmental conservation. The Ministry of Environment, Forest and Climate Change, Government of India, aimed to commemorate this special occasion by giving particular emphasis to the Mission LiFE (Lifestyle for Environment). This initiative introduced by the Prime Minister at the 2021 UNFCCC COP26 in Glasgow, aligns with the principles of Pro Planet People (P3) and promotes mindful utilization and judicious consumption. Through seven key themes including energy and water conservation, reduction of single-use plastic, adoption of sustainable food systems, waste reduction, promotion of healthy lifestyles and management of e-waste. India strives to foster a widespread movement towards an environmentally conscious lifestyle.

In line with the Mission LiFE principles and theme, Company has actively carried out a series of activities. The Meri Life pledge, aligned with the theme "Beat Plastic Pollution," was administered by the CMD on 5th June, 2023, along with the heads of all spheres within Company. Additionally, the Company organized a seminar on this theme, which featured distinguished speakers from the Ministry of Environment, Forest and Climate Change (MoEF&CC) and renowned non-pro?t organizations. Shri Rajendra G. Garawad, IFS from the National Tiger Conservation Authority shared insights on the reintroduction of cheetahs in Kuno National Park, while Professor Alaka Sarma, Founder & ED of the Akshar Foundation, shared her experience in building a green school that focuses on skill-building, poverty eradication, and raising awareness about plastic waste management. To create mass awareness about the pressing global challenge of plastic pollution and its detrimental effects on the environment and human health, various competitions such as photography, quiz and poster/slogan were organized. Additionally, mass plantation drives were carried out across the operational areas of Company to further contribute to environmental conservation efforts.


At Oil India Limited, we uphold our commitment to Environmental, Social, and Governance (ESG) principles, which are deeply ingrained in our core values. As a responsible corporate citizen, we align our initiatives with the National Guidelines on Responsible Business Conduct (NGRBC) principles and the United Nations Sustainable Development Goals (SDGs) to ensure a sustainable and impactful approach to our business operations.

Our adherence to NGRBC principles and SDGs is reected in various aspects of our business:

Integrity and Ethical Governance: We conduct our business with utmost integrity, adhering to ethical practices and transparent governance processes. (NGRBC Principle 1, SDG 10, 16)

Sustainable and Safe Operations: Our focus on energy eciency, waste management, and responsible consumption ensures sustainable and safe practices in the delivery of goods and services. (NGRBC Principle 2, SDG 6, 7, 9 and 12)

Employee Well-being: We prioritize the well-being of our employees, fostering inclusivity, respect, and professional development. (NGRBC Principle 3, SDG 3, 5, 8, and 10.)

Stakeholder Interests: OIL respects the interests of all stakeholders and actively engages with them to address their concerns, including national interests like Atma Nirbhar Bharat. ( NGRBC Principle 4, SDG 8,10 and17)

Human Rights: We hold a strong commitment to respecting human rights, aligning our business functions with global human rights commitments. ( NGRBC Principle 5, SDG 1,2,3,4,5, 6 and 16)

Environmental Conservation and Restoration: Our initiatives for environmental protection, emphasizing continuous efforts to protect and restore the environment and reduce our carbon footprint. ( NGRBC Principle 6, SDG 13, 14, and 15)

Responsible Public Policy Engagement: OIL engages in public policy matters responsibly for initiatives that bene?t society and the environment. ( NGRBC Principle 7, SDG 16 and 17)

Inclusive Growth and Equitable Development: We promote inclusive growth and equitable development through our Corporate Social Responsibility (CSR) initiatives and supporting community development around our operational area. ( NGRBC Principle 8, SDG 1,8 and11)

Consumer Engagement and Value Provision: OIL engages with consumers responsibly, delivering value while addressing their needs and concerns. (NGRBC Principle 9, SDG 10 and 17) Our ESG initiatives are fully integrated into our business practices, creating a positive impact on society and the environment while driving sustainable growth and value for all stakeholders. We are proud of our commitment to NGRBC principles and our contributions to achieving the SDGs.

Net Zero Strategy: Oil India Limited (OIL) is fully committed to energy transition and becoming a net zero Company by the year 2040 in line with Indias net zero pledge and the global efforts to combat climate change.

Recognizing the urgent need for decarbonization and energy transition, the Company has developed a comprehensive strategy to reduce its carbon footprint and contribute to a sustainable future. The Companys net zero commitment encompasses a range of initiatives, including adopting cleaner energy sources, investing in renewable energy projects and implementing advanced technologies to minimize greenhouse gas emissions. The Company is actively diversifying its portfolio to include renewable energy assets and exploring opportunities in sectors such as solar, wind and bioenergy. Additionally, the Company is focusing on energy eciency measures, optimizing operations and promoting circular economy practices to ensure a sustainable and low-carbon future. Through these efforts, Company aims to play a vital role in Indias transition to a net zero economy and contribute to global decarbonization goals, while simultaneously ensuring energy security and economic growth. This consolidated report highlights Companys energy transition strategy, focusing on speci?c projects and targets.

Solar Projects: The Company has made signi?cant strides in solar energy projects. In collaboration with the Assam Government, OIL and APGCL have received approval for establishing 620 MW capacity solar power projects in Assam. Additionally, a 25 MW solar power plant is planned for Namrup, Assam. These projects will contribute to the expansion of clean energy generation in the region, reducing reliance on fossil fuels and mitigating carbon emissions. The Company is also pursuing solar power projects in collaboration with Himachal Pradesh Power Corporation Limited (HPPCL). Green Hydrogen: The Company recognizes the potential of green hydrogen as a clean energy source. The Company is actively involved in various green hydrogen initiatives. The Company is planning a trial run of a hydrogen fuel cell e-bus. Technical modi?cations are being undertaken for blending hydrogen with natural gas in the pipe natural gas network at PS#3, Jorhat, Assam. Moreover, plans are underway to establish a hydrogen dispensing unit at PS#3, Jorhat. These endeavors pave the way for Companys involvement in the emerging ?eld of green hydrogen technology.

Hydrogen Valley Innovation Cluster (HVIC): The Company is participating as a Business and Operation lead in the proposed Hydrogen Valley Innovation Cluster (HVIC) in Assam, with IIT G as the lead partner. This cluster aims to foster innovation, collaboration and research in the hydrogen sector, further solidifying Companys commitment to exploring and promoting sustainable energy solutions.

Compressed Biogas: The Company is evaluating opportunities to establish Compressed Biogas (CBG) plants across multiple states, including Assam, Odisha, Himachal Pradesh, Haryana and Uttar Pradesh. The Company has been entrusted with the responsibility of establishing 25 CBG plants across India. These plants will utilize organic waste to produce biogas, a renewable and clean energy source, contributing to Companys efforts in waste management and renewable energy generation. Companys energy transition strategy reects its commitment to sustainable practices and reducing carbon emissions. The Companys focus on solar projects, green hydrogen and compressed biogas initiatives underscores its dedication to diversifying the energy portfolio and embracing renewable sources. Companys efforts align with global sustainability goals and contribute to Indias energy transition towards a greener future. By adopting innovative technologies, forging collaborations, and investing in renewable energy projects, Company is playing a vital role in Indias journey towards a low-carbon economy and a sustainable energy future.


At OIL, we consider our employees to be our most valuable asset. We take great pride in the commitment and dedication of our workforce. As on 31st March, 2023, the total number of employees at the Company stood at 6759 consisting of 1772 executives and 4987 unionized employees. This includes a diverse and talented pool of individuals who have played a pivotal role in the companys growth and success. We also recognize the importance of nurturing a skilled and adaptable workforce in the ever-evolving energy landscape. Our commitment to upskilling and reskilling initiatives is evident through various programs designed to enhance the competencies of our employees. During the year, apart from the various training programs for the workforce, one program that merits special attention is the SMART program where about 576 nos. of Millennials and Gen-Z executives of the Company were trained. These initiatives not only sharpen the skills of our workforce but also empower them to address the emerging challenges in the industry.


Harmonious and cordial relations were maintained with the employees. The Employees Union extended full co-operation and actively participated with the management in sorting out employees problems and grievances. There was no man days loss due to industrial relations problem during the year.


The Company engages directly with the local communities in its area of operations and beyond, identi?es their needs and implements projects based on that. The Corporate Social Responsibility Projects of the company are implemented primarily under the key thrust areas like Healthcare, Education, Skill Development, Sustainable Livelihood, Women Empowerment, Swachh Bharat Abhiyan (Drinking Water & Sanitation), Promotion of Rural Sports, Promotion of Art, Culture & Heritage and Environment sustainability, Relief & Rehabilitation among others. The Company also responds to national emergencies, like the COVID-19 pandemic, oods etc by supporting the Governments efforts in responding to such situations. Details of some of the major activities undertaken by the company are given as a part of the Annual Report on CSR activities of the company. The Company also published a Business Responsibility & Sustainability Report available on the Companys website www.oil-india.com. During the year under review, the Company spent 98.21 crore, which is 5.96 % of the average net pro?t of the preceding three years of the company against the requirement of spending at least 2% as per the Section 135 of the Companies Act 2013. Pursuant to Section 135 of the Companies Act 2013, a responsibility statement of the CSR & SD Committee that the implementation & monitoring of the CSR Activities is in compliance with the CSR objectives and policy of the company is attached as a part of the Annual Report on CSR activities.


The activities pertaining to the Environmental Protection and Conservation, Technological Conservation, Renewable Energy Developments and Foreign Exchange Conservation are included in the Annexure to the Directors Report.


A. Domestic

i. Nomination Acreages

At present, the Company has 02 (two) nomination Petroleum Exploration Licenses (PEL) covering an area of 136.8 sq.km and 25 (Twenty-?ve) Petroleum Mining Leases (PML) covering an area of about 4798 sq.km. These nomination blocks are in the states of Assam,

Arunachal Pradesh and Rajasthan. During 2022-23, the Company has acquired 60.36 LKM of 2D and 118.94 sq.km of 3D seismic data and drilled 11 exploratory & 29 development wells in its nomination acreages.

ii. NELP Blocks

The Company currently operates 04 (Four) NELP blocks covering an area of 3909 sq. km in the states of Assam (2), Mizoram (1) and Andhra Pradesh (1). During 2022-23, the Company has completed drilling in well Sadiya-1 in NELP-IX block AA-ONHP-2010/3 (Assam). Pre-drilling activities are going on in NELP-IX Block AA-ONN-2010/2 (Karbi Anglong) in Assam where two wells are planned to be drilled. In the NELP VI block KG-ONN-2004/1 (Andhra Pradesh), the Company has already completed exploration activities as per the MWP and also made three Gas discoveries in the block earlier. However, due to economic unviability of the discoveries, the Company applied for relinquishment of the block. The block validity expired on 16.03.2023. In the NELP VI block MZ-ONN-2004/1 (Mizoram), all committed exploration activities have been completed except drilling of the 5th exploratory well, which will start after the completion of ongoing NH-02 Highway construction project

iii. OALP & DSF Blocks

As on 31.03.2023, the Company has been awarded total of 29 (twenty-nine) blocks under Open Acreage Licensing Policy (OALP) Round covering a total area of 53,859 sq. km. These acreages are in the States of Assam, Arunachal Pradesh, Tripura, Nagaland, Odisha, Rajasthan and offshore areas in Andaman and Kerala-Konkan. The Company has also been awarded 3 (three) blocks, one each in Tripura (47.23 sq. Km) and KG Offshore (93.90 sq. Km) under Discovered Small Field Round-II and Rajasthan (66.67 sq.km) under Discovered Small Field Round-III. During the FY 2022-23, the Company has acquired 1272.96 LKM of 2D and 561.11 sq.km 3D seismic data in OALP blocks. Company has also completed drilling of four (4) nos. of exploratory wells in 3 OALP blocks in Rajasthan namely well Soorasar-1 in RJ-ONHP-2017/9 Block, wells South Baghewala-1 & South Baghewala-2 in RJ-ONHPP-2017/8 Block and well Bikaner-1 in RJ-ONHP-2018/2 Block. The Company has also started exploratory drilling in OALP blocks in Assam and Odisha namely well NRB-1 in AA-ONHP-2017/20 Block and well Puri-1 in MN-ONHP-2018/2 Block respectively

. iv. Blocks under Pre-NELP JVs with OIL as non-Operator

The Company is also a partner in 02 (Two) Pre-NELP JV blocks namely Kharsang PSC & Block AAP-ON-94/1 (Dirok) covering an area of 85.88 sq km in Arunachal Pradesh & Assam as non-operator. During 2022-23,

Companys share of production from these two JVs assets were 20,332 MT of oil and 139.159 MMSCM of gas

. v. Blocks under NELP with OIL as non-Operator

The Company holds 01 (One) NELP VII block viz. WB-ONN-2005/4 covering a total area of 3940 sq. km in the state of West Bengal (Onshore) as non-operator (PI 25%) as on 31.03.2023. In the block, 1 (one) oil/gas discovery (well Ashoknagar-1) has been made during the FY 2018-19 which has been put on production from the FY 2020-21. Further exploration in the block along with activities for appraisal and early development of the discovery is in progress.

The Company also holds 01 (One) NELP-IX block viz., GK-OSN-2010/1 (PI 30%) in Gujarat-Kutch shallow offshore with an area of 1361 sq. km. Two gas discoveries were made in the block. The discoveries were apprised by drilling of two appraisal wells. However, both the wells went dry. The validity of the block expired on 01.08.2021.

B. Overseas

Overseas E & P Blocks with PI / Operatorship by Company

The Companys overseas E&P portfolio as on 31st March, 2023 is spread over 07 countries covering Russia, Venezuela, Mozambique, Nigeria, Bangladesh, Libya and Gabon. The portfolio includes 4 (four) producing assets spread across Russia (3) and Venezuela (1), 2 (two) discovered and development assets in Mozambique and Nigeria and 4 (four) exploratory assets in Libya, Gabon, and Bangladesh (2).

The status of the major developments in the Overseas blocks are as under:

a. Producing Assets Russia: Vankorneft (Vostok Oil LLC, subsidiary of Rosneft: 50.1%, OIL-IOCL-BPRL: 23.9%, OVL: 26%)

The Company along with IOCL and BPRL acquired 23.9% stake in JSC Vankorneft, Russia w.e.f 5th October 2016. The asset is held through a SPV Vankor India Pte. Ltd. (VIPL) incorporated jointly by wholly owned subsidiaries of the Company, IOCL and BPRL in Singapore.

As on 31.03.2023, the 2P reserve position corresponding to Companys Participating Interest in this asset has been estimated at 12.56 MMT of oil and 4.99 MMTOE of natural gas. During 2022-23, Companys share of production in the asset is 1.18 MMTOE. Cumulatively till 31.03.2023, an amount equivalent to USD 423.7 million has been received at VIPL level as dividend corresponding to Companys stake in the project.

Russia: Taas-Yuryakh

(Rosneft: 50.1%, OIL-IOCL-BPRL: 29.9%, BP: 20%)

The Company along with IOCL and BPRL acquired 29.9% stake in LLC Taas-Yuryakh Neftegazodobycha (TYNGD), Russia w.e.f 5th October 2016. The asset is held through a SPV Taas India Pte. Ltd (TIPL), incorporated jointly by wholly owned subsidiaries of the Company, IOCL and BPRL in Singapore.

As on 31.03.2023, the 2P reserve position corresponding to Companys participating interest in this asset has been estimated at 10.34 MMT of oil. During 2022-23, Companys share of production in the asset is 0.91 MMTOE. Cumulatively till 31.03.2023, an amount equivalent to USD 369.6 million has been received at TIPL level as dividend and surplus capital repayment corresponding to Companys stake in the project. The Companys share of investment in the above two projects - Vankorneft and TYNGD is 7625.68 Crore (USD 1033.71 million) till 31st March 2023.

Russia: License 61

[OIL-50% and PetroNeft Resources Limited-50% (Operator)]

The Company holds 50% stake in WorldAce Investment Limited (WIL), through its wholly owned subsidiary Oil India International BV. The remaining 50% of WIL is owned by PetroNeft Resources Plc (PR). WIL has a wholly owned subsidiary named LLC Stimul-T in Russia which holds the license of the block License 61, Russia (Area: 4991 sq km). As on 31.03.2023, Companys share of 2P hydrocarbon reserve position in the asset is 6.18 MMT. During 2022-23, the Companys share of production in the asset was 0.018 MMT. Stimul T, the Russian legal entity which owns the License 61 asset, has ?led for bankruptcy on 10th May, 2023 due to adverse operational and ?nancial circumstances. The Companys share of investment in this project is 700.28 crore (USD 94.96 million) as on 31.03.2023. The carrying value of the investment as on 31st March, 2023 is NIL post impairment provision.

Venezuela: Project Carabobo

[Corporacion Venezolana Del Petroleo (CVP)-71%, INDOIL Netherlands BV 7% (OIL: 3.5%, IOCL:3 .5%), OVL-11%, Repsol - 11%]

The Consortium of Repsol (11%), OVL (11%) and INDOIL (7%) (together termed as Minority Shareholders (MSHs) hold 29% share, and CVP (PdVSAs Subsidiary) hold remaining 71% share, in a Mixed Company called M/s Petrocarabobo SA (PCB). PCB is the operator of project Carabobo. The INDOILs share of 7% comprises of OIL (3.5%) and IOCL (3.5%). OIL and IOCL had formed a 50:50 JV Company at Netherlands named INDOIL Netherlands


V. (INDOIL) to invest in the project. The mixed company contract was signed on 12th May, 2010 for a period of 25 years. As on date, 76 wells have been drilled in the block. The Project owns and operates 30 KBD crude treatment plant. Currently, the project activities are delayed due to economic and political crisis in Venezuela. As on 31.03.2023, the 2P reserve position corresponding to Companys Participating Interest in Project Carabobo has been estimated at 0.19 MMT. During FY 2022-23, Companys share of production in the asset stood at 0.02 MMT. Companys share of investment in this project is 300.55 Crore (USD 59.71 million) as on 31st March, 2023. The carrying value of investment stood at 24.29 Crore as on 31st March, 2023 post impairment.

b. Development Assets Mozambique: Rovuma Area1 TOTAL (Operator - 26.5%), Mitsui - 20%, ENH - 15% (Carried), BPRL - 10%, BREML - 10%, OVL - 10%, PTTEP - 8.5%

The Company along with OVL acquired 10% participating interest in Area 1 Mozambique on 7th January, 2014, through acquisition of 100% shares in Videocon Mozambique Rovuma 1 Limited [since renamed as Beas Rovuma Energy Mozambique Limited (BREML) - OVL 60%, OIL- 40%]. The onshore LNG development will initially be consisting of two

(2) LNG trains with total nameplate capacity of 13.12 million tonnes per annum (MMTPA). The Joint venture partners of Area 1 Mozambique Project had announced Final Investment Decision (FID) for the two train Gol?nho-Atum Mozambique LNG Project on 18th June, 2019. The Joint venture has successfully secured 11.13 MMTPA of long-term LNG sales with key LNG buyers in Asia and Europe including India. The project is being developed through limited recourse project ?nancing which has achieved ?nancial closure on 24th March, 2021. The onshore and offshore construction contracts were awarded and construction works at site was started. Due to deterioration of the security situation in Cabo Delgado province of Mozambique, the Operator declared Force Majeure on 22nd April, 2021. The project is currently under Force Majeure and discussions are continuing with the Government of Mozambique for restoration of security in the region and early resumption of the project activities. As on 31.03.2023, the 2P reserve position corresponding to Companys Participating Interest in Rovuma, Area1 has been estimated at 16.21 MMTOE of Natural Gas and 0.46 MMT of condensate. The Companys share of investment in this project stood at 9575.83 crore (USD 1453.68 million) as on 31st March, 2023. The carrying value of investment stood at 9401.83 Crore as on 31st March, 2023 post impairment.

Nigeria: Block OML 142

[OIL-25%, IOCL-25% and Suntera Resources Ltd.-50% in Suntera Nigeria 205 Ltd. (70% working interest in block), Summit Oil International Limited - 30% (Operator)]

The project is in the northernmost part of the Niger delta onshore. Hydrocarbon discovery (gas and condensate) in the block dates back to 1991-92 (Otien #1 well). Suntera Nigeria 205 Ltd. (SN-205), a Company incorporated in Nigeria, acquired 40% Participating Interest (PI) and 30% Economic Interest (EI) from Summit Oil International in May 2006. Subsequently, OIL, together with IOCL, acquired 25% (each) shareholding of SN-205 Ltd., in which Suntera Resources Ltd. holds the remaining 50%. Summit Oil is the operator of the block with 30% working interest, the remaining 70% being held by SN-205. The Companys share of investment in this project is 174.73 crore (USD 21.12 million) as of 31st March, 2023. Impairment provision has been taken against the entire investment in the books of the Company as on 31st March, 2023.

C. Exploratory Assets

Bangladesh: Blocks SS-04 and SS-09 [OIL-45%, OVL-45%, Bapex, 10%(Carried)]

The Consortium was awarded the shallow offshore Blocks SS-04 and SS-09 in Bangladesh Bid Round-2012. The total area of the two blocks is 14,295 sq. km with Block SS- 04 spreading over 7,269 sq. km and Block SS-09 spread over 7,026 sq. km. The Production Sharing Contracts for both blocks were signed on 17th February, 2014 in Dhaka, Bangladesh for an initial exploration period of ?ve (05) years. Both the blocks are valid till 16.02.2025. The mandatory seismic studies have been completed in the blocks. Drilling of 1 (One) onshore well Kanchan-1X in block SS-04 is completed. Finalisation of Contracting Strategy for drilling of two offshore wells (one each in block SS-04 & SS-09) is under progress. The Companys share of investment in both the Blocks is

224.20 crore (USD 31.20 million) as on 31st March, 2023.

Libya: Area 95/96 ~4 Blocks

[SIPEX (Operator) - 50%, IOCL-25%, OIL-25%]

The consortium had completed drilling of ?ve wells against MWP commitment of drilling 08 (Eight) wells. All the ?ve drilled wells struck hydrocarbons. The consortium needs to complete 1 (one) incomplete well and drill two exploratory wells to complete the MWP. However, due to civil unrest in Libya all operations in Area-95/96 are suspended since May, 2014. The consortium signed an Interim Arrangement Agreement to continue the block till May 2018. The duration of Exploration &

Production Sharing Agreement (EPSA) has further been extended following the continuation of Force Majeure condition through the execution of an Amendment to Interim Arrangement Agreement for extension of Force Majeure period between the parties concerned, i.e., NOC, Libya, SIPEX (Operator) and OIL-IOCL consortium. The EPSA will remain valid for the entire period of Force majeure.

Gabon: Block Shakthi-II

[OIL (Operator)-50%, IOCL- 50%)]

An oil discovery was made in well Lassa-1 in the Old PSC (G4-220). Two appraisal wells (Lassa-2 & 3) were drilled as per the MWP of Phase-1 of New PSC (G4- 245). The consortium carried out 1213.04 LKM of new 2D seismic API to assess the prospectivity in the remaining part of the Block. Based on the integrated interpretation and prospect evaluations, the Consortium has entered into Phase-II exploration period in the block which was extended upto 15.04.2024 due to statutory delays and Covid-19 pandemic.


Your Company has made 1 (one) discovery during the year in its nominated acreage in Assam, the details are as follows:


During FY 2022-23, the Company has made one oil discovery in well Sesabil-1 under HugrXan PML in Assam. Six number of prospective zones have been in the well. 1 (One) prospective zone has been tested which produced crude oil @ 75 klpd. The discovery has opened up more area for further development of Eocene Plays in future.


The Hydrocarbon In-Place and Reserves position of the Company in its domestic assets including JVs (as per Companys PI) as on 31.03.2023 are as follows:


Low Best High


Estimate Estimate Estimate
STOIIP (MMT) 769.7815 805.6660 835.3610
GIIP (BCM) 390.5848 412.0706 428.6165
O+OEG (MMTOE) 1110.3865 1164.5551 1208.5171



1P 2P 3P

Oil + Condensate Reserves (MMT)

30.2119 70.5614 93.2194

Balance Recoverable Gas (BCM) *

89.6682 138.5074 176.6278
O+OEG (MMTOE) 108.4601 191.0895 247.1200

*Based on projected volume of gas under various sales contracts, 1P, 2P and 3P Gas Reserves are 27.7930, 56.3240 and 66.8030 BCM respectively.

Accretion: The accretion to oil and gas volume during 2022-23 in Companys domestic sector including JVs (as per Companys PI) is given below:


Low Best High


Estimate Estimate Estimate
STOIIP (MMT) -0.6238 0.1682 4.2046
GIIP (BCM) 4.8741 4.8145 5.5825
O+OEG (MMTOE) 3.6900 4.4293 9.1453



1P 2P 3P
Oil + Condensate 3.1953 2.9605 4.4269
Reserves (MMT)
Balance Recoverable 1.5194 3.3748 4.4532
Gas (BCM) *
O+OEG (MMTOE) 4.8176 5.9474 8.3682


As on 31.03.2023, oil & gas reserves position of 05 (?ve) overseas assets (Companys Proportionate Share) namely License-61 (Russia), Vankorneft (Russia), Taas Yuryakh (Russia), Petro Carabobo (Venezuela) & Gol?nho-Atum (Mozambique) is as furnished below:


1P 2P 3P
Oil+ Cond., MMT 11.5309 29.7247 49.8326
Gas, BCM 12.6122 21.2093 25.2756
O+OEG (MMTOE) 24.1431 50.9339 75.1082


Green Hydrogen Pilot Plant:

The Company commissioned the ?rst pilot plant of the country of capacity 10 Kg per shift of 8 hours for Green Hydrogen Production, which can be scaled up to 30 Kg per day, at Jorhat, Assam. On 31.03.2023, PNGRB accorded permission for hydrogen blending with natural gas up to 2% vol Hydrogen in MDPE network at domestic households located within the premise of PS#3, Jorhat, Assam. The Company is now in the process of starting the blending initiatives soon.

Hydrogen Fuel Cell e-bus:

The Company completed the beta-phase demonstration of a Hydrogen Fuel Cell e-bus developed through its start-up program SNEH. Prime Minister Shri Narendra Modi agged off the hydrogen fuel cell e-bus at the India Energy Week (IEW) in Bengaluru on 6th February, 2023. It was a proud moment for the Company. Further, Ministry of Road Transport and Highways (MoRTH) has given permission to undertake road trials of the hydrogen fuel cell e-bus in the state of Assam. After successful completion of the trial run, Automotive Research Association of India (ARAI) will provide the road worthiness certi?cates.

City Gas Distribution (CGD):

Consortium of OIL (49%) and AGCL (51%) has successfully bid and obtained 3 New Geographical Areas (GAs) for City Gas Distribution - one GA in Assam and two GAs in Tripura. Letter of authorization of the GAs received during March, 2022. Joint Venture Agreement (JVA) signed between OIL and AGCL on 29.04.2023. Creation of a Joint Venture Company (JVC) to look after these GAs is in progress.

Memorandum of Understanding (MoU):

The Company signed various MoU documents with different organization to work in collaboration. To work together in Green Hydrogen domain, The Company signed MoU with M/s homiHydrogen Private Limited on 16.06.2022. To carryout Solar / Green Energy Projects in Assam, the Company signed MoU with APGCL on 14.11.2022. The Company also signed MoU with PLL on 25.01.2023 to explore potential business collaboration in CBG, Stranded Gas monetization etc. Further, on 26.04.2023, Company signed MoU with Govt. of Himachal Pradesh to partner in setting up projects in alternative energy domain in Himachal Pradesh.


a. Your Company is a leading E&P Operator in the Northeast. Assam Shelf is a proli?c onshore basin with a considerable Yet-To-Find (YTF) potential. The strategy of the Company has been to maintain its position as the leading Operator in northeast. Towards this endeavour, the Company has been consolidating its acreage position through OALP regime and the exploration activities would be intensi?ed both in Mining Lease areas and Exploration License areas.

b. The Company has also identi?ed a few key areas for fast-track development in Assam and Rajasthan and plans are already in hand to enhance level of production in near future. During the year, the Company has drilled 15 (Fifteen) wells in these thrust areas and also generated 68 nos. of new locations for drilling in the coming years. Besides, the Company has also undertaken a renewed exploration campaign in North bank of river Brahmaputra and Fold Belt areas of Northeast India.

c. The Company has undertaken measures for engagement of Production Enhancement Contracts, adaptation of new technologies, maximizing recovery from existing ?elds, expedite development plans, monetization of Non-Producing PMLs and un-monetized discoveries etc. for enhancing oil and gas production.

d. To enhance recovery from its mature ?elds of Upper Assam Basin, water injection and other IOR/ EOR technologies are being continuously adopted.

e. Apart from northeast and Rajasthan, where the Company has a major presence, the Company is carrying out detailed exploration programmes in Mahanadi Onland and will start shortly exploration campaigns in Andaman Offshore and Kerala-Konkan Offshore in quest of establishing hydrocarbon reserves.

f. In addition to acquisition of conventional assets, the Company would also look towards acquisition of non-conventional assets, such as oil sands, shale gas, shale oil, gas hydrate etc.