Oil India Ltd Management Discussions

1. ECONOMIC SCENARIO & INDUSTRY ANALYSIS

Global Economic Scenario

The global economy in 2024 demonstrated resilience amid uncertainty, with World GDP growth at 3.3%. Inflation continued to ease across most regions, supported by tighter monetary policy and unwinding supply-side pressures. While advanced economies saw subdued growth due to high interest rates and fiscal consolidation, emerging in Asia and more so in India, benefitted from strong domestic demand and fiscal support. Despite falling the outlook was clouded by geopolitical uncertainties, trade disruptions and high debt levels. Overall, the year marked a cautious recovery, with economies focusing on balancing growth, inflation control and long-term fiscal sustainability.

According to the July 2025 update of World Economic Outlook published by International Monetary Fund (IMF), the global economy is projected to grow by 3.0% in 2025 and 3.1% in 2026, factoring in sustained financial conditions and fiscal expansion in key economies However, the outlook remains clouded by persistent uncertainty with risks tilted to the downside due to potential trade disruptions, geopolitical tensions, and fiscal vulnerabilities.

Indian Economic Scenario

Indias economy grew by an estimated 6.4% in FY 2024 25, maintaining its position as one of the fastest-growing major economies despite global uncertainties. Growth was driven by robust private consumption, strong services sector expansion and steady agricultural output supported by favorable monsoons. Industrial growth was moderate at 6.2%, with infrastructure and utilities offsetting manufacturing slowdowns. Inflation softened to 4.9%, aligning with RBIs target range, while gross FDI inflows rose 17.9%,reflectinginvestor confidence. However, external risks including rising tariffs on Indian exports and a widening trade deficit pose challenges. The Governments continued focus on infrastructure investment, digital transformation and deregulation is expected to sustain momentum and support long-term particularly growth.

The outlook of Indian economy remains positive as India continues to remain the worlds fastest-growing major economy, with the IMF projecting a GDP growth rate of 6.4% for 2025. The UNs World Economic Situation and Prospects (WESP) mid-year report 2025 update also ranks India as the top performer among large economies projecting Indias growth at 6.3% for the current fiscal year and 6.4% for 2026, even amidst a challenging global economic environment. Key growth drivers include a thriving services sector, expanding manufacturing under the “Make in India” initiative, and rising investor confidence, as evidenced by record IPO activity and stock market gains. Despite global headwinds like trade tensions and geopolitical uncertainty, Indias economic trajectory remains strong, supported by structural reforms and digital transformation.

Oil & Gas Sector: Global Scenario

For the oil and gas sector, the year 2024 was marked by steady performance, with oil prices remaining relatively high and stable due to OPEC+ production curtailments, geopolitical tensions and slowing U.S. crude output. Global oil demand grew by 2.2 million barrels per day, led by emerging Asian economies, while supply rose modestly, supported by increased output from the U.S., Brazil and Canada. Despite decline in cash from operations and reduced investment activity, upstream companies maintained production levels, with petroleum liquids output increasing by 2% year-over-year. Companies across the energy value chain responded with capital discipline, increased shareholder returns and a pivot toward low carbon assets, positioning themselves for long-term resilience in a transitioning global economy. The steep drop in oil prices during the first half of 2025 and growing investment uncertainty have compelled oil companies worldwide to re-assess their upstream strategies. Global upstream investment is projected to decline with the most pronounced cuts seen in U.S. light tight oil. In contrast, spending on conventional projects both existing and new is expected to remain comparatively stable. Still, ongoing price volatility and rising costs, driven by tariffs and inflated material prices, could trigger further reductions in investment.

Global oil demand is projected to grow by 2.5 million barrels per day (mb/d) between 2024 and 2030, peaking at about 105.5 mb/d by the end of the decade. Emerging and developing economies will continue to drive demand, contributing 4.2 mb/d in growth over the period, in stark contrast to a 1.7 mb/d decline in OECD countries. Asia will lead this expansion, with India alone accounting for a 1 mb/d increase, by far the largest of any single nation. On the supply side, global oil production capacity is expected to grow by 5.1 mb/d to reach 114.7 mb/d by 2030, led by increases in Saudi Arabia and the United States. This expansion far exceeds the forecasted rise in demand. Natural Gas Liquids (NGLs) are poised to account for nearly half of the total capacity increase by 2030. A strategic pivot toward natural gas by Middle Eastern producers is expected to drive a 1.4 mb/d increase in regional NGL output.

As transportation and electricity generation increasingly pivot to alternative energy sources, the petrochemical sector is projected to emerge as the primary driver of oil demand growth from 2026 onwards. Rising petrochemical demand will be closely linked to the expanding availability of NGLs.

Oil & Gas Sector: Indian Scenario

The oil and gas sector played a pivotal role in supporting industrial growth and infrastructure development leading to an overall GDP growth of 6.4% in the FY 2024 25. The oil and gas sector remained a cornerstone, with consumption touching 240 MMT while domestic crude production stagnated at ~29 MMT, reinforcing Indias 88% import dependency. Natural gas production rose to 36.6 BCM, driven by deepwater projects and city gas distribution expansion and is expected to increase steadily to 57.4 BCM in FY30. Despite growth, India still imports ~55% of its natural gas, mainly as LNG from countries like Qatar, the United States, the United Arab Emirates, Oman, Nigeria, Australia etc. The Government aims to raise the share of natural gas in the energy mix from 6.7% to 15% by 2030, supported by infrastructure growth in LNG terminals, pipelines and refineries. Various Public Sector Undertakings launched dedicated green energy arms, accelerating investments in green hydrogen, CBG and renewables. India made significant progress toward its 500 GW non-fossil fuel target, with solar and hybrid systems stabilizing grid performance. Policy reforms such as HELP, OALP and the Discovered Small Fields (DSF) initiative unlocked new exploration blocks, while refining capacity exceeded 250 positioning India as a regional energy hub. The sectors integrated approach, balancing fossil fuel reliability with clean energy innovation positions India as a dynamic and forward-looking energy market.

Recently, Government of India has enacted a new law ‘The "Oilfields (Regulation and 2025", aimed at modernizing the regulatory framework for oil & gas exploration and production. Key proposed changes include introducing a single petroleum lease, facilitating infrastructure sharing, promoting environmental protection and strengthening dispute resolution mechanisms. This aims to attract investment, promote standards.

Further, the Draft Petroleum and Natural Gas Rules, 2025 is under circulation for stakeholders views aiming to rationalize and for ease of doing business in Petroleum sector.

The high dependency on crude imports leaves the Indian economy vulnerable to disruptions in key maritime routes such as the Strait of Hormuz and the Suez Canal. To mitigate risks, India is expanding its strategic petroleum reserve capacity. The current reserve stands at 5.33 MMT across Visakhapatnam (1.33 MMT), Mangaluru (1.5 MMT) and Padur (2.5 MMT). An additional 6.5 MMT is being developed at Chandikhol and Padur under a public-private partnership model.

OILs Strategic approach for challenging future:

Your Company has been an positioning integral part of Indias journey and aspirations towards energy self-reliance. Over the past decades, OIL has developed strong mature asset ownership and established an enviable reputation for good technical stewardship of its resources. It has also built a strong financial position and used this to establish international presence in key hydrocarbon prolific areas as well as presence across the hydrocarbon value chain.

Your Company is strategically carving out the pathways for marching ahead in the ever-increasing challenging future of oil & gas business. The Company is currently operating 34 Nos of exploration Blocks, including 32 OALP Blocks (6 Blocks recently acquired under OALP IX Bid Round), 1 Nomination PEL and 1 NELP Block. The Company is intensifying E&P activities in the producing fields with increased drilling & workover activities, inclusion of various EOR techniques and new technology inductions such as hydrofracking, radial drilling & fishbone technology for augmenting production from the declining . The Company is expediting the fields activities for offshore exploration in Andaman as well as Kerala Konkan basin for reserve accretion and growth. The Company has taken up several studies to identify oil & gas reserves in Assam Arakan Basin, Mahanadi Basin, Rajasthan, Andaman areas etc.

Your Companys R&D centers at Duliajan and CoEES Guwahati, are contributing immensely for various innovations for exploration and production activities. Also, the Company is collaborating with leading educational & research institutes in various research and development activities. Companys material subsidiary, Numaligarh Refinery Limited (NRL) is setting up of a 360 KTPA Poly Propylene Unit (PPU) and its associated facilities at Numaligarh, Assam. Post implementation of the project, Petrochemical Intensity Index (PII) of NRL will be 3.88%. Environment Clearance of the project has been obtained and EIL is onboarded as EPCM for the project.

For a sustainable future, your Company is working not only towards minimization of carbon footprints but also to capitalize on alternative business opportunities in the evolving energy sector. Investment in Solar energy, Wind energy, Compressed Bio Gas (CBG), Green Hydrogen, Carbon Capture and Utilisation, Geothermal energy, Critical Mineral etc are on the agenda. The Companys green energy roadmap is rooted in innovation, partnerships and aligned policy action. By leveraging its core strengths and building collaborative ecosystems, theCompanyisfirmly as a front-runner in Indias clean energy transformation. The progressing are set to play a critical role initiatives in RE, CBG and GH2 in fulfilling the companys Net Zero by 2040 vision while enhancing long-term national energy resilience.

FY 2024-25 is one of the most successful years for your Company with highest ever production of hydrocarbon 6.71 MMToE of oil and gas combined. Under the DSF regime, the Company has completed drilling of three (03) development wells viz. Bagitibba-4, Bagitibba-5 and Bagitibba-6 in RJ/ONDSF/Bakhritibba/2021 DSF Block and all these wells produced gas during testing. During FY 2024 25, the Company made two (02) oil discoveries in wells Mechaki-6 and Mechaki-7 within the Mechaki PML. The Company also established the presence of hydrocarbon in well Kobochapori-1 in the OALP-I Block AA-ONHP-2017/10 in Assam. These discoveries are expected to enhance oil and gas production with further appraisal and development activities.

2. OPPORTUNITIES, THREATS, RISKS AND CONCERNS

Opportunities:

The Company is set to capitalize on several opportunities within the shifting energy landscape both in India and internationally. With the Government of India prioritizing increased domestic hydrocarbon production and reduced import dependence, significant policy measures are being implemented to boost exploration and production (E&P) activities. Notably, the government aims to expand the area under exploration from the current levels to 1 million Sq. KM by 2030. Additionally, 99% reduction in No-Go zones in offshore regions will open vast new areas for exploration.

In alignment with these national objectives, the Company is actively working to expand its E&P footprint. As part of this strategy, the Company has made significant gains in the recently concluded Open Acreage Licensing Policy Round IX, bidding round. The Company secured six blocks as the sole operator, covering a total area of 40,590 sq. km. These include two ultra-deepwater blocks each in the Mahanadi and Krishna-Godavari (KG) basins, along with one onshore block each in Gujarat and Meghalaya. Additionally, the Company has been awarded three more blocks in joint partnership with ONGC, covering an area of 10,965 sq. km. These blocks will significantly strengthen the Companys portfolio and position it for enhanced exploration activities in both offshore and onshore basins.

Recent reforms in the contractual framework and incentive structure are designed to enhance ease of doing business and attract new investments. The Companys strategy to form partnerships with international & national oil companies and technology providers will enhance its exploration efforts in OALP and DSF blocks.

With India targeting to increase the share of natural gas in its energy mix to 15% by 2030, the Company has the opportunity to deepen its presence in gas exploration and monetization. Expansion of pipelines and City Gas Distribution (CGD) networks under government support offers immediate avenues for gas marketing and supply linkages specially in the North-Eastern states by connecting the producing gas fields in upper Assam to the National Gas Grid.

As part of its diversification strategy and commitment towards sustainable energy, your Company has become the first oil and gas PSU to foray into critical mineral exploration. The Company has adopted a targeted and methodical approach, focusing on key minerals including graphite, lithium, Rare Earth Elements (REE), potash, nickel, copper, phosphorite, cobalt and vanadium. The Company has the opportunity to leverage decades of experience in oil and gas exploration equips it with valuable geoscientific, drilling and project execution capabilities.

By combining its core competencies in exploration, government support and national & international collaboration, the Company can emerge as a leading player in securing the critical mineral resources that will power Indias green future.

Threats, Risks and Concerns:

1. Energy Transition Pressure & Innovation Lag: The global shift towards renewable energy is pressuring fossil fuel companies to reduce carbon footprints. Greener policies could decrease the demand for oil and gas, risk of stranded assets as oil demand peaks or plateaus in the coming decades. Therefore, continuous investment in R&D is crucial.

2. Market Price Volatility: Global oil prices are volatile due to OPEC decisions and market speculation, impacting revenue.

3. Environmental Regulations: Increasing environmental concerns are leading to stricter carbon emission regulations. Compliance may raise operational costs and require investments in cleaner technologies, with non-compliance risking penalties and reputational damage.

4. Technological Disruption & Obsolescence: Advancements in electric vehicles and renewable energy storage are disrupting the oil and gas sector, reducing demand. The Company must invest in innovative technologies and diversify its energy portfolio to stay competitive. Company may face difficulty in maintaining profitability. Legacy infrastructure and outdated practices in upstream operations pose risks. Suboptimal use of digital technologies (AI/ML, remote monitoring, data analytics), lower efficiency and higher operating costs compared technologically advanced peers.

5. Geopolitical Instability & Economic Sanctions: Conflictsin oil-rich regions pose risks to oil supply stability and pricing. Trade wars, sanctions and disputes can disrupt supply chains, affecting operations and profitability. Sanctions by global powers can restrict market access and technologies, affecting operations. Navigating geopolitical landscapes carefully is essential.

6. Cybersecurity Threats: Digitalization raises the risk of cyberattacks, which can disrupt operations and compromise data. Advanced cybersecurity measures are necessary to protect assets and ensure continuity.

7. Human Capital Challenges: Attracting and retaining skilled talent is a challenging task. Investing in workforce development, competitive benefits and a positive work environment is of utmost importance in this regard.

8. High Capital Expenditures: Exploration and production require substantial capital, with long durations before returns, financial whereas market uncertainties could affect project funding availability. Further, exposure to exchange rate fluctuations write-offs from unsuccessful exploration or overseas ventures are also other aspects of concern.

9. Natural Disasters and Climate Change: Natural disasters can disrupt operations, damage infrastructure and causefinancial losses. Climate tions change necessitates investment in resilient infrastructure and disaster recovery plans.

10. Public Perception and Social License to Operate: Public perception due to environmental concerns impacts the industry. Social License to Operate requires community engagement, sustainable practices and social responsibility as a corporate citizen.

11. Legal and Compliance Risks: Compliance with transitioning internationalbusiness models and domesticwhile laws is essential to avoid legal penalties and operational disruptions. 12. Health, Safety and Environmental (HSE) Risks: The industry is risky with potential for accidents and environmental incidents. Robust HSE practices are critical to protect employees and communities. 13. Depleting Reserves: Discovering new reserves to replace depleting ones is challenging. Investment in exploration and enhanced recovery techniques is essential.

14. Operational and Security Challenges in the North East: A significant portion of the Companys production base lies in socio-politically sensitive regions. The risks include difficultterrain, weather conditions, infrastructure bottlenecks and delays in land acquisition, Right of Use (ROU) permissions, mobilization & project execution etc.

Strategic Responses to Mitigate Risks:

To navigate the complex risk landscape, the Company has adopted a proactive, multi-pronged mitigation strategy focused on operational efficiency, strategic Company has invested in renewable energy sources like solar, wind and biofuels to reduce dependence on fossil fuels. Improving environmental practices through carbon capture and storage technologies and boosting energy efficiency is the key.

The Company has adopted a phased & partnership-based approach in CBG, green hydrogen and renewables to avoid overexposure. Joint ventures with experienced players can reduce capital risk in foreign acquisitions & potential while enabling knowledge transfer. Overseas investments limited to geopolitically stable regions with legal safeguards. Embracing new technologies and focusing on R&D can enhance operational efficiency and uncover new energy solutions. Strengthening financial resilience by managing economic strategies like currency risk hedging and revenue diversification is crucial.

It is also important to enhance geo-political risk assessment and develop contingency plans to mitigate risk. Investing in robust cybersecurity measures will protect against potential threats and ensure data integrity. Reskilling the workforce in digital technologies, renewables and data science will ensure preparedness for the energy transition.

Adoption of AI, automation and advanced analytics can drive productivity and competitiveness. Optimizing capital expenditures with stringent project management practices ensures projects are completed cost-effectively and on time. Building resilient supply chains will help mitigate disruptions and ensure business continuity. Continuous innovation and operational efficiency improvements are necessary to stay competitive.

Developing climate resilience strategies, including infrastructure reinforcement and disaster recovery plans, is critical. Proactive engagement with regulatory authorities, environmental agencies, and local communities can fast-track approvals and reducecompliancedelays.Strengthening under Production Enhancement ESG frameworks, enhancing climate disclosures and adopting sustainability targets will improve investor confidence and social license to operate. Continuous investment in R&D keeps the company at the forefront of technological advancements in renewable energy.

Navigating geopolitical landscapes with diplomacy and stakeholder management is essential. Regularly updating health, safety and environmental (HSE) protocols minimizes risks and ensures compliance with international standards. Allocating resources to exploration and enhanced recovery techniques is vital for sustaining and grow

3. SEGMENT-WISE / PRODUCT WISE PERFORMANCE

i. Crude Oil

During the FY 2024-25, crude oil production was 3.458 MMT as against the production of 3.359 MMT in the previous year, which is 2.95% growth. The crude oil sale was 3.346 MMT as compared to 3.288 MMT during the previous year. Your Company was able to increase its production by arresting decline from old fields IOR/EOR techniques, monetization & quick development of new discoveries, production optimization, induction of new technology, recovery from missed opportunities, infill drilling, monetization of sick wells, Cyclic Steam Stimulation (in Rajasthan) and upgradation of surface facilities & infrastructure.

Despite the fact that there is 2.95 % increase in crude oil production, revenue from crude oil has decreased marginally due to decrease in crude oil price in the FY 2024-25. The price realization in respect of crude oil was USD 78.09/bbl in the FY 2024-25 as against USD 83.03/bbl in the previous year, registering decrease of USD 4.94/bbl. Your Company has 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 fields and accelerated drilling campaign that includes drilling in complex geological formation in deeper horizon.

The Company is also taking up resource build-up exercise viz. increase Workover rig resource, replacement of existing Drilling rigs with VFD Technology, increasing the artificial development projects are also under implementation in its operational areas.

New and fit for purpose technology implementation was given utmost importance for enhancement of operational efficiencies & production As a part of Companys effort for enhancement of production from its nominated fields, the given two of its fields Contract (PEC) and plans to tender few more in the coming years. Increase in crude production is also planned by implementing state of art technologies like Electrical Submersible Pump (ESP), Plunger Lift, Hydro fracturing, Downhole Chemical Injection Mandrel, Single String Multi-zone Completion, Gravel Pack jobs, Radial Drilling, Extended Reach Drilling, Chemical water Shutoff, Propellent Stimulation, Acidization, Comingled Production, Fishbone Technology, Electric Downhole heating etc.

Your Company has taken steps for Quick monetization of sick wells through technology support. The Company will review the entire main producing area (MPA) in the Northeast for thorough re-assessment of its current potential through a regional scale contiguous 3D seismic data merging. 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 will provide 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 by use of

b. Carbonated Water Injection

c. Capturing, liquefaction, storage, transportation and pumping of CO2 The Company has initiated a feasibility study for sequestration of the captured in saline aquifers in the deserts of Rajasthan. CO2

d. Rajasthan Field: -

Cyclic Steam Stimulation: Your Company continues to implement Cyclic Steam Stimulation (CSS) jobs in the Baghewala field of the Bikaner-Nagaur Basin, targeting highly viscous heavy oil in Jodhpur Sandstone. Till date the Company has executed 38 CSS cycles in Baghewala, including 10 nos. during FY 2024-25. These 10 cycles contributed to 51,347 BBL (7,674 MT) out of the total 2,19,381 BBL (32,786 MT) of crude oil produced in Rajasthan Field, accounting for 23.4% of annual production. A 39.5% increase in output was recorded from wells where CSS was applied.

Electric Downhole Heating with Heat Tracing Cable in Baghewala Field: faces production TheBaghewala field challenges in non-thermal wells due to high-viscosity heavy oil with high asphaltene content. To address this, a Russian technology “Electric Downhole Heating with heat tracing cable” was implemented in two wells in Baghewala field in the month of July-August 2024. This technology uniformly heats the tubing and reduces oil viscosity, enabling uninterrupted production operation. This has improved operational efficiency and production throughput.

Gas Sweetening Unit and Carbon Capture and Storage:

The Company plans to set up a Gas Sweetening Unit (GSU) at the Dandewala Gas Processing Complex (DND-GPC) as part of its Carbon Capture and Storage from natural (CCS) initiative. This facility will strip CO2 gas stream for permanent storage in saline aquifers, supporting OILs Net-Zero target by 2040 and Indias 2070 climate goals.

A feasibility study completed for Transportation and Storage in Saline Aquifers/ CO2 Reservoirs of Jaisalmer Sub-Basin, Rajasthan, suitable identified the Bagitibba field storage. OIL currently produces ~0.8 MMSCMD for CO2 (approx.) of natural gas. Gas from Dandewala and Bagitibba fields is currently processed at DND-GPC with processing capacity of 1.0 MMSCMD, which shall be augmented to 1.5 MMSCMD. This pilot project is the first-of-its-kind in India to validate CCS technologies in Indian geological conditions. Process has been initiated for hiring of Service Providers for CCS Project and setting up GSU facility of capacity 0.5 MMSCMD.

ii. Natural Gas

During the FY 2024-25, natural gas production was 3252 MMSCM, which was highest ever achieved since inception. The natural gas production during the previous year was 3182 MMSCM. The Sale of natural gas during FY 2024-25 was 2668 MMSCM as compared to 2521 MMSCM during the previous year. The average natural gas price realization was USD 6.50 / MMBTU in the FY 2024-25 which was same as in the previous year. Further, the total oil & gas production during FY 2024-25 is 6.710 MMTOE O+OEG (oil & oil gas equivalent), which is also the highest ever O+OEG production since inception. Your Company is committed to enhance its gas production in coming years and is aligned with the Nations commitment to increase the share of Natural Gas in the energy basket from current level of 6% to 15% by 2030. Considering the Companys commitment for gas supply to its existing as well as new customers after connectivity to the National Grid, action plans have been initiated for progressively building up gas potential in Assam & AP region. Your Company has taken several steps for monetization of stranded gas from remote unconnected production areas and thereby reducing gas flare. During the FY 2024-25, the Company has completed mechanical completion of Kumchai Kusijan Pipeline which will help in in Arunachal Pradesh and reduce flare in that region. In pursuance of the above goal, following infrastructural projects, including drilling of Non-associated Gas (NAG) wells, work-over, building of pipeline infrastructure etc. are underway. These projects are expected to give substantial gain in natural gas production potential of the Company upon completion:

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

b) Gas Gathering Station at Baghjan

(c) Revamping of old installations

(d) Group Gathering Station at Lakwagaon 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 MMSCMD, although the current gas potential is about 1.0 MMSCMD. The Company is in the process of upgrading its facilities for supply of stranded gas to new customers and work is also in progress for enhancing the capacity of the existing plant. The Bakhritibba contract area having area of 66.67 Sq.Km was awarded under DSF round III to the Company as Operator with Participating Interest of 100% in September 2022. Revenue Sharing Contract (RSC) was signed on 09.09.2022. PML was granted on 16.06.2023 for 20 years up to 15.06.2043. The Company has successfully completed the RSCs work program within the timeline of the “Development period” i.e. 15.06.2026 in Bakhritibba DSF-III contract area (RJ/ONDSF/BAKHRITIBBA/2021). Under the Bid Work Program (BWP), three (03) wells namely BGT-004, BGT-005 and BGT-006 have been completed, tested and are ready for commercial production and ready for monetization.

iii. Liquefied Petroleum Gas (LPG)

During the FY 2024-25, the availability of the LPG Recovery Plant was 99.89% and the plant efficiency in terms of butane recovery was 98.62% compared to the design figure of 98%. The plant processed an average of 1.83 MMSCMD (66.18 MMSCFD) gas with an average butane of 1.01% (v/v) in the feed gas in FY 2024-25. The LPG Recovery Plant was in operation for 337 days and 30,525 metric tons of LPG was produced during the year. Along with LPG, 20,375 metric tons of Condensate was also recovered as by-product which was added to the crude oil production of the Company. LPG Filling Plant was in operation for 275 days. Revenue earned by selling LPG during FY 2024 25 was 178.34 crore. As part of a concerted strategy, your Company has closed down bottling operations of the LPG filling w.e.f. 01.04.2024 and now the entire quantity of LPG produced is getting dispensed in bulk tankers to IOCL. Net realization of Condensate was 30.45 crore in the FY 2024 25 as against 34.13 crore in the previous year.

iv. Pipeline Operations

During FY 2024-25, the crude oil pipeline of the Company transported 7.145 MMT of crude oil as against 6.712 MMT during the previous year, which is also the highest ever transportation. The Digboi-Naharkatia-Bongaigaon sector transported 3.306 MMT of crude oil for the Company and 1.024 MMT of crude oil for ONGC. The Barauni-Bongaigaon sector transported 2.789 MMT of imported crude oil for Bongaigaon Refinery. The Company delivered highest ever 2.789 MMT of Imported crude to Bongaigaon refinery during FY 2024-25. The Company also transported 1.574 MMT of petroleum products through Numaligarh-Siliguri Product Pipeline with pipeline utilization of 91.46%.

The total revenue earned from transportation business was 572.23 crore (excluding 9.28 crore earned from telecom business) in the FY 2024-25 against 533.66 crore (excluding 11.82 crore earned from telecom business) in the previous year. The Company owns and operates 1,157 km long fully automated crude oil trunk pipeline between Naharkatia Barauni. Along with other additional network, the Company operates total network of 1,243 km of crude oil pipeline. 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 oilfields at Numaligarh, Guwahati and Bongaigaon. The second segment of 600 km between Bongaigaon and Barauni has been re-engineered to enable oil flow 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 Refinery.

The Company also operates a 654 km long pipeline for evacuation of finished products from Numaligarh Refinery to Siliguri Terminal in West Bengal. 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 state of the art system to bring plant The facility for reverse pumping of imported crude oil augmented up to Guwahati Refinery.

In order to achieve the objective of continued safe and reliable operation and enhancing life of the trunk pipeline, Pipeline Rehabilitation Phase-I Project was undertaken for Coating refurbishment of 575 KM 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 etc.

Following the successful completion of Phase I of Pipeline Rehabilitation Project, Phase II of this project targeting the rehabilitation of balance 700 km (Approx) of trunk pipelines has been initiated in December 2024. Further, your Company has undertaken the NSPL Capacity Augmentation Project to increase the existing throughput of Numaligarh- Siliguri Product Pipeline (NSPL) from 1.72 MMTPA to 5.5 MMTPA, which is required to evacuate additional petroleum products following the expansion of NRLs refinery capacity from 3 MMTPA to 9 MMTPA, with the project nearing completion. Moreover, the Company has undertaken Micro-tunnelling project in two phases to ensure safe, trenchless crossing of rivers for cross-country pipelines using Micro-tunnelling technology, thereby minimizing environmental impact, avoiding disruption to river flow, and enhancing long-term pipeline stability and safety.

4. FINANCIAL PERFORMANCE

During the FY 2024-25, the Company has earned total revenue of 23,987.07 crore as against 24,514.28 crore in the previous year. The Net profit margin of the Company for FY 2024-25 was 27.64%. The Profit Before Tax (PBT) in the FY 2024-25 was 7,850.95 crore against PBT of 6,745.40 crore in the previous year. The Company has registered Profit After Tax (PAT) at 6,114.19 crore during FY 2024-25 as against 5,551.85 crore in the previous year. Some important indicators of Companys strong financial

Sl. No. Particulars	2024- 25	2023- 24	Variation (in %)	Explanation for changes
1 Debtor Turnover	8.36	9.10	(8.13)
2 Inventory Turnover	12.69	15.05	(15.68)
3 Interest Coverage Ratio	12.28	12.21	0.57
4 Current Ratio	1.30	1.01	28.71	The Term Deposits with maturity of more than 3 months and upto 12 months, Dividend receivable and repayment of borrowings has led to the increase of current ratio.
5 Debt Equity Ratio	0.27:1	0.26:1	3.85
6 Operating Profit Margin (%)	30.96%	33.82%	(8.46)
7 Net Profit Margin (%)	27.64%	25.09%	10.16
8 Return on Net Worth	15.47%	15.66%	1.21	The Return on Net worth has decreased mainly on account of higher net worth.

5. INTERNAL CONTROL SYSTEM

Internal Audit in the Company is a corporate 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.

6. ESG AND NET ZERO COMMITMENT & STRATEGY

Yourreaffirms Company to a sustainable future by advancing its journey toward becoming a net-zero emissions energy company by 2040. Guided by our core vision of aligning operational excellence with environmental responsibility, the Company has continued to embed Environmental, Social and Governance (ESG) principles as a foundational pillar of its long-term strategy.

During the FY 2024 25, the Company significantly deepened its ESG integration through strategic initiatives, robust governance, and industry collaborations. Recognizing ESG not as a compliance requirement but as an organizational philosophy, the Company launched Project Santulan in June 2024. This flagship initiative was aimed at formulating Companys environmental strategy as a part of the broader ESG strategy with a structured focus on GHG reduction, biodiversity preservation, water stewardship and sustainable waste management.

To operationalize our decarbonization vision, the Company adopted 26 targeted initiatives under three broad categories: GHG reduction, non-GHG reduction and strategic enablers. In GHG reduction the Company has taken significant steps to reduce routine flaring, up of CBG plants across the country, undertaking energy efficiency measures, detection of fugitive emissions, roof top solar and installing dynamic gas blending in existing Drilling Rigs.

In the Non GHG category, the Company has taken important steps in water management, mobile ETPs for production installations, using treated produced water for internal operations, installation of catalytic converters in Drilling rigs to reduce Non GHG emissions, initiatives to reduce single use plastic and undertake afforestation measures through the Green Credit Program. In the Strategic Enablers the Company has taken steps to engage to develop supply chain partners from ESG perspective, join associations like the IBBI, UNGC and participate in ESG ratings by CDP and S&P Global.

The Company has also incorporated ESG metrics in the organizational performance management system. Development programs were conducted organization wide engagement through townhalls, workshops to spread awareness on ESG and its significance Net Zero. The Company has also conducted ESG technical sessions, vendor ESG sensitization workshops, training programs on anti-bribery, human rights and climate risk. Your Company is the first Company in the upstream sector in India to establish a Climate Academy, equipping over 40 executives as trained “Climate Champions.” In line with its net-zero target for 2040, the Company launched and is executing detailed environmental strategies which includes

Emission baseline and decarbonization roadmaps.

Non-GHG emissions reduction.

Zero routine flaring by 2025

No methane emissions by 2030

No net deforestation by 2027

Fresh water positive by 2030

No single use plastic by 2030

Our efforts were further bolstered through key global partnerships on:

Joining the Oil & Gas Decarbonization Charter (OGDC) which is a global industry effort dedicated to speeding up climate action and achieving high-scale impact across the oil and gas sector.

Becoming a member of the India Business & Biodiversity Initiative (IBBI) to formally embed biodiversity preservation into business decision-making.

Renewing our commitment to the UN Global Compact, thereby reinforcing our alignment with its 10 universal principles on human rights, labour, environment and anti-corruption.

In support of Indias Green Credit Program (GCP), the Company registered and reserved 601 hectares of forest land across Assam, Odisha and Rajasthan, with plantations already initiated in 431 hectares. The initiative allows the Company to earn Green Credits and promote afforestation as a compensatory environmental action.

On the Social and Governance fronts, the Company emphasized capacity building, policy formulation, and stakeholder education. Your Company has developed Policy on SD & ESG, with environment sustainability, social responsibility and governance & business growth as the three pillars. The Company is committed to achieve excellence in environmental management to minimize environmental impacts throughout the entire life cycle of our operations by taking proactive measures in natural resource conservation and pollution prevention measures both off & on site. In this regard your Company has established a robust environment policy with ESG perspective. One of the major highlights during the year was the Companys elevation in international ESG rankings. The Company improved its S&P Global ESG Score from 22 to 44 and also first time reported for Carbon Disclosure Project (CDP), achieving a C rating for climate change and B- for water security a clear indication of the transparency and maturity of OILs ESG disclosures.

Your Company remains committed to delivering on its ESG goals through robust governance, strategic foresight, and a people-centric approach. With an integrated vision and measurable targets in place, the Company is proactively shaping a future that is not only energy secure but also environmentally resilient and socially inclusive. It is our endeavour to create a positive impact on the environment, our employees, stakeholders and the communities around us to demonstrate our commitment to sustainability through our actions and initiatives. The Company is committed to nurture a culture of transparency, ethics and inclusive growth.

7. HUMAN RESOURCE

Your Company considers its employees to be most valuable asset and take great pride in the commitment and dedication of the workforce. As on 31st March, 2025, the total number of employees at the Company stood at 6412 consisting of 1854 executives and 4558 unionized employees. This includes a diverse and talented pool of individuals who have played a pivotal role in the Companys growth and success. The Company also recognizes the importance of nurturing a skilled and adaptable workforce in the ever-evolving energy landscape. Some of the key areas of HR initiatives are provided below:-

Cultivating a High-Performance, Engaged Workforce

Employee–Employer Partnership: We maintain HR policies that are responsive to employee needs and well-being, nurturing an environment where initiatives and innovations by employees thrive. During FY

2024-25, management renewed its commitment to open communication and positive engagement, evident in the Companys first-ever organization-wide employee engagement survey launched this year. A top quartile engagement score of 76% with more than 91% employee participation in the survey, underscores the effectiveness of HR initiatives and trust between employer and employee towards overall business objectives and partnership in the Company. Insights from this survey are helping shape action plans to further improve workplace morale, communication and career development opportunities.

Performance Culture and Transparency: This year, we fully rolled out a new SAP-based Performance Management System (PMS) that ensures clear goal-setting, continuous feedback, and merit-based evaluations. The PMS, along with refined HR policies, reinforces a culture of accountability and high performance.

Employee Welfare and Engagement Initiatives: In line with top industry practices, OIL introduced innovative programs to boost on-the-job engagement and well-being. Notably, the “Work Environment (WE) Assessment” program was implemented to systematically evaluate and improve workplace conditions. This year, many major operational installations in Field Headquarters earned 5 Star WE Ratings for excellence in safety, hygiene and teamwork. Regular town-hall meetings, recognition awards, and sports & cultural events were conducted, echoing OILs belief that employee pride and all-round development are vital.

Developing Skills and Capabilities for the Future:

Upskilling and Continuous Learning: In FY 2024-25,

OIL greatly expanded its training and development programs, recognizing that continuous upskilling is critical in a dynamic energy industry. Over the year, thousands of training hours were delivered, focusing on both technical competencies and soft skills. Programs ranged from advanced courses in drilling technology, reservoir modelling and digital oilfield development workshops for managers. OILs employees benefited from a balanced mix of statutory trainings, technical courses, and soft-skill workshops, delivered by internal experts as well as reputed external partners. These efforts ensure our workforce remains adaptable to emerging challenges and technological advancements.

Digital Learning Platform: A key milestone was the development of a new online Learning Management System (LMS). This platform, being rolled out in phases, provides 24x7 access to e-learning modules on topics ranging from operational safety to interpersonal skills. By leveraging digital learning, OIL is making training more scalable and self-paced, enabling employees across all locations to pursue relevant courses and certifications. In parallel, OIL completed a comprehensive Technical Competency Framework (TCF) covering all major disciplines. This framework defines the skills required at various levels for each role.

Leadership Development and Succession Planning:

During the year, profiles and potential successors for several key roles (from core operational areas such as geoscience, production to vision critical roles such as project management, offshore drilling etc) were reviewed by top management. Tailored development plans including job rotations, strategic projects, and executive education are being executed to groom these high-potential talents. In fact, with many of senior OILs executives approaching retirement by 2030, succession planning has become mission-critical. Our proactive efforts this year earned praise at industry forums, and OILs succession planning framework is now benchmarked on par with leading oil & gas companies.

Diversity, Inclusion and Employee Well-Being

OIL takes pride in having a diverse and inclusive workforce spanning different regions, cultures and backgrounds, akin to leading global energy companies. We strictly adhere to Government of India directives on reservations and diversity in recruitment and promotions and monitor representation closely. For instance, women constituted about 7.8% of our total workforce as of FY 2024-25 (up from about 7.3% in the previous year), and OIL is striving to increase this figure by promoting STEM education for girls and hiring more women in technical roles. All employees enjoy equal opportunities in training, career growth and benefits, reflecting criterion for advancement. During the year, OIL also maintained a sharp focus on employee health, safety, and wellness.

Towards a World-Class “Human Asset” Management

OIL stands shoulder to shoulder with the industrys finest: OIL is shaping its Human Capital strategy to match and in many areas, mirror the standards set by global leaders in the oil and gas sector. We are incorporating best practices from competency-driven HR systems to the robust public-sector HRD guidelines of DPE. The conferment of “Maharatna” status in August 2023 has further empowered OIL with greater autonomy, and we are evolving our HR policies to fully leverage this autonomy towards faster talent acquisition and retention of specialists.

Supporting Business Strategy: Every HR initiative is crafted to support OILs corporate strategy. In addition to technical training for hydrocarbon projects, we are initiating capability-building in new domains like renewables, LNG, and digitalization, which are growth pillars in our Strategy 2030/40. Cross-functional task forces were set up to plan the manpower and skill requirements for upcoming projects (e.g. core O&G, renewables, critical minerals, geothermal, hydrogen, etc). Strategic manpower planning thus gained momentum, yielding a rolling hiring plan that balances the intake of young talent with the experiential knowledge of tenured staff. Our mantra is having “the right people with the right skills in the right places at the right time,” and FY 2024-25 saw tangible progress towards this goal.

Future Outlook: Looking ahead, the Company will continue to invest in its “human asset” with the same rigor as we invest in physical assets. The Company is set to explore possibility of competency-based career paths and relevant learning programs to continuously motivate and reward skill acquisition. Plans are in place to adopt state-of-the-art HR technology to further enhance the efficacy of HR service delivery, echoing practices leading oil and gas companies. We will also intensify our diversity efforts the coming years will see greater commitment to recruitment of women engineers, and outreach to under-represented groups reinforcing OILs image as an employer of choice.

Commitment: As the Company marches forward on its growth path, its HR vision remains clear to be a “learning organization” that nurtures initiative, innovation and aspiration with best practices, and to create an inclusive workplace where every employee feels valued and empowered to contribute. Our human capital is the bedrock of our success, and we are steadfast in ensuring that our people are equipped, engaged, and inspired to drive OILs continued progress and excellence in the years to come. By investing in our employees, OIL is truly investing in the Companys future enabling us to conquer new horizons in energy, together.

8. INDUSTRIAL RELATIONS

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.

9. ENVIRONMENTAL PROTECTION AND CONSERVATION, RENEWABLE ENERGY DEVELOPMENTS AND FOREIGN EXCHANGE CONSERVATION

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.

10. ACREAGE

A. Domestic i. Nomination Acreages

At present, the Company has 01 (one) nomination Petroleum Exploration License (PEL) covering an area of 23.3 sq.km and 25 (Twenty-Leases (PML) covering an area of 4828.84 sq.km. These nomination blocks are in the states of Assam, Arunachal Pradesh and Rajasthan. During the FY 2024-25, the Company has acquired 482.25 sq.km of 3D seismic data and drilled 15 exploratory & 35 development wells in its nomination acreages.

ii. NELP Block

Your Company currently operates 01 (One) NELP Block covering an area of 396 sq.km in the state of Assam and has completed the 3D seismic API and drilled one exploratory well Karbi Anglong-1 (Dry) in the FY 2023-24. Pre-drilling activities for drilling another exploratory Loc. KNEB is under progress. The location is expected to be spud-in during FY 2025-26.

iii. OALP & DSF Blocks

As on 31st March 2025, the Company has a total of 26 (twenty-six) Blocks under Open Acreage Licensing Policy (OALP) Regime covering a total area of 46,841.7 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 FY 2024-25, the Company acquired 373.52 LKM of 2D and 668.57 sq.km 3D seismic data in OALP blocks. Company has also completed drilling of seven (7) nos. of exploratory wells - 2 wells in Odisha: Puri-3 in MN-ONHP-2018/2 Block and Cuttuck-2 in MN-ONHP-2018/5 Block, 1 well in Rajasthan: Jambeshwar-1 in RJ-ONHP-2019/2 Block, 3 wells in Assam: Dima-Hasao-1 in AA-ONHP-2018/3 Block, Kobochapori-1 in AA-ONHP-2017/10 Block and Namrup-Borhat-2 in AA-ONHP-2017/20 Block and 1 well in Andaman shallow offshore: Vijaya Puram-1 in AN-OSHP-2018/2 Block. The Company is also currently drilling well Maijan-1 in AA-ONHP-2017/18 OALP Block in Assam.

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

The Company is also 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 the FY 2024-2025, Companys share of production from these two JVs assets were 13,923 MT of oil and 80.912 MMSCM of Petroleum gas.

v. Blocks under NELP with OIL as non-Operator

The Company holds 01 (One) NELP VII block viz. WBONN-2005/4 covering a total area of 3940 sq. km in the state of West Bengal (Onshore) as non-operator (PI 25%) as on 31st March 2025. During the exploration phases, total 6 MWP wells (Phase-I: Patuli-1, Matikumra-1, Asokenagar-1, Asokenagar-2, Kankpul-1 and Phase-II: Ranaghat-2) have been drilled and 3 discoveries viz. Asokenagar-1, Kankpul-1 and Ranaghat-2 have been notified are under various stages of appraisal/development. The Company also holds 01 (One) NELP-IX block viz., GKOSN-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.

B. Overseas

Overseas E & P Blocks with PI / Operatorship by Company

The Companys overseas E&P portfolio as on 31st March, 2025 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% in the block. Currently, these 3 discoveries stake in JSC Vankorneft, Russia on 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 31.03.2025, the 2P reserve position corresponding to Companys Participating Interest in this asset has been estimated at 11.28 MMT of oil and 4.18 MMTOE of natural gas. During 2024-25, the Companys share of production in the asset is 1.00 MMTOE. Cumulatively till 31.03.2025, an amount equivalent to USD 486.13 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 on 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 31.03.2025, the 2P reserve position corresponding to Companys participating interest in this asset has been estimated at 8.67 MMT of oil. During 2024-25, the Companys share of production in the asset is 0.49 MMTOE. Cumulatively till 31.03.2025, an amount equivalent to USD 455.93 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 7802.18 Crore (USD 1033.71 million) till 31st March 2025.

Russia: License 61

[OIL-50% and PetroNeft Resources Limited (Shareholding transferred to Pavel Tetyakov)-50%

(Operator)]

The Company holds 50% stake in WorldAce Investment Limited (WIL), through its wholly owned subsidiary Oil India International BV. The remaining 50% shares of WIL have been transferred by PetroNeft Resources Plc in favour of Pavel Tetyakov, a Russian citizen. WIL has a wholly owned subsidiary named LLC Stimul-T in Russia which holds the license of the block License 61, Russia. LLC Stimul T, the Russian legal entity which owns the License 61 asset, has filed for bankruptcy on 10th May, 2023 due to adverse operational and financial provision has been taken against the entire investment of the Company in the License 61 project to the tune of USD 93.2 million. The carrying value of 1.92 Crores (USD 0.22 million) against Companys wholly owned subsidiary Oil India International BV represents loan to the entity for its operational use.

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 the remaining 71% share in a Mixed Company called M/s Petrocarabobo SA (PCB). PCB is the operator of project Carabobo. 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 B.V. (IndOil) to invest in the project. The mixed company contract was signed on 12th May, 2010 for a period of 25 years. As at 31st March, 2025, 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 31st March, 2025, the 2P reserve position corresponding to Companys Participating Interest in Project Carabobo has been estimated at 0.10 MMT. During FY 2024-25, Companys share of production in the asset stood at 0.02 MMT. Companys share of investment in this project is 302.21 Crore (USD 59.90 million) as on 31st March, 2025. The carrying value of investment stood at 25.95 Crore as on 31st March, 2025, post provision for impairment.

b. Development Assets Mozambique: Rovuma Area1

TotalEnergies (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 circumstances. Impairment Investment Decision (FID) for the two train Golfinho-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 project financing which achieved financial 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. Currently, the project is progressing towards lifting of Force Majeure and resumption of the project activities. As on 31.03.2025, 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 10640.46 crore (USD 1580.30 million) as on 31st March, 2025. The carrying value of investment stood at 10466.46 Crore as on 31st March, 2025, post provision for 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 182.19 crore (USD 21.12 million) as of 31st March, 2025. Impairment provision has been taken against the entire investment in the books of the Company as on 31st March, 2025.

c. Exploratory Assets

Bangladesh: Blocks SS-04 and SS-09 [OIL-45%, OVL-45%(Op), 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 spread 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 five (05) years. Both blocks were valid till 16th February 2025.

The mandatory seismic studies have been completed in the blocks. Drilling of 1 (One) onshore well Kanchan-IX in block SS-04 is completed. The Operator has requested Petrobangla for extension of both the Blocks for 3 years. Petrobangla provided 2 years extension i.e. up to 16th February 2027 for both Blocks and asked the JV to submit new Bank Guarantees as per PSC. Later, due to various challenges in the project, the consortium decided to exit from both the Blocks. Accordingly, the Operator on 27th June 2025 communicated to Petrobangla (The Regulator) for termination of PSC of SS-04 & SS-09 Blocks.

Libya: Area 95/96 ~4 Blocks

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

The consortium had completed drilling of five wells against MWP commitment of drilling 08 (Eight) wells. All the five 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. With the improving Law and Order situation in Libya, the Force Majeure in the Block has been revoked. Accordingly, NOC, Libya has granted extension of the exploration period upto 06th May, 2026 to complete the remaining MWP. The consortium is strategizing the reentry work plan for the 6th well and Prospect Analysis & New Drilling Opportunities to complete the 8 wells commitment in the block.

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 15th April, 2025 due to statutory delays and Covid-19 pandemic.

The consortium has commitment to drill 2 exploratory wells in Phase-II of the block. Accordingly, the Consortium has applied for extension of the Block validity for 1 year until 15.04.2026. Subsequently, two working sessions were held with DGH, Gabon and the consortium requested DGH to provide an estimate of the financial commitments, which it might owe to for non-fulfilment of the work commitments, as defined in the PSC, to take an informed way forward.

11. DISCOVERY OF OIL AND GAS

Your Company has made 2 (two) discoveries during the year in its nominated acreage in Assam and also established hydrocarbon presence in OALP Block AA-ONHP-2017/10 in Assam, the details are as follows:

Wells Mechaki-6 & Mechaki-7: During FY 2024-25, two discoveries were made in Mechaki PML in Assam viz. one oil discovery in well Mechaki-6 and one gas discovery in well Mechaki-7. In well Mechaki-6, a total of three prospective zones were encountered, out of which one zone has been tested and the well produced crude oil @ 32 m3/day. This is the deepest producing onland well in OILs operational area. In well Mechaki-7, a total of five prospective sands were encountered out of which one zone was tested and the well displaced gas @ 60,000 scmd. Actions are being undertaken to bring the well on to production.

Well Kobochapori-1: The Company has established hydrocarbon presence in well Kobochapori-1 drilled in Block AA-ONHP-2017/10 awarded under OALP-I Round. The Block is located in the north bank of river Brahmaputra in Assam. The well flowed heavy oil at surface from one of the tested intervals. The well is under further testing to establish sustained flow rate and establish commerciality.

12. STATUS OF RESERVES

The Hydrocarbon In-Place and Reserves position of the Company in its domestic assets including JVs (as per Companys PI) as on 1st April, 2025 are as follows:

IN-PLACE (VOLUME)	Low Estimate	Best Estimate	High Estimate
STOIIP (MMT)	778.7760	806.5768	829.3026
GIIP (BCM)	401.0952	423.4008	440.8584
O+OEG (MMTOE)	1127.9431	1174.7765	1212.5950
Reserves	1P	2P	3P
Oil + Condensate Reserves (MMT)	29.4271	69.3852	90.0790
Balance Recoverable Gas (BCM) *	88.9198	139.0337	180.1169
O+OEG (MMTOE)	106.9778	190.2508	246.8594

*Based on projected volume of gas under various sales contracts, 1P, 2P and 3P Gas Reserves are 29.7160, 53.7330 and 63.7830 BCM respectively.

Accretion: The accretion to oil and gas reserves during the FY 2024-25 in Companys domestic sector including JVs (as per Companys PI) is given below:

Reserves	1P	2P	3P
Oil + Condensate Reserves (MMT)	2.7311	3.0610	2.8764
Balance Recoverable Gas (BCM)	2.6888	3.0760	4.3992
O+OEG (MMTOE)	5.1675	5.8714	6.9107

Overseas

As of 1st April 2025, the oil & gas reserves position of 04 (four) overseas producing assets (Companys Proportionate Share), namely, Vankorneft (Russia), Taas Yuryakh (Russia), Petro Carabobo (Venezuela) and Golfinho-Atum (Mozambique) are furnished below:

Reserves	1P	2P	3P
Oil + Condensate Reserves (MMT)	8.7083	20.5084	33.2024
Gas (BCM)	11.6373	20.3940	24.2794
O+OEG (MMTOE)	20.3456	40.9024	57.4818

13. NEW INITIATIVES

Diversification into Critical Minerals Domain:

Critical minerals represent a generational opportunity in the area of energy transition to combat climate change with Indias goal of net-zero emissions by 2070. These minerals are essential to success of any energy transition strategy as technologies and products such as solar panels, semiconductors, wind turbines and advanced batteries for transportation and energy storage systems rely profoundly on critical minerals. In order to establish an effective framework for Indias self-reliance in the critical mineral sector, the Government of India launched National Critical Mineral Mission, which aims to encompass all stages of the value chain including mineral exploration, mining, beneficiation, processing and recovery from end-of-the life products. The mission will intensify exploration of critical mineral within the country and its offshore areas and support overseas asset acquisition.

Recognizing the strategic importance of critical minerals due to their essential role in various high-tech industries, renewable energy technologies and national security applications, the Company has diversified critical mineral domain during 2024-25. Your Company has participated in 4th auction tranche of critical mineral and has been awarded a graphite and vanadium block, namely, Phop Block in Arunachal Pradesh. The Company has initiated necessary actions for statutory clearances, including local community consent, cadastral verification, land survey, forest clearance etc. Upon receiving the Composite License (CL), the Company will commence systematic exploration activities, including geological mapping, drilling and resource assessment, in compliance with environmental and regulatory guidelines.

Compressed Biogas (CBG): The Company has set a target to establish 25 Compressed Biogas (CBG) plants across the country and is actively advancing towards development of CBG projects. To support project implementation, the Company has signed seven Memorandums of Understanding (MoUs) and Concessionaire Agreements (CAs) with various Urban Local Bodies (ULBs), Municipal Corporations and other relevant government authorities. Letters of Award (LoAs) for EPCOM contract have been issued for two locations and tenders have been published for three more locations.

Establishment of 1 MW GH2 plant at Dabhota, Nalagarh, Himachal Pradesh: As part of clean energy initiatives, your Company is developing a 1 MW Green Hydrogen Plant in Himachal Pradesh in collaboration with Himachal Pradesh Power Corporation Limited (HPPCL). This project aims to produce high-purity green hydrogen using environmentally friendly processes powered by renewable energy. The plant will support industrial and commercial applications by supplying hydrogen with minimal carbon emissions. Designed for long-term, efficient to sustainable innovation and contributes to the national goal of transitioning toward a greener energy future.

Start-up program: The Company has developed a hydrogen fuel cell electric bus. The Company is also working on Liquid Organic Hydrogen Carrier (LOHC) technology through its startup initiative SNEH to facilitate safe and sustainable hydrogen transport. Furthermore, a strategic MoU has been signed with “The Fertilisers and Chemical Travancore Limited” to explore the development of a 1 MTPD Green Hydrogen and 5 MTPD Green Ammonia facility.

Green Hydrogen: The Company has commissioned an AEM electrolyser-based pilot plant at Jorhat, Assam. AGCL has received PNGRB approval for 2% blending with Pipe Natural Gas in their existing PNG network within the

OIL residential colony and the Company in collaboration with AGCL is continuing 2% blending with PNG and supplying the blended gas.

14. FUTURE OUTLOOK

a) The Companys Main Producing Area (MPA) in the Northeast in Assam Shelf Basin is a prolific onshore basin with considerable Yet-To-Find (YTF) potential. The Company has been consolidating its acreage position through OALP regime and the exploration activities would be intensified areas and Exploration License areas.

b) During the year, the Company has drilled 22 (Twenty-Two) exploratory wells, 35 (Thirty-Five) Development wells and generated 96 nos. of new locations for drilling. Over the next few years, the Company plans to continue its drilling momentum in its PELs/PMLs spanning across different sedimentary basins of India, both onland and offshore areas.

c) As part of its strategic focus to discover new oil and gas reserves, the Company is undertaking exploration activities in the North Bank of river Brahmaputra and Fold Belt areas of Northeast India which are geographically challenging but geologically prospective for hydrocarbons.

d) Apart from Northeast and Rajasthan, the Company has completed regional level G&G studies and undertaking drilling activities in Mahanadi onland and Andaman Offshore and also plan to start drilling in Kerala-Konkan Offshore in quest of establishing hydrocarbon reserves.

e) Recently, under OALP Bid Round IX, the Company has been awarded total 6 Blocks (2 Blocks each in Mahanadi & KG ultra-deep offshore and 1 Block each in Gujarat onshore & Meghalaya ) as Operator with a total area of 40,590 Sq. Km and 3 Blocks jointly with ONGC as Non-operator with a total area of 10,965 Sq. Km. Exploration campaign is being planned in line with the committed work programs and to commence activities post award of PEL in these Blocks.

f) The Company has inducted diverse tools & technologies to integrate with the existing industry practices for oil & gas exploration and includes Airborne Gravity Gradiometry & Gravity Magnetic (AGG & GM) Survey to cover areas that could not be covered with seismic due to surface logistics,Passive Seismic Tomography (PST) to enhance the quality of the subsurface image wherein the available seismic data is sparse and challenged due to surface & sub-surface complexities and Low Frequency Passive Seismic (LFPS) survey to identify spectral signatures indicative of hydrocarbon amongst other.

g) The Company is also in the advanced stage of upgrading and commissioning of its existing seismic data processing & imaging centre to centralized hub called the Processing, Reservoir bothin Mining Lease Imaging & Subsurface Modelling (PRISM) centre to handle complex onshore and offshore seismic data processing and advanced imaging with latest hybrid CPU-GPU setup, a first-of-its-kind High Performance Computing Centre (HPCC) in Indias E&P industry. This strategic initiative shall strengthen Companys existing exploration and development capabilities and provide momentum to G&G project delivery in a quality and time conscious manner.

h) The Company has shared some of its areas for Production Enhancement Contracts. The Company has gone for adaptation of new technologies, maximizing recovery from existing fields,expedite development plans, monetization of Non-Producing PMLs and un-monetized discoveries etc. for enhancing oil and gas production.

i) To enhance recovery from its mature fieldsof Upper Assam Basin, water injection and other IOR/ EOR technologies are being continuously adopted. Hydrofrac, radial drilling are also used in the Upper Assam Basin to maximize production. The Company has successfully augmented the CSS Technology to increase crude oil production from Rajasthan Field. The Company is also putting up efforts for establishing production from upper carbonate in Rajasthan Field.

j) The implementation of advanced technology is vital for enhancing crude oil and natural gas production, as it enables efficient resource utilization, improved recovery rates and optimized operations. Your Company has adopted many cutting-edge technologies and solutions such as Plunger Lift, Multi-casing Thickness Detector, Stab-in cementing, Diesel Oxidation Catalysts, Dynamic Gas Blending, Single String Multi-zone completion, MEOR, Propellant Stimulation, Compact Well-head, Innovation Factori Solutions (Well Portfolio Optimizer), Downhole Chemical Injection mandrel and others.

The Company is also carrying out many important studies through R&D like Feasibility studies on Synthetic Aviation Fuel (SAF) from CO2, Development of additive for Diesel-Methanol blending, Produced Water treatment coupled with resource recovery and zero liquid discharge (ZLD), development of Oil Field Chemicals (OFC), etc. Digital oilfield technologies like RTPMA (Real Time Production Monitoring & Analysis) are being implemented in a phase wise manner so as to facilitate real-time monitoring and control, reducing downtime and operational risks while maximizing output. Moreover, the integration of predictive maintenance, Condition Based Maintenance (CBM) system, smart sensors and data-driven decision-making not only boosts productivity but also ensures cost-effectiveness, environmental compliance and sustainable field development in a competitive energy market.

k) Your Company continues to advance its transition towards clean and sustainable energy. To further expand its RE portfolio, the Company has signed an MoU with RRVUNL for the development of 1,000 MW solar and 200 MW wind projects in Rajasthan, with JV formation currently in progress.

l) In addition to acquisition of conventional assets, the Company would also look towards acquisition of non-conventional assets. The Company has strong vision to fortify its position as an integrated energy company with presence across the energy value chain. There are plans in place to achieve the same:

Actions are ongoing for foray into areas like carbon sequestration, geothermal and gas storage by leveraging the current E&P operations.

The Company also has plans in motion for strengthening its strong downstream portfolio across refining, and fleet among others.