Oil India Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. FY2025-26 IN PERSPECTIVE

FY2025-26 marked a defining year in Oil India Limiteds journey of strengthening its position as an integrated energy company while expanding its capabilities to meet the opportunities of a rapidly evolving energy landscape. Despite a year characterised by geopolitical uncertainty, commodity price volatility and supply-chain disruptions, the Company demonstrated resilience by simultaneously strengthening its core hydrocarbon business while accelerating investments in long-term growth engines.

The year witnessed record levels of capex deployment, drilling activity, workover operations and pipeline transportation, reflecting a decisive shift towards capacity creation rather than short-term optimisation. These investments not only reinforced the Companys production capabilities but also laid the foundation for sustainable production growth, reserve accretion and enhanced energy security.

During the year, the Company achieved significant milestones across its strategic priorities. Exploration efforts expanded into frontier basins, resulting in new hydrocarbon discoveries and strengthening confidence in Indias unexplored sedimentary basins. Operational excellence was reflected through record drilling performance, improved production efficiency and sustained reserve replacement. Simultaneously, major downstream infrastructure, including the expansion of Numaligarh Refinerys logistics ecosystem, further strengthened the Companys integrated energy value chain.

FY2025-26 also represented an important inflection point in the Companys diversification journey. The incorporation of OIL Green Energy Limited (OGEL), continued development of compressed biogas projects, entry into critical minerals exploration and advancement of low-carbon technologies reaffirmed the Companys commitment to building a balanced energy portfolio aligned with Indias long-term energy transition objectives.

The Companys strategy during the year was guided by a clear principle to strengthen todays business while building tomorrows energy enterprise. This balanced approach enabled the Company to continue creating long-term value for shareholders while reinforcing its role in supporting Indias energy security, industrial growth and sustainability ambitions.

A YEAR OF STRATEGIC ACCELERATION

FY2025-26 at a Glance

Strengthening the Core

• Highest-ever capital expenditure focused on exploration, production infrastructure and strategic growth investments.

• Record drilling and workover performance to sustain production from mature assets and accelerate development of new resources.

• Highest crude oil pipeline transportation and continued operational excellence across producing assets.

• Reserve Replacement Ratio above unity, demonstrating sustainable resource replenishment.

• New oil discoveries in Assam and successful establishment of gas presence & technical discovery in the Andaman Basin, expanding Indias exploration frontier.

Building an Integrated Energy Enterprise

• Continued strengthening of the upstream- downstream value chain through the ongoing expansion of Numaligarh Refinery Limited.

• Completion of strategic pipeline augmentation supporting future refining and logistics capacity.

• Enhanced integration across exploration, production, transportation, refining and marketing infrastructure.

Accelerating Energy Transition

• Incorporation of OIL Green Energy Limited to spearhead new-energy businesses.

• Progress in development of compressed biogas projects across multiple states.

• Entry into the critical minerals sector to support Indias clean-energy ecosystem.

• Continued investments in green hydrogen, carbon management and renewable energy initiatives.

• Significant progress towards Net Zero commitments under Project SANTULAN.

Driving Technology-Led Growth

• Increased deployment of advanced exploration, drilling and reservoir technologies.

• Expansion of digital transformation initiatives across the hydrocarbon value chain.

• Continued investment in research, innovation and technology partnerships to improve operational efficiency and resource recovery.

Creating Sustainable Long-Term Value

• Maintained financial resilience despite lower crude price realisations.

• Continued disciplined investment in strategic growth opportunities.

• Strengthened ESG performance and governance standards.

• Continued recognition as one of Indias leading integrated energy companies with a diversified growth platform.

Management Perspective: Creating Value Through Disciplined Growth

For India, where energy demand continues to grow alongside rapid economic development, strengthening domestic hydrocarbon production while investing in emerging energy businesses has become a strategic national priority. Against this evolving landscape, the Company continues to pursue a disciplined growth strategy that balances operational excellence, financial resilience and long-term value creation.

While softer crude oil prices moderated earnings during FY 2025-26, the Company remained firm in its conviction that long-term value creation cannot be compromised by short-term commodity cycles. Accordingly, the Company continued to accelerate investments across exploration, field development, production infrastructure, refining, pipeline expansion and emerging energy businesses, laying a strong foundation for sustainable growth.

During FY2025-26, the Group deployed a capital expenditure of Rs.21,673.75 crore, including 8,439.90 crore towards the expansion of Numaligarh Refinery Limited, representing one of the largest investment programmes in the Companys history. These investments were directed towards expanding production capacity, strengthening reserve sustainability, enhancing infrastructure and creating future growth platforms, while reinforcing the Companys evolution from a conventional upstream producer into an integrated energy enterprise.

Exploration and Production (E&P) continues to remain the cornerstone of the Companys business and the principal driver of long-term value creation. At a time when several mature producing assets across the industry are witnessing natural production decline, the Company remains among the very few exploration and production companies in India, including private E&P companies to consistently pursue growth in both crude oil and natural gas production through disciplined exploration, accelerated field development, technology- enabled reservoir management and enhanced recovery initiatives. This strategic approach assumes even greater significance in supporting Indias objective of enhancing domestic energy security.

The Companys commitment to strengthening its core business was reflected in several landmark operational achievements during the year. The Company recorded its highest-ever drilling performance of 74 wells, comprising 22 exploratory and 52 development wells, resulting in two oil discoveries in Assam and one gas discovery in the Andaman Basin. The Company also achieved a Reserve Replacement Ratio (RRR) of 1.02, supported by an addition of 6.232 MMTOE of 2P reserves, reaffirming the sustainability of its resource base and future production potential. Operational excellence was further demonstrated through the highest daily crude oil production in fourteen years of 10,566 MTPD and the highest-ever crude oil pipeline transportation of 7.453 MMT, reflecting improved asset utilisation, operational reliability and execution excellence across the hydrocarbon value chain. As on 31 March 2026, the Company had three offshore drilling rigs under operation in the Andaman, Krishna-Godavari and Kerala-Konkan Basins, further strengthening its exploration footprint in Indias frontier offshore acreages.

Alongside strengthening its core hydrocarbon business, the Company continued its transformation into an integrated energy enterprise. The ongoing expansion

of Numaligarh Refinery Limited, supported by the 1,635 km Paradip-Numaligarh Crude Oil Pipeline, is enhancing integration across exploration, transportation, refining and logistics, enabling the Company to capture greater value across the energy chain while improving operational resilience and long-term competitiveness.

Beyond its core upstream business, the Company continues to strengthen a diversified portfolio across the energy value chain to enhance long-term resilience and create multiple avenues for growth. During FY2025- 26, the Company continued to support the expansion of Numaligarh Refinery Limited (NRL) towards a 9 MMTPA integrated refining complex, and 1,635 km Paradip- Numaligarh Crude Oil Pipeline (PNCPL), which would significantly strengthened crude logistics and feedstock security. The Company also advanced its presence in the City Gas Distribution (CGD) business, expanding its downstream footprint closer to end consumers. Internationally, the Company continued to optimise value from its producing assets in Mozambique and Russia through prudent capital allocation, operational efficiencies and disciplined cost optimisation, while pursuing selective overseas opportunities aligned with its long-term growth strategy. Together, these initiatives are strengthening the Companys position as a diversified integrated energy company with balanced exposure across upstream, midstream, downstream and international businesses.

Recognising that hydrocarbons will continue to remain an integral part of Indias energy mix even as cleaner energy sources gain prominence, the Company is pursuing a balanced and pragmatic energy transition strategy. During FY2025-26, the Company incorporated OIL Green Energy Limited (OGEL) as a wholly owned subsidiary to drive its new-energy initiatives, continued the development of 25 Compressed Biogas (CBG) projects across nine States, with four Municipal Solid Waste-based CBG plants under construction, and became the first Indian oil and gas PSU to enter the critical minerals sector through successful allocation of graphite-vanadium and potash-halite blocks. These initiatives are creating new growth engines while complementing the Companys established exploration and production business.

Technology, innovation and digital transformation continue to be key enablers of the Companys future competitiveness. During the year, the Company launched DRIVE 2.0, comprising 10 Artificial Intelligence (AI) and Generative AI-enabled initiatives across the exploration and production value chain. The Company also invested 173.22 crore in Research & Development, representing 3.20% of Profit Before Tax, while filing five patent applications, reflecting its continued emphasis on technology-led productivity, operational excellence and innovation-driven growth.

Sustainability remains embedded within the Companys long-term business strategy. During FY2025-26, Scope 1 and Scope 2 greenhouse gas emissions reduced by 17.93% over the FY2024 baseline, while Project SANTULAN, with an estimated investment of approximately 20,000 crore, continued to advance the Companys Net Zero aspiration by 2040. These initiatives reinforce the Companys commitment to responsible growth, environmental stewardship and alignment with Indias broader climate commitments.

The Companys disciplined approach to growth is equally reflected in its financial stewardship. Despite a challenging commodity price environment, the Company reported Standalone Total Income of 24,038.58 crore and Consolidated Total Income of 38,980.70 crore, while maintaining the highest domestic credit ratings of CRISIL AAA and CARE AAA, sovereign-equivalent international ratings from Moodys (Baa3) and Fitch (BBB-), and recommending a total dividend of 11.50 per equity share. This reflects Managements commitment to balancing strategic investments with financial discipline, balance sheet strength and sustainable shareholder returns.

2. ECONOMIC SCENARIO & INDUSTRY ANALYSIS

Global Economic Scenario

The global economic landscape in 2025 was marked by significant policy shifts, heightened uncertainty and evolving trade dynamics. A substantial part of this volatility arose from changes in United States policy priorities, particularly the introduction of tariff measures that raised United States tariff rates to their highest levels in a century. Although subsequent trade agreements and tariff adjustments moderated some of these increases, tariff levels remained substantially above those prevailing in 2024.

Global economic activity demonstrated resilience during 2025 despite higher trade barriers and policy uncertainty. Prior to the outbreak of conflict in the Middle East, the global economy had performed better than anticipated, leading to upward revisions in growth forecasts. Global growth reached an annualised rate of 3.9% in the fourth quarter of 2025.

The conflict in the Middle East has, however, introduced an additional challenge to the global outlook. Assuming that the conflict remains contained in both duration and intensity, global growth is projected to moderate to 3.1% in 2026 before improving marginally to 3.2% in 2027. Global inflation is expected to increase slightly in 2026 and subsequently resume its downward trajectory in 2027. The effects of slower growth and higher inflation are expected to be more pronounced in emerging market and developing economies.

Indian Economic Scenario

Indias growth outlook for 2025 was revised upward by 1.0 percentage point from the October estimate to 7.6%, reflecting stronger-than-anticipated economic performance during the second and third quarters of the fiscal year and continued robust momentum in the fourth quarter.

For 2026, the growth forecast was revised upward by 0.3 percentage point, including an increase of 0.1 percentage point from the January projection, to 6.5%. The revision reflects the positive spillover effects of the strong performance in 2025 and the reduction in additional US tariffs on Indian exports from 50% to 10%. These favourable developments are expected to more than offset the adverse effects arising from the conflict in the Middle East. Economic growth is projected to remain steady at 6.5% in 2027.

Despite global uncertainties arising from the Middle East conflict and disruptions in energy markets, Indias economy is projected to maintain growth of 6.5% in FY2026-27, supported by resilient domestic fundamentals. Private consumption is expected to remain a key growth driver, aided by the GST rate reductions introduced in September 2025, which are expected to mitigate inflationary pressures and support household purchasing power. Continued fiscal discipline is also expected to strengthen macroeconomic stability, while targeted subsidies provide support to vulnerable sectors.

Indias investment outlook remains positive, supported by a sound financial system, continued infrastructure development and policy measures aimed at improving the business environment. Merchandise exports are expected to benefit from the easing of US tariffs and the implementation of new free trade agreements, particularly with the European Union. Manufacturing sectors, including electronics, automobiles and other tradable goods, are expected to continue expanding, supported by government initiatives and increasing export opportunities.

Figure: Sectoral contribution to industry growth, FY2023-24 to FY2025-26

Over the medium term, assuming that energy-market and supply-chain disruptions normalise by late 2026, Indias economic growth is projected to accelerate and average 7.1% during FY2027-28 and FY2028-29. Strong domestic demand, resilient services exports, increasing trade openness, policy support for strategic sectors and micro, small and medium enterprises, and continued manufacturing growth are expected to support Indias position among the worlds fastest-growing major economies.

Oil & Gas Sector: Global Scenario

Global energy demand continued to increase in 2025, resulting in higher consumption across all major energy sources. Electricity demand grew strongly across multiple sectors, while renewable energy deployment reached record levels and accounted for more than 70% of the additional electricity required. At the same time, consumption of all fossil fuels also increased, contributing to a new record high in global energy- related carbon dioxide emissions.

Energy policies continued to evolve across major economies. The United States strengthened support for domestic fossil fuel production and nuclear power while reducing incentives for wind, solar and electric vehicles. In parallel, several countries introduced policy measures aimed at strengthening energy security amid growing concerns over supply reliability and geopolitical risks.

The installed costs of renewable energy technologies, including solar photovoltaic, onshore wind and offshore wind, are expected to continue declining, alongside further reductions in battery-storage costs. The pace and extent of these reductions are expected to vary across countries, regions and scenarios, reflecting differences in existing cost structures, market conditions and global deployment trajectories.

OPEC and its allies are expected to continue adopting a calibrated approach to production during 2026-27, balancing gradual supply increases with the objective of maintaining market stability. While additional production is expected to support recovering demand, prevailing market expectations suggest that crude oil prices are likely to remain under moderate pressure amid continued economic and geopolitical uncertainty.

Global oil demand is forecast to increase by 2.5 million barrels per day between 2024 and 2030, reaching a plateau of approximately 105.5 million barrels per day by the end of the decade, followed by a marginal decline in 2030. This outlook reflects below-trend economic growth amid global trade tensions and fiscal imbalances, as well as the accelerating substitution of oil in the transport and power-generation sectors.

Oil demand in emerging and developing economies is expected to increase by 4.2 million barrels per day during 2024-2030, in contrast with a continued contraction in advanced economies. Asian markets are expected to account for the majority of this growth, with Indias projected increase of 1 million barrels per day representing the largest increase for any single country.

World oil production capacity is forecast to rise by 5.1 million barrels per day to 114.7 million barrels per day by 2030, led by Saudi Arabia and the United States. This increase is expected to significantly exceed the projected rise of 2.5 million barrels per day in global oil demand over the same period.

Global natural gas liquids production is expected to increase by 2.3 million barrels per day to 20.1 million barrels per day by 2030, accounting for nearly half of the projected increase in world oil production capacity. A strategic focus on natural gas development by producers in the Middle East is expected to increase regional natural gas liquids supply by 1.4 million barrels per day by 2030.

Oil & Gas Sector: Indian Scenario Crude Oil and Refining

Indias significance in global oil markets is projected to increase considerably over the remainder of the decade, supported by robust economic expansion, a rising population and favourable demographic trends. The global energy crisis has elevated energy security as a major policy priority, which is particularly relevant for India given its heavy reliance on imported crude oil to meet domestic energy requirements.

India is projected to be the largest contributor to global oil-demand growth through 2030. Driven by rapid industrialisation and economic expansion, diesel and gasoil are expected to be the primary drivers of this increase, accounting for nearly half of the countrys additional oil demand. India is also expected to contribute more than one-sixth of the total increase in global oil demand through 2030.

India is currently the worlds third-largest energy consumer. Its oil demand, estimated at around 4.6 million barrels per day, is projected to increase to approximately 6.64 million barrels per day by 2030. At the same time, domestic crude oil production has been declining gradually, resulting in growing dependence on imports, which currently account for nearly 89% of the countrys oil requirements.

Figure: Indias oil-demand growth in a global context, 2019-2030

India has a well-developed refining sector, with installed refining capacity of approximately 256.8 million tonnes per annum. The Government of India has set a target of increasing this capacity to 450 million tonnes per annum by 2030. India remains a net exporter of petroleum products, and the planned expansion of refining capacity is expected to further strengthen its position as a major refining and export hub in the region.

Across government-owned public sector refineries, petrochemical integration is targeted to increase from approximately 7% at present to 25% by 2030. This increase is expected to be achieved through changes in refinery operating configurations, including increased Fluid Catalytic Cracker (FCC) severity to generate higher yields of liquefied petroleum gas and Olefins. Naphtha-reforming operations are also expected to be reconfigured to increase aromatic yields.

Biofuels

Biofuels are expected to play an important role in Indias decarbonisation efforts, particularly in the transport and heating sectors, while also strengthening energy security through affordable and domestically produced energy.

Supported by strong political commitment, proactive policies and abundant feedstock availability, India has emerged as the worlds third-largest producer and consumer of ethanol. Ethanol production increased more than sixfold between 2016 and 2023.

Biofuel production and consumption are expected to increase further, supported by higher ethanol blending and the expanded use of biofuels in diesel and aviation- fuel applications. Under the current policy framework, ethanol supply is projected to increase from 90 thousand barrels per day in 2023 to approximately 200 thousand barrels per day by 2030. Biodiesel production is expected to rise from negligible levels to approximately 90 thousand barrels per day over the same period.

Sustaining this growth will depend on addressing feedstock sustainability, cost competitiveness and the need for continued policy support.

Natural Gas and LNG

Indias natural gas consumption is forecast to increase by nearly 60% by 2030, driven by growth in city gas distribution, industrial demand and power generation. Gas demand in the power-generation sector is projected to reach nearly 15 billion cubic metres per year by 2030, supported by a recovery in large gas-fired power plants and the rapid expansion of gas use in captive power plants.

Indias liquefied natural gas imports are expected to more than double between 2023 and 2030, reflecting steady demand growth and a comparatively slower increase in domestic production. Between 2013 and 2023, Indias LNG imports increased by 70%. Imports reached 36 billion cubic metres in 2024, matching the previous record recorded in 2020 and reinforcing Indias position as the worlds fourth-largest LNG importer.

Indias LNG demand is projected to reach 64 billion cubic metres per year by 2030. This represents an average annual growth rate of 11% during 2023-2030, twice the average rate recorded during the preceding ten years.

Indias LNG regasification capacity increased by approximately 90% over the last decade, with four new terminals commencing operations since 2019. At the end of 2024, the country had total nameplate regasification capacity of 65 billion cubic metres per year across seven terminals located at Dahej, Hazira, Dabhol, Kochi, Ennore, Mundra and Dhamra. A new terminal at Chhara, with additional nameplate capacity of 6.8 billion cubic metres per year, is expected to enter commercial service.

To meet projected demand, India plans to further expand its LNG infrastructure. Several terminals are under construction or at the planning stage, with the potential to add nearly 40 billion cubic metres per year of regasification capacity by 2030.

Indias domestic gas production has recorded a resurgence. Total net gas production reached 35 billion cubic metres in 2023, meeting approximately half of the countrys gas demand. This growth was primarily driven by deepwater fields in the Krishna-Godavari Basin, which now account for nearly 25% of Indias total gas production.

Between 2024 and 2030, domestic gas production is expected to record moderate growth, supported by increasing onshore production from Coal Bed Methane (CBM) and Discovered Small Fields (DSF).

The Government of India has set a target of increasing the share of natural gas in the countrys energy mix to 15% by 2030, compared with 6.4% in 2022. This target has established the direction for supportive government policies aimed at increasing the use of natural gas in Indias energy economy.

The Petroleum and Natural Gas Regulatory Board has authorised the establishment of a 33,592-kilometre natural gas pipeline network across the country, with the objective of creating a National Gas Grid under the "One Nation, One Gas Grid" initiative and enhancing the accessibility of natural gas.

Figure: Length of the domestic gas-transmission pipeline network in India, 2014-2030

Companys Strategic Approach to an Evolving Energy Landscape

As a Maharatna public sector undertaking, Oil India is pursuing a balanced growth strategy to address the evolving challenges and opportunities presented by the global energy landscape. While continuing to strengthen its core exploration and production business, the Company is focused on production enhancement, reserve accretion, technology adoption, value-chain integration and diversification into emerging energy businesses.

The execution of this strategy is supported by sustained capital deployment across the Companys portfolio. During FY2025-26, the Company recorded its highest- ever capital expenditure utilisation of Rs.13,025.51 crore, representing 186% of the revised estimate target. Capital deployment during the year was primarily directed towards accelerated exploration and development drilling, expanded seismic acquisition programmes, production infrastructure and pipeline projects, and strategic investments in subsidiaries and joint ventures.

The Companys strategic approach is articulated across the following five priorities:

Strengthening Core E&P Operations

To sustain and enhance hydrocarbon production, the Company is intensifying exploration, development drilling and workover activities across its producing assets. It is also deploying advanced Enhanced Oil Recovery techniques, digital reservoir-management tools and innovative production technologies to improve recovery from mature and declining fields.

During FY 2025-26, these efforts contributed to the Company recording its highest-ever daily oil and gas production of 1,49,360 BOEPD on 31 March 2026, including record daily crude oil production of 81,354 BOPD. The Company also completed a record 307 workover jobs and successfully drilled 74 wells, while drilling meterage increased by 41.5% over the previous year.

Reserve Accretion and Frontier Exploration

The Company is accelerating exploration activities across frontier and offshore basins, particularly in the Andaman, Mahanadi and Kerala-Konkan regions. It is also undertaking extensive geological and geophysical studies in the Assam-Arakan, Rajasthan, Mahanadi and Andaman basins to identify additional hydrocarbon resources and strengthen its reserve base. The Company currently operates one of the largest exploration and production acreages in the country, with a presence across major sedimentary basins in India.

The Companys proposed offshore drilling programme comprises exploration and appraisal activities across key offshore basins. In the Andaman and Kerala-Konkan OALP Blocks, together with the Krishna-Godavari DSF Block, the Company is progressing seismic interpretation, appraisal and exploratory drilling activities.

An additional 600 sq. km of 3D seismic data has been acquiredaround SriVijayapuram-2 andSri Vijayapuram-3 in the Andaman region, with data processing currently underway. An appraisal well in the Andaman East Block, AN-OSHP-2018/1, is planned in Q3 of 2026-27.

A stratigraphic well in the Mahanadi Basin is scheduled for April 2027 to assess the basins prospectivity. Exploratory drilling in the Mahanadi and Krishna-Godavari OALP Blocks is expected to follow the completion of seismic-data processing and the ongoing procurement of drillships and associated services.

During FY2025-26, the Company established the presence of natural gas in the Andaman Basin and confirmed hydrocarbon presence in the North Bank area of the Brahmaputra under the OALP-I Block.

The Company also commenced commercial natural gas production from the Bakhrittiba DSF-III Block in Rajasthan in June 2025. In the Baghewala DSF Block in Rajasthan, the Company achieved monetisation in record time, demonstrating the rapid commercialisation of discoveries under the Discovered Small Fields regime.

Technology and Operational Excellence

Innovation and technology remain central to the Companys growth strategy. The Companys R&D Centre at Duliajan and the Centre of Excellence for Energy Studies in Guwahati support technological advancement across exploration, drilling, reservoir management, production optimisation, carbon management and digital transformation.

The Company continues to collaborate with leading national and international academic institutions, research organisations and technology partners to accelerate innovation, strengthen technical capabilities and improve operational efficiency.

Integrated Value-Chain Expansion

Following the acquisition of a 69.63% stake in NRL, the Company has transformed into a fully integrated energy company, with a presence across the upstream, midstream, downstream, petrochemical and city gas distribution value chains.

The ongoing expansion of NRLs refining capacity from 3 MMTPA to 9 MMTPA, together with associated petrochemical and infrastructure projects, is expected to strengthen the Companys downstream presence and enhance its contribution to Indias energy security.

During FY2025-26, NRL recorded its highest-ever crude receipt and throughput of 3.113 MMTPA since inception. The augmentation of the Numaligarh-Siliguri Product Pipeline increased its transportation capacity from 1.72 MMTPA to 5.5 MMTPA. The project was completed and inaugurated by the Honble Prime Minister on 13^th March 2026, generating cost savings of more than 110 crore through efficient project execution. The Company also achieved its highest-ever crude oil pipeline transportation volume of 7.453 MMT.

NRL is also setting up a 360 KTPA polypropylene unit, expected to be commissioned in FY2027-28. The project is expected to enhance petrochemical integration and value addition while supporting the Companys transformation into a diversified integrated energy company.

Energy Transition and Diversification

The Company is diversifying its energy portfolio to support Indias energy transition, with a target of increasing the contribution of non-hydrocarbon businesses to 12-14% by 2040. While continuing to invest in renewable energy, including solar and wind power, the Company is expanding into emerging areas such as green hydrogen, biotechnology, geothermal energy and Carbon Capture, Utilisation and Storage. These initiatives are intended to support sustainable growth and reduce carbon emissions.

The Company has also entered the critical-minerals sector by securing mineral blocks in Arunachal Pradesh and Rajasthan. It is establishing strategic partnerships with domestic and international organisations to develop capabilities across the critical-minerals value chain and strengthen resource security for clean- energy technologies.

In the clean-fuels segment, the Company plans to establish 25 compressed biogas plants across India using municipal solid waste and agricultural residues as feedstock. Projects are currently under construction at Tinsukia and Bhubaneswar. Letters of Award have been issued for the Jorhat and Agartala projects, while the Cuttack and Sambalpur projects are at the tendering stage. The remaining projects are at various stages of implementation.

Further strengthening the Companys energy-transition portfolio, itsmaterial subsidiary, NRL, has commissioned a 50 KTPA second-generation bioethanol plant based on bamboo feedstock and is developing a 2.4 KTPA green hydrogen plant for refinery operations.

3. Opportunities and Threats/Risks and Concerns

Opportunities

The Company is well positioned to capitalize on emerging opportunities arising from Indias evolving energy landscape and supportive policy environment. The Government of Indias continued focus on enhancing domestic hydrocarbon production through upcoming Open Acreage Licensing Policy (OALP) bid rounds, expansion of exploration acreage and opening of previously restricted areas is expected to create significant growth opportunities for exploration and production companies. The implementation of the new Petroleum and Natural Gas (PNG) Rules, effective from December 2025, marks a major reform in the upstream sector by simplifying approvals, enhancing operational flexibility, enabling integrated development of petroleum leases, improving ease of doing business and providing greater clarity and stability to investors. These reforms are expected to accelerate exploration activities, reduce project timelines and attract higher levels of investment into the sector.

The Companys extensive acreage portfolio, strong technical capabilities and strategy of partnering with national and international oil companies, technology providers and service companies place it in a favourable position to benefit from future OALP and DSF opportunities. The Companys recent exploration successes in frontier basins such as Andaman and its continued focus on reserve accretion further strengthen its long-term growth prospects.

Simultaneously, Indias energy transition agenda presents substantial opportunities for business diversification. Government initiatives promoting renewable energy, biofuels, green hydrogen, Compressed Bio Gas (CBG) and sustainable mobility are creating new investment avenues across the energy value chain. Leveraging its integrated energy business model, the Company is expanding its presence in solar and wind energy, green hydrogen, biofuels, critical minerals, geothermal energy and Carbon Capture, Utilization and Storage (CCUS). The Company has planned investments of approximately 20,000 crore by 2040 towards energy transition and net-zero initiatives through a dedicated wholly owned subsidiary viz. OGEL for alternate energy businesses.

The adoption of advanced technologies, including artificial intelligence, data analytics, digital oilfield solutions, automation and advanced drilling techniques, is expected to further enhance operational efficiency, improve reservoir management and optimize production. Coupled with a strong focus on Environmental, Social and Governance (ESG) practices, these initiatives will strengthen Companys competitiveness and sustainability credentials. Supported by its legacy of technological innovation, diversified business portfolio and integrated energy presence, the Company is well positioned to drive future growth, contribute to Indias energy security and support the countrys long-term decarbonization & sustainability objectives.

Threats/Risks and Concerns

Principal Risk	Risk Description	Risk Mitigation Strategy
Commodity Price and Market Volatility	Fluctuations in international crude oil and natural gas prices, geopolitical developments and changing demand- supply dynamics may adversely impact revenue realisations, profitability, cash flows and investment decisions.	Continued focus on operational efficiency, production enhancement initiatives, disciplined capital allocation and business diversification across upstream, downstream and emerging energy businesses to improve resilience across commodity price cycles.
Exploration, Reserve Replacement and Production Growth	Lower exploration success, delays in execution of exploration work programmes, limited availability of ready-for-drilling locations and challenges in sustaining reserve replacement may impact future production and long-term business sustainability.	Accelerated seismic acquisition, increased exploratory and development drilling, deployment of advanced geological and geophysical technologies, technology partnerships, expansion into frontier basins and continuous monitoring of reserve replacement performance.
Production and Operational Excellence	Mature fields, infrastructure constraints, operational disruptions and ageing assets may adversely affect production performance, operating efficiency and revenue generation.	Production enhancement programmes, enhanced oil recovery (EOR) initiatives, workover campaigns, infrastructure modernisation, digital oilfield technologies and continuous asset performance monitoring.
Project Execution and Supply Chain	Delays in project execution, procurement of specialised equipment and services, contractor performance or cost overruns may affect production targets, project economics and capital efficiency.	Structured project governance, milestone- based project monitoring, procurement planning, contractor performance reviews and periodic oversight by senior management to ensure timely project execution.
Energy Transition and Portfolio Diversification	The transition towards lower-carbon energy systems, evolving customer preferences and climate-related policies may influence long-term demand for conventional hydrocarbons and alter market dynamics.	Continued investments in renewable energy, compressed biogas (CBG), green hydrogen, critical minerals, biofuels and other emerging businesses while strengthening the core exploration and production portfolio.
Principal Risk	Risk Description	Risk Mitigation Strategy
Regulatory, ESG and Compliance	Changes in government policies, fiscal regime, environmental regulations and ESG requirements may impact operations, project execution, compliance obligations and operating costs.	Continuous monitoring of regulatory developments, strengthening governance and compliance frameworks, implementation of sustainability initiatives and integration of ESG considerations into business planning.
Health, Safety and Environment (HSE)	Exploration, production and hydrocarbon transportation involve inherent operational, safety and environmental risks that could impact people, assets, communities and the environment.	Robust HSE management systems, process safety programmes, emergency preparedness, asset integrity management, regulatory compliance and continuous monitoring of operational risks.
Financial and Foreign Exchange Risk	Fluctuations in foreign exchange rates, interest rates and financial market conditions may impact borrowing costs, foreign currency obligations and financial performance.	Prudent treasury management, balanced capital structure, periodic review of funding strategy and disciplined financial risk management practices.
Cybersecurity and Digital Risk	Increasing digitalisation across Information Technology (IT) and Operational Technology (OT) systems increases exposure to cybersecurity threats, data breaches and operational disruptions.	Strengthening cybersecurity governance, enhancing IT and OT security controls, continuous monitoring of critical systems, periodic security assessments and employee awareness programmes.
Human Capital, Stakeholder and Reputational Risk	Availability of skilled talent, leadership continuity, community engagement, social unrest, legal disputes and reputational events may affect business continuity and long-term organisational performance.	Continuedinvestmentincapabilitydevelopment, succession planning, stakeholder engagement, community development initiatives, transparent governance practices and proactive legal and compliance management.

4. Segment-Wise/Product Wise Performances

i. Crude Oil

During FY 2025-26, crude oil production stood at 3.450 MMT as against 3.458 MMT in the previous year, registering a marginal decline of 0.23%. Crude oil sales were 3.334 MMT, compared to 3.346 MMT in FY 202425. Despite the natural decline in mature fields and an economic blockade in parts of Upper Assam, production was sustained through strategic initiatives including IOR/EOR, accelerated monetisation of new discoveries, production optimisation, advanced technologies, recovery of missed opportunities, infill drilling, monetisation of sick wells, Cyclic Steam Stimulation (CSS) in Rajasthan, and upgradation of surface facilities. Low Market Demand (LMD) for associated natural gas resulted in an opportunity loss of 0.057 MMT of crude oil production.

The Company achieved a terminal crude oil production rate of 10,566 MTPD, the highest in the last 14 years, reflecting the success of sustained drilling, workover and production optimisation efforts. Overall crude oil production of 3.450 MMT represented 86% achievement against the MoU target of 4.034 MMT.

Crude oil sales accounted for approximately 97% of total production. Sales from Assam & Arunachal Pradesh were 3.282 MMT against production of 3.387 MMT (97%), while Rajasthan recorded sales of 0.034 MMT against production of 0.044 MMT (including 250 MT of condensate), representing 77% of production. Average crude oil price realisation declined to USD 69.04/bbl from USD 78.09/bbl in the previous year.

The production shortfall against the MoU target was primarily attributable to consequential production losses of 0.099 MMT due to economic blockade and other associated environmental constraints. Operation related losses amounted to 4,095 MT, attributable

to operational and maintenance-related activities associated with field operations. Further, the natural decline in wellhead production potential across mature producing fields, estimated at 1,516 MTPD, contributed to the overall production shortfall during FY 2025-26. Additionally, production losses of 9,999 MT were incurred due to Low Market Demand (LMD), comprising 296 MT from Company-operated areas and 9,703 MT representing Companys share from Dirok JV. Despite these challenges, the Company maintained production momentum, which also enabled its material subsidiary NRL to achieve the highest refinery throughput since inception.

Under MISSION 4+, the Company aims to achieve sustained production of 4 MMT of crude oil and 5 BCM of natural gas through accelerated field development, intensified drilling and deployment of advanced technologies. Operational capabilities are being strengthened through augmentation of workover rigs, induction of VFD-enabled drilling rigs, enhancement of artificial lift systems and development of production infrastructure. The Company is also expanding Production Enhancement Contracts (PECs), deploying advanced production technologies, accelerating monetisation of low-performing wells, reassessing the Main Producing Areas (MPAs) using integrated 3D seismic interpretation, and progressing multiple EOR initiatives. These measures, supported by digitalisation, data-driven reservoir management and Government policy support, are expected to enhance long-term production and energy security.

Actions have been initiated for implementation of following projects, which are in different phases:

a. Carbonated Water Injection

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

c. Rajasthan Field:

FY 2025-26 was a landmark year for the Rajasthan Field (RF), which achieved its highest-ever crude oil production since inception of 43,773.41 MT, along with the highest-ever daily production rate of 1,202 BOPD. These achievements were driven by an intensified drilling campaign, optimisation of Cyclic Steam Stimulation (CSS) operations, introduction of barefoot completion, and innovative production enhancement initiatives.

During the year, RF successfully drilled 12 wells (BGW- 041 to BGW-052) using barefoot completion, introduced for the first time in BGW-041. The wells demonstrated encouraging cold production rates of 15-30 BOPD and significantly higher production following CSS, establishing barefoot completion as a key development strategy. Improved drilling practices and efficient drill bit technologies also reduced drilling time, resulting in estimated savings of approximately 0.90 crore per well.

RF completed 19 CSS cycles, the highest executed in a single year since commencement of thermal recovery operations. Deployment of an additional CSS unit improved operational flexibility and enabled successful CSS implementation in barefoot wells BGW-042, BGW- 043 and BGW-048. CSS and production optimisation initiatives contributed 10,768 MT of crude oil, accounting for 24.6% of the total annual production of 43,773 MT.

The record production was further supported by innovative production optimisation measures, including introduction of short-duration CSS cycles, in-house surfactant thermal stimulation without any additional capital investment, and prioritised selection of CSS candidate wells based on production potential and economic returns. In addition, deployment of liquid casing technology improved wellbore stability, reduced formation fluid losses and lowered chemical consumption costs by approximately 2%.

Technology Induction and Innovation in RF

Rajasthan Field (RF) continued to strengthen its technological capabilities through the induction of advanced production and digital technologies. Fishbone Completion Technology, first implemented in Baghewala Well BGW-040, delivered an incremental production gain of approximately 70 BOPD, making it the highest producing well in the field at around 140 BOPD. Based on its success, five additional wells have been identified for Fishbone completion during FY 2027-28 and FY 2028-29.

The Company also commissioned its first Real-Time Downhole Pressure-Temperature Monitoring System (RTMS) in BGW-035 during June 2025, enabling continuous reservoir monitoring and supporting improved CSS design, reservoir characterization and production optimization.

Implementation of Multi-Stage Physio-Chemical (MPC) Technology has been planned in six wells (four in the Jodhpur Sandstone reservoir and two in the Upper Carbonate formation) from October 2026. The technologyisexpectedtoenhancereservoirconnectivity and production, with the Jodhpur Sandstone wells anticipated to contribute approximately 40 BOPD, while establishing sustained production from the Upper Carbonate reservoir.

RF has also adopted cluster J-bend well development to optimize infrastructure utilization, improve reservoir drainage and reduce environmental footprint, with estimated savings of approximately 0.60 crore per well. In line with its Net-Zero target by 2040, the Company is establishing a pilot Gas Sweetening Unit (GSU) and Carbon Capture & Storage (CCS) facility at the Dandewala Gas Processing Complex. Following completion of the pre-feasibility study in July 2025, a suitable CO₂ injection well location has been identified and the tendering process for surface facilities and the injection well has been initiated.

ii. Natural Gas

During FY 2025-26, the Company produced 3.186 BCM of natural gas against the MoU target of 3.889 BCM, achieving 81.93% of the target. Production comprised 2.863 BCM from Assam & Arunachal Pradesh, 0.255 BCM from Rajasthan Fields, and 0.068 BCM as the Companys share from Dirok JV. Natural gas sales stood at 2.632 BCM, representing approximately 83% of production, including 2.243 BCM from Assam & Arunachal Pradesh and 0.250 BCM from Rajasthan, corresponding to 98% evacuation of Rajasthan production.

However, total opportunity loss in natural gas production due to LMD (Low Market Demand) and low upliftment by major consumer is 0.221 BCM and opportunity loss due bandhs/blockades etc is 0.009 BCM which is not attributable to the Company. Moreover, opportunity loss due to lack of evacuation is 0.175 BCM. Revenue from natural gas increased to 5,636.72 crore from 5,514.09 crore in the previous year, while the weighted average gas price realization remained largely stable at US$ 6.64/ MMBTU compared to US$ 6.68/MMBTU in FY 2024-25. The shortfall against the MoU targets was primarily due to lower consumer offtake and inadequate evacuation infrastructure for connectivity to the National Gas Grid, limiting monetization of available gas potential.

Rajasthan Field - Record Natural Gas Production

During FY 2025-26, Rajasthan Field (RF) achieved its highest-ever natural gas production since inception, producing 254.99 MMSCM, including 23.13 MMSCM from the DSF Contract Area, and achieving 81.73% of the annual target of 312 MMSCM. Gas sales also reached a record 250.40 MMSCM, while ensuring uninterrupted gas supply to RRVUNL through the GAIL pipeline network.

A key milestone was the successful monetization of the Bakhritibba DSF-III Contract Area, with gas production commencing on 1 June 2025, making it one of the fastest monetization achievements under the DSF Round-Mi framework. Awarded to the Company in September 2022 with 100% Participating Interest, the project involved successful drilling and completion of three development wells (BGT-004, BGT-005 and BGT-006) within the stipulated development period ending 15 June 2026, qualifying the Company for early monetization incentives. The field is currently producing approximately 78,000 SCMD of natural gas, with plans to enhance production to 100,000 SCMD

North-East Gas Grid Connectivity: Unlocking Efficient Gas Evacuation and Market Access

Approval for the expansion of the North-East Gas Grid through the laying of a pipeline from Duliajan to Sectionalizing Valve Station-14 (SV-14) of the Guwahati- Numaligarh Pipeline was obtained in February, 2026. This strategic project will enhance the Companys gas evacuation capacity, facilitate monetization of additional and stranded gas reserves, and support the growing demand from the industrial, commercial, City Gas Distribution (CGD) and power sectors.

To strengthen its gas portfolio, the Company is accelerating exploration, development drilling, workover operations and production optimization across its key operational areas in Assam, Arunachal Pradesh, Rajasthan, and other prospective basins. Simultaneously, investments are being made in critical gas infrastructure, including Non-Associated Gas (NAG) wells, gas gathering stations, compression facilities, pipeline networks, and gas processing and evacuation systems. These initiatives are expected to enhance production, improve operational efficiency, reduce routine gas flaring, and contribute to Indias energy security and clean energy transition.

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 Khagorijan, along with pipeline infrastructure

(b) Gas Gathering Station at Baghjan

(c) Revamping of old installations

(d) Group Gathering Station at Lakwagaon

RF continued its dedicated efforts to ensure efficient production operations and uninterrupted supply of natural gas to RRVUNL in accordance with the GSA through the pipeline network of GAIL (India) Limited, thereby supporting the energy requirements of the State of Rajasthan and contributing significantly to the overall annual performance of the Company.

iii. Liquefied Petroleum Gas (LPG)

During FY 2025-26, the LPG Recovery Plant achieved an availability of 99.89%, while butane recovery efficiency stood at 98.59%, exceeding the design specification of

98%. The plant processed an average of 1.83 MMSCMD (66.15 MMSCFD) of gas with an average butane content of 1.01% (v/v) and operated for 338 days, producing 30,906 MT of LPG. In addition, 20,925 MT of condensate was recovered as a by-product and added to the Companys crude oil production. The LPG Filling Plant operated for 276 days, dispatching the entire LPG production to IOCL in bulk tankers. Revenue from LPG sales stood at 166.39 crore, while condensate realization was 25.56 crore as against 30.45 crore in the previous year.

iv. Pipeline Operations

During FY 2025-26, the Company achieved its highest- ever crude oil transportation of 7.453 MMT, surpassing 7.145 MMT in the previous year. The Digboi-Naharkatia- Bongaigaon sector transported 3.282 MMT of the Companys crude oil, 1.040 MMT for ONGC and 0.032 MMT from JVC, while the Barauni-Bongaigaon- Guwahati sector transported a record 3.098 MMT of imported crude oil. The Numaligarh-Siliguri Product Pipeline (NSPL) transported 1.724 MMT of petroleum products. Transportation revenue increased to 936.20 crore (including 263.11 crore arrear recovery arising from tariff revision, excluding 6.74 crore from telecom business) compared to 572.23 crore in the previous year (excluding 9.28 crore from telecom business).

The Company operates 1,243 km of crude oil pipelines and a 654 km product pipeline. During the year, pipeline reliability and safety were strengthened through infrastructure modernization, while Phase-II of the trunk pipeline rehabilitation project covering the remaining ~700 km was initiated in December 2024.

The NSPL Capacity Augmentation Project, increasing pipeline capacity from 1.72 MMTPA to 5.5 MMTPA to support NRLs expansion from 3 MMTPA to 9 MMTPA, was dedicated to the nation by the Honble Prime Minister of India on 13 March 2026. The project incorporates advanced automation and leak detection technologies, is expected to be completed at around 750 crore against the approved cost of 860 crore, and achieved over 4 million LTA-free man-hours during execution.

5. Financial Performance

During the FY 2025-26, the Company has earned total revenue of Rs.24,038.58 crore as against Rs.23,987.07 crore in the previous year. Revenue remained broadly stable during the year as the impact of lower crude oil price realizations was largely offset by higher transportation income, higher dividend and stable natural gas revenues.

The Net profit margin of the Company for FY 2025-26 was 20.87%. The Profit Before Tax (PBT) in the FY 202526 was Rs.5,419.86 crore against PBT of Rs.7,850.95 crore in the previous year. The decline in Profit Before Tax during FY 2025-26 was primarily attributable to lower crude oil price realizations, higher exploratory well write-offs and provisions, increased contract expenditure arising from expanded exploration and seismic activities and

increased foreign exchange losses on revaluation of foreign currency borrowings. These were partially offset by lower statutory levies following the withdrawal of the Special Additional Excise Duty (SAED).

The Company has registered Profit After Tax (PAT) at Rs.4,455.34 crore during FY 2025-26 as against Rs.6,114.19 crore in the previous year.

Serial No.	Particulars	FY 2025-26	FY 2024-25	Variation
1	Debtor Turnover	6.8	8.36	(18.65)%
2	Inventory Turnover	10.59	12.69	(16.58)%
3	Interest Coverage Ratio	9.06	12.28	(26.22)%*
4	Current Ratio	1.22	1.3	(6.15)%
5	Debt Equity Ratio	0.27:1	0.27:1	0%
6	Operating Profit Margin (%)	17.30%	30.96%	(44.12)%*
7	Net Profit Margin (%)	20.87%	27.64%	(24.50)%
8	Return on Net Worth	10.58%	15.47%	(31.41)%*

*Due to decrease in PBT which was primarily attributable to lower crude oil price realizations etc.

Capital expenditure during FY2025-26 stood at 13,025.51 crore, representing 186% of the revised estimate and the highest capital expenditure achieved by the Company. The increase in capital deployment was primarily driven by accelerated exploration and development drilling, expanded seismic acquisition programmes, investment in production infrastructure, pipeline projects and strategic investments in subsidiaries and joint ventures. Exploration drilling, seismic acquisition and capital equipment together accounted for approximately 8,905 crore, ~68% of the Companys total capital expenditure during FY2025-26, reflecting the Companys continued focus on reserve accretion, production enhancement and long-term value creation.

The Company continued to maintain a prudent financial position while supporting accelerated capex during FY 2025-26. Debt stood at 13,277.93 crore as at 31^st March 2026, while the debt-equity ratio remained stable at 0.27:1, reflecting a balanced capital structure during the year.

6. Internal Control System

Internal Audit in the Company is an independent corporate reporting function that provides objective assurance on the adequacy and effectiveness of the Companys internal control system, risk management framework, and governance processes. It assesses whether these mechanisms are appropriately designed, effectively implemented and functioning as intended to safeguard assets, ensure compliance with applicable laws and policies and aligned with the Companys strategic and operational objectives.

The Audit & Ethics Committee, under the overall supervision of the Board of Directors, exercises oversight of the Internal Audit function. The Committee periodically reviews audit plans, key findings and management responses and monitors the timely implementation of corrective actions, thereby ensuring the strengthening of internal controls and safeguarding of stakeholders interests.

The Company follows a structured risk-based internal audit approach covering the entire Audit Universe, including all business processes, functions and operations. The annual audit plan is developed through a systematic risk assessment to prioritize high-risk and critical areas. A digitalized system of audit reporting enhances audit execution, tracking of observations and monitoring of corrective actions. The use of technology and analytics strengthens internal controls, improves transparency and supports proactive risk management across the organization.

7. Human Resource

Your Companys human capital remains a critical enabler of operational resilience, business growth,andlong-term value creation. In FY 2025-26, the Company continued to strengthen workforce capabilities, leadership depth, employee engagement, and digital readiness in alignment with its strategic priorities and the evolving energy landscape. The Companys people strategy is anchored on creating a future-ready workforce capable of supporting operational excellence, innovation, safety, and sustainable growth.

Workforce Stability, Talent Renewal & Diversity

The Company maintained a stable workforce with very low voluntary attrition, reflecting strong employee commitment and organisational stability. Strategic recruitment and internal talent development continued to support succession requirements and emerging business opportunities. Alongside workforce renewal efforts, the Company remained committed to diversity, equity, and inclusion through inclusive hiring, adherence to Government reservation policies, and initiatives aimed at improving representation across workforce segments. Increased participation of women in executive recruitment reflects continued progress toward building a more balanced and diverse organisation.

Capability Building & Leadership Development

Capability development continues to be a strategic priority for the Company as the Company prepares for future business challenges and opportunities. During the year, learning initiatives were delivered through a blended ecosystem comprising classroom programmes, digital learning platforms, and competency-based interventions. A significant milestone was achieved through the Companys pioneering integration with the iGOT Karmayogi platform, strengthening access to learning and knowledge resources.

The Company also strengthened its leadership pipeline through structured initiatives such as Aarohan, the Companys flagship leadership development journey, DAKSH, the Government of Indias leadership programme for CPSE executives, and BizHR, aimed at enhancing the business and strategic capabilities of HR professionals. These interventions contribute towards succession readiness, leadership bench strength, and organisational agility in an increasingly dynamic business environment.

Employee Engagement, Well-being & Workplace Culture

The Company continued to foster a culture of engagement, recognition, collaboration, and employee well-being. Leadership outreach initiatives, employee recognition programmes, wellness interventions, sports and team-building activities, and continuous communication platforms helped strengthen workforce morale and organisational commitment. The Company also maintained a strong focus on workplace dignity, safety, and inclusiveness through established grievance redressal and awareness mechanisms, reinforcing a culture of mutual respect and accountability.

Digital HR Transformation

The Company accelerated its digital HR transformation agenda with a focus on enhancing service delivery, transparency, and data-driven decision-making. Ongoing initiatives in process automation, employee self-service systems, learning analytics, workforce management, and digital governance are improving employee experience while enabling HR to play a more strategic role in organisational planning and performance management. These initiatives are expected to further strengthen operational efficiency and organisational responsiveness in the years ahead.

Linkage to Sustainability & Business Strategy

Human capital remains central to the Companys sustainability and growth agenda. The Companys people strategy supports operational excellence, safety performance, energy transition preparedness, and organisational resilience. Continuous investment in capability enhancement, leadership development, and workforce reskilling is helping prepare employees for emerging opportunities across conventional and new energy domains, including renewables, compressed biogas, critical minerals, and other evolving business areas. The Companys leadership continues to monitor human capital indicators as part of its broader focus on sustainable value creation and ESG performance.

Industrial Relations & Social Partnership

The Company continued to maintain a harmonious industrial relations climate through proactive engagement with employee unions and executive associations. Constructive dialogue, collaborative problem-solving, and timely grievance resolution contributed to smooth operations and strengthened trust between management and employees. The Companys strong industrial relations framework continues to support productivity, project implementation, and organisational stability.

Outlook

Going forward, the Company will continue to focus on strategic workforce planning, leadership development, workforce diversity, future-skilling, and digital HR transformation. Particular emphasis will be placed on developing capabilities required for new business areas, strengthening succession pipelines, enhancing employee experience, and ensuring preparedness for evolving regulatory requirements, including the implementation of the Labour Codes. With a skilled, engaged, and future-ready workforce, the Company remains well-positioned to support its long-term growth ambitions while creating sustainable value for all stakeholders.

8. Industrial Relations & Social Partnership

Your Company enjoys a harmonious industrial relations climate, underpinned by regular engagement with unions and executive associations. FY 2025-26 saw no major industrial disputes and operations were carried out without significant interruption. The Company ensured compliance with all applicable labour laws, including timely wage disbursement, provident fund contributions and ESI, gratuity, leave and bonus payments.

These efforts have strengthened trust and partnership with our workforce. Companys proactive outreach, including joint workshops with unions and local stakeholders facilitated quick resolution of grievances, contributing to enhanced production and project progress.

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 nomination Petroleum Exploration License (PEL) covering an area of 24.61 sq.km and 25 Petroleum Mining 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 2025-26, the Company has acquired 195.85 sq.km of 3D seismic data and drilled 17 exploratory & 50 development wells in its nomination acreages.

11. NELP Block

Your Company has two operating NELP Blocks viz. AA-0NN-2010/2 (Karbi-Anglong) and AA-0NN-2010/3 (Sadiya) in Assam awarded under NELP-IX Round. One exploratory location is earmarked for drilling in each of the Blocks (Loc. KNEB in Karbi Anglong and Loc. SDYA_R in Sadiya). Pre-drilling activities are ongoing in the Blocks presently.

iii. OALP & DSF Blocks

As on 31^st March 2026, the Company has a total of 32 operated Blocks under Open Acreage Licensing Policy (OALP) Regime covering a total area of 87,432 sq. km. These acreages are in the States of Assam, Arunachal Pradesh, Tripura, Nagaland, Meghalaya, Odisha, Rajasthan, Gujarat and offshore areas in Andaman, Kerala-Konkan, KG & Mahanadi basins. The Company has also been awarded 03 Blocks as operator- 01 each in Tripura (47.23 sq. km) & KG Offshore (93.90 sq.km) under DSF Round-II and 01 Block in Rajasthan (66.67 sq.km) under DSF Round-III.

During FY 2025-26, the Company acquired 4235.37 LKM of 2D and 5067.34 sq.km 3D seismic data in the OALP Blocks. Company has also completed drilling of 04 nos. of exploratory wells viz. 02 wells in Assam: Maijan-1 (AA-ONHP-2017/18) & Mangaldoi-1 (AS-ONHP-2021/3), 01 well in Odisha: Cuttack-3 (MN-ONHP-2018/5) and 01 well in Andaman shallow offshore: Vijaya Puram-2 (AN- OSHP-2018/1). The Company is also currently drilling 03 wells viz. Jagatsinghpur-1 in Odisha (MN-ONHP-2018/1), Vijaya Puram-3 in Andaman shallow offshore (AN- OSHP-2018/1) & Kollam-1 in Kerala Konkan shallow offshore (KK-OSHP-2018/1).

In the DSF regime, Company has completed drilling of 01 exploratory/ appraisal well viz. Bagitibba-7 in the RJ/ONDSF/BAKHRITIBBA/2021 Block and 02 development wells viz. Debtamura-1 & Debtamura-2 in AA/ONDSF/Tulamara/2018 Block. The Company is also currently drilling its 3^rd well viz. Debtamura-3 in AA/ ONDSF/Tulamara/2018 Block and 1^st well viz. Godavari-1 (appraisal category) in KG/OSDSF/GSKW/2018 Block.

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 202526, Companys share of production from these two JVs assets were 18,847 MT of oil and 68.692 MMSCM of gas.

v. Blocks under NELP with OIL as non-Operator

TheCompanyholds01 NELPVIIBlockviz.WBONN-2005/4 covering a total area of 1007.75 sq. km in the state of West Bengal (Onshore) as non-operator (PI 25%) as on 31 March 2026. 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 in the Block. Currently, these 3 discoveries are under various stages of appraisal/development.

As a non-operator, the Company also holds 01 (One) NELP-IX Block viz. GK-OSN-2010/1 in Gujarat-Kutch shallow offshore with 30% PI along with ONGC (60% PI & Operator) & GAIL (10% PI). Earlier two gas discoveries were made in the Block, which were apprised by drilling of two appraisal wells. However, both the appraisal wells went dry and the Block lacked commercial viability for further development. Although the Block validity expired on 01.08.2021, the Operator continued to pursue for extension of the Block from the government. In the meanwhile, DGH has informed the Operator that the discoveries made in the Block, viz. GKS101NAA-1 & GKS101NCA-1 have been offered for bidding under DSF- IV Bid Round.

B. Overseas

Overseas E & P Blocks with Pl/Operatorship by Company

The Companys overseas E&P portfolio spreads over 05 countries covering Russia, Venezuela, Mozambique, Nigeria and Libya. 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 1 (one) exploratory asset in Libya.

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 asset is held through the SPV-Vankor India Pte. Ltd. (VIPL) held jointly by wholly owned subsidiaries of the Company, IOCL and BPRL in Singapore. As on 31.03.2026, the 2P reserve position corresponding to Companys Participating Interest in this asset has been estimated at 10.625 MMT of oil and 3.833 MMTOE of natural gas. During 2025-26, the Companys share of production in the asset is 0.945 MMTOE. Cumulatively till 31.03.2026, an amount equivalent to USD 508.29 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 asset is held through the SPV- Taas India Pte. Ltd (TIPL), held jointly by wholly owned subsidiaries of the Company, IOCL and BPRL in Singapore. As on 31.03.2026, the 2P reserve position corresponding to Companys participating interest in this asset has been estimated at 9.365 MMT of oil. During 2025-26, the Companys share of crude oil production in the asset is 0.464 MMT. Cumulatively till 31.03.2026, an amount equivalent to USD 491.89 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 Rs.8,229.68 Crore (USD 1033.71 million) till 31 March 2026.

Russia: License 61

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

LLC Stimul T, the Russian legal entity which owns the License 61 asset, has filed for bankruptcy in 2023 due to adverse operational and financial circumstances. The carrying value of Rs.3.23 Crores (USD 0.34 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%]

As at 31 March, 2026, 76 wells have been drilled in the block. The Project owns and operates 30 KBD crude treatment plant. As on 31 March, 2026, the 2P reserve position corresponding to Companys Participating Interest in Project Carabobo has been estimated at 0.0863 MMT. During FY 2025-26, Companys share of production in the asset stood at 0.0139 MMT. Companys share of investment in this project is Rs.303.58 Crore (USD 60.06 million) as on 31^st March, 2026. The carrying value of investment stood at Rs.27.32 Crore (USD 5.15 million) as on 31^st March, 2026, post provision for 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 7^th January, 2014, through acquisition of 100% shares in Videocon Mozambique Rovuma 1 Limited [since renamed as Beas RovumaEnergyMozambiqueLimited(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 Golfinho-Atum Mozambique LNG Project on 18^th 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 24^th March, 2021. The onshore and offshore construction contracts were awarded and construction works at site was started.

Operator declared Force Majeure in 2021 due to deterioration of the security situation in Cabo Delgado province of Mozambique. However, with improvement of security situation, the Force Majeure was lifted by Operator on behalf of concessionaires on 07^th November, 2025. Accordingly, Manpower and Equipment are mobilized to the project site by both the Operator and the Contractors (EPC and EPCI) and project activities have resumed both on site and at various manufacturing locations worldwide. Project progress as at the end of March 2026 is 41.8%.

As on 31.03.2026, 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 Rs.11,714.19 crore (USD 1,695.72 million) as on 31^st March, 2026.

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, the Company, 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 Rs.200.24 crore (USD 21.12 million) as of 31^st March, 2026. Impairment provision has been taken against the entire investment in the books of the Company as on 31^st March, 2026.

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 17^th February 2014 in Dhaka, Bangladesh for an initial exploration period of five (05) years. Both Blocks were valid till 16^th February 2025.

The mandatory seismic studies were completed in the Blocks. Drilling of 1 (One) onshore well Kanchan- IX in Block SS-04 was completed. The Operator had requested Petrobangla for extension of both the Blocks for 3 years. Petrobangla provided 2 years extension i.e. upto 16^th 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 27^th June 2025 communicated to Petrobangla (The Regulator) for termination of PSC of SS-04 & SS-09 Blocks. Presently, steps being taken to close the country Office at Dhaka.

Libya: Area 95/96

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

The Consortium completed 2D and 3D Seismic API against MWP in the Block & subsequently, five (5) wells, out of the committed eight (8) wells, were drilled during the period 2012 to 2014, wherein four (4) wells have been declared as oil and gas discoveries. During drilling of the sixth well, exploration activities in the Block were suspended from 20.05.2014 due to Force Majeure on account of deteriorating geopolitical situation in Libya. However, with improving Law and Order situation in the country, the Force Majeure was lifted and National Oil Corporation (NOC), Libya granted extension of the exploration period for 30 months with effect from 07.11.2023 till 06.05.2026 to complete the remaining Minimum Work Programme (MWP).

Thereafter, operations have been resumed in the Block and drilling and testing of the 6^th MWP well has been completed. Based on the DST results, the well has been declared as an oil and gas discovery on 27.04.2026 for two (02) Formations, viz. Ouan Kasa (gas @ 6.64 MMSCFD with 208 bbls/d condensate) and Awaynat Wanin A (gas @ 6.67 MMSCFD with 119 bbls/d condensate). As the Block validity expired on 06.05.2026, a one-year extension has been sought from NOC, Libya for carrying out the remaining work commitment comprising of drilling of two (2) exploration wells. The request for extension has been recommended by NOC and is currently awaiting the approval of the Libyan Government.

Concurrently, the appraisal activities for the four (4) earlier discoveries are being initiated in line with the approved appraisal work program.

Gabon: Block Shakthi-II

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

An oil discovery was made in well Lassa-1 in the Old PSC (G4-220). This led to the drilling of two appraisal wells, Lassa-2 and Lassa-3, fulfilling Phase-1 commitments of the New PSC (G4-245). The consortium further acquired 1,213.04 LKM of new 2D seismic data to evaluate remaining prospectivity. Integrated interpretations advanced the Block into Phase-II with obligations to drill two exploratory wells. The Phase-II Block validity was extended to April 15, 2025, however, the two committed wells could not be drilled, due to statutory delays, COVID-19 pandemic, external disruption and related factors. Subsequently, the consortium applied for a one-year extension to April 15, 2026, which DGH-Gabon did not grant.

Uncontrollable factors, including the non-extension of Block validity, contractual/statutory delays, external disruptions, cost escalations, etc., prompted the consortium to notify DGH-Gabon on July 28, 2025, of its decision to relinquish the Block and terminate PSC No. G4-245. Presently, steps are being taken for phased wind-up of contracts, site restoration, statutory compliance, and administrative closure.

II. Discovery of Oil and Gas

Your Company has made 02 (two) discoveries during FY 2025-26, the details are as follows:

Well East Borpothar-1: Oil discovery was made in Borhapjan PML in Assam in the exploratory well East Borpathar-1 (Loc .BHD). The well was drilled upto 4600 m and a total of 07 prospective zones were encountered in the well, out of which the 4380-m Lk+Th Sand was tested and the well produced crude oil @ 80 KLPD (API- 26.3?, PP-39?C) with water @ 4 KLPD (Salinity-300 ppm, HCO3-4575 ppm) through 5 mm bean. The discovery is the result of Companys continued Near Field exploration pursuit in its nomination acreages in proven petroliferous basins.

Well Namrup-Borhat-2: Oil discovery was made in the exploratory well Namrup Borhat-2 (Loc. NOAB) in OALP-I Block AA-ONHP-2017/20 in Assam. The well was spudded on 09.07.2024 and drilled down to depth of 4403 m targeting the Oligocene play. The 4333-m Barail sand was tested and the well produced crude oil @13 klpd (API-31.1? & PP-33?C). The appraisal plan includes the extended testing of the oil-bearing sand interval along with testing of other prospective sands encountered in the well. It is also planned to drill one more exploratory Loc. NOAC for probing the Eocene and Barail plays in the Block.

In a significant breakthrough, the Company also established presence of gas in exploratory well Vijaya Puram-2 (Loc. OAEA) in OALP-II Block AN-OSHP-2018/1 in Andaman East shallow offshore. The well was spudded on 23.05.2025 and drilled upto 2961 m in Eocene play. On testing the 2212-m Eocene sand, the well recorded an immediate pressure build-up of 1000 psi while flowing formation water along with intermittent gas. Gas compositional analysis indicated CH4 concentration of 87% (Net Calorific Value-7217 Kcal/SCM, Gross Calorific Value-8013 Kcal/SCM). The testing results mark only as a technical success at this stage with no commercial flow established in the well. Around 600 SQKM of high- resolution 3D seismic data is planned to be acquired in the Block to refine the next phase of exploration in the area.

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 1^st April, 2026 are as follows:

In-Place Volume	Low Estimate	Best Estimate	High Estimate
STOIIP (MMT)	788.6297	810.5202	829.3501
GIIP (BCM)	418.3507	435.4061	450.6063
O+OEG (MMTOE)	1152.5356	1188.8046	1220.7199

 

Reserves	1P	2P	3P
Oil + Condensate Reserves (MMT)	28.6954	68.6826	87.3427
Balance Recoverable Gas (BCM)*	90.5641	139.6810	178.9898
O+OEG (MMTOE)	107.7296	190.0934	243.0541

*Based on projected volume of gas under various sales contracts, 1P, 2P and 3P Gas Reserves are 35.3000 BCM, 50.5770 BCM, 61.9620 BCM respectively.

Accretion: The accretion to oil and gas reserves during the FY 2025-26 in Companys domestic sector including JVs (as per Companys PI) is given below:

Reserves	1P	2P	3P
Oil + Condensate Reserves (MMT)	2.7387	2.8398	0.8346
Balance Recoverable Gas (BCM)*	4.8306	3.8337	2.0593
O+OEG (MMTOE)	7.0119	6.2320	2.6597

Overseas

As of 1^st April 2026, 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)	8.7615 20.5325	32.2673
Gas (BCM)	11.6153 20.0421	23.8917
O+OEG (MMTOE)	20.3768 40.5746	56.1590

13. New Initiatives:

Diversification into Critical Minerals Domain: Critical minerals present a significant opportunity to support the global energy transition and Indias commitment to achieving net-zero emissions by 2070. These minerals are indispensable for clean energy technologies, including solar panels, wind turbines, semiconductors, electric vehicles and advanced energy storage systems. In line with this strategic vision, the Company has actively participated in Tranche-IV and Tranche-V critical mineral auctions conducted by the Ministry of Mines and has emerged as the Preferred Bidder for two mineral blocks: the Phop Graphite & Vanadium Block in Arunachal Pradesh and the Jorkian-Satipura-Khunja Potash & Halite Block in Rajasthan.

For the Phop Block, the Company completed all preexploration activities, secured the Composite Licence in December 2025 and commenced the exploration phase, with detailed exploration to be undertaken in collaboration with Mineral Exploration and Consultancy Limited (MECL). For the Jorkian Block, pre-exploration activities are underway and the Scheme of Prospecting has been submitted for regulatory approval. Detailed exploration is planned to follow the grant of the Composite Licence.

To strengthen its critical minerals portfolio, the Company has established strategic partnerships with leading domestic organizations, including GSI, IREL, Hindustan Copper, MECL, CSIR laboratories, IITs and RSMML, while internationally collaborating with KABIL, International Resources Holding, Africa Finance Corporation and YPF to pursue overseas exploration, resource development and value-chain opportunities

CCUS and Geothermal: The Company is actively advancing low-carbon technologies through initiatives in CCUS, CCS and geothermal energy. A feasibility study for permanent CO₂ storage in the Jaisalmer Basin, Rajasthan, has identified a suitable saline aquifer, with plans for pilot-scale injection through two injection wells and one monitoring well, supported by ongoing surface facility and drilling preparations. In Assam, Carbonated Water Injection (CWI) has been planned as an Enhanced Oil Recovery (EOR) scheme in the Dikom field. Additional studies are underway to evaluate CO₂-EOR potential in the Makum-North Hapjan and Kathaloni oilfields through collaborations with technical partners, including Texas A&M Engineering Experiment Station (USA). The Company is also pursuing membrane-based CO₂ separation, compression, transportation and permanent subsurface storage, alongside laboratory research on CO₂ mineralization in Deccan Trap basalts. Separately, a CCS pilot project has been initiated in Rajasthan.

The Company is advancing its geothermal energy initiatives through strategic collaborations with Iceland GeoSurvey, the Government of Himachal Pradesh, and the Geological Survey of India for geothermal exploration. Feasibility studies are currently underway in Arunachal Pradesh, in association with CES & HS, to assess the geothermal potential of hot springs. Additionally, a consultancy study has been initiated to evaluate the feasibility of repurposing abandoned oil and gas wells in the Upper Assam Basin for geothermal energy development.

CBG: In alignment with the GOBARdhan Scheme and under the guidance of the Ministry of Petroleum & Natural Gas (MoP&NG), the Company is actively developing 25 CBG plants across India using diverse feedstocks, including Municipal Solid Waste (MSW), agricultural residues and other organic biomass. The initiative is a key component of the Companys clean energy and circular economy strategy, aimed at promoting sustainable waste management while enhancing the domestic production of green fuels.

Construction activities are currently in progress for the CBG plants at Tinsukia, Bhubaneswar, Jorhat and Agartala. The Tinsukia and Bhubaneswar projects are targeted for commissioning by March 2027, while the Jorhat and Agartala plants are scheduled for completion by March 2028. The Company has also secured land for nine additional project locations, creating a strong pipeline for future capacity expansion. EPC-cum- Operation & Maintenance (O&M) tenders have been floated for the Cuttack and Sambalpur projects, while Detailed Project Reports (DPRs) have been completed for 13 additional locations. The remaining projects are at various stages of planning, tendering and implementation.

To accelerate the rollout of its bio-energy programme, the Company has obtained approval from the Department of Investment and Public Asset Management (DIPAM) for the formation of Joint Venture Companies (JVCs) with GPS Renewables Pvt. Ltd. and Hindustan Waste Treatment Pvt. Ltd. (HWTPL). The Joint Venture Agreement (JVA) with HWTPL has already been executed and the process for incorporation of the Joint Venture Company is currently underway, providing a strong institutional framework for expanding the Companys CBG portfolio across the country.

Renewable Energy: As part of its energy transition strategy, the Company is steadily expanding its renewable energy portfolio with a long-term target of deploying 5-5.5 GW of renewable energy capacity by 2040, encompassing solar, wind, green hydrogen and other sustainable energy initiatives.

As on 31^st March 2026, total installed capacity of the Company in respect of renewable energy stands at 188.10 MW (excluding projects for captive utilization), comprising of 174.10 MW of wind energy projects and 14 MW of solar energy projects. In addition, solar plants of 2261 kWp are being used for captive utilization in different spheres of the Company.

The 25 MW solar power project at Namrup, Assam, by APGCL OIL Green Power Limited (AOGPL), a JV Company with Assam Power Generation Corporation Limited (APGCL) is currently under construction and is targeted for commissioning by March 2027.

In addition, the Company has signed a Memorandum of Understanding with the Government of Rajasthan to invest approximately 4,700 crore in the development of 1,000 MW of solar and 200 MW of wind power capacity by 2030. The proposal for formation of the Joint Venture Company has been submitted to the DIPAM for concurrence. Green Hydrogen: The Company is actively advancing green hydrogen technologies in alignment with the National Green Hydrogen Mission.

The Company has commissioned a 30 kg/day Anion Exchange Membrane (AEM) electrolyser-based pilot plant at Jorhat, Assam, which has received approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) for blending up to 2% green hydrogen with natural gas, and blending operations are currently underway. In collaboration with Himachal Pradesh Power Corporation Limited (HPPCL), the Company is also constructing a 1 MW alkaline electrolyser-based Green Hydrogen plant at Nalagarh, Himachal Pradesh. Additionally, the Company is planning to establish a 10 MW Green Hydrogen plant at Duliajan, Assam.

The Companys subsidiary, NRL, is also implementing a 300 kg/hr (2.4 KTPA) Green Hydrogen plant at Numaligarh through M/s Greenco ZeroC, India, on an EPC basis. The project will replace approximately 5% of the refinerys existing grey hydrogen consumption, reducing CO₂ emissions by about 24,000 tonnes annually. NRL is also planning to float a tender for setting up a 5 KTPA Green Hydrogen plant on a Build, Own and Operate (BOO) basis under the SIGHT Scheme (Mode-2B) of the Ministry of New and Renewable Energy (MNRE) to further enhance the use of green hydrogen in refinery operations

Strategic Refining and Midstream Partnerships: The

Company and BPCL have entered into a collaborative framework to explore the Companys participation in the proposed integrated Greenfield refinery and petrochemical complex at Ramayapatnam, Andhra Pradesh, with an estimated investment of approximately 1 lakh crore. Under the framework, the two companies will evaluate the feasibility for acquiring a minority equity stake in the proposed joint venture.

The proposed complex is envisaged with a refining capacity of 9-12 MMTPA, integrated with a 1.5 MMTPA ethylene cracker unit and is targeted for commercial commissioning during FY 2030.

Separately, OIL, NRL and BPCL have signed a tripartite MoU to facilitate efficient evacuation of petroleum products following NRLs capacity expansion from 3 MMTPA to 9 MMTPA. As part of this collaboration, the three companies will jointly examine the development of a cross-country petroleum product pipeline from Siliguri to Mughalsarai via Muzaffarpur, along with augmentation of depot infrastructure, involving an estimated investment of approximately 3,500 crore.

14. Future Outlook:

Global oil markets enter FY2025-26 against a backdrop of improving stability following a period of elevated geopolitical and market uncertainty. The disruptions witnessed during calendar year 2025 and early 2026, arising from the conflict in West Asia and constraints on transit through the Strait of Hormuz, have to the extent subsided, supporting a gradual normalisation of supply chains and market sentiment. Nevertheless, the outlook remains shaped by geopolitical developments, global economic growth, supply management by major producing nations and the pace of the energy transition, all of which are expected to influence commodity prices and investment decisions.

The IEA reported Hormuz flows recovering from a May 2026 low of 9.6 million barrels per day to roughly 12 million barrels per day by mid-June. Even so, the IEA and EIA still project global oil demand to contract by close to 1.0-1.2 million barrels per day for 2026, though OPECs outlook remains materially more bullish, emphasizing the unusual degree of forecaster variation this year. The outlook inflects sharply into 2027, where IEA, EIA and OPEC forecasts converge closely on demand growth of approximately 2.0 million barrels per day as trade flows normalise. For an upstream-anchored company such as OIL, this shift from a supply-constrained, price-volatile 2026 to a better-supplied, demand-recovering 2027 also reinforces the case for continued capital discipline, reserve replacement and cost competitiveness.

India remains the principal bright spot within this global picture. The Indian economy is projected to grow at 6.5-6.6% in FY2026-27, with the countrys oil demand estimated at close to 5.99 million barrels per day in 2026, keeping India among the fastest-growing large oil and gas markets globally even as import dependence already close to 90%, continues to strengthen the case for domestic upstream investment. Government policy leans firmly in this direction: the 10^th OALP bidding round, launched in February 2026, is the largest ever by acreage offered, spanning over 190,000 sq. km across 25 blocks, while the Union Budget for FY2025-26 allocated further capital toward Phase II of Indias Strategic Petroleum Reserve programme. Domestic natural gas demand is expected to grow faster still, supported by City Gas Distribution expansion, new fertiliser and petrochemical offtake, and continued build-out of national gas-grid infrastructure, aligned with the Companys own NorthEast Gas Grid and Duliajan Feeder Line investments.

The approval of the Samudra Manthan, National Offshore Exploration Scheme marks a defining inflection point for Indias upstream sector, signalling the transition from policy reforms to mission-mode execution. The Mission seeks to unlock Indias vast offshore hydrocarbon potential while significantly reducing exploration risk. For the Company, with its expanding presence in frontier offshore basins, the initiative provides a strong policy and technological foundation to accelerate exploration, strengthen domestic hydrocarbon production and contribute meaningfully to Indias long-term energy security.

Within this operating environment, the Companys outlook for FY2026-27 is anchored in five strategic priorities, each carrying a demonstrated FY2025-26 track record forward:

Strengthening Core E&P Operations

The Companys future growth will continue to be anchored in strengthening its core exploration and production business through sustained reserve addition, accelerated resource monetisation and expansion into frontier exploration basins. The Government of Indias approval of the Samudra Manthan - National Offshore Exploration Scheme, with a Phase-I outlay of approximately 84,084 crore, marks a transformative step in unlocking the countrys offshore hydrocarbon potential. By promoting advanced geoscientific data acquisition, deepwater exploration, shared offshore infrastructure and cutting-edge technologies, the Mission is expected to significantly enhance Indias upstream exploration ecosystem and strengthen longterm energy security.

Aligned with this national vision, the Company is strategically strengthening its presence across frontier offshore basins, including the Andaman, Mahanadi and Krishna-Godavari basins, while continuing to maximise value from its onshore portfolio through technology- driven exploration, improved recovery and operational excellence.

Further to support this, the company is expanding its drilling and well intervention fleet of 28 operational rigs currently in service, four additional rigs are being procured taking the fleet to 32 rigs by the end of FY 2027-28. In parallel, five additional work-over rigs are being inducted adding to the existing fleet of 33, to support accelerated well delivery and field development. Going forward, the Company will leverage advanced subsurface analytics and collaborative partnerships to enhance exploration success, expand its resource base and create sustainable long-term value for stakeholders.

Reserve Accretion and Frontier Exploration

The Company will continue to expand its domestic hydrocarbon resource base through near-field exploration, appraisal of existing discoveries, frontier-area exploration and improved subsurface understanding. The 2P Reserve Replacement Ratio, which improved to 1.02 in FY2025-26, is targeted to be sustained at or above unity; as of 31 March 2026, total 2P reserves stood at 68.68 MMT of crude oil and 50.58 BCM of natural gas with remaining recoverable gas 139.68 BCM. A drilling programme of approximately 78 wells is planned across the North-East Region during FY2026- 27 to build on this base.

The Assam Shelf Basin the Companys Main Producing Area and a prolific onshore basin with considerable Yet-To-Find potential remains the anchor of this effort, with acreage consolidation continuing under the Open Acreage Licensing Policy regime alongside exploration in the geologically prospective but geographically challenging North Bank of the Brahmaputra and the Fold Belt areas.

Offshore, the Andaman campaign has established hydrocarbon presence in the Sri Vijaya Puram-2 and -3 wells, with a further 600 sq. km of acquired 3D seismic data under processing to guide future appraisal, while drilling continues at one location each in the Krishna-Godavari Shallow Water DSF contract area and the Kerala-Konkan Block. The Company has also submitted bids for select blocks under the Special CBM Bid Rounds 2025 and 2026, with evaluation by the Directorate General of Hydrocarbons in progress.

Technology and Operational Excellence

Technology and digital innovation will remain central to recovery, drilling efficiency and reservoir management. Field trials of Liquid Casing Technology for wellbore stability, alongside flow-assurance studies covering low- temperature demulsifiers and acidization formulations, are supporting uninterrupted reservoir-to-refinery hydrocarbon movement.

The Companys deployed technology base spanning Plunger-Assisted Gas Lift, Single-String Multi-Zone Completion, Microbial Enhanced Oil Recovery, Propellant Stimulation, an Al-enabled Well Portfolio Optimizer, Fishbone Drilling and Intelligent Well Completion Systems, among others - is being extended through the phased rollout of Real-Time Production Monitoring and Analysis.

These initiatives are complemented by a strong ecosystem of strategic technology partnerships and collaborative research. The Companys Technical Services Agreement (TSA) with TotalEnergies continues to strengthen capabilities in deepwater exploration through advanced seismic interpretation, prospect evaluation and well design. In parallel, the Company is leveraging the MC² collaborative platform, together with partnerships with the leading Indian Institutes of Technology (IITs), to accelerate research and technology development in optimization of artificial lift & cyclic steam stimulation, Carbon Capture, Utilisation and Storage (CCUS), geothermal energy and critical minerals. These collaborations are expected to de-risk future investments and accelerate technology adoption.

To build a future-ready enterprise, the Company has launched DRIVE 2.0, a comprehensive digital transformation programme comprising 10 AI and Generative AI-enabled initiatives spanning the entire hydrocarbon value chain. The programme focuses on creating digital oilfields, intelligent well planning, predictive asset maintenance, digital twins, smart procurement, AI-enabled project monitoring, video analytics for safety, digital workforce management and an integrated Command & Control Centre. Together, these initiatives are aimed at improving production efficiency, reducing operational costs, strengthening asset reliability, enhancing workplace safety and enabling faster data-driven decision-making.

As part of the renewed OIL-CSIR strategic collaboration, the Company signed two Project Specific Agreements with CSIR-NEERI to deploy research-driven, sustainable waste management solutions at Duliajan. The first project will establish an advanced Faecal Sludge and Septage Management (FSSM) system using NEERIs Mechanical Dewatering and Drying System (MDDS) technology for scientific treatment and conversion of sludge into value-added manure. The second project focuses on scientific characterisation, resource recovery and valorisation of drilling waste, aimed at developing scalable technologies to convert solid/semi- solid drilling waste into environmentally compliant, value-added products, thereby promoting circular economy principles and reducing environmental liabilities.

Your Company and IFP Energies Nouvelles (IFPEN), France, signed a Master Agreement at IFPEN Headquarters in Paris. The Master Agreement establishes a long-term framework for collaboration in advanced subsurface characterization, reservoir modelling, enhanced oil recovery (EOR), digitalization and artificial intelligence, carbon capture, utilization and storage (CCUS), decarbonization, renewable energy, biofuels, energy storage and circular economy solutions. The collaboration will also focus on evaluating the potential for underground natural gas storage in depleted oil and gas reservoirs and advancing natural hydrogen exploration through identifying favourable geological settings within Indias sedimentary Basins.

The collaboration would also promote joint research, technology development, innovation and capacity building through Indo-French initiatives such as CEFIPRA and MC² + an initiative of the Ministry of Petroleum & Natural Gas, Government of India, accelerating the Companys technology-driven growth while advancing Indias energy security and energy transition goals.

MOU signed between the Petroleum Technology Research Centre (PTRC), a not-for-profit energy research company of the Province of Saskatchewan of Canada and the Company in the fields of CO2 Capture, Utilization and Storage (CCUS), Geothermal, development of Clean Energy Technologies and research interests with mc2+ for startups, a platform created under the aegis of Ministry of Petroleum & Natural Gas, Government of India,

Integrated Value-Chain Expansion

The Company will continue to build out its integrated energy value chain through gas evacuation infrastructure, crude transportation and downstream integration. Expansion of the North-East Gas Grid and associated gathering infrastructure is expected to monetise stranded and incremental gas volumes and widen access to industrial, commercial and City Gas Distribution markets, while the ongoing expansion of Numaligarh Refinery Limiteds capacity from 3 to 9 MMTPA together with associated pipeline and petrochemical projects will materially strengthen the Companys downstream presence. The recently completed augmentation of the Numaligarh-Siliguri Product Pipeline to 5.5 MMTPA will support evacuation of the additional product volumes this expansion brings, and further midstream opportunities with strategic partners continue to be evaluated.

Energy Transition and Diversification

Alongside strengthening its core hydrocarbon business, the Company will continue to diversify its portfolio into low-carbon and emerging energy businesses, including renewable energy, green hydrogen, compressed biogas (CBG), Carbon Capture, Utilisation and Storage (CCUS), geothermal energy and critical minerals.

This measured diversification reflects the Companys strategy of building complementary growth engines that leverage its core technical capabilities while supporting Indias evolving energy transition. Through continued project development, strategic partnerships, technology collaborations and investments across its subsidiaries and joint ventures, the Company aims to create a resilient and future-ready energy portfolio that broadens revenue streams, enhance long-term competitiveness and reinforce its position as a leading integrated energy company.