Oil India Named Preferred Bidder for Potash Exploration Block in Rajasthan

28 May 2025 , 04:41 PM

Oil India Ltd has been declared the preffered bidder for the Jorkian-Satipura-Khunja Amalgamated Potash and Halite block in Hanumangarh District of Rajasthan. The block was offered as a part of fifth successful round of auctions of ‘critical mineral’ blocks by the Ministry of Mines.

This is the first potash block auction in India that was won and it represents the government’s strategic move to tap into domestic potash resources. Oil India described the achievement as a “significant step” towards establishing India’s strategic mineral supply chain. Oil India Ltd. made a regulatory filing on the development and said it was committed to grow its portfolio of strategic mineral assets.

For the quarter ended January-March 2025 (Q4 FY25), the oil and gas company, which is owned by the state, reported a net profit of ₹1,591 crore, which is a year-on-year (YoY) rise of 30%. The strong profit growth was undergirded by a 251% leap in other income. Total Income during the quarter grew 5% yoy to ₹5,519 crore but the operating margins contracted by close to 500 bps, which implies either cost pressures or lower realisations.

In FY25, the state-run explorer reported its highest-ever combined oil and gas production at 6.71 million tonnes of oil equivalent (MTOE) showcasing its operational efficiency and capacity expansion.

Crude oil production during the quarter grew 2.95% YoY to 3.458 million ton (MT) and natural gas production was 3.252 billion cubic metre (BCM), up 2.2 per cent YoY both were highest ever quarterly output in the history of the company.

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