State-run Oil India Ltd (OIL) has announced plans to invest approximately ₹15,000 crore over the next three years to explore offshore deep and ultra-deep blocks in the country. According to reports from Business Standard, Chairman and Managing Director Ranjit Rath made this announcement during the company's annual general meeting on Thursday. The investment is specifically aimed at ensuring India's energy security through enhanced offshore exploration capabilities, with the company planning to drill eight wells across acreages in the Andaman, Krishna-Godavari, Mahanadi and Kerala-Konkan sedimentary basins. However, Rath clarified that the actual number of wells will depend on interpretation of seismic data from the fields.
As reported by Business Standard, Rath indicated that the company aims to benefit from the Samudra Manthan scheme, the national offshore exploration initiative approved by the Union cabinet. The scheme has an outlay of ₹84,084 crore until fiscal year 2031 (FY31). Under this scheme, the government will provide financial support of up to 50 per cent of eligible drilling costs for exploratory wells, subject to a ceiling of ₹675 crore per well, whichever is lower. The company is also looking to acquire overseas assets in both oil and gas and critical minerals to ensure energy security, with results of submitted bids awaited. Additionally, OIL plans to partner with foreign firms to bid in the 10th and 11th rounds of exploration licensing, as reported by Essential Business Intelligence.
As reported by Business Standard, OIL currently maintains a presence across multiple onshore and offshore sedimentary basins, with its offshore portfolio including acreages in the Andaman, Krishna-Godavari, Mahanadi and Kerala-Konkan basins. The company has acquired 48,000 sq. km in water and ultra-deep water blocks, including two blocks in KG Basin and two blocks in the Mahanadi basin. The company has already completed 2D and 3D seismic surveys for these blocks, with data processing currently underway and vintage data reprocessing ongoing. Looking ahead, OIL is targeting around 10 million tonnes of oil equivalent (mtoe) of oil and gas production by the end of the decade. The company is also in the process of identifying potential blocks to kickstart drilling operations.
As reported by Business Standard, during FY26, Oil India produced 3.450 million tonne (MT) of crude oil and 3.186 billion cu. m (bcm) of natural gas. The company completed 74 wells—22 exploratory and 52 development wells—during the last fiscal. In the current fiscal, OIL plans to drill 100 wells and expects to produce about 4-5 million tonnes of crude oil and about 5 billion cubic metres of natural gas. As part of its vision to achieve net-zero carbon emissions by 2040, the company has reduced its scope 1 & 2 emissions by about 18% against the FY24 baseline, alongside a 32% reduction in gas flaring. The company is building its clean-energy portfolio through OIL Green Energy Ltd (OGEL), focusing on compressed biogas, integrated CBG and waste-to-energy projects, renewable energy and other low-carbon opportunities. The government's recently approved GOBARdhan scheme is likely to provide impetus to OIL's plans to set up CBG plants, with the government approving financial support of ₹23,731 crore under the scheme to develop India's compressed biogas sector.
According to Business Standard, on Oil India's subsidiary Numaligarh Refinery Ltd (NRL), Rath said the refinery's expansion from 3 million tonnes per annum (MTPA) to 9 MTPA is expected to be commissioned by March 31, 2027, with stabilisation likely to take another 9-12 months. The company currently has overseas exploration and production oil and gas assets across seven countries, including Russia, Venezuela, Nigeria, Mozambique, Libya, Gabon and Bangladesh. OIL also plans to participate in upcoming Open Acreage Licensing Policy (OALP) bidding rounds and is exploring the possibility of joint bids with international oil companies. On overseas operations, Rath said the company is in the process of consolidation of assets and has exited from exploration projects in Gabon and Bangladesh. Additionally, OIL is exploring ways to recover about $300 million in dividends from its stakes in two Russian assets, with the funds currently parked at an SBI branch in Moscow due to western sanctions.
