New Delhi: Oil India Ltd (OIL) Chairman Ranjit Rath on Thursday mentioned that the company has a robust overseas portfolio, with assets in Russia, Venezuela, and Mozambique, yet achieved a record performance on its home turf.
Addressing the media persons here in the national capital, Rath emphasised that OIL’s international foray accounted for 2.097 million metric tonnes of oil equivalent (MMTOE) in FY25, predominantly from its Russian holdings.
These holdings also generated dividends of $942 million for the year, nearly covering the company’s initial investment in the Vankorneft and Taas Yuryakh projects, where OIL retains minority interests. Thanks to the global hardship, the Russian fields have proven to be a reliable source of revenue, yielding solid dividends.
The firm continues to produce in Venezuela through a joint venture even as the nation faces economic and political instability. Under the agreement, state-run PDVSA holds a majority 60 per cent stake, with OIL acting as a minority partner, like other international companies.
Back in Mozambique, OIL is a joint venture partner in TotalEnergies’ flagship liquefied natural gas project. OIL, together with ONGC Videsh and Bharat PetroResources, has a 30 per cent stake in the venture. Project development, which was planned as a two-train integrated LNG facility, had been put on hold in 2021 following security issues in Cabo Delgado. But Rath assured that work is likely to be restarted in the latter part of 2025 when things improve.
Financially, OIL registered total income of Rs 23,987 crore (standalone) and Rs 37,830 crore (consolidated) in FY25. Net profits were Rs 6,114 crore (standalone) and Rs 7,040 crore (consolidated), with healthy margins of 27.64 per cent and 19.47 per cent respectively, reflecting strong operational efficiency.
The group’s overall capital spend for the year reached Rs 18,170 crore, which inludes Rs 9,109 crore towards expansion of Numaligarh Refinery Ltd (NRL) to nine million metric tonnes per annum (MMTPA) from three MMTPA.
Operational accomplishments were also impressive, with the highest-ever production of oil and oil-equivalent gas at 6.710 MMTOE and the highest-ever natural gas production at 3,252 MMSCM. Crude oil production went up to 3.458 MMT, an almost 15 per cent increase compared to the last three years. Workover activities hit a record high of 294, making well productivity and reservoir management better. Although lower global oil prices depressed crude revenues, natural gas revenues went up by 6.2 per cent, balancing the company’s performance.
Rath highlighted that OIL’s long-term vision is integrated with Vision 2040, where the thrusts include increasing domestic and offshore exploration, progressing toward clean energy, investing in key minerals, and adopting digital technologies.
In FY 2024-25, the company acquired 5.87 MMTOE of 2P reserves and made key exploration milestones, such as hydrocarbon discoveries in Assam and the North Bank of Brahmaputra.
Adoption of technology has been a constant priority with advanced techniques like passive seismic tomography, fishbone drilling, and barefoot well completions enhancing recovery and efficiency. Innovation work is being led by the Duliajan R&D Centre and the Centre of Excellence for Energy Studies in Guwahati on subjects like carbon capture, geothermal energy, and hydrogen.
The firm has also progressed towards its Net Zero 2040 goal, with initiatives to reach zero flaring in 2025, developing renewable projects, and the installation of compressed biogas plants in the country. Prime Minister Narendra Modi inaugurated four such units virtually in Assam last October. OIL is striving to achieve a renewable energy capacity of 2 GW by 2040, comprising solar and green hydrogen projects.
Its pipeline operations recorded the highest-ever crude oil carriage at 7.145 MMT, while NRL saw more than 100 per cent capacity utilisation as it kept posting best-in-class performance. The refinery is also leading the way in path-breaking projects such as the world’s first bamboo 2G bio-ethanol plant and a sustainable aviation fuel plant.
With a view to the strategic significance of critical minerals, OIL has diversified into mining, acquiring blocks in Rajasthan and Arunachal Pradesh, and tie-ups with government agencies to assist India’s renewable power and defence requirements.
Digital transformation programs under the DRIVE program, improved ESG frameworks, and more robust diversity and inclusion policies are transforming the company’s internal culture. Women currently account for 7.8 per cent of the workforce, with targeted training and leadership pipelines in development.