OIL, NRL set ambitious targets for energy independence, innovation
New Delhi: The energy landscape in India is undergoing a significant transformation, with a strong emphasis on boosting domestic production to reduce import dependency. Numaligarh Refinery Limited (NRL), a subsidiary of Oil India Limited, has announced an ambitious expansion plan to triple its refining capacity from 3 million tons per annum to 9 million tons. This expansion is part of a broader strategy to enhance India’s energy security. It is spearheaded by Ranjit Rath, the Chairman and Managing Director of Oil India Ltd (OIL), and he confirmed on Saturday at the post-AGM press meet here in the national capital.
At the heart of this expansion is the construction of a 1,635-kilometer crude oil trunk pipeline to Numaligarh – this pipeline is designed to import 5.5 million tons of crude oil, supporting the increased refining capacity. Both projects are currently under execution and are expected to be completed in stages, with a target for full commissioning by December 2025. The phased approach to mechanical completion is crucial to meeting this ambitious timeline, allowing for staggered pre-commissioning activities to ensure timely completion.
In a bold and innovative move, NRL is exploring the potential of capturing carbon Dioxide (CO2) from its refineries to repurpose it for enhanced oil recovery (EOR) in its oil fields. This forward-thinking approach is aimed at reducing carbon emissions while improving oil recovery rates in ageing fields. The CMD also added while quizzed that although the project is still in its conceptual phase, the company’s determination to address environmental concerns while enhancing productivity demonstrates a commitment to sustainability.
Oil India has also set its sights on an ambitious target to increase its crude oil production from 6.5 million metric tons in the 2024 financial year to 9 million tons by 2026, he asserted. This 35 per cent jump in production represents a significant achievement for the company, which has historically operated within the Assam shelf, one of the most prolific sedimentary basins in India. The company’s confidence in meeting these targets is bolstered by its history of consistent reserve replacement within its Petroleum Mining Leases (PML) areas. The Assam shelf, where Oil India primarily operates, has been producing oil and gas for over a century. Remarkably, wells drilled as far back as 1889 are still viable today, underscoring the longevity and potential of the region.
The state-owned PSU’s strategic investment in advanced technology is another key factor in its growth plans. Oil India has invested in a 3,000-horsepower rig capable of horizontal drilling, a move seen as a long-term investment aimed at enhancing operational efficiency and reducing reliance on rented equipment. The company is also exploring acquisition opportunities abroad to bolster its expertise and capabilities, such as a potential acquisition of a Finnish consultancy specializing in ethanol plant management.
While Oil India’s growth projections are ambitious, the company faces several challenges. Building a sustainable exploration and development pipeline is critical to achieving its production targets. The Maharatna PSU’s management is aware that meeting these targets requires more than just optimistic projections; it necessitates meticulous planning, continuous exploration, and the implementation of cutting-edge technologies.
At the same time, the NRL expansion and Oil India’s ambitious production targets are key components of India’s strategy to enhance energy security. While challenges remain, the company’s focus on innovation, technology, and sustainable practices provides a strong foundation for future growth. As the projects progress, the energy sector will be closely watching to see if Oil India can meet its lofty goals and set new benchmarks for the industry.
