OIL draws up plans to fast track exploration in Arunachal Pradesh

GUWAHATI: Sushil Chandra Mishra, Chairman and Managing Director (CMD) of Oil India Limited (OIL) has said that the company has drawn up future plans, including fast tracking of exploration in Arunachal Pradesh and developing Baghewala heavy oil field in Rajasthan.

Oil India Limited held its 61st Annual General Body meeting virtually. In his address to the shareholders, the CMD described financial year 2019-20 as a challenging one with weak global economic growth, resulting in weaker demands across sectors. Lower average crude oil prices, as compared to the previous year, and other factors beyond control affected company’s activities in the main producing area, especially in the last quarter of 2019-20. However, he mentioned that despite the difficulties, OIL completed the year 2019-20 on a positive note, leveraging the best of available advantages and building on available opportunities.

The CMD shared the significant highlights of fiscal 2019-20 during which OIL’s annual domestic production of crude oil stood at 3.133 MMT and domestic natural gas production was 2801 MMSCM. Further, OIL reported revenue of Rs 13,649 crores and profit after tax of Rs. 2,584 crores. Also, the company recorded its highest ever dividend from overseas business. He also conveyed that the success of Cyclic Steam Stimulation process implemented in 2018-19 led to production increase of 168% from OIL’s Rajasthan Field.

The CMD highlighted that OIL became the first Operator to commence exploration activities in any OALP Block in the country by commencing 2D & 3D survey in Rajasthan OALP Block and also the first Operator to complete seismic acquisition in any OALP Block in the country as per the committed work programme by completing the seismic acquisition in North Bank OALP Block in the District of Dhemaji, Assam.

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He said that OIL drilled eleven exploratory wells in the PML areas in Assam & Rajasthan with a success rate of over 70%. The production from overseas assets corresponding to OIL’s participating interest was 2.177 MMTOE. Cumulative dividends till 31st March 2020 corresponding to OIL’s share received from producing assets in Russia stood at USD 406 million equivalent to about Rs 3,000 crore. OIL recovered close to 47% and 29% of its investments in Vankorneft and Taas Yuriakh respectively.

OIL added that in case of Renewables i.e. Solar & Wind power plants, CMD informed that total installed capacity of OIL stood at 188.10 MW as on 31st March 2020, consisting of 174.10 MW of wind projects and 14 MW of solar projects. Total revenue of Rs 138 crores was generated from these assets in 2019-20.

The CMD further informed that during the year, a new Joint Venture Company (JVC) in the name of “Purba Bharati Gas Private Limited (PBGPL)” was incorporated with equity participation among OIL, GAIL-Gas & AGC respectively to develop CGD networks in two areas of Assam. Also, a Joint Venture Company “HPOIL Gas Private Limited (HOGPL)”, incorporated as 50:50 JVC with HPCL in respect of Kolhapur and Ambala-Kurukshetra Geographical Areas.

“OIL’s Pipeline network too contributed to overall revenue of the company and during 2019-20, the trunk pipeline transported 5.72 MMT of crude oil and the Numaligarh-Siliguri Product Pipeline transported 1.33 MMT of products. Total revenue generated from Pipeline transportation stood at Rs 327.50 crores while OIL’s LPG Plant processed an average of 1.75 MMSCMD of Natural Gas and produced 28,990 MT of LPG & 16,275 MT of Condensate. Total revenue generated from LPG was Rs 112.22 crore and from Condensate was Rs 25.56 crores during the year”.

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