New Delhi, Sept. 17 -- Oil India Limited (OIL) aims for an output of 10 million tonnes of oil equivalent (MMTOE) of oil and gas production by the end of the decade (2029), with the Maharatna public sector energy company ramping up its exploration efforts in new frontiers on both onshore and offshore assets, including deep and ultra-deep water blocks.
Speaking to media persons on the sidelines of the company's 67th Annual General Meeting held on Thursday, chairman and managing director Ranjit Rath stated that the growth plan of OIL will revolve around increasing domestic oil and gas production, ramping up its exploration efforts, enhancing its integrated energy offerings, and venturing into clean energy areas selectively.
OIL produced 3.450 million tonnes (MMT) of crude oil and 3.186 billion cubic meters (BCM) of natural gas in the fiscal year 2025-26.
Even though it has been operating in mostly mature fields, it has achieved a terminal crude oil production rate of 10,566 tons per day, the highest in 14 years, mainly due to increased efforts in drilling, workovers, and reservoir management.
It drilled 74 wells, of which 22 were exploratory and 52 were development. The company's Reserve Replacement Ratio has increased to 1.02.
It has continued the production growth in the current financial year as well. In the first quarter of FY27, crude oil production was up by 11 per cent from last year at 0.950 MMT while the company reached an all-time high daily crude production of 10,921 tonnes, which is equal to 84,109 barrels. The company's financial performance has been robust, with consolidated profit after tax being Rs 7,551 crore in FY26 and the consolidated net worth being Rs 53,716 crore. OIL paid out a total dividend of Rs 11.50 per equity share in the year.
For instance, the OIL Group made investments totalling more than Rs 21,673 crore during the financial year FY26 in exploration and production, refining, pipelines, and strategic growth projects. Furthermore, an important part of the OIL Company's future growth plans involves increasing its offshore exploration portfolio. With its exploration portfolio spread over more than one lakh square kilometres, the firm has interests in many onshore and offshore sedimentary basins.
The OIL Company's offshore exploration portfolio presently covers acreage in the Andaman, Krishna-Godavari, Mahanadi, and Kerala-Konkan basins as well as ultra-deepwater blocks. The company is aiming at developing skills for frontier offshore exploration due to the fact that India seeks to increase its domestic hydrocarbon resource base. The Samudra Manthan scheme is likely to facilitate this process.
Apart from hydrocarbons, OIL is also seeking growth in new energy technologies. The MC² platform is a PSU-driven initiative where the firm is helping in developing new energy technologies and capability for energy transition.
Rath said OIL will keep its focus on growing production of domestic crude oil and natural gas, exploration, frontier offshore capability and new energy business while being capital prudent and keeping a balanced balance sheet.
As per the company, its overall strategy still aligns with making India energy secure and self-reliant, while creating shareholder value in the process towards achieving Viksit Bharat 2047.
Published by HT Digital Content Services with permission from Millennium Post.