Oil India — BrandWiki

Oil India

Overview

Oil India Limited

type	Public
traded as	nse: OIL bse: 533106
industry	Oil and Gas
divisions	Numaligarh Refinery Limited
foundation	February 18, 1959
location	Duliajan, Assam (Registered Office and Field Headquarter) Noida (corporate office)
key people	Dr. Ranjit Rath (Chairman & MD)
products	Petroleum Natural gas Petrochemicals
revenue	inr 376460000000 (2024)‡R1R‡
operating income	inr 143040000000 (2024)‡R1R‡
profit	inr 69800000000 (2024)‡R1R‡
assets	inr 921520000000 (2024)‡R1R‡
equity	inr 526250000000 (2024)‡R1R‡
num employees	6,492 (March 2024)‡R2R‡
owner	Government of India (56.66%)‡R3R‡
homepage	https://www.oil-india.com/

Oil India Limited (OIL) is an Indian public sector company engaged in the exploration, development and production of crude oil and natural gas, transportation of crude oil, and production of liquid petroleum gas. The Ministry of Petroleum and Natural Gas oversees its operations. Headquartered in Duliajan, Assam, the company has its offices in Duliajan, Noida, Kolkata, Guwahati and Jodhpur.

The company's history spans the discovery of crude oil in India in the year 1889, this was second in the World in the far east of India at Digboi and Naharkatiya, Assam to its present status as a fully integrated upstream petroleum company, operating in more than 9 locations overseas. OIL acquired majority shares in Numaligarh Refinery Limited from Bharat Petroleum Corporation Limited, thus making Numaligarh Refinery Limited a subsidiary of OIL.

In 2023, Oil India Limited was elevated to the Maharatna status on the recommendation of the Ministry of Finance, making it the 13th Maharatna Central Public Sector Enterprises (CPSE).[4]

Exploration and production

History

Oil India was founded on 18 February 1959, with its registered office in Duliajan, Assam, as a privately held oil exploration company. Burmah Oil Company originally held two-thirds of the stock and the Government of India (via the Office of the President) held the rest.[6] This joint venture gave birth to the exploration and drilling at two new sites in Naharkatiya and Moran in Dibrugarh district[7][8] which had then been just recently discovered.[9] In 1961, the Government of India acquired 50% ownership interest.[6] In 1981, the Government of India acquired 100% of the equity interest in the company which by then controlled all the oilfields of Tinsukia and Dibrugarh districts.[6][7]

In 1961, construction of the company's first gas-powered power plant was completed in Duliajan, Assam. IN 1962, a 401 km (16-inch diameter) pipeline from Duliajan to Guwahati was completed. The following year, a 756 km (14-inch diameter) extension to the pipeline from Guwahati to Barauni in Bihar was completed.[6]

A 1157 km long fully automated telemetric pipeline with 212 km of looping and a total capacity to transport over 6.0 million tonnes per year remains the lifeline of the company. Commissioned in 1962, the double skinned crude oil pipeline traverses 78 rivers including the Brahmaputra River as it meanders through paddy fields, forests and swamps. There are 11 pumping stations, 18 repeater stations and two terminals at Numaligarh and Rongapani in Udalguri district. The engines that drive the giant pumps along the pipeline have more than two hundred thousand hours of service and established a world record of machine hours.

OIL completed the construction of a 660 km pipeline from Numaligarh to Siliguri in November 2007. The company also sells its gas to different customers in Assam: Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), ASEB, NEEPCO, Indian Oil Corporation's retail Assam Oil Division, and APL as well as to the Rajasthan Rajya Vidyut Utpadan Nigam formerly part of the Rajasthan State Electricity Board. It also produces liquefied petroleum gas (LPG) at its plant in Duliajan, Assam.

International operations

OIL's overseas E & P portfolio consists of 17 Blocks spread over 10 countries: Libya, Gabon, Nigeria, Yemen, Venezuela, USA, Mozambique, Myanmar, Bangladesh and Russia. In addition to the above, OIL has 10% PI in 741 km long Multiproduct pipeline construction and operation project in Sudan which was completed in 2005.

Subsidiaries

Oil India Limited carries out operations through a total of five subsidiaries, namely OIIL (Oil Indian International Limited), Oil India International BV, Oil India Sweden AB, Oil India (USA) Inc and OIL Cyprus.[22]

During 2016-17

OIL along with Indian Consortium partners IOCL and BPRL acquired two producing assets in Russia - 23.9% stake in Vankorneft, Russia and 29.9% stake in Taas-Yuryakh, Russia. These assets are held through OIL's WOS Oil India International Pte. Ltd. incorporated in Singapore.

TYNGD is a producing asset with current production of 1.13 MMT and expected peak production of 5 MMT by 2021. It is one of the largest green fields located in Eastern Siberia. TYNGD is ramping up required infrastructure to meet peak production level.

Vankorneft has two licences - Vankor and North Vankor. It is a giant oil & gas producing field located in Eastern Siberia, and contributes to about 10% of Rosneft's entire oil production. The commercial agreements for sale of oil and gas are in place for the asset. Vankorneft started commercial production from 2009 and all infrastructure is in place.

In License-61 in Russia, the development and production activities are undergoing at present. OIL is taking an active role in the development activities and supporting the operator of the license, M/s Petroneft Resources by providing expert opinions in selected areas.

In Venezuela, Carabobo Project where OIL has PI of 3.5%, the development activities in the field are under progress.

In the USA Liquid rich shale asset where OIL has 20% PI, OIL holds approx. 14172.75 net acres of the asset. Currently, OIL's share of daily production from this asset is around 350 oilbbl per day of oil equivalent.

OIL together with OVL, has 10 per cent participating interest (OIL 4%, OVL 6%) in the Mozambique block in the Area 1 Rovuma Field., the Initial development of Integrated Golfino-Atum (GA) Project. . The Area 1 JV is presently working on Four elements, viz. (i) Legal and Contractual framework, (ii) Resettlement of the local community, (iii) Marketing of LNG, (iv) Project Financing, that must be sufficiently progressed before Operator Anadarko and the participants can determine economic viability and take Final Investment decision. The first production and revenue from the field is expected to be generated in fiscal year 2022/2023.

In Libya, in the block Area 95/96, OIL holds 25% PI and Sonatrach is the operator. The consortium signed an Interim Arrangement Agreement to continue in the block till May 2018.

In Gabon, Block SHAKTHI, a discovery has been made, which produced oil with gas.

In Nigeria, Based on the interpreted results, consortium decided to re-enter the (Discovery Well) and re-entry in the well is under progress now.

In Bangladesh, seismic acquisition and processing of acquired data is almost complete.

In Myanmar, the Consortium led by OIL has completed Geoscientific Studies.

OIL's overseas portfolio has contributed significantly to accretion of reserves and production of oil and Natural gas. During 2016–17, OIL's Crude Oil and Natural Gas Production for its proportionate share of stakes in the overseas producing assets stood at 0.9069 MMT and 352.99 million cubic metre at standard conditions respectively.