Oil India plans to spend ₹15,000 crore for deepwater exploration over three years: CMD

Oil India Ltd (OIL) has announced a capital expenditure of ₹15,000 crore over the next three years for deepwater and ultradeep-water exploration activities, according to Ranjit Rath, the Chairman and Managing Director (CMD). Speaking at a press interaction, Rath stated that the company has already committed this amount towards these activities.

He also mentioned that the expansion of Numaligarh refinery, with a capacity of 9 million tonnes per annum (MTPA), is expected to be completed by the end of the current fiscal, with stabilization likely to take another 9-12 months.

Regarding overseas operations, Rath indicated that OIL would focus on both exploration and producing assets, although the primary interest at this stage leans towards producing assets for early monetization. The company plans to strengthen its offshore exploration footprint in the Andaman, Kerala-Konkan, Krishna-Godavari, and Mahanadi basins. OIL has already conducted seismic studies, and the interpretation of these findings will aid in identifying potential drilling locations, according to the CMD.

Responding to queries from The Hindu, Rath affirmed that the company does not foresee any significant challenges in accessing the necessary infrastructure or technology for offshore exploration and production. The state-owned explorer-producer has divested its assets in Bangladesh and Gabon as part of a broader consolidation strategy.

Rath explained that while the company would continue to explore prospective areas overseas, both producing and exploration assets, its primary focus remains on producing assets for immediate monetization. He emphasized that exploration activities would remain the mainstay domestically.