Oil India Ltd plans to spend around Rs 15,000 crore over the next three years to explore its deepwater and ultra-deep water fields, Chairperson Ranjit Rath said on Thursday.
The company plans to drill eight wells although the actual number will depend on its interpretation of seismic data from the fields, he said at the company’s annual general meeting.
The state-run explorer holds about 48,000 square kilometres of exploration acreage in the deepwater areas of the Krishna Godavari and Mahanadi basins, Rath said. It has completed 2D and 3D seismic surveys and data processing is underway. The company is also in the process of identifying potential blocks to kickstart drilling.
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The government is pushing deepwater exploration in India and encouraging both domestic and foreign companies to participate. Under its Rs 84,084-crore Samudra Manthan scheme, the government plans to bear up to half the drilling costs for deepwater wells.
“Government support under the scheme could go up to Rs 675 crore for each deepwater well drilled,” Rath said. Oil India also plans to partner with foreign firms to bid in the 10th and 11th rounds of exploration licensing, he said.
Rising oil prices amid current global market conditions are incentivising oil companies to step up exploration, according to Rath.
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In the financial year 2025-26, Oil India produced 3.45 million tonnes of crude oil and 3.18 billion cubic metres of natural gas. The company drilled 74 wells during the year. In the current fiscal, it plans to drill 100 wells and expects to produce about 4-5 million tonnes of crude oil and about 5 billion cubic metres of natural gas.
Rath also said Numaligarh Refinery Ltd, a unit of Oil India, will commission a 1,20,000 barrel-per-day crude unit at its plant in Assam by March, lifting its overall crude processing capacity to 1,80,000 barrels per day from the current 86,000 barrels per day. He added that the 1,635-kilometre crude pipeline that Oil India is laying from Paradip port in Odisha to its refinery in Assam will be commissioned by the end of 2026.
On overseas exploration, Rath said that the company is in process of consolidation of assets. So far, Oil India has exited from exploration projects in Gabon and Bangladesh, Rath said.
Russian Dividends
Oil India is exploring ways to recover about $300 million in dividends from its stakes in two Russian assets.
The company is “not worried” about the funds as the dividends remain parked at an SBI branch in Moscow, Rath said. “It is a matter of time,” he said, adding that the company is also “evaluating the issue at a government-to-government level”.
Oil India is seeking support from the petroleum ministry to enable it to utilise the funds in Russia or facilitate their repatriation to India, he added.
The dividend is stuck due to western sanctions and restrictions on large cross-border transactions following Russia’s invasion of Ukraine.
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