About
Oil India Ltd
Oil India Limited (OIL), a Navratna PSU, is a fully integrated Exploration & Production (E&P) company in the upstream sector and is the second largest national oil and gas company of India as measured by total proved plus probable oil and natural gas reserves and production in India. OIL is engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. It has vast experience in reservoir management and expertise in IOR/EOR operations. OIL also provides various E&P related services to make it a fully integrated E&P company.
At present, the Government of India, the Promoter of the Company, is holding 56.66% of the total Issued & Paid-up Capital of the Company. The balance 43.34% of the Equity capital is held by Public and others including Bodies Corporate, Mutual Funds, Banks, FPCs and Resident Individuals. Besides having a Pan-India presence, OIL has Participating Interest in blocks in over nine countries overseas viz Libya, Gabon, Nigeria, Yemen, Venezuela, USA, Mozambique, Russia and Bangladesh. The company also has a stake in Numaligarh Refinery Limited and Brahmaputra Cracker and Polymer Limited. This completes Oil India's presence in the entire hydrocarbon value chain.
Oil India Ltd was incorporated as a private limited company on February 18, 1989 as Oil India Pvt Ltd. The company was incorporated with the main objective of exploration and production of crude oil. The name of the company was changed from Oil India Pvt Ltd to Oil India Ltd with effect from May 4, 1961. In July 1961, the company was transformed into an equal partnership joint venture company between Burmah Oil Ltd and President of India. Also, they commissioned a gas-based power plant at Duliajan in Assam.
In the year 1962, the company the construction of 401 km pipeline from Duliajan to Guwahati. In the next year, they completed the construction of 756 km pipeline from Guwahati to Barauni. In the year 1972, the company discovered commercially producible crude oil Jorajan field and Kharsang fields.
In the year 1981, the equity shares of the company held by Burmah Oil Company Ltd were transferred to the President of India in which, the company became a wholly owned Government company. In the year 1982, the company commissioned LPG plant based on turbo expander technology at Duliajan in Assam.
In the year 1988, the company discovered commercially exploitable gas reserves in Tanot in Rajasthan and in the year next year, they discovered exploitable gas reserves in Dandewala, Rajasthan. In the year 1990, the company discovered commercially producible crude oil in ecocene formation in Dikon and in the next year, they discovered commercially producible crude oil in ecocene formation in Kathaloni.
In the year 1992, the company entered into an agreement with Hydrocarbon Research Incorporated, for initiating coal oil co-processing studies. In the year 1995, they entered into Production Sharing Contract with various companies, to revive the declining Kharsang producing field. In the year 1997, the company was awarded the Mini Ratna-I status.
In the year 2000, the company acquired 12.35% equity stake in Numaligarh Refinery Ltd. In the year 2002, they entered into a consortium with ONGC Videsh Ltd and Indian Oil Corporation Ltd to execute a service contract with the National Iranian Oil Company for the Farsi Block, Iran.
In the year 2004, the company was upgraded to schedule 'A' category. They entered into a MoU with Indian Oil Corporation Ltd for pursuing overseas exploration and production opportunities. Also, they acquired 10% participating interest in a pipeline outside India by entering into an agreement with ONGC Videsh Ltd for construction of 741 km long pipeline in Sudan.
In the year 2005, the company entered into a MoU with Indian Oil Tanking Ltd for jointly taking up pipeline and related projects in India and overseas. Also, they entered into a MoU with ITERA Oil and Gas Company, Russia to jointly pursue exploration and production opportunities in India and overseas, including in Libya. The company was awarded Area 86 (Sirte basin) and Block 102/47 in Libya, along with Indian Oil Corporation Ltd during the year.
In the year 2006, the company executed a farm-in agreement with Indian Oil Corporation Ltd and Marvis Pte Ltd, Singapore by acquiring a participating interest in Block Shakti, Garbob. Also, they acquired 25% equity stake in Suntera Nigeria 205 Ltd. The company was awarded eight blocks in NELP-VI. Also, they were awarded block 82 and 83 in Yemen. In October 2006, the company entered into a joint venture agreement with Gail, Numaligarh Refinery Ltd and the Government of Assam and incorporated Brahmaputra Cracker and Polymer Ltd to establish a gas-based cracker project at Lepetkata, Assam in which, the company holds 10% equity stake.
In the year 2007, the company entered into a MoU with British Gas for pursuing exploration and production opportunities. Also, they entered into MoU with HPCL, GAIL, Total France, SA and Mittal Energy Investment for promoting a refinery-cum-petrochemical complex at Vishakhapatnam. They increased their equity shares in Numaligarh Refinery Ltd from 12.35% to 26%.
During the year, the company received NLD license in order to expand their business in telecommunication sector. Also, they entered into a MoU with HPCL to jointly pursue oil and gas opportunities in the downstream and upstream segment in India as well as overseas.
In the year 2008, the company entered into two farm-in agreements with Reliance Exploration and Production DMCC for a 12.55% equity share in Block K, Timor Leste. Also, they acquired 23% stake in DNP Ltd. They entered into a MoU with Indian Oil Corporation Ltd for co-operation in purchase and sale of natural gas, joint development of city gas projects and development of gas pipeline infrastructure.
During the year, the company constructed and commissioned the Numaligarh Siliguti product pipeline. They entered into a MoU with Indian Oil Corporation Ltd for co-operation in purchase and sale of natural gas, joint development of city gas projects (in India and overseas) and development of gas pipeline infrastructure. Also, they entered into a MoU with GSPCL to evaluate the Lavan gas field in Iran. Also, the company was awarded four blocks in NELP VII.
In the year 2009, the company entered into MoU with Advanced Well Technologies Pvt Ltd to form a joint venture for identifying acquisition opportunities for upstream petroleum assets in Australia and elsewhere. Also, they entered into MoU with BPCL and DNP Ltd for mutual cooperation in gas related business in India & overseas and for leasing of the company's right of way through the Duliajan Numaligarh Pipeline respectively.
During the year, the company received parliamentary approval from the Government of Yemen for block 82 and 83 to carry out exploration activities
On 12 May 2010, a consortium of ONGC Videsh Limited (OVL, 11.0%), Indian Oil Corporation Limited (IOC, 3.5%), Oil India Limited (OIL, 3.5%), Repsol YPF (Repsol, 11.0%) and Petroliam Nasional Berhad (PETRONAS, 11.0%), (collectively, the Consortium) signed a joint venture agreement with Corporation Venezolana del Petroleo S.A. (CVP) for the development and production from Carabobo-1 Project, in Orinoco Region of Venezuela. Earlier, on 10 February 2010, the Consortium was selected by the Government of the Bolivarian Republic of Venezuela for awarding a 40% ownership interest in an 'Empresa Mixta' (or Mixed Company) which will develop the Carabobo 1 Norte and Carabobo 1 Centro blocks located in the Orinoco Heavy Oil Belt. CVP, a subsidiary of Petroleos de Venezuela S.A. (PDVSA), Venezuela's state oil company, will hold the remaining 60% equity interest. The Mixed Company will build heavy oil production facilities, upgrading facilities and associated infrastructure. The upstream production facilities are expected to produce around 400,000 barrels per day of extra heavy oil of which approximately 200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzoategui State. The license term will be for 25 years with the potential for a further 15 years extension. The project cost is estimated at USD 15-20 billion and is one of India's major investments in the Latin American oil major.
Oil India Limited was conferred the Navratna status by the Government of India in April 2010.
The Board of Directors of Oil India Limited at its meeting held on 11 February 2012 recommended the issue of bonus shares in the ratio 3:2 i.e. 3 shares for every 2 shares, subject to approval of the shareholders.
On 4 October 2012, Oil India Limited (OIL) and Indian Oil Corporation Limited (IOCL) announced that they have jointly acquired stakes in Carrizo Oil & Gas Inc's (Carrizo) liquid rich shale assets in the Denver - Julesburg Basin in Colorado. This is OIL and IOCL' s first shale acquisition in the United States. Through their wholly owned U. subsidiaries, OIL and IOCL executed definitive agreements on 4 October 2012 with Carrizo, a NASDAQ listed company based in Houston, Texas, whereby they have acquired 30% of Carrizo's interest in approximately 60,000 net acres where the partners will target development of the Niobrara shale. As part of the transaction, OIL and IOCL will also receive a 30% interest in Carrizo's existing production, of approximately 1850 BOE/ day from 24 gross wells. The total consideration is US$ 82.5 million consisting of an upfront cash payment of US$ 41.25 million and the assumption of US$ 41.25 million of Carrizo's future drilling and development costs.
On 14 January 2013, Oil India Limited (OIL) announced that accelerated early production from its fields in Venezuela had started from 27 December 2012. OIL has 3.5% of interest in a Mixed Company called M/s Petrocarabobo SA, which is developing two blocks in Orinoco Heavy Oil Belt. The majority shareholder (60%) of the Mixed Company is PdVSA, the national oil company of Venezuela. The other minority shareholders are Repsol from Spain, Petronas from Malaysia, ONGC Videsh Ltd. and Indian Oil Corporation Ltd.
On 7 January 2014, Oil India Limited (OIL) announced the completion of the transaction for acquisition of interest in the Giant Gas Field in Rovuma Area 1 Offshore Block in Mozambique. OIL along with ONGC Videsh Limited (OVL) completed the acquisition of 100% shares in Videocon Mozambique Rovuma 1 Limited from Videocon Mauritius Energy Limited. Videocon Mozambique Rovuma 1 Limited holds a 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique (Area 1). Area 1 covers approximately 2.6 million acres in the deepwater Rovuma Basin Offshore Mozambique and represents the largest gas discovery Offshore East Africa with estimated recoverable resources of between 35 and 65 TCF as per operator's estimates. Partners in Area 1 include Anadarko, operator of the project, ENH, Mitsui, BPRL and PTTEP. Area 1 has the potential to become one of the world's largest LNG producing hubs with first LNG expected in 2018.
The Area 1 LNG project is strategically located to competitively supply LNG to India, and OIL's and OVL's participation in the project will facilitate access to the growing Indian gas market, which will supplement the country's energy security endeavor. OIL and OVL will also devote significant financial and technical resources to the development of the project. This investment is expected to further enhance the strong business and cultural links between Mozambique and India.
Oil India Limited along with consortium partners signed Production Sharing Contract (PSC) with Myanmar Oil & Gas Enterprise (MOGE) for two (2) offshore blocks M4 and YEB on 4 December 2014 in a signing ceremony held at Nay Pyi Taw, Myanmar. OIL led consortium won these blocks under Myanmar offshore bidding round 2013, which was launched on 11 April 2013. In this Bidding Round, total 30 blocks were on offer (Shallow Water: 11, Deep Water: 19) and Oil's consortium bided for three offshore blocks M-4, M-8 and YEB. OIL is the operator with 60% PI in both the blocks. Other consortium partners are Mercator Petroleum Limited (25% PI), Oilmax Energy Pvt. Limited (10% PI), and Oil Star Management Services Co. Ltd. (Local Company of Myanmar, 5% PI). Block M-4 with an area of 4008 Sq. Miles (Water Depth: Less than 600 ft) is located in Moattama Basin, while other block YEB with an area 8223 Sq. Miles (Water Depth: Less than 600 ft) is located in Thanintharyi Basin.
On 16 April 2015, OIL India Limited (OIL) announced the successful commissioning of its third commercial Wind Energy Project, viz. a 54 MW project in the States of Gujarat and Madhya Pradesh. Out of the total capacity of 54 MW, the project is split between a 16 MW capacity operational site at Patan in Gujarat and a 38 MW capacity operational site at Chandgarh in Madhya Pradesh. The Patan, Gujarat wing of the project was commissioned on 26 March 2015, while the Chandgarh, M.P. site was commissioned on 31 March 2015.
On 16 March 2016, OIL India Limited (OIL) along with Indian Oil Corporation Limited and Bharat PetroResources Limited (BPRL), a 100% subsidiary of Bharat Petroleum Corporation Limited (BPCL) and its exploration and production arm, acting jointly as the Indian Consortium, signed definitive agreement to acquire participatory shares representing 29.9% of the charter capital of LLC 'TYNGD', a company organized under the Law of Russian Federation, from LLC RN Upstream, a wholly-owned subsidiary of Rosneft Oil Company, the National Oil Company (NOC) of Russia. The acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by September 2016. Rosneft Oil Company holds 80% shares while BP PLC (UK) holds 20% shares in TYNGD through their respective subsidiaries. TYNGD is currently producing about 20,000 bopd, which is expected to ramp up to about 100,000 bopd by 2021.
On 5 October 2016, Oil India Limited (OIL) announced that the Indian consortium led by the company, including Indian Oil Corporation Limited (IOCL) and Bharat PetroResources Limited (BPRL), a 100% subsidiary of Bharat Petroleum Corporation Limited (BPCL), have successfully completed two landmark acquisitions of producing upstream assets in Russia. The consortium acquired 29.9% stake in LLC Taas-Yuryakh Neftegazodobycha (Taas Yuryakh) and 23.9% stake in JSC Vankorneft (Vankorneft) from Rosneft Oil Company, the National Oil Company of Russia (Rosneft). Taas Yurakh is a producing asset and one of the largest green field developments in Eastern Siberia region. Post this transaction, Rosneft now holds 50.1% stake in the field. BP is the other partner with 20% stake. Vankor is a producing giant oilfield, also located in Eastern Siberia. It is the second largest field in Russia by production and contributes to about 10% of Rosneft's entire oil production. Post this transaction Rosneft now holds 61.1% in the field. ONGC Videsh Limited currently holds 15% stake. The current combined production from both fields is around 440,000 bopd or about 22MMTPA and OIL's share of current oil production is 1.7 MMTPA. The fields are also producing about 5.6 BCM of sales gas per annum. The remaining oil and gas reserve of the two fields together are approximately 3.86 billion barrel oil equivalent.
The Company undertook its fourth wind energy power project of 52.5 MW, split between 27.3 MW in Kotiya, Gujarat and 25.2 MW in Unchawas, Madhya Pradesh in 2016-17. The part commissioning of the project (14.7 MW) was completed in 2016-17 & remaining 37.8 MW has been completed in 2017-18 and to this effect Power Purchase Agreement was also signed. Besides this, 500 KW solar energy plant at Pump Station No 3, Jorhat, Assam was also commissioned in 2017-18 for captive utilisation. The total installed capacity of the Company in respect of renewable energy stands at 188.10 MW (excluding projects for captive utilization), comprising of 174.10 MW of wind energy projects and 14 MW of solar energy projects. The solar plants of 0.81 MW are being used for captive utilizations of energy.
On 1 May 2017, Oil India announced that it has made two oil discoveries in the Moran Petroleum Mining Lease (PML) in the Upper Assam Basin in the month of April 2017 in the wells Borbhuibil-1and Lakwagaon-1.
On 6 June 2017, Oil India announced that it has made an oil discovery in the Baghjan Petroleum Mining Lease (PML) in the Upper Assam Basin in the month of May 2017 in the well South Baghjan-2.
During the year 2017, the Company has made 10 oil & gas discoveries in the Upper Assam Basin and steps have been initiated for quick appraisal and production.
On 18 July 2017, Oil India launched its start-up initiative by entering into agreements with two northeast based Start-Up ventures, in Guwahati, Assam. Earlier, the Board of Directors of Oil India Limited (OIL) at its 469th meeting held on 30 September 2016 had approved Rs 50-crore Oil start-up fund to foster, nurture and incubate new ideas related to oil and gas sector. The OIL Start-Up Fund was specifically created to encourage innovation and entrepreneurship in Northeast part of India.
On 28 December 2017, Oil India announced that it has made 2 Hydrocarbon Discoveries in the Dumduma Petroleum Mining Lease (PML) in the Upper Assam Basin during 2nd and 3rd quarter of 2017-18. Both these discoveries would help in enhancing the oil & gas production with future appraisal and development activities.
On 5 March 2018, Oil India Limited (OIL) announced that the Government of Mozambique (GoM) has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. Anadarko Petroleum Corporation is the operator of the project with 26.5% PI and the other concessionaires in the project are Mitsui (20%), ENH (15%), BREML (Beas Rovuma Energy Mozambique Limited) (10%), BPRL (10%), ONGC Videsh Limited (10%) and PTTEP (8.5%). Oil is a sponsor in Area 1 Block, through its 40% shareholding in BREML, which holds a 10% Participating Interest in Area 1. The remaining 60% shares in BREML are held by ONGC Videsh Limited.
On 9 March 2018, Oil India announced that it has got its first ever patent from European Patent Office (EPO) for an invention titled 'A method for preventing wax deposition in oil wells with packers'. Securing this first-ever patent grant signifies a major milestone for OIL and especially its Research & Development (R&D) Unit, which actively develops innovative solutions to oilfield exploration and production problems and has filed few other patent applications in recent years.
In compliance to the DIPAM Guidelines, the Company issued bonus shares in the ratio of 1:2 (one bonus share for two existing shares held) in March 2018. Accordingly 37,83,01,304 bonus shares were allotted to the shareholders on 3rd April 2018. Further 5,04,98,717 equity shares were bought back by the Company in March 2019 resulting in decrease in paid up share capital of the Company by 5,04,98,717 shares.
The natural gas production during the year 2017-18 was 2905 MMSCM (inclusive of 23 MMSCM as OIL's share from Dirok JV, which started production since August, 2017) which is about 98.90% of the production of the previous year (2937 MMSCM). The sale of natural gas was 2415 MMSCM against 2412 MMSCM in the previous year. It may be mentioned that Company currently procures the whole produced volume (100%) of natural gas from the Dirok JV for selling. The price of natural gas was USD 2.69 / MMBTU during the nancial year 2017-18 as against USD 2.78 / MMBTU in the year 2016-17.
During the year 2019, crude oil pipeline transported 6.64 MMT of crude oil out of which Naharkatia-Bongaigaon sector transported 3.31 MMT of crude oil for the Company and 0.97 MMT of crude oil for ONGC Ltd. The Barauni-Bongaigaon sector transported 2.36 MMT of imported crude oil for Bogaigaon Re nery. The Company also transported 1.87 MMT of products through Numaligarh-Siliguri Product Pipeline.
In FY 2019-20, the Company commenced operations of 4 CNG stations at Kolhapur and 3 CNG stations at Ambala-Kurukshetra through JVC HPOIL Gas Private Limited (HOGPL). It had carried out 1389.45 LKM of 2D and 263 sq km of 3D seismic survey. It produced 33,240 Metric tons of LPG and transported 6.18 MMT of crude oil through its crude oil pipeline and 1.516 MMT of petroleum products from Numaligarh-Siliguri product pipeline. It carried out 2105.21 LKM of 2D and 1097.59 SqM of 3D seismic survey and drilled 7 exploratory and 31 development wells in FY 2021-22. It drilled 11 exploratory wells in Assam and Rajasthan during FY 2020-21. It made 1 gas discovery in HPHT well in KG basin. and achieved Reserve Replacement Ratio (RRR) of 1.15 under 2P category. It transported 1.33 MMT of petroleum products through Numaligarh-Siliguri Product Pipeline. In overseas business, the LNG project attained final investment decision for commissioning of two LNG train project in Rovuma Offshore Area 1, Mozambique.
In FY 2020-21, Company acquired additional 54.16% ownership interest in Numaligarh Reìnery Limited (NRL) on 26th March, 2021 making OIL the promoter & holding company of NRL. It acquired 4 blocks in OALP Round-V increasing acreage by 13%. It acquired 13103.3 LKM of 2D and 2104.08 sq. km. 3D seismic data in OALP Blocks. It drilled 12 exploratory wells and 24 development wells during FY 2020-21. It made 1 gas discovery in Assam and achieved Reserve Replacement Ratio (RRR) of 1.16 under 2P category.
In FY 2021-22, the Company started its drilling campaign in OALP blocks by spudding 1st OALP well Soorasar-1 in the RJ-ONHP-2017/9 Block (OALP-I) in Rajasthan. It commissioned the first project of Green Hydrogen in India at Jorhat, Assam. Consortium of OIL, Assam Gas Company Ltd and GAIL Gas Ltd bagged Orders for development of CGD network in KamrupKamrup Metropolitan Districts and Cachar, Hailakandi and Karimganj Districts under 9th round of CGD bidding. Consortium of OIL and Assam Gas Company Ltd acquired development of CGD networks in Three Geographical Areas (GAs), one GA in Assam and two GAs in Tripura, under 11th round of CGD bidding. The Company drilled 7 exploratory wells and 31 development wells during FY 2021-22. It made 2 discoveries, 1 oil & 1 gas in Assam and achieved Reserve Replacement Ratio (RRR) of 1.11 under 2P category. It completed 22922.47 LKM of Airborne Gravity Gradiometry & Gravity-Magnetic (AGG & GM) Survey in North-east. The AGG&GM data acquired covered over 7 OALP Round-I blocks, 3 PELs and 2 PMLs in the logistically inaccessible terrains of North-East, viz. Dibru-Saikhowa National Park (DSNP) and geologically complex Thrust-Belt Areas in Assam & Arunachal Pradesh. It inducted an environment friendly and non-invasive exploration technique viz.Passive Seismic Tomography (PST) in Balimara-Jorajan-Tarajan (Part of the Thrust Belt Area) & Pasighat (OALP-I Block). During the FY 2021-22, Company transported 1.516 MMT of petroleum products through Numaligarh-Siliguri Product Pipeline. It had carried out 2,105.21 LKM of 2D and 1097.59 sq km of 3D seismic survey. It produced 33,240 Metric tons of LPG and transported 6.18 MMT of crude oil through its crude oil pipeline and 1.516 MMT of petroleum products from Numaligarh-Siliguri product pipeline. It carried out 2105.21 LKM of 2D and 1097.59 SqM of 3D seismic survey and drilled 7 exploratory and 31 development wells in FY 2021-22.
During FY 2022-23, the Company carried out 1333 LKM of 2D and 680 SqM of 3D seismic survey and drilled 16 exploratory wells and 29 development wells. It added 4 OALP Blocks viz. 2 blocks each in Tripura and Assam under OALP-VI and OALP-VII respectively and one DSF block in Rajasthan under DSF-III. It acquired 1272.96 LKM of 2D and 561.11 sq.km 3D seismic data in OALP blocks. It completed drilling of 4 nos. of exploratory wells in 3 OALP blocks in Rajasthan, namely well Soorasar-1 in RJ-ONHP-2017/9 Block, wells South Baghewala-1 & South Baghewala-2 in RJ-ONHPP-2017/8 Block and well Bikaner-1 in RJONHP-2018/2 Block.
In 2022-23, the Company started exploratory drilling in OALP blocks in Assam and Odisha, namely well NRB-1 in AA-ONHP-2017/20 Block and well Puri-1 in MN-ONHP-2018/2 Block, respectively. The 2D seismic acquisition and processing of 22,554.75 LKM was completed.
During FY 2022-23, the Company embarked upon a strategic vision to produce 4 MMT of oil & 5 BCM of gas. Projects of Central Bowser Unloading Station (CBUS) & Pipeline Rehabilitation Project of 575 Kms were mechanically completed/commissioned. A rehabilitation project of 575 Km of pipeline under Phase-I was implemented which includes complete refurbishment of pipeline coating, re-designing of catholic protection system, mitigation of shorted cased crossings, recoating of buried Block valves, repair/replacement of shorted Insulating Joints, repair of defective Pipeline Sections. It commissioned drilling of 1 exploratory well in Mahanadi Basin in 2023. It developed a Hydrogen Fuel Cell e-Bus, built on a 60kw PEM fuel cell engine, effective 6th February, 2023 in Bengaluru.
Oil India Ltd
Company History
Oil India Limited (OIL), a Navratna PSU, is a fully integrated Exploration & Production (E&P) company in the upstream sector and is the second largest national oil and gas company of India as measured by total proved plus probable oil and natural gas reserves and production in India. OIL is engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. It has vast experience in reservoir management and expertise in IOR/EOR operations. OIL also provides various E&P related services to make it a fully integrated E&P company.
At present, the Government of India, the Promoter of the Company, is holding 56.66% of the total Issued & Paid-up Capital of the Company. The balance 43.34% of the Equity capital is held by Public and others including Bodies Corporate, Mutual Funds, Banks, FPCs and Resident Individuals. Besides having a Pan-India presence, OIL has Participating Interest in blocks in over nine countries overseas viz Libya, Gabon, Nigeria, Yemen, Venezuela, USA, Mozambique, Russia and Bangladesh. The company also has a stake in Numaligarh Refinery Limited and Brahmaputra Cracker and Polymer Limited. This completes Oil India's presence in the entire hydrocarbon value chain.
Oil India Ltd was incorporated as a private limited company on February 18, 1989 as Oil India Pvt Ltd. The company was incorporated with the main objective of exploration and production of crude oil. The name of the company was changed from Oil India Pvt Ltd to Oil India Ltd with effect from May 4, 1961. In July 1961, the company was transformed into an equal partnership joint venture company between Burmah Oil Ltd and President of India. Also, they commissioned a gas-based power plant at Duliajan in Assam.
In the year 1962, the company the construction of 401 km pipeline from Duliajan to Guwahati. In the next year, they completed the construction of 756 km pipeline from Guwahati to Barauni. In the year 1972, the company discovered commercially producible crude oil Jorajan field and Kharsang fields.
In the year 1981, the equity shares of the company held by Burmah Oil Company Ltd were transferred to the President of India in which, the company became a wholly owned Government company. In the year 1982, the company commissioned LPG plant based on turbo expander technology at Duliajan in Assam.
In the year 1988, the company discovered commercially exploitable gas reserves in Tanot in Rajasthan and in the year next year, they discovered exploitable gas reserves in Dandewala, Rajasthan. In the year 1990, the company discovered commercially producible crude oil in ecocene formation in Dikon and in the next year, they discovered commercially producible crude oil in ecocene formation in Kathaloni.
In the year 1992, the company entered into an agreement with Hydrocarbon Research Incorporated, for initiating coal oil co-processing studies. In the year 1995, they entered into Production Sharing Contract with various companies, to revive the declining Kharsang producing field. In the year 1997, the company was awarded the Mini Ratna-I status.
In the year 2000, the company acquired 12.35% equity stake in Numaligarh Refinery Ltd. In the year 2002, they entered into a consortium with ONGC Videsh Ltd and Indian Oil Corporation Ltd to execute a service contract with the National Iranian Oil Company for the Farsi Block, Iran.
In the year 2004, the company was upgraded to schedule 'A' category. They entered into a MoU with Indian Oil Corporation Ltd for pursuing overseas exploration and production opportunities. Also, they acquired 10% participating interest in a pipeline outside India by entering into an agreement with ONGC Videsh Ltd for construction of 741 km long pipeline in Sudan.
In the year 2005, the company entered into a MoU with Indian Oil Tanking Ltd for jointly taking up pipeline and related projects in India and overseas. Also, they entered into a MoU with ITERA Oil and Gas Company, Russia to jointly pursue exploration and production opportunities in India and overseas, including in Libya. The company was awarded Area 86 (Sirte basin) and Block 102/47 in Libya, along with Indian Oil Corporation Ltd during the year.
In the year 2006, the company executed a farm-in agreement with Indian Oil Corporation Ltd and Marvis Pte Ltd, Singapore by acquiring a participating interest in Block Shakti, Garbob. Also, they acquired 25% equity stake in Suntera Nigeria 205 Ltd. The company was awarded eight blocks in NELP-VI. Also, they were awarded block 82 and 83 in Yemen. In October 2006, the company entered into a joint venture agreement with Gail, Numaligarh Refinery Ltd and the Government of Assam and incorporated Brahmaputra Cracker and Polymer Ltd to establish a gas-based cracker project at Lepetkata, Assam in which, the company holds 10% equity stake.
In the year 2007, the company entered into a MoU with British Gas for pursuing exploration and production opportunities. Also, they entered into MoU with HPCL, GAIL, Total France, SA and Mittal Energy Investment for promoting a refinery-cum-petrochemical complex at Vishakhapatnam. They increased their equity shares in Numaligarh Refinery Ltd from 12.35% to 26%.
During the year, the company received NLD license in order to expand their business in telecommunication sector. Also, they entered into a MoU with HPCL to jointly pursue oil and gas opportunities in the downstream and upstream segment in India as well as overseas.
In the year 2008, the company entered into two farm-in agreements with Reliance Exploration and Production DMCC for a 12.55% equity share in Block K, Timor Leste. Also, they acquired 23% stake in DNP Ltd. They entered into a MoU with Indian Oil Corporation Ltd for co-operation in purchase and sale of natural gas, joint development of city gas projects and development of gas pipeline infrastructure.
During the year, the company constructed and commissioned the Numaligarh Siliguti product pipeline. They entered into a MoU with Indian Oil Corporation Ltd for co-operation in purchase and sale of natural gas, joint development of city gas projects (in India and overseas) and development of gas pipeline infrastructure. Also, they entered into a MoU with GSPCL to evaluate the Lavan gas field in Iran. Also, the company was awarded four blocks in NELP VII.
In the year 2009, the company entered into MoU with Advanced Well Technologies Pvt Ltd to form a joint venture for identifying acquisition opportunities for upstream petroleum assets in Australia and elsewhere. Also, they entered into MoU with BPCL and DNP Ltd for mutual cooperation in gas related business in India & overseas and for leasing of the company's right of way through the Duliajan Numaligarh Pipeline respectively.
During the year, the company received parliamentary approval from the Government of Yemen for block 82 and 83 to carry out exploration activities
On 12 May 2010, a consortium of ONGC Videsh Limited (OVL, 11.0%), Indian Oil Corporation Limited (IOC, 3.5%), Oil India Limited (OIL, 3.5%), Repsol YPF (Repsol, 11.0%) and Petroliam Nasional Berhad (PETRONAS, 11.0%), (collectively, the Consortium) signed a joint venture agreement with Corporation Venezolana del Petroleo S.A. (CVP) for the development and production from Carabobo-1 Project, in Orinoco Region of Venezuela. Earlier, on 10 February 2010, the Consortium was selected by the Government of the Bolivarian Republic of Venezuela for awarding a 40% ownership interest in an 'Empresa Mixta' (or Mixed Company) which will develop the Carabobo 1 Norte and Carabobo 1 Centro blocks located in the Orinoco Heavy Oil Belt. CVP, a subsidiary of Petroleos de Venezuela S.A. (PDVSA), Venezuela's state oil company, will hold the remaining 60% equity interest. The Mixed Company will build heavy oil production facilities, upgrading facilities and associated infrastructure. The upstream production facilities are expected to produce around 400,000 barrels per day of extra heavy oil of which approximately 200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzoategui State. The license term will be for 25 years with the potential for a further 15 years extension. The project cost is estimated at USD 15-20 billion and is one of India's major investments in the Latin American oil major.
Oil India Limited was conferred the Navratna status by the Government of India in April 2010.
The Board of Directors of Oil India Limited at its meeting held on 11 February 2012 recommended the issue of bonus shares in the ratio 3:2 i.e. 3 shares for every 2 shares, subject to approval of the shareholders.
On 4 October 2012, Oil India Limited (OIL) and Indian Oil Corporation Limited (IOCL) announced that they have jointly acquired stakes in Carrizo Oil & Gas Inc's (Carrizo) liquid rich shale assets in the Denver - Julesburg Basin in Colorado. This is OIL and IOCL' s first shale acquisition in the United States. Through their wholly owned U. subsidiaries, OIL and IOCL executed definitive agreements on 4 October 2012 with Carrizo, a NASDAQ listed company based in Houston, Texas, whereby they have acquired 30% of Carrizo's interest in approximately 60,000 net acres where the partners will target development of the Niobrara shale. As part of the transaction, OIL and IOCL will also receive a 30% interest in Carrizo's existing production, of approximately 1850 BOE/ day from 24 gross wells. The total consideration is US$ 82.5 million consisting of an upfront cash payment of US$ 41.25 million and the assumption of US$ 41.25 million of Carrizo's future drilling and development costs.
On 14 January 2013, Oil India Limited (OIL) announced that accelerated early production from its fields in Venezuela had started from 27 December 2012. OIL has 3.5% of interest in a Mixed Company called M/s Petrocarabobo SA, which is developing two blocks in Orinoco Heavy Oil Belt. The majority shareholder (60%) of the Mixed Company is PdVSA, the national oil company of Venezuela. The other minority shareholders are Repsol from Spain, Petronas from Malaysia, ONGC Videsh Ltd. and Indian Oil Corporation Ltd.
On 7 January 2014, Oil India Limited (OIL) announced the completion of the transaction for acquisition of interest in the Giant Gas Field in Rovuma Area 1 Offshore Block in Mozambique. OIL along with ONGC Videsh Limited (OVL) completed the acquisition of 100% shares in Videocon Mozambique Rovuma 1 Limited from Videocon Mauritius Energy Limited. Videocon Mozambique Rovuma 1 Limited holds a 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique (Area 1). Area 1 covers approximately 2.6 million acres in the deepwater Rovuma Basin Offshore Mozambique and represents the largest gas discovery Offshore East Africa with estimated recoverable resources of between 35 and 65 TCF as per operator's estimates. Partners in Area 1 include Anadarko, operator of the project, ENH, Mitsui, BPRL and PTTEP. Area 1 has the potential to become one of the world's largest LNG producing hubs with first LNG expected in 2018.
The Area 1 LNG project is strategically located to competitively supply LNG to India, and OIL's and OVL's participation in the project will facilitate access to the growing Indian gas market, which will supplement the country's energy security endeavor. OIL and OVL will also devote significant financial and technical resources to the development of the project. This investment is expected to further enhance the strong business and cultural links between Mozambique and India.
Oil India Limited along with consortium partners signed Production Sharing Contract (PSC) with Myanmar Oil & Gas Enterprise (MOGE) for two (2) offshore blocks M4 and YEB on 4 December 2014 in a signing ceremony held at Nay Pyi Taw, Myanmar. OIL led consortium won these blocks under Myanmar offshore bidding round 2013, which was launched on 11 April 2013. In this Bidding Round, total 30 blocks were on offer (Shallow Water: 11, Deep Water: 19) and Oil's consortium bided for three offshore blocks M-4, M-8 and YEB. OIL is the operator with 60% PI in both the blocks. Other consortium partners are Mercator Petroleum Limited (25% PI), Oilmax Energy Pvt. Limited (10% PI), and Oil Star Management Services Co. Ltd. (Local Company of Myanmar, 5% PI). Block M-4 with an area of 4008 Sq. Miles (Water Depth: Less than 600 ft) is located in Moattama Basin, while other block YEB with an area 8223 Sq. Miles (Water Depth: Less than 600 ft) is located in Thanintharyi Basin.
On 16 April 2015, OIL India Limited (OIL) announced the successful commissioning of its third commercial Wind Energy Project, viz. a 54 MW project in the States of Gujarat and Madhya Pradesh. Out of the total capacity of 54 MW, the project is split between a 16 MW capacity operational site at Patan in Gujarat and a 38 MW capacity operational site at Chandgarh in Madhya Pradesh. The Patan, Gujarat wing of the project was commissioned on 26 March 2015, while the Chandgarh, M.P. site was commissioned on 31 March 2015.
On 16 March 2016, OIL India Limited (OIL) along with Indian Oil Corporation Limited and Bharat PetroResources Limited (BPRL), a 100% subsidiary of Bharat Petroleum Corporation Limited (BPCL) and its exploration and production arm, acting jointly as the Indian Consortium, signed definitive agreement to acquire participatory shares representing 29.9% of the charter capital of LLC 'TYNGD', a company organized under the Law of Russian Federation, from LLC RN Upstream, a wholly-owned subsidiary of Rosneft Oil Company, the National Oil Company (NOC) of Russia. The acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by September 2016. Rosneft Oil Company holds 80% shares while BP PLC (UK) holds 20% shares in TYNGD through their respective subsidiaries. TYNGD is currently producing about 20,000 bopd, which is expected to ramp up to about 100,000 bopd by 2021.
On 5 October 2016, Oil India Limited (OIL) announced that the Indian consortium led by the company, including Indian Oil Corporation Limited (IOCL) and Bharat PetroResources Limited (BPRL), a 100% subsidiary of Bharat Petroleum Corporation Limited (BPCL), have successfully completed two landmark acquisitions of producing upstream assets in Russia. The consortium acquired 29.9% stake in LLC Taas-Yuryakh Neftegazodobycha (Taas Yuryakh) and 23.9% stake in JSC Vankorneft (Vankorneft) from Rosneft Oil Company, the National Oil Company of Russia (Rosneft). Taas Yurakh is a producing asset and one of the largest green field developments in Eastern Siberia region. Post this transaction, Rosneft now holds 50.1% stake in the field. BP is the other partner with 20% stake. Vankor is a producing giant oilfield, also located in Eastern Siberia. It is the second largest field in Russia by production and contributes to about 10% of Rosneft's entire oil production. Post this transaction Rosneft now holds 61.1% in the field. ONGC Videsh Limited currently holds 15% stake. The current combined production from both fields is around 440,000 bopd or about 22MMTPA and OIL's share of current oil production is 1.7 MMTPA. The fields are also producing about 5.6 BCM of sales gas per annum. The remaining oil and gas reserve of the two fields together are approximately 3.86 billion barrel oil equivalent.
The Company undertook its fourth wind energy power project of 52.5 MW, split between 27.3 MW in Kotiya, Gujarat and 25.2 MW in Unchawas, Madhya Pradesh in 2016-17. The part commissioning of the project (14.7 MW) was completed in 2016-17 & remaining 37.8 MW has been completed in 2017-18 and to this effect Power Purchase Agreement was also signed. Besides this, 500 KW solar energy plant at Pump Station No 3, Jorhat, Assam was also commissioned in 2017-18 for captive utilisation. The total installed capacity of the Company in respect of renewable energy stands at 188.10 MW (excluding projects for captive utilization), comprising of 174.10 MW of wind energy projects and 14 MW of solar energy projects. The solar plants of 0.81 MW are being used for captive utilizations of energy.
On 1 May 2017, Oil India announced that it has made two oil discoveries in the Moran Petroleum Mining Lease (PML) in the Upper Assam Basin in the month of April 2017 in the wells Borbhuibil-1and Lakwagaon-1.
On 6 June 2017, Oil India announced that it has made an oil discovery in the Baghjan Petroleum Mining Lease (PML) in the Upper Assam Basin in the month of May 2017 in the well South Baghjan-2.
During the year 2017, the Company has made 10 oil & gas discoveries in the Upper Assam Basin and steps have been initiated for quick appraisal and production.
On 18 July 2017, Oil India launched its start-up initiative by entering into agreements with two northeast based Start-Up ventures, in Guwahati, Assam. Earlier, the Board of Directors of Oil India Limited (OIL) at its 469th meeting held on 30 September 2016 had approved Rs 50-crore Oil start-up fund to foster, nurture and incubate new ideas related to oil and gas sector. The OIL Start-Up Fund was specifically created to encourage innovation and entrepreneurship in Northeast part of India.
On 28 December 2017, Oil India announced that it has made 2 Hydrocarbon Discoveries in the Dumduma Petroleum Mining Lease (PML) in the Upper Assam Basin during 2nd and 3rd quarter of 2017-18. Both these discoveries would help in enhancing the oil & gas production with future appraisal and development activities.
On 5 March 2018, Oil India Limited (OIL) announced that the Government of Mozambique (GoM) has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. Anadarko Petroleum Corporation is the operator of the project with 26.5% PI and the other concessionaires in the project are Mitsui (20%), ENH (15%), BREML (Beas Rovuma Energy Mozambique Limited) (10%), BPRL (10%), ONGC Videsh Limited (10%) and PTTEP (8.5%). Oil is a sponsor in Area 1 Block, through its 40% shareholding in BREML, which holds a 10% Participating Interest in Area 1. The remaining 60% shares in BREML are held by ONGC Videsh Limited.
On 9 March 2018, Oil India announced that it has got its first ever patent from European Patent Office (EPO) for an invention titled 'A method for preventing wax deposition in oil wells with packers'. Securing this first-ever patent grant signifies a major milestone for OIL and especially its Research & Development (R&D) Unit, which actively develops innovative solutions to oilfield exploration and production problems and has filed few other patent applications in recent years.
In compliance to the DIPAM Guidelines, the Company issued bonus shares in the ratio of 1:2 (one bonus share for two existing shares held) in March 2018. Accordingly 37,83,01,304 bonus shares were allotted to the shareholders on 3rd April 2018. Further 5,04,98,717 equity shares were bought back by the Company in March 2019 resulting in decrease in paid up share capital of the Company by 5,04,98,717 shares.
The natural gas production during the year 2017-18 was 2905 MMSCM (inclusive of 23 MMSCM as OIL's share from Dirok JV, which started production since August, 2017) which is about 98.90% of the production of the previous year (2937 MMSCM). The sale of natural gas was 2415 MMSCM against 2412 MMSCM in the previous year. It may be mentioned that Company currently procures the whole produced volume (100%) of natural gas from the Dirok JV for selling. The price of natural gas was USD 2.69 / MMBTU during the nancial year 2017-18 as against USD 2.78 / MMBTU in the year 2016-17.
During the year 2019, crude oil pipeline transported 6.64 MMT of crude oil out of which Naharkatia-Bongaigaon sector transported 3.31 MMT of crude oil for the Company and 0.97 MMT of crude oil for ONGC Ltd. The Barauni-Bongaigaon sector transported 2.36 MMT of imported crude oil for Bogaigaon Re nery. The Company also transported 1.87 MMT of products through Numaligarh-Siliguri Product Pipeline.
In FY 2019-20, the Company commenced operations of 4 CNG stations at Kolhapur and 3 CNG stations at Ambala-Kurukshetra through JVC HPOIL Gas Private Limited (HOGPL). It had carried out 1389.45 LKM of 2D and 263 sq km of 3D seismic survey. It produced 33,240 Metric tons of LPG and transported 6.18 MMT of crude oil through its crude oil pipeline and 1.516 MMT of petroleum products from Numaligarh-Siliguri product pipeline. It carried out 2105.21 LKM of 2D and 1097.59 SqM of 3D seismic survey and drilled 7 exploratory and 31 development wells in FY 2021-22. It drilled 11 exploratory wells in Assam and Rajasthan during FY 2020-21. It made 1 gas discovery in HPHT well in KG basin. and achieved Reserve Replacement Ratio (RRR) of 1.15 under 2P category. It transported 1.33 MMT of petroleum products through Numaligarh-Siliguri Product Pipeline. In overseas business, the LNG project attained final investment decision for commissioning of two LNG train project in Rovuma Offshore Area 1, Mozambique.
In FY 2020-21, Company acquired additional 54.16% ownership interest in Numaligarh Reìnery Limited (NRL) on 26th March, 2021 making OIL the promoter & holding company of NRL. It acquired 4 blocks in OALP Round-V increasing acreage by 13%. It acquired 13103.3 LKM of 2D and 2104.08 sq. km. 3D seismic data in OALP Blocks. It drilled 12 exploratory wells and 24 development wells during FY 2020-21. It made 1 gas discovery in Assam and achieved Reserve Replacement Ratio (RRR) of 1.16 under 2P category.
In FY 2021-22, the Company started its drilling campaign in OALP blocks by spudding 1st OALP well Soorasar-1 in the RJ-ONHP-2017/9 Block (OALP-I) in Rajasthan. It commissioned the first project of Green Hydrogen in India at Jorhat, Assam. Consortium of OIL, Assam Gas Company Ltd and GAIL Gas Ltd bagged Orders for development of CGD network in KamrupKamrup Metropolitan Districts and Cachar, Hailakandi and Karimganj Districts under 9th round of CGD bidding. Consortium of OIL and Assam Gas Company Ltd acquired development of CGD networks in Three Geographical Areas (GAs), one GA in Assam and two GAs in Tripura, under 11th round of CGD bidding. The Company drilled 7 exploratory wells and 31 development wells during FY 2021-22. It made 2 discoveries, 1 oil & 1 gas in Assam and achieved Reserve Replacement Ratio (RRR) of 1.11 under 2P category. It completed 22922.47 LKM of Airborne Gravity Gradiometry & Gravity-Magnetic (AGG & GM) Survey in North-east. The AGG&GM data acquired covered over 7 OALP Round-I blocks, 3 PELs and 2 PMLs in the logistically inaccessible terrains of North-East, viz. Dibru-Saikhowa National Park (DSNP) and geologically complex Thrust-Belt Areas in Assam & Arunachal Pradesh. It inducted an environment friendly and non-invasive exploration technique viz.Passive Seismic Tomography (PST) in Balimara-Jorajan-Tarajan (Part of the Thrust Belt Area) & Pasighat (OALP-I Block). During the FY 2021-22, Company transported 1.516 MMT of petroleum products through Numaligarh-Siliguri Product Pipeline. It had carried out 2,105.21 LKM of 2D and 1097.59 sq km of 3D seismic survey. It produced 33,240 Metric tons of LPG and transported 6.18 MMT of crude oil through its crude oil pipeline and 1.516 MMT of petroleum products from Numaligarh-Siliguri product pipeline. It carried out 2105.21 LKM of 2D and 1097.59 SqM of 3D seismic survey and drilled 7 exploratory and 31 development wells in FY 2021-22.
During FY 2022-23, the Company carried out 1333 LKM of 2D and 680 SqM of 3D seismic survey and drilled 16 exploratory wells and 29 development wells. It added 4 OALP Blocks viz. 2 blocks each in Tripura and Assam under OALP-VI and OALP-VII respectively and one DSF block in Rajasthan under DSF-III. It acquired 1272.96 LKM of 2D and 561.11 sq.km 3D seismic data in OALP blocks. It completed drilling of 4 nos. of exploratory wells in 3 OALP blocks in Rajasthan, namely well Soorasar-1 in RJ-ONHP-2017/9 Block, wells South Baghewala-1 & South Baghewala-2 in RJ-ONHPP-2017/8 Block and well Bikaner-1 in RJONHP-2018/2 Block.
In 2022-23, the Company started exploratory drilling in OALP blocks in Assam and Odisha, namely well NRB-1 in AA-ONHP-2017/20 Block and well Puri-1 in MN-ONHP-2018/2 Block, respectively. The 2D seismic acquisition and processing of 22,554.75 LKM was completed.
During FY 2022-23, the Company embarked upon a strategic vision to produce 4 MMT of oil & 5 BCM of gas. Projects of Central Bowser Unloading Station (CBUS) & Pipeline Rehabilitation Project of 575 Kms were mechanically completed/commissioned. A rehabilitation project of 575 Km of pipeline under Phase-I was implemented which includes complete refurbishment of pipeline coating, re-designing of catholic protection system, mitigation of shorted cased crossings, recoating of buried Block valves, repair/replacement of shorted Insulating Joints, repair of defective Pipeline Sections. It commissioned drilling of 1 exploratory well in Mahanadi Basin in 2023. It developed a Hydrogen Fuel Cell e-Bus, built on a 60kw PEM fuel cell engine, effective 6th February, 2023 in Bengaluru.
Oil India Ltd
Directors Reports
2022-23
Dear Members,
On behalf of the Board of Directors, I hereby present the 64th
Annual Report on the performance of your Company containing Audited Financial Statements
together with the Auditors' Report and the Comments of the Comptroller and Auditor
General of India for the year ended March 31, 2023. It is an honour for the entire OIL
Board to share that your Company has been elevated to MAHARATNA status by the Government
of India on 4th August 2023.
1. SIGNIFICANT HIGHLIGHTS
A. FINANCIAL HIGHLIGHTS
During the year, the Company has earned highest ever total income of `
24,757.85 crore as against `16,427.65 crore in the previous year 2021-22. The Pro?t
Before Tax (PBT) in the year 2022-23 was ` 8,857.04 crore against PBT of ` 4,986.50 crore
in the previous year. The Company had registered highest ever Pro?t After Tax (PAT) at `
6,810.40 crore during the FY 2022-23 against 3,887.31 crore in the previous year. PAT for
the FY 2022-23 has increased by ` 2,923.09 crore as compared to 2021-22 due to improved
crude oil and natural gas price realization and better production performance. The Net
pro?t margin of the Company for FY 2022-23 was 29.26%. a. Key ?nancial ?gures of the
Standalone Financial Statements for FY 2022-23 are summarized below:
Particulars |
FY 2022-23 |
FY 2021-22 |
| Income from Operations |
23,272.57 |
14,530.18 |
| Other Income |
1,485.28 |
1,897.47 |
| EBDITA |
11,176.09 |
7,266.38 |
| Finance Cost |
724.19 |
783.10 |
| Depreciation, Depletion and Amortisation |
1,594.86 |
1,496.78 |
| Pro?t Before Tax |
8,857.04 |
4,986.50 |
| Pro?t After Tax |
6,810.40 |
3,887.31 |
Appropriations |
|
|
| Interim Dividend |
1,572.38 |
1,003.07 |
| Final Dividend of previous year |
542.20 |
162.66 |
Re-measurement of the net
De?ned Bene?t Plans transferred from Other Comprehensive Income |
75.82 |
251.97 |
b. Key ?nancial ?gures for our Group Performance [Consolidated] for
FY 2022-23 are summarized below:
Particulars |
FY 2022-23 |
FY 2021-22 |
| Income from Operations |
41,038.94 |
30,011.20 |
| Other Income |
719.35 |
1,142.59 |
| EBDITA |
15,991.71 |
11,754.82 |
| Finance Cost |
900.89 |
940.12 |
| Depreciation, Depletion and Amortisation |
1,946.94 |
1,824.48 |
| Pro?t Before Tax |
13,143.88 |
8,990.22 |
| Pro?t After Tax |
9,854.39 |
6,719.22 |
Appropriations |
|
|
| Interim Dividend |
1,572.39 |
993.79 |
| Final Dividend of previous year |
542.21 |
162.66 |
Re-measurement of the net
De?ned Bene?t Plans transferred from Other Comprehensive Income |
51.08 |
275.39 |
c. Financial Performance of our Material Subsidiary – Numaligarh
Re?nery Limited
Numaligarh Re?nery Limited (NRL) registered the highest ever PAT since
its inception at `3,702.79 crore as compared to `3,561.56 crore in FY 2021-22. It also
registered the highest ever revenue from operations during the year at `29,785.60 crore as
compared to `23,547.01 crore in the previous year
. d. Capex Performance:
On a group level, Company has made capex investments of `13,076.21
crore during FY 2022-23 including `6,841.41 crore capex investments by its material
subsidiary Numaligarh Re?nery Limited and `1,755.27 crore towards OIL's
proportionate shares in capex of its JVs & Associates.
B. OPERATIONAL HIGHLIGHTS (i) Crude Oil
During the FY 2022-23, crude oil production was 3.176 MMT (inclusive of
Company's share from Kharsang and Dirok JVs) as against the production in the
previous year 3.010 MMT, which is 5.5% increase over the previous year and highest during
the last four years. The improvement in crude oil production was achieved mainly due to
arresting decline in old wells with implementation of IOR-EOR efforts such as
Hydrofracturing, Cyclic Steam Stimulation in heavy oil reservoir, MEOR, arti?cial lift
optimization etc, contribution from new drilling and expediting revival of sick wells. The
crude oil sale was 3.067 MMT as compared to 2.911 MMT in the previous year.
As a result of 5.5% increase in crude oil production and increased
price realization, revenue from crude oil has increase by 37.63% during the year. The
price realization in respect of crude oil was USD 95.47/bbl in the year 2022-23 as against
USD 78.96/bbl in the year 2021-22.
(ii) Natural Gas
The Company registered the highest ever natural gas production of 3180
MMSCM (including Company's share of production from Dirok JV) during the FY 2022-23,
which is higher than the 3045 MMSCM (including Company's share of production from
Dirok JV) in FY 2021-22. The Sale of natural gas during FY 2022-23 is 2457.7 MMSCM which
is higher than 2450 MMSCM in FY 2021-22. As a result of higher sales quantity and
increased price realization, revenue from natural gas increased by 236.60% during the year
2022-23. The average Natural Gas price realization was USD 7.34/ MMBTU in FY 2022-23 as
against USD 2.35 / MMBTU in FY 2021-22.
(iii) Lique?ed Petroleum Gas (LPG)
Lique?ed Petroleum Gas (LPG) of 32,100 metric tons was produced during
FY 2022-23 as against 33,240 MT in previous year. The condensate recovered from LPG plant
is punched with crude oil which contributed 0.0204 MMT to the total crude oil production
of the Company. Sale of LPG during FY 2022-23 was 32232 MT as against 33094 MT in 2021-22.
Revenue earned by selling LPG during FY 2022-23 was `210.14 crore as against `186.77 Crore
in FY 2021-22 an increase of 12.51%. Revenue from sale of Condensate was ` 52.15 crore in
the FY 2022-23 as against `49.68 Crore in the FY 2021-22.
(iv) Pipeline Operations
During FY 2022-23, Crude Oil Pipeline achieved highest ever throughput
of 6.79 MMT as against 6.18 MMT in the previous year. The Naharkatia - Bongaigaon Sector
transported 3.04 MMT of Crude Oil for the Company and 0.99 MMT of Crude Oil for ONGC and
other producers. The Barauni - Bongaigaon - Guwahati Sector transported 2.76 MMT of
Imported Crude Oil for Bongaigaon & Guwahati Re?nery. The Company also transported
1.416 MMT of Petroleum Products through Numaligarh-Siliguri Product Pipeline with pipeline
utilization of 82.3 %. The total revenue earned from the transportation business was
`649.85 crore in the FY 2022-23 including arrears on account of revision in Pipeline
Tariff against `345.18 crore in FY 2021-22.
(v) Renewable Energy
As on 31st March, 2023, total installed capacity of the
Company in respect of renewable energy stands at 188.1 MW, comprising of 174.1 MW of wind
energy projects and 14.0 MW of solar energy projects. In addition, Company also has solar
plants of 0.906 MW for captive utilization. Your Company generated revenue of `121.96
crore from renewable energy projects during FY 2022-23.
(vi) Operational Performance of NRL
NRL achieved highest ever operational availability at 99.42% and
processed highest ever 3091 TMT of crude oil during the year which is 103% capacity
utilisation. NRL has embarked on a major integrated re?nery expansion project to augment
its capacity from 3 MMTPA to 9 MMTPA. The project also includes setting up of a crude oil
import terminal at Paradip in Odisha and laying of about 1630 KM of pipelines for
transportation of imported crude oil from Paradip in Odisha to Numaligarh. NRL, in
collaboration with two other foreign entities, have incorporated – ‘Assam
Bio-Re?nery Private Limited (ABRPL)' which is setting up a second-generation
bio-re?nery at Numaligarh, Assam to produce 50 TMTPA ethanol from non-food grade feed
stock bamboo. The NRL has commissioned a 130 km long and 1 MMTPA capacity product pipeline
from Siliguri in West Bengal to Parbatipur in Bangladesh on 18th March, 2023.
C. EXPLORATION HIGHLIGHTS i) Exploration Thrust: Acquiring Acreages
Your Company's In-Country operations are spread over areas in the
states of Assam, Arunachal Pradesh, Mizoram, Tripura, Nagaland, Odisha, Andhra Pradesh
& Rajasthan and offshore areas in Andaman, Kerala-Konkan
& KG shallow waters. The Company is operating in 02
(two) PEL and 25 (twenty-?ve) PML areas, allotted under the nomination
regime in the states of Assam, Arunachal Pradesh and Rajasthan. The Company is currently
carrying out exploration activities in 29 OALP blocks in the states of Assam, Arunachal
Pradesh, Tripura, Nagaland, Odisha, Rajasthan and offshore areas in Andaman and
Kerala-Konkan. The Company also holds Participating Interest (PI) in 06 (six) NELP Blocks
with operatorship in 04 (four) Blocks and as non-operator in the remaining 02 (two) Blocks
as on 31.03.2023. The Company also has 3 (three) DSF blocks as operator, one block each in
Tripura and Krishna-Godavari Shallow Offshore under DSF-II Bid round and one block in
Rajasthan under DSF-III Bid round. With acquiring of new acreages of 5063 Sq. KM , the
total domestic operating acreages of the Company is 62,911 sq. km as on 31.03.2023.
The strategy of your Company is to consolidate its position as the
leading Operator in North-East with the long-term vision to supplement existing domestic
reserves portfolio in-line with the Government of India's vision to intensify
exploration in Indian sedimentary basins and increase domestic oil and gas production. The
Company has further expanded its acreage base through participation under OALP Bid rounds
and DSF round. During the year, the Company was successful in adding four (4) OALP blocks
viz. 2 blocks each in Tripura and Assam awarded under OALP-VI and OALP-VII Bid rounds
respectively and one DSF block in Rajasthan under DSF-III. The Revenue Sharing Contract
(RSC) for the blocks of Tripura, Assam and Rajasthan were signed on 27.04.2022, 28.06.2022
and 09.09.2022 respectively
ii) Exploration Activities and Discoveries
Your Company carried out 1333.32 LKM of 2D and 680.05 sq. km of 3D
seismic survey during the FY 2022-23 (i.e an overall effective seismic coverage of
870 Sq . KM considering 1:7 conversion factor.) So far, out of 28 OALP blocks with valid
PEL, the Company has completed committed seismic acquisition in 22 OALP blocks, and
acquisition is under progress in 1 block and due to resume/commence in 3 blocks after the
monsoon break. Seismic commitment in two of the blocks could be partially accomplished due
to local problems and statutory clearance related issues.
Your Company drilled 16 (sixteen) exploratory wells and 29
(twenty-nine) development wells during FY 2022-23. Your Company has made 1 (one) oil
discovery in Assam which was also brought on production and contributed to 5400 MT of
crude oil in FY 2022-23. The Company achieved Reserve Replacement Ratio (RRR) of 1.01
under 2P category. Under OALP regime, the Company has completed drilling of four (4) nos.
of exploratory wells in 3 OALP blocks in Rajasthan namely well Soorasar-1 in
RJ-ONHP-2017/9
Block, wells South Baghewala-1 & South Baghewala-2 in
RJ-ONHPP-2017/8 Block and well Bikaner-1 in RJ-ONHP-2018/2 Block. The Company has also
started exploratory drilling in OALP blocks in Assam and Odisha namely well NRB-1 in
AA-ONHP-2017/20 Block and well Puri-1 in MN-ONHP-2018/2 Block, respectively. Your Company
was bestowed with the Prestigious Federation of Indian Petroleum Industry - FIPI Awards
2022 "Exploration Company of the Year" for its exploration efforts.
Your Company inducted the state-of-art Hybrid Telemetry Seismic
Recording Equipment with the capability to record seismic data in cabled and cable-less
mode simultaneously. Your Company has carried out the ?rst ever Passive Seismic
Tomography (PST) survey that, concluded over Pasighat (OALP-I block) & in
Balimara-Tarajan-Jorajan areas during the year. This PST campaign covered approximately
500 sq. km area and continuous data was recorded for a period of 11 months and based on
the recorded naturally occurring earthquakes and tremors, sub-surface velocity structure
and Poisson's ratio volume has been derived over the study area.
Under Government of India initiative, your Company is entrusted with
the responsibility of acquiring 22,500 LKM of 2D seismic data in Andaman deep water
offshore. The 2D seismic acquisition and processing of 22,554.75 LKM has been completed
and seismic interpretation studies are currently under progress
. iii. Oil and Gas Reserves a. Domestic
Your Company has strong oil and gas reserves base in domestic assets
including JVs. The Reserve accrued (EUR 2P) during the year 2022-23 is 5.9474 MMToE. The
particulars of oil and gas reserves as on 31.03.2023 are furnished below:
Reserves |
1P |
2P |
3P |
Oil + Condensate Reserves
(MMT) |
30.2119 |
70.5614 |
93.2194 |
Balance Recoverable Gas (BCM)* |
89.6682 |
138.5074 |
176.6278 |
| O+OEG (MMTOE) |
108.4601 |
191.0895 |
247.1200 |
Based on projected volume of gas under various sales contracts, 1P, 2P
and 3P Gas Reserves are 27.7930, 56.3240 and 66.8030 BCM respectively
. b. Overseas
As on 31.03.2023, oil & gas reserves position of 05 (?ve) overseas
assets (Company's Proportionate Share) namely License-61 (Russia), Vankorneft
(Russia), Taas
Yuryakh (Russia), Petro Carabobo (Venezuela) & Gol?nho-Atum
(Mozambique) is as furnished below:
Reserves |
1P |
2P |
3P |
Oil + Condensate Reserves
(MMT) |
11.5309 |
29.7247 |
49.8326 |
| Gas, BCM |
12.6122 |
21.2093 |
25.2756 |
| O+OEG (MMTOE) |
24.1431 |
50.9339 |
75.1082 |
2. CAPITAL STRUCTURE
The Authorized Share Capital of the Company is ` 2000 Crore. The
Issued, Subscribed and Paid up Share Capital of the Company is `1084.41 crore comprising
of 108.44 crore shares of `10 each. At present, the Government of India, the Promoter of
the Company, is holding 56.66% of the total Issued & Paid-up Capital of the Company.
The balance 43.34% of the Equity capital is held by Public and others including Bodies
Corporate, Mutual Funds, Banks, FPCs and Resident Individuals.
3. DIVIDEND
Your Company paid 1st Interim Dividend @ `4.50 per share
(i.e. 45% on the paid up equity share capital) amounting to `487.99 crore and 2nd
Interim Dividend @ `10.00 per Share (i.e. 100% on paid up equity share capital) amounting
to `1084.41 crore for the FY 2022-23. The Board of Directors have recommended a Final
Dividend of `5.50 per share (i.e. 55% on the paid-up equity share capital) amounting to
`596.42 crore for the FY 2022-23, subject to the approval of the shareholders at the 64th
Annual General Meeting of the Company.
4. CREDIT RATINGS
The Company's ?nancial prudence is reected in the current credit
ratings ascribed by the ratings agencies as given below:
Category |
Rating Agency
International |
Rating |
Remark |
Statements |
Long Term |
Moody's Investor
Service |
Baa3 (Stable) |
At par with India's
Sovereign rating |
|
Long Term |
Fitch Ratings |
BBB- (Stable) |
At par with India's
Sovereign rating |
|
|
|
Domestic |
|
|
Long Term |
CRISIL |
CRISIL AAA (Stable) |
Highest Rating |
|
Short Term |
CRISIL |
CRISIL A1+ |
Highest Rating |
|
Long Term |
CARE Ratings |
CARE AAA (Stable) |
Highest Rating |
|
Short Term |
CARE Ratings |
CARE A1+ |
Highest Rating |
|
5. DETAILS OF LOANS, GUARANTEES AND INVESTMENTS/ DEPOSITS
The particulars of investment made, loans extended, guarantees and
securities provided along with the purpose for which the loan or guarantee or security is
proposed to be utilized by the recipient are provided in the standalone ?nancial
statements. (Ref. Note no. 6, 8, 17 & 41 to the standalone ?nancial statements).
6. RELATED PARTY TRANSACTIONS
All contracts / arrangements / transactions entered by the Company
during the year with related parties were in ordinary course of business and at arm's
length basis. The policy on materiality of related party transactions and dealing with
related party transactions may be accessed on the Company's website at
www.oil-india.com. Attention is also invited to Note 42.4 to the ?nancial statements and
Form AOC-2 attached herewith.
7. HUMAN ASSETS
Human Resource Management at OIL embraces a comprehensive approach that
centers on fostering a collaborative and productive relationship between the Company and
its workforce. Rooted in our tireless commitment to excellence, our HR practices are
geared towards sustaining and nurturing a culture of continuous improvement. We ?rmly
believe that Human Asset is the catalyst that activates other forms of resource capitals
in the Company. Our human resource systems are designed to be responsive to the unique
needs and well-being of our workforce.
As on 31st March 2023, our workforce comprises of 6759
individuals, including 1772 executives and 4987 unionized employees. Strategic measures
such as policy interventions, transparent and objective HR processes etc drive the
contribution of human asset in the Company. To ensure our employees are equipped with the
right skills for the dynamic industry landscape, we have emphasized on various upskilling
and reskilling initiatives. Contextually relevant training programs enable our workforce
to adapt to emerging challenges and embrace technological advancements. We are steadfast
in our pursuit of organizational excellence and look forward to a future of continued
progress and achievement.
8. SPORTS
The Company believes that sports is an integral part of all round
development of human capital and achieving excellence in sports has real bearing on
national prestige and morale. Therefore, employees are encouraged to participate and excel
in sports. The Company has actively supported and promoted sports under the umbrella of
Petroleum Sports Promotion Board (PSPB), All India Public Sector Sports
Promotion Board (AIPSSPB) and other bodies duly recognized by the Government of India. The
Company participated in various sports events in Football, Golf, Cricket etc. during the
year.
Some of the glimpses of OIL in sports are:
OIL's Football Team was the Winner in the 74th All
India Independence Day Cup Football Tournament, Dr. T.Ao Invitational Football Tournament
and the 69th Bharat Ratna Lokopriya Gopinath Bordoloi Trophy Football
Tournament.
Runner-Up in the ATPA Shield Football Tournament & the 18th
Captain Jintu Gogoi Vir Chakra Memorial Invitational Football Tournament.
OIL's Football Team also won the 42nd PSPB Inter-Unit
Football Tournament & AIPSSCB Football Tournament.
Company's Basketball team emerged as Runner-up in the PSPB Inter
Unit Basketball Tournament.
OIL-A & OIL-B team emerged as Winner and Runners-up respectively in
the 43rd PSPB Inter Unit Golf Tournament.
Company's Men's, Women's and Veteran Team emerged as
Runners-up in the 4th PSPB Inter-Unit Squash Tournament.
Company's Volleyball team emerged as Runner-up in the PSPB
Inter-Unit Volleyball Tournament.
Billiards & Snooker Team emerged as winner and runner-up in
Individual Snookers and Billiards Non-professional Category in the PSPB Inter unit
Billiards & Snooker Tournament.
Badminton Team secured 2nd Position in the Men's Open
Doubles in the PSPB Inter-Unit Badminton Tournament.
Men's Team emerged as winners in the AIPSSCB Table Tennis
Tournament.
9. IMPLEMENTATION OF GOVERNMENT DIRECTIVES FOR PRIORITY SECTIONS
The Company complies with the directives of the Government of India for
priority sections of the society. The representation of various priority sections in
executive and unionized employees categories in the Company as on 31st March,
2023 is as under:
Category |
SC |
ST |
OBC |
Minority |
PWD |
Women |
| Executives |
264 |
164 |
493 |
128 |
39 |
216 |
| Unionized |
|
|
|
|
|
|
|
451 |
797 |
2243 |
287 |
108 |
273 |
| Employees |
|
|
|
|
|
|
Total |
715 |
961 |
2736 |
415 |
147 |
489 |
10. IMPLEMENTATION OF SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company is committed towards prevention of sexual harassment of
women at workplace and takes prompt action in the event of reporting of any such
incidents. The Company has in place mechanism for prevention of sexual harassment in line
with the requirements of the Sexual Harassment of Women at the Workplace (Prevention,
Prohibition and Redressal) Act, 2013. In this regard, Internal Complaints Committees
(ICCs) have been constituted at various oces of the Company to deal with sexual harassment
complaints, if any, and to conduct enquiries.
The disclosure regarding complaints under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 during the FY
2022-23, is as under:
Sl. no. |
Particulars |
Number of complaints |
1 |
Number of complaints ?led
during the FY |
Two (02) |
2 |
Number of complaints disposed
of during the FY |
Two (02) |
3 |
Number of complaints pending
as on the end of the FY |
NIL |
11. CORPORATE GOVERNANCE
In compliance with the SEBI (LODR) Regulations, 2015, the Management
Discussion & Analysis Report, Corporate Governance Report and Business Responsibility
and Sustainability Report have been furnished as a part this Annual Report. Your Company
also complies with the Corporate Governance Guidelines enunciated by the Department of
Public Enterprises, Government of India. Your Company has published the Business
Responsibility and Sustainability Report [BRSR] which is hosted on the website on the
Company on the link https://www.oil-india.com/Document/Financial/
BusinessResponsibilitySustainabilitReport20222th1108 pdf
12. RTI ACT, 2005
The Company has implemented Right to Information Act, 2005 in order to
provide information to citizens while maintaining accountability & transparency. The
Company, being a Public Authority as de?ned in Sec 2(h) of the Act, is required to
discharge all the obligations under the Act. To carry out the tasks outlined in the Act,
each sphere has a designated Central Public Information Ocer (CPIO), Central Assistant
Public Information Ocer (CAPIO) and Appellate Authority. In line with the Government
directives, the RTI Cell is successfully processing and disposing RTI Applications through
the Government portal namely, RTI Online. The RTI section on the Company's website is
also being maintained and updated with all disclosable information as per the proactive
disclosure under the RTI Act. During FY 2022-23, the Company received 1095 including
applications carried over from the previous FY under the RTI Act. In most of the
applications and appeals, it was ensured that the reply/order was issued within the
stipulated period of 30 days.
RTI Status for FY 2022-23 (as on 31.03.2023) :
Total Applications |
Applications Disposed |
Pending Applications |
First Appeals before
Appellate Authority |
Appeal disposed off |
Pending Appeals |
| 1095 |
1066 |
29 |
152 |
131 |
21 |
13. IMPLEMENTATION OF OFFICIAL LANGUAGE (RAJBHASHA)
The Company puts continuous efforts for increased use of Ocial Language
Hindi in ocial work in line with the Ocial Language Policy/Act/Rules/Orders of the Govt.
of India. Hindi Workshops were conducted regularly so as to enable ocers and employees to
work in Hindi conveniently and eciently. Quarterly Meetings of Ocial Language
Implementation Committee were held regularly. The responsibility of the Chairmanship of
Duliajan Town Ocial Language Implementation Committee (TOLIC) was also borne by the
Company. Half-yearly meeting of TOLIC were organised as per schedule of Department of
Ocial Language. Executives/ Employees were encouraged to attend Hindi Training Classes and
to write more and more words in Hindi through Incentive Scheme formulated by the Company.
Total of 267 Nos. of ocers and employees took training of Hindi through Hindi classes and
workshops in Ocial Language Section. 37 ocers and employees passed and were given
incentives as per Company rules. To Propagate Ocial Language Hindi, amongst employees,
TOLIC members and students, various literary competitions were held during Hindi Month
Celebration. New initiative of Hindi section
i.e. Aaj Ka Shabd is being prepared and published in OIL web daily.
The Company has been awarding "OIL Shreemanta Shankardev
Fellowship for Comparative Studies of Literature (Assamese and Hindi)" to Hindi
research fellows of the Guwahati University since 2003. This fellowship is given by the
Company to a selected research fellow of the university every year for the comparative
studies of Literature. The amount for fellowship and other facilities are at par with
University Grant Commission (UGC) fellowship.
The Company bagged the Second Petroleum Rajbhasa Shield for the year
2021-22 for best implementation of Ocial Language in oce jobs.
Annual programme of Ocial Language Hindi for the FY 2022-23, which was
issued by Departments of Ocial Language, Ministry of Home Affairs, Govt. of India, was
circulated to all Spheres/ Departments of the Company and regular monitoring and reviewing
jobs are being done in Quarterly Meeting with Departmental representatives. In–House
Hindi Journal "OIL KIRAN" was published regularly. In-House Journal "OIL
NEWS" was published in Trilingual form i.e. Assamese, Hindi and English.
14. PUBLIC PROCUREMENT POLICY FOR MICRO & SMALL ENTERPRISES (MSEs)
The Company adheres to the Public Procurement Policy for MSEs. The
Budgeted and actual procurement of goods and services from MSEs during the FY 2022-23 are
as under :
S. No |
Particulars |
Status as on 31.03.2023 |
1 |
Budgeted procurement of goods
and services from MSEs |
`750.00 crore |
2 |
Actual procurement of goods
and services from MSEs (including MSEs owned by SC/ ST entrepreneurs) |
`1357.43 crore |
3 |
Percentage of procurement of
goods and services from MSE (including MSEs owned by SC/ |
50.52% |
|
ST entrepreneurs) out of
total procurement excluding high- technology items |
|
Total procurement of goods and services during FY 2022-23 as per
guidelines of MoP&NG and recorded in ‘Sambandh Portal' is `2,686.92 crore
and as above the total procurement through MSEs during FY 2022 23 is `1,357.43 crore which
is 50.52% of total procurement through ‘Sambandh Portal'.
Total Procurement of goods and services by the Company during FY
2022-23 is `5725.12 crore. Procurement of
Goods and services through GeM portal during the year FY 2022-23 as per
GeM is `2,136.75 crore which is 37.32% of total procurement.
15. VIGILANCE
The Vigilance Wing is headed by Chief Vigilance Ocer (CVO), who
functions as a link between the Central Vigilance Commission (CVC), the Central Bureau of
Investigation (CBI) and the Management and acts as an advisor to Head of the organization
on Vigilance matters. Vigilance basically functions under three facets:
(i) Preventive
(ii) Punitive and
(iii) Surveillance & Detection. Preventive Vigilance: This calls
for constant review of roles, procedures and practices for re?ning and improving the
system thereby reducing scope for corruption and also leading to better operational
results. To strengthen this facet of Vigilance framework, during the FY 2022-23, several
system improvement measures were recommended and implemented on the basis of scrutiny of
various Contracts & Purchases ?les, inspections of installations both periodic and
surprise, intensive examinations of high value projects/works done internally.
Additionally, policy matters were also taken up for improvements like amendment in
Delegation of Powers, Integrated Purchase Manual, Conduct Discipline and Appeals (CDA)
Rules, etc. to name a few. Extensive use of technology through E-procurements, E-payments,
Bill tracking system etc. has further emerged as effective tools of preventive vigilance.
To create awareness and to sensitize employees about the Company rules and regulations,
nineteen
(19) in-house awareness programs were conducted in various spheres of
the organization. The programs included "Keep in Touch" (KIT), Catch Them Young
(CTY) and "Vigilance Sensitization". Further, management has been advised to
regularly conduct induction and mid-career training programs on preventive vigilance.
One major event towards Preventive Vigilance is observance of
"Vigilance Awareness Week" (VAW). During the FY, in line with the directives of
CVC, as a precursor to VAW 2022, a 3-month campaign on Preventive Vigilance & Internal
Housekeeping was launched across the Company from 16th August – 15th
November 2022. The campaign was focused on six areas viz. Property Management, Asset
Management, Record Management, Technological Initiatives, Updation of Guidelines /
Circulars and Disposal of Complaints.
The VAW 2022 was observed from 31st October – 6th
November 2022 across the Company on the theme "Corruption free India for a developed
nation". The week started with the Integrity Pledge, which was administered by the
CMD and the CVO to all employees in an event streamed live across all spheres / oces of
the company. A special issue of Vigilance in-house journal "InTouch" was also
released on the occasion of VAW 2022. Several activities were conducted both within and
outside the Company. Some of these activities include Talks by eminent personalities,
Training, Seminar/ Webinars, Workshops, Quiz, Debate, etc. In addition, several
competitions in nearby schools and colleges were also organized Vendors' Grievance
Redressal Camp
/ Awareness Programs and Gram Sabhas were also organized in different
spheres of the Company, enabling the stakeholders to redress their problems.
In addition to above, continuous efforts are on to imbibe ethical
behaviour by encouraging everyone to take the online "Integrity Pledge". The
link for online "Integrity Pledge" has been made available on Company's
website and can be easily accessed by the employees, their families,
vendors/contractors/stakeholders.
Punitive Vigilance: This function involves complaints handling,
investigations, monitoring of disciplinary cases, etc. Based on complaints received by the
organization from various sources including the CVC and the concerned Ministry,
investigations are done and taken to their logical conclusion. For effective and timely
disposal of disciplinary cases, management has been advised to conduct training on the
role of inquiry ocers & presenting ocers among ocers at different levels of the
organization. As and when required, assistance is also extended to the CBI in the
investigation of cases entrusted to them. During the FY 2022-23, 01 vigilance case
(disciplinary proceeding) involving 04 ocials was handled, orders of the Disciplinary
Authority were awaited as on 31st March, 2023.
Surveillance & Detection: This function includes conducting regular
& surprise inspections, CTE Type intensive examination of projects / works, besides
carrying out scrutiny of annual property returns, audit paras, etc. During the FY 2022-23,
several inspections / examination / scrutiny in all spheres of the Company were carried
out and observations or ?ndings were appropriately taken up with the management.
16. RESEARCH AND DEVELOPMENT
The Research & Development team of the Company provides techno
economically feasible and practical solutions to frequently encountered oil?eld problems.
Over the years, Company has developed expertise and competence in the core oil?eld
operational and applied research in the areas of geochemistry, oil?eld chemicals, ow
assurance, oil ?eld operations - well stimulation, IOR/EOR and petroleum microbiology
which has bene?tted the Company immensely.
R&D Department of the Company is also working in alternate sources
of energy including Green Hydrogen. The Department has initiated efforts to set up a state
of-the-art Nanotechnology Laboratory to develop newer technologies in oil?eld operations
like drilling and enhanced oil recovery. The Department is also setting up a Geomechanics
Laboratory to study the geo-mechanical aspects of rock formations that will help in
drilling through dicult sub-surface regimes. As technological up-gradation, state of the
art equipment have been procured and successfully put into service, which would help in
developing effective research based solutions. In the present global scenario,
knowledge-based assets or Intellectual Property Rights (IPRs), especially patents, have
special signi?cance for organizational growth and competitiveness. Realizing this, the
R&D unit of the Company has been engaged in patenting activities and has been granted
several patents both nationally and internationally.
Your Company has also entered into a MoU with Birbal Sahni Institute of
Palaeosciences (BSIP), Lucknow to undertake Bio stratigraphic studies for paleo
stratigraphic reconstruction and with Texas A&M Engineering Experiment Station (TEES)
for collaboration in exploration and production of hydrocarbons.
Company has invested 1.42% of its consolidated Pro?t Before Tax on
various R&D and Innovative initiatives.
17. START-UP INITIATIVES
Catapulted in 2016 with the "Startup India" movement,
OIL's SNEH (Startup Nurturing and Holding) program has matured in leaps and bound and
has now completed its 7th phase of Startup induction. With a sector agnostic approach, OIL
has a portfolio of Startups to solve business problems in multiple sectors. The
agglomerate consists of Startups delivering solutions to oil & gas industry, battery
components recycling, mobility solutions with hydrogen as fuel, app based fuel delivery,
robotics, carbon capture, euent treatment & bio technology. In the year 2022-23, OIL
implemented SNEH's 6th and 7th phase of Startup entries. Startup Ohm Clean Tech Pvt
Ltd, Pune, working in the ?eld of "Liquid Organic Hydrogen Carrier (LOHC) based
Hydrogen Storage & Transportation system for mobility applications & Design and
development of 9-M Hydrogen Fuel Cell e-bus", Minimines Cleantech Solutions Private
Limited (MCSPL), Jaipur working on "Sustainable Recycling of Li-Ion Battery" and
Universally Green Technology Private Limited working on "Carbon Capturing and
Utilization" were embraced under the umbrella of SNEH.
The prestigious Institution IIT Bhubaneswar joined hands with OIL
through its arm Research and Entrepreneurship Park as an incubation center to bolster the
OIL Startup programme. OIL also disbursed an amount of `6.31 Cr. from its Startup fund
during the year 2022-23.
OIL & NRL organized a Startup investors' summit on 4th
November 2022 at Guwahat
i. The Startup Investors' Summit 2022-23, conceived to be the
?rst of its kind conuence of startups organized in the Northeast region. Under the
umbrella of SNEH along with the association of our Incubation partners IIT Guwahati, IIT
Bhubaneswar and Guwahati Biotech park, the archipelago of Eleven
(11) OIL Startups are driving and striving to bring extraordinary
solutions to the Indian industry which is manifested through several accolades &
awards won by the Startups. Startup Beta Tanks Robotics and Caliche won the Best Startup
awards at IEW (India Energy Week) 2023. Startup Mini Mines was the winner of the FLCTD
(Facility for Low Carbon Technology Deployment) Accelerator program 4, for providing a
sustainable and ecient Lithium-ion battery recycling clean-tech solution. The same Startup
is also selected for ANIC-AIM 2.0 grant (Atal New India Challenge is a agship program of
Atal Innovation Mission, NITI Aayog.).
The Company completed the beta-phase demonstration of a Hydrogen Fuel
Cell e-bus developed through its startup program SNEH. Prime Minister Shri Narendra Modi
agged off the hydrogen fuel cell e-bus at the India Energy Week (IEW) in Bengaluru on 6th
February, 2023.
18. SUBSIDIARIES / JOINT VENTURES / ASSOCIATE COMPANIES (Ref. Form
AOC-I Page nos. 240-241)
A. MATERIAL SUBSIDIARY i. Numaligarh Re?nery Limited
Numaligarh Re?nery Limited (NRL) was incorporated on 22nd
April, 1993 and is a Schedule ‘A' Miniratna Category-I CPSE having a 3 MMTPA
Re?nery at Numaligarh in Golaghat district of Assam. As part of its diversi?cation
strategy, as on 31.03.2023 the Company holds 69.63% stake in NRL. Govt. of Assam and
Engineers India Limited hold 26% and 4.37% stake in NRL respectively. The Company is the
promoter and has management control of NRL.
B. SUBSIDIARIES i. Oil India International Pte. Ltd.(OIIPL)
OIIPL, a Singapore based wholly owned subsidiary of the Company, holds
33.5% stake each in Vankor India Pte. Ltd (VIPL), Singapore and Taas India Pte. Ltd.
(TIPL), Singapore which in turn hold 23.9% and 29.9% in
Russian entities namely, JSC Vankorneft and LLC TYNGD respectivel
y ii. Oil India Sweden AB
Oil India Sweden AB is a wholly owned subsidiary of the Company. It
holds 50% shareholding in IndOil Netherlands BV, Netherlands which holds 7.0%
Participating Interest (PI) in the Venezuelan Asset namely PetroCarababo S.A.
iii. Oil India International B.V (OIIBV)
OIIBV, Netherlands is a wholly owned subsidiary of the Company. OIIBV
holds 50% stake in WorldAce Investments Limited, Cyprus which held 100% stake in Stimul T,
a Russian legal entity. Stimul -T has ?led for bankruptcy on 10th May 2023 due
to adverse operational and ?nancial circumstances. iv. Oil India Cyprus Ltd.
The Company held 76% of the share capital of Oil India Cyprus Ltd. The
balance 24% was held by Oil India Sweden AB. This Company was primarily formed for funding
loan by OIL in the Venezuelan Asset, namely PetroCarababo S.A. The Company has been wound
up and struck off from the ocial registry in Cyprus on 23rd September 2022.
v. Oil India (USA), Inc.
Oil India (USA), Inc. was a wholly owned subsidiary of the Company. It
held 20% stake in Niobrara shale oil and gas asset in USA. On 14th January,
2022 the entire stake of Oil India (USA), Inc. in the shale asset has been divested.
Subsequent to the divestment, on 2nd May, 2023, the subsidiary company was
wound up after compliance of applicable US laws.
vi. Oil India International Limited (OIIL)
OIIL, wholly owned subsidiary was under the process of Voluntary
Liquidation as per the extant provisions of the Companies Act, 2013. National Company Law
Tribunal [NCLT] vide its order dated. 31.07.2023 pronounced that OIIL stands dissolved
from the date of the order.
C. JOINT VENTURE / ASSOCIATE COMPANIES
i. Brahmaputra Cracker and Polymer Ltd (BCPL)
BCPL owns a Petrochemical Complex at Lepetkata, Dibrugarh, Assam for
production, distribution and marketing of petrochemical products. The Company holds 10%
equity share capital in BCPL. GAIL (India) Limited, Government of Assam and Numaligarh
Re?nery Limited hold 70%, 10% and 10% equity share capital respectively.
ii. DNP Ltd.
DNP Ltd. was incorporated with the main objective of acquisition,
transportation and distribution of natural gas. The Company holds 23% equity share capital
of DNP Ltd. Assam Gas Company Limited and Numaligarh Re?nery Limited hold 51% and 26%
equity share capital respectively
. iii. Assam Petro-Chemicals Limited (APL)
The Company is holding 48.80%, Government of Assam along with its owned
entities is holding 51.11% and others are holding 0.09% of equity shares of APL. Assam
PetroChemicals Limited commissioned a 500 TPD Methanol plant on 14th April,
2023. It is also implementing a 200 TPD Formaldehyde project. The Formaldehyde project is
planned to be commissioned in the beginning of the year 2024
. iv. Indradhanush Gas Grid Limited (IGGL)
IGGL formed by ?ve petroleum sector PSUs viz. OIL, ONGC, IOCL, GAIL
and NRL (holding 20% each) is implementing North-East Gas Grid Pipeline to improve gas
supply connectivity to all the eight North Eastern States of India.
v. HPOIL Gas Private Ltd. (HPOIL)
HPOIL was incorporated on 30th November, 2018 with equal
equity participation from OIL and HPCL to develop CGD Networks in Ambala-Kurukshetra and
Kolhapur Geographical Areas (GAs). Project implementation work is in progress. As at the
end of March, 2023, HPOIL is operating 18 CNG stations & 13298 PNG connections at
Ambala- Kurukshetra and 22 CNG stations & 19554 PNG connections at Kolhapur.
vi. Purba Bharati Gas Private Limited (PBGPL)
PBGPL was incorporated on 19th November, 2019 with equity
participation of 26% each from OIL and GAIL Gas Limited and 48% from Assam Gas Company
Limited. PBGPL has been formed for development of CGD network in Kamrup-Kamrup
Metropolitan Districts and Cachar, Hailakandi and Karimganj Districts of Assam. PBGPL has
started domestic pipe natural gas supply in Cachar, Hailakandi and Karimganj Geographical
Area (GA). It is also operating 01 CNG station at Guwahati.
vii. Suntera Nigeria 205 Ltd.
The Company holds 25% stake in Suntera Nigeria 205 Ltd., Nigeria
pursuant to a Share Purchase Agreement (SPA) signed with Suntera Resources Ltd., Cyprus
and Indian Oil Corporation Limited (IOCL) on August 31, 2006. Suntera Nigeria 205 Ltd. was
incorporated with the objective to engage in the petroleum business including exploration
production and development of crude oil and natural gas in Nigeria.
viii. Beas Rovuma Energy Mozambique Ltd. (BREML)
The Company holds 40% share in BREML. BREML holds 10% Participating
Interest in the Rovuma Area 1 Offshore Block in Mozambique. BREML was incorporated in
British Virgin Islands but has been redomiciled to Mauritius on 23rd January
2018.
ix. IndOil Netherlands B.V
The Company through its wholly owned subsidiary Oil India Sweden AB,
owns 50% of the shares in Indoil Netherlands B.V which in turn holds 7% equity shares in
Petrocarabobo S.A. (joint venture Company) for Project Carabobo-1, Venezuela.
x. WorldAce Investments Ltd.
The Company through its wholly owned subsidiary Oil India International
B.V (OIIBV) holds 50% share in WorldAce Investments Ltd, a Company incorporated in Cyprus.
WorldAce Investments Ltd. holds 100% share in LLC Stimul-T, Russia. Stimul -T has ?led
for bankruptcy on 10th May 2023 due to adverse operational and ?nancial
circumstances.
xi. Vankor India Pte. Ltd. (VIPL)
The Company through its wholly owned subsidiary Oil India International
Pte. Ltd (OIIPL) holds 33.5% share in VIPL, a Company incorporated in Singapore on 20th
May, 2016. VIPL holds 23.9% share in JSC Vankorneft, Russia which holds two producing
licenses in Eastern Siberia, Russia.
xii. Taas India Pte. Ltd. (TIPL)
The Company through its wholly owned subsidiary Oil India International
Pte. Ltd. (OIIPL) holds 33.5% share in TIPL, a Company incorporated in Singapore on 23rd
May, 2016. TIPL holds 29.9% shares in LLC "TYNGD", Russia which holds two
producing licenses in Eastern Siberia, Russia.
xiii. LLC Bharat Energy Oce
LLC Bharat Energy Oce, Moscow is a consortium of ?ve Indian petroleum
sector PSUs (OIL, ONGC, GAIL, IOCL and EIL) with equal shareholding. LLC Bharat Energy Oce
was registered on 18th October,2021. The Company holds 20% equity in LLC Bharat
Energy Oce through its overseas wholly owned subsidiary, Oil India International Pte. Ltd.
(OIIPL), Singapore.
19. ANNUAL REPORT OF SUBSIDIARIES AND CONSOLIDATED FINANCIAL STATEMENTS
In accordance with Section 134 of the Companies Act, 2013 and the
applicable Accounting Standards, Audited Consolidated Financial Statements for the year
ended 31st March, 2023 of the Company and its subsidiaries forms part of this
Annual Report.
A report on the performance and ?nancial position of the subsidiaries,
associates and joint venture companies of the Company as per the prescribed form (Form
AOC-1) of the Companies Act, 2013 also forms part of this Annual Report.
The Complete Annual Reports of subsidiaries of the Company are
available on the Company's website.
20. STATUTORY REQUIREMENTS
Your Directors have made necessary disclosures as required under
various provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.
Information on the Conservation of Energy, Technology Absorption, Foreign Exchange
Earnings & Outgo etc. as required under Section 134 of the Companies Act, 2013 and the
Rules made thereunder is given in the Annexure-I to this Report.
In view of the exemption given by Ministry of Corporate Affairs to
Government Companies from applicability of Section 197 of the Act, the details of the
employees who drew remuneration exceeding the limits laid down in the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not annexed to the
Report.
Further, during FY 2022-23, there was no order or direction of any
court or tribunal or regulatory authority either affecting Company's status as a
going concern or which signi?cantly affected Company's business operations. No
applications were made during the ?nancial year and no proceedings are pending against
the Company under the Insolvency and Bankruptcy Code 2016 (31 of 2016). The Company
complies with the applicable Secretarial Standards issued by the Institute of Company
Secretaries of India (ICSI).
21. STATUTORY AUDITORS, COST AUDITOR AND SECRETARIAL AUDITOR
M/s V. Singhi & Associates, Chartered Accountants and M/s P.A.
& Associates, Chartered Accountants were appointed as Joint Statutory Auditors for the
FY 2022-23 by the Comptroller & Auditor General of India (C&AG). The Statutory
Auditors have audited the Accounts of the Company for FY 2022-23 and submitted the Report
to the Company. The C&AG has given "NIL" comments on Financial Statements
2022-23 of the Company.
The Cost Audit Report for the FY 2021-22 given by M/s. Shome &
Banerjee, Cost Accountants was ?led within the statutory time limit. For the FY 2022-23,
M/s Dhananjay V. Joshi & Associates, Cost Accountants are the Cost Auditor of the
Company. The report will be ?led within the stipulated time frame.
M/s P.P. Agarwal & Co., Practicing Company Secretaries were
appointed as the Secretarial Auditor of the Company for FY 2022-23. The Secretarial Audit
Report con?rming compliance to the applicable provisions of the Companies Act, 2013, SEBI
(LODR) Regulations, 2015, SEBI Guidelines and all other relevant rules and regulations
relating to Capital Market except the Board Composition is annexed as Annexure-II to this
Report. As a measure of good corporate governance, the Secretarial Audit Report of our
material subsidiary is also annexed hereto.
22. ANNUAL RETURN
As required under the provisions of the Companies Act, 2013, the Annual
Return for the FY ended March 31, 2023 in the prescribed form MGT-7 has been prepared and
hosted on the website of the Company at the following weblink:
https://www.oil-india.com/Document/Financial/ AnnualReturn20222th1108.pdf
23. AWARDS AND RECOGNITIONS
During the FY 2022-23, the following recognitions and awards/accolades
were conferred upon the Company:
Federation of Indian Petroleum Industry - FIPI Awards 2022
"Exploration Company of the Year" and Special Commendation for "Initiatives
in Promoting Hydrogen Company of the Year".
‘Award for Institution Building' at 13th Edition
of Asia's Best Employer Brand Awards 2022.
‘Legal Department of the Year (PSU)' in the 8th
Edition of India Legal Summit & Awards 2022 organized by Biz Integration and supported
by Society of Indian Law Firms (SILF) and Singapore International Arbitration Society.
ET Ascents National Award for Excellence in CSR & Sustainability in
the category Best Overall Excellence in CSR.
"PLATINUM AWARD" under Apex India Green Leaf Award 2021 for
Environment Excellence in Petroleum Exploration Sector.
"GOLD AWARD '' under " Grow Care India Occupational Health
& Safety Award 2022 ".
"PLATINUM AWARD" under ''Apex India Occupational Health &
Safety Award 2022'' in Petroleum Exploration Sector.
Asian CSR Leadership Awards
9th CSR Times Award 2022 for CSR in Skill Development.
Best Employer Brand Award in HR in the ?eld of exemplary Human
Resource practices.
Energy and Environment Foundation Global Safety Awards 2023 to
OIL's Secondary Tank Farm (STF) – Madhuban.
First and only PSU which has shifted to Management Audit Reporting
System (MARS) – A SAP based review and reporting system, Developed by OIL under SAP
ECC6.
OIL's Team was awarded the 1st Prize at the paper
writingcompetitionfortheirpaperon‘Organisational Restructuring in OIL - Change
Management through Strategic Industrial Relations' at the prestigious 1st
Global Industrial Relations Summit-2023 organised by the All India Organisation of
Employers (AIOE) in collaboration with FICCI and supported by ILO and EY as knowledge
partners.
North East Best Employer Brand by World HRD Congress.
24. POLICY ON DIRECTORS' APPOINTMENTS ETC. / PERFORMANCE
EVALUATION
The Company being a Government Company, the provisions of Section 134
(3)(e) and Section 134(3)(p) of the Companies Act, 2013 regarding policy on
Directors' appointment and remuneration, annual evaluation of the performance of the
Board, Committees and individual directors are not applicable in view of the Gazette
noti?cation dated 05.06.2015 issued by the Government of India, Ministry of Corporate
Affairs granting exemptions to Government Companies.
Further, the said noti?cation also exempted Government Companies from
the provisions of Section 178 (2) which requires performance evaluation of every director
by the Nomination & Remuneration Committee. Similar exemption in the SEBI (LODR)
Regulations, 2015 for listed CPSEs is awaited.
25. CHANGES IN THE BOARD OF DIRECTORS
a. In terms of Letter No. CA-31014/1/2021-PNG (37607), dated 02nd
September, 2022 issued by Ministry of Petroleum & Natural Gas (MoP&NG), Shri Ashok
Das (DIN: 09631932) was appointed as Director (Human Resources) on the Board of the
Company w.e.f. 02nd September, 2022. b. In terms of Letter No.
CA-31032/1/2021-PNG-37493 dated 16th May, 2023 issued by Ministry of Petroleum
& Natural Gas (MoP&NG), Ms. Mamta, Director (E&S),
MoP&NG [DIN-09641369] ceased to be Govt. Nominee Director on the Board of Company
w.e.f. 16th May, 2023.
26. DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134
(5) of the Companies Act, 2013 with respect to Directors'
Responsibility Statement, it is hereby con?rmed that:
i. in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to material
departures; i
i. the directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of the Company at the end of the FY
and of the pro?t and loss of the Company for that period; ii
i. the directors have taken proper and sucient care for the maintenance
of adequate accounting records in accordance with the provisions of this Act for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
iv. the directors have prepared the annual accounts on a going concern
basis;
v. the directors, have laid down internal ?nancial controls in the
Company which are adequate and are operating effectively; and v
i. the directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are adequate and operating
effectively.
27. ACKNOWLEDGEMENT
Your Directors thank the customers, vendors, investors, Auditors,
bankers and employees of the Company for their continued support during the year. Your
Directors place special appreciation for the contribution made by the employees at all
levels. The consistent growth of the Company was made possible by their hard work,
solidarity, co-operation and support. Your Directors acknowledge the guidance and support
of the MoP&NG, all other Ministries and Agencies in Central and State Governments and
place their sincere thanks.
|
For and on behalf of the Board of
Directors |
|
Sd/- |
|
Dr. Ranjit Rath |
| Place: Noida |
Chairman & Managing Director |
| Date : 08.08.2023 |
DIN: 08275277 |
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