Oil India set to deliver Rs 6,000 crore investment in the next fiscal year

Public sector oil refinery Oil India Limited has announced to set up a target of investing Rs 6000 crore in the exploration and production of oil and gas in the FY25 to increase its oil production to 4MT. The investment is projected to be part of the company’s growth rate which has experienced an annual production growth rate of 4.5-5% in recent years.

The next year’s investment target is nearly Rs 6,000 crore depending on the requirement. The investment strategy is acting as a catalyst for the company’s proactive approach to increasing its exploration and production activities to meet increasing demands.

 

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The company has recently bagged one more block in the eighth bidding round under the Open Acreage Licensing Programme while, later on, the government removed the offshore acreage exceeding 1 million square km under the bidding for exploration and production which was earlier not allowed. Meanwhile, as per the company’s stance, the expected drilling operations are soon to be active in the Andaman and Nicobar Islands by the third quarter of FY25.

 

 

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As per the official data, the company is seeking potential partners to invest in its offshore business and will be conducting a roadshow in Abu Dhabi on February 28-29 for the same. Moreover, the company is eventually exploring the blocks overseas in Bangladesh and Gabon and expects the drilling operations to initiate in the next two or three months. The official reports are expecting that the company is considering the establishment of a subsidiary at the IFSC-GIFT City, in Gujarat.

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