State-owned Oil India Ltd has drawn up a plan to augment its production of crude oil and natural gas with several new blocks expected to start production in the coming months.
The company is targeting to produce 4 million tonnes of domestic crude oil and 5 billion cubic metres of gas in the next couple of years and hopes to start drilling operations in the Kerala-Konkan region by October this year, a top executive of the company told FE.
The company presently is operating around 20 rigs and aims to increase this count to 24 within the next six months.
“Currently our acreage is about 60,000 square kilometers and under OALP (Open Acreage Licensing Policy) 9th round, we will get an additional 50,000 sq km of area, crossing 1 lakh sq km,” the source said, adding that exploration of offshore blocks would be the company’s major focus area going forward.
In the current fiscal year 2024-25, Oil India is targeting to produce 3.8 million tonnes of oil equivalent crude oil 3.8 billion cubic meters of natural gas. Oil India’s annual production growth rate has been increasing by 5-6% annually in the last few years.
In addition to increase in acreage and production, the company is also in discussions with several international oil companies including TotalEnergies, Chevron, PTT Exploration and Production Public Company, and Petronas for partnerships in exploration of offshore hydrocarbon blocks.
“We will be doing a lot of seismic studies and we are interacting with a lot of international oil companies like TotalEnergies, Chevron, Petronas, PTTEP for tie-ups,” the official said. “A lot of them are showing interest to partner with us for offshore blocks won under the OALP 9th round and for the latest OALP 10th round of bidding.”
For its new overseas ventures, the company plans to partner with other Indian oil majors including ONGC Videsh and Indian Oil Corp. “If we are going with an international company, we would prefer them to take operatorship of the block,” said the official.
Other than its exploration and production activities in the oil and gas sector, the company is also diversifying into mining of critical minerals. The company has recently won a graphite and vanadium block located in Arunachal Pradesh and aims to start expiration activities in the upcoming financial year 2025-26.
“We have already obtained an exploration license from the state government and now we are getting the statutory permissions with the local population. We will see with whom we can partner for the exploration and mining,” said the source.