OIL India Ltd.'s Annual Investors and Analysts Meet 2025


  • OIL India Ltd.'s Annual Investors and Analysts Meet 2025
  • Got investment-grade ratings, which is at par with the sovereign rating of the country. The Government of India holds majority stake in the company with 56.66% shareholding.
  • India's demand for crude oil and natural gas is projected to almost double by 2040, with gas consumption growing faster than oil
    • To achieve 10% points reduction in import dependence, domestic output have to increase to around 90 million tons of crude oil and 11 million tons of gas by 2040. 
    • Meeting these targets will require sharper exploration, quicker project sanctions and seamless midstream connectivity, areas in which OIL India already delivers consistently.
  • The country's national 2P reserves are drifting lower, with oil moving from 450 to 434 million metric tons and gas from 655 to 643 BCM between FY22 and FY24. 
    • The reserve replacement ratio has slipped to 0.5 for oil and 1 for gas, and the reserves to production life of both fuels continues to shorten. 
    • These trends underline the need for more aggressive exploration, faster development drilling and advanced recovery methods to underpin the demand outlook
  • In FY25, achieved a reserve replacement ratio of 0.94. On a 2P basis, the reserves to production life stands at about 31 years, giving a long runway to support growth while pursue additional discoveries
  • By 2030, aim to double capacity, reaching over 18 million metric ton per annum for crude, 2.6 million metric ton per annum of gas transportation and 5.5 million metric ton per annum for product transportation. 
    • This will be driven by three levers:
      • First, integrated growth planning with new projects like the 9 MMTPA ParadipNumaligarh crude line, the 5.5 MMTPA NSPL product pipeline and a 4.5 MMSCMD of IGGL gas grid. Several key projects are already underway.
      • Secondly, execution strength proven through complex builds like the Ganga HDD coursing and macro tunneling in challenging terrain. This demonstrates strength of execution of all these projects.
      • Third, digital operations enabled by a centralized integrated management system, inline inspection tools, AI-driven SCADA and predictive leak detection. All this gives a midstream platform that is scalable, future-ready and aligned with both energy security and clean energy integration. 
  • During FY 2025, maintained a consistent revenue and profit regime, with a revenue of about ₹37,830 crore, that's 0.5% higher than FY 2024. 
    • The EBITDA witnessed ₹12,824 crore, and the PAT is ₹7,039 crore consolidated
    • Solid free cash flow enabled the board to have recommended about final dividend of ₹1.50 per share, bringing a full year payout of ₹11.5 per share, that is 115% on face value, while still funding the largest capital programme of OIL India Limited during this period, that's about ₹8,600 crore
  • In terms of performance, in the upstream segment, the total hydrocarbon production rose to 6.7 million ton of oil and oil equivalent. 
  • The average crude realization this year witnessed about $78.09 per barrel from last year's $83.03. 
  • And despite the drop, because of the growth that have seen in terms of physical performance, could maintain the revenue and script a 10% growth on the PAT.
  • The national oil and gas, just to give perspective, by 2040 looking at refining capacity from a demand point of view, about 440 million metric tons. 
    • And if take 88% of current import, and take the clarion call of the Hon’ble Prime Ministers, advise that must attempt 10% import reduction while several other initiatives are on, need about 90 million metric tons, 2040 domestic production. 
    • And today hovering around 30 million metric tons. 
    • That's the opportunity that are talking about. 
    • And strongly believe that the Indian ecosystem or the geology of India, or Indian subcontinent, offers that kind of possibilities
  • Secured about 40,000 sq.km. of area as part of petroleum exploration licence. 
    • So that gives us a total number of, together along with partners, 1,12,000 sq.km. of exploration acreage per se. 
    • And on top of it, have access to 4,800 sq.km. of petroleum mining lease that is under nomination acreage. 
    • Earlier used to drill about 30 to 35 number of wells. Today drilling 60 plus wells, and this year we plan to do about 75 to 80 wells. 
  • OIL India's CapEx for financial year 2025 was ₹8,467 crore
    • It reflects a clear focus towards upstream and high margin downstream investments, with growing allocation to new energy. 
    • Around 80% of the CapEx was allocated to upstream, while the remaining went into midstream and downstream. 
    • The planned CapEx profile for FY26 remains broadly similar, maintaining strong emphasis on exploration, development drilling, and strategic downstream growth. 
    • Additionally, a planned CapEx of ₹9,133 crore has been earmarked for Numaligarh Refinery in FY26, including ₹5,648 crore for refinery expansion and another ₹2,300 crore for the petrochemical project. 
    • Funding strategy remains conservative, with borrowings limited to select international projects. 
    • All other investments are made through internal accruals, maintaining a strong debt-to-equity ratio of 27% on a standalone basis and an interest coverage of more than 12 times. 
  • And there is a three-pronged strategy on which are working, and the current amendment which has happened, Oil Field Regulation and Development Act amendment, is actually enabling to seek collaboration with international oil companies and national oil companies to undertake these deep and ultra-deepwater exploration that are foreseeing. 
  • Got a collaborative framework with the Government of Assam for 600 plus megawatt of solar photovoltaic project, out of which 25 has already kick-started. 
    • And recently have signed a collaborative framework with the Government of Rajasthan for about 1,000 megawatt of solar photovoltaic
  • Two more positives
    • Have one captive pipeline, which is Duliajan-Numaligarh pipeline, which currently is a captive use. 
      • Supplying natural gas, 1 million standard cubic metre per day to Numaligarh. 
      • Pursuant to expansion, have also undertaken capacity expansion, of upgradation rather, of the DNPL line, that would be 2.5 million standard cubic metre. 
    • And in order to connect the major gas source of OIL India Limited to the IGGL, that is Indradhanush Gas Grid, which is a north-east gas grid, the Duliajan feeder line is in the approval process advanced stage. 
      • That will take about two years to complete, and that will add an opportunity for OIL India Limited to evacuate the gas pool. 
  • Overseas assets
    • One of major stakes in terms of overseas investment is the Mozambique asset, that's an LNG project. 
      • Total is the operator, along with OVL, BPRL and OIL India,  got 30% stake there hopeful by this mid-July, should have the project again restarting, which was on hold because of some security concern there. 
    • Russian assets has been dividend yielding. 
      • The Taas asset has already given us 100% plus dividends, so all the money is recovered. 
      • The Vankorneft asset has already given about 88% dividend
      • The investments in the two Russian assets are giving regular dividends to the company, against a total investment of USD 1 billion. 
      • Recovered till date USD 942 million against two investments, that's in TYNGD and Vankorneft. 
      • Already recovered 100% of investments against the project TYNGD, and against Vankorneft have recovered around 84 to 85% of the investment.
  • Strategic roadmap
    • By the end of this decade, aim to increase upstream production from 6.7 to 8 with near-field exploration, and with additional discoveries, it would be about 10 to 12 million tons of oil and oil equivalent. 
    • Will be able to triple refining capacity; by then the refinery will be fully stabilised operating to its health. 
    • Will also be able to complete the polypropylene unit, another 7,000 crore downstream of the refining capacity, which is an integrated one, because the upfront investment is already there. 
    • And this will also take the petrochemical intensity index of the refinery to 4%. 
    • Will have interest in biofuel, which will be a blending requirement for petroleum… MS production, that will be up and running. 
    • Will have about 10 odd compressed biogas plants up and running 
    • Will have a big pool of renewables in Assam and in Rajasthan
  • Six key enablers
    • Technological capabilities of OIL India Limited is par excellence when compare it with global standards. 
    • Looking at strategic partnerships. Got a collaboration with Petrobras Brazil, which are actually pioneers in deep water and ultra-deepwater drilling. So having discussions for a possible collaboration, not only to collaborate for the OALPIX possible drilling locations, but also OALP-X. 
    • Got a technological service agreement with Total Energy, who are going to support in selection of locations for drilling, which is the best thing that can happen to any E&P process, but also to help design the well, which is about the most complex thing when looking at a water depth of about 2,000m and a depth of drilling of about 7,000m. 
  • In terms of capital allocation
    • This year, did about 8,600 crore, and together with NRL, looking at about 15,000 to 16,000 crore investment
  • OIL India is a fully integrated energy platform,
    • Operate across 62 E&P blocks with 93,000 sq.km. of acreage
    • Overseas presence in seven countries, in 10 projects, with a mixed portfolio of producing, developing, and exploration assets. 
    • Manage a 3,700 kms. plus pipeline network comprising of crude oil, product, and gas distribution network. 
    • Refinery, Numaligarh Refinery, is going through a major capacity expansion from 3 million to 9 million metric ton. 
    • Have presence in Petchem through holdings in BCPL and Assam Petrochemicals Limited. Numaligarh Refinery is coming up with a 360 KTPA Petchem unit. 
    • Have 188 megawatt installed capacity of renewable energy, and already in collaboration with Government of Rajasthan and Assam, aims to set up additional 1.8 gigawatt solar plants. Numaligarh is coming up with a 2.4 KTPA green hydrogen plant. 
    • Aim to set up 25 CBG plants pan India. 
    • The company has entered also into the critical mineral space by winning one graphite and vanadium block in Arunachal Pradesh.
    • This entire integration enables full cycle value capture, cost efficiency, and structural resilience across commodity and transition cycles. 
  • Recently Government of India has approved a fertiliser plant in Namrup which is about 12 lakh ton per annum urea, where it is about 10,000 crore investment, and OIL India has got a stake of 18%. 
    • There is an existing pipeline which needs to be upgraded, that also is being part of that particular programme. 
    • And by virtue of the expansion of the fertiliser plant, the new plant which is being built, would require a gas requirement of about 2.3 million standard cubic metre per day. 
    • Currently doing about 7 to 8 million standard cubic metre per day, can ramp up to 13 million standard cubic metre per day
    • Gas outlook for OIL India is in very good shape.
  • At the downstream part, since now are a Maharatna and an integrated energy company,
    • In 2021, acquired Numaligarh Refinery, the majority stake of 69.63%, and that makes OIL India truly integrated, both in the upstream and downstream
    • Diving deeper into Numaligarh Refinery, in FY25, the plant ran at 102% utilization, delivering a distillate yield of 87 at a gross refining margin of 5.14 per barrel. 
      • The facility's Nelson complexity is 9.5, supported by a AAA credit profile, which ensures competitive conversion and financing strength for the refinery. 
      • Expansion from 3 to 9 million tons per year is underway, backed by 50% excise benefits for Northeast refineries, and pipeline evacuation to move substantial portion of the products to market at the low unit cost. 
      • Offtake is secured through marketing tie-ups with BPCL, HPCL and IOCL, while direct sales to industrial customers such as ONGC, NALCO, HINDALCO and GAIL provide additional resilience. 
      • High-speed diesel and motor spread account for 88% of sales for the refinery, complemented by other products like LPG, ATF, solvents and a growing slate of value-added wax and petrochemical 
    • Brownfield expansion of Numaligarh Refinery from 3 million ton to 9 million ton is on track, and are extremely confident of commissioning by December 2025
      • And that's what would also kind of give an outlook for year ‘26, some kind of a trickling revenue, because the refinery, new refinery will take some time for stabilisation 
      • And so FY27 hopeful to have stream of revenue from the capacity-expanded Numaligarh Refinery
    • Numaligarh Refinery gave 3.06 million tons of crude processing; that's more than 100% capacity utilization. 
    • The gross refining margin, by far one of the best numbers in the current depleted crude oil price outlook and drop spread, is $5.14 per barrel i.e. GRM, and the spread that we encountered in the last year is $7.9 per barrel as far as MS or petrol is concerned, and about $11 plus barrel for HSD. 
    • And in terms of distillate yield, achieved at NRL level about 87%. 
    • Maximized diesel production vis-a-vis the petrol production, aligning with the spread that is available.
    • Assam bio-refinery project, or Assam bioethanol project, is on track, it's a JV of NRL
      • Pre-commissioning process is in the final stage

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