Oil India Limited (OIL) detailed its growth strategy at its 67th Annual General Meeting (AGM). The company aims for higher domestic oil and gas production, accelerated exploration in deep and ultra-deepwater areas, and expansion in clean energy. OIL is targeting approximately 10 MMTOE of oil and gas production by the end of the decade, supported by intensified exploration and enhanced production initiatives. The company also reported a consolidated PAT of ₹7,551 crore for FY 2025-26.
OIL’s Growth Priorities and Production Targets
Oil India Limited (OIL), a Maharatna CPSE, outlined its strategic growth priorities at its 67th Annual General Meeting (AGM). These priorities include boosting domestic oil and gas production, intensifying exploration efforts in deep and ultra-deepwater opportunities, strengthening its integrated energy value chain, and selectively expanding into clean energy. The company is also leveraging the Government of India’s ‘Samudra Manthan’ and GOBARdhan schemes to enhance its capabilities in offshore exploration and bioenergy, respectively.
FY 2025-26 Performance and Future Outlook
During FY 2025-26, OIL produced 3.450 MMT of crude oil and 3.186 BCM of natural gas. Despite operating mature fields, the company achieved its highest terminal crude oil production rate in 14 years at 10,566 MTPD. OIL completed 74 wells (22 exploratory and 52 development) and improved its Reserve Replacement Ratio (RRR) to 1.02. Looking ahead, OIL is targeting a production of approximately 10 MMTOE of oil and gas by the end of the decade, driven by increased exploration and production enhancement activities. In Q1 FY27, crude oil production rose by 11% year-on-year to 0.950 MMT, with a record daily production of 10,921 MT.
Financial Highlights and Investments
For FY 2025-26, OIL reported a consolidated Profit After Tax (PAT) of ₹7,551 crore and a consolidated net worth of ₹53,716 crore. The company declared a dividend of ₹11.50 per equity share. Total investments during the year amounted to over ₹21,673 crore across exploration, production, refining, pipelines, and strategic growth projects.
Offshore Exploration Aligns with ‘Samudra Manthan’
OIL’s offshore exploration program is closely aligned with the national mission ‘Samudra Manthan.’ The company has an exploration footprint exceeding one lakh square kilometres across various basins, including the Andaman, Krishna-Godavari, Mahanadi, and Kerala-Konkan basins. Recent activities in the Andaman basin have indicated natural gas occurrences, reinforcing the potential of this frontier basin.
Strengthening Integrated Energy Value Chain and Clean Energy Initiatives
Beyond upstream operations, OIL is enhancing its refining and pipeline infrastructure. The expansion of Numaligarh Refinery Limited and the augmentation of the Numaligarh-Siliguri Product Pipeline are progressing. The company is also focused on its clean energy portfolio through OIL Green Energy Limited (OGEL), with initiatives in Compressed Bio-Gas (CBG), integrated CBG, and Waste-to-Energy projects. OIL has reduced its Scope 1 & 2 emissions by approximately 18% and gas flaring by 32% towards its Net Zero 2040 ambition. The GOBARdhan scheme is expected to provide a significant boost to these efforts.
Innovation and Future Vision
OIL is strengthening its innovation ecosystem through the MC² platform, aimed at supporting emerging energy technologies. Looking forward, the company remains focused on growing domestic oil and gas production, expanding India’s hydrocarbon resource base, developing capabilities for frontier offshore exploration, and building scalable new energy businesses, all while maintaining capital discipline and a strong balance sheet. OIL is committed to strengthening India’s energy security and self-reliance as part of the national vision of Viksit Bharat 2047.
Source: BSE
