Fiscal 2018-19- a year of significant achievements for the Company
- Reported revenue of Rs 15170.00 crore, which is highest till date
- For the seventeenth consecutive year, OIL received “NIL” Comments on its Accounts from the Comptroller and Auditor General of India
- OIL is the first oil sector company to list its Foreign Currency Bonds of USD 550 million at the International Security Market of London Stock Exchange.
- Successfully commissioned Cyclic Steam Stimulation technology in Baghewala fields, Rajasthan, for enhancement of production of heavy oil. This technology is implemented for the first time in India by OIL.
- Allotted Bonus shares in the ratio 1:2 in April, 2018 and offered Buyback opportunity in March 2019, at a price of Rs 215.00 per share against prevailing price of Rs 179.00 per share.
Oil India Limited (OIL), country’s second largest National ‘Navratna’ E&P Company, in terms of total proved plus probable oil and natural gas reserves, held its 60th Annual General Body meeting at its Field Headquarters in Duliajan, Assam, today.
- In his address to the shareholders, Chairman and Managing Director, Shri Utpal Bora mentioned that on February 18, 2019, OIL completed 60 years of its establishment. During these illustrious 60 years, the Company’s crude oil production increased from 0.215 MMT to 3.323 MMT while natural gas production increased from 43.60 MMSCM to 2865 MMSCM. Besides increase in production, the company achieved many other milestones in all facets of its operations like, acquisition of new oil & gas blocks, increase in acreages, geographical expansion in India and abroad, business diversification into Renewable Energy, City Gas Distribution etc. It is therefore a matter of pride for all in being associated with this premier national oil Company.
- The CMD then shared the significant highlights of fiscal 2018-19 during which OIL produced 3.323 MMT of crude oil and 2865 MMSCM of natural gas. Besides production of crude oil from Assam Assets, the Company also produced crude oil from its Rajasthan Asset where Cyclic Steam Stimulation (CSS) was successfully implemented on a pilot scale in the well Baghewala-8 for the first time in India. The initial results of CSS technology has been found to be very encouraging with a production enhancement of about five to six fold and which will serve as impetus for monetization of heavy oil from this field.
- OIL’s Pipeline network and LPG business too contributed to overall revenue of the company. During 2018-19, the crude oil pipeline transported 6.57 MMT of crude oil and Numaligarh-Siliguri Product Pipeline transported 1.78 MMT of products with a pipeline capacity utilization of 103.5% while total revenue generated from Pipeline transportation was Rs 365.34 crore. OIL’s LPG plant processed an average of 1.71 MMSCMD gas and produced 33730 MT of LPG. Revenue generated from LPG during the year was Rs 141.53 crore. He also apprised about upgradation job of the pipeline network.
- Giving an overview of the Company’s activities, the CMD mentioned that OIL drilled eleven exploratory wells in the PML areas in Assam & Rajasthan. The exploratory efforts in the NELP Blocks were continued by drilling one well in Rajasthan and three wells in KG basin, which included one High Pressure – High Temperature (HPHT) well. He mentioned that during the year the Company made two gas discoveries in the Upper Assam Basin and one gas discovery in KG basin, in the first HPHT well. As a result of exploration efforts, the Company is able to maintain its 2P Reserves at the level of about 190 MMTOE from its Indian assets including the contribution from JVs.
- Besides continuation of exploration activities in the existing blocks, the CMD mentioned that the Company has adopted the strategy to acquire new blocks to ensure increase in Reserve Accretion. During 2018-19, OIL has been awarded 9 blocks under first round of Open Acreage Licensing Policy (OALP) covering a total area of 7907 sq. km, out of which five are in Assam and two each in Arunachal Pradesh and Rajasthan. Under Round II of Discovered Small Field (DSF), two Contract Areas, one each in Tripura and KG Offshore were awarded to the Company. This will be the Company’s first foray in the State of Tripura and also into KG Offshore as an Operator.
- He further mentioned that OIL had emerged as the biggest winner of oil & gas blocks under OALP rounds II & III by winning 12 blocks out of 32 blocks for which bids were submitted by leading operators. The contracts for these blocks were signed by OIL in a ceremony on 16-07-2019, presided over by Shri Dharmendra Pradhan, Hon’ble Minister of Petroleum & Natural Gas and Minister of Steel.
- Post award of the OALP and DSF blocks, the Company’s acreage position in Assam and Assam Arakan Basin has increased from 8375 sq.km to16770 sq.km and the overall in-country acreage position from 9199 sq. km to 51477 sq.km.
- Next, Shri Bora gave an overview of the Company’s overseas OIL’s overseas E & P portfolio comprises of twelve assets, spread across 9 countries namely Libya, Gabon, Nigeria, Venezuela, USA, Mozambique, Israel, Bangladesh and Russia. The portfolio includes five producing assets, three in Russia and one each in USA & Venezuela. There are two development assets, one each in Mozambique and Nigeria. Additionally, the Company has five exploratory assets, one each in Libya, Gabon and Israel and two in Bangladesh. As on 31.03.2019, oil & gas reserves position stood at 43.4092 MMTOE of 5 overseas Producing assets namely, Niobrara Shale Oil in USA, License-61, Vankorneft & Taasyuryakh in Russia and Carabobo in Venezuela.
- During 2018-19, production from overseas assets corresponding to OIL’s Participating Interest was 376 MMTOE, the highest till date. Cumulative dividends received, from producing assets of Taas and Vankorneft stood at USD 222.12 million equivalent to around Rs 1555.00 crore. Project Taas has become cash positive two years ahead of schedule in 2017. Also, recently the company received fifth dividend from Vankorneft. Net share of this dividend for OIL is USD 88 million equivalent to around Rs 616.00 crore, which is the highest dividend received so far. With this dividend, OIL has recovered more than 41% of its investment in Vankorneft.
- The CMD next mentioned about diversification of OIL in the field of City Gas Distribution (CGD) and Renewable Energy. During the year, the consortium of Oil India Ltd, Assam Gas Company Ltd and GAIL Gas Ltd won the bids for development of CGD network in Kamrup & Kamrup Metropolitan Districts and Cachar, Hailakandi & Karimganj Districts under 9th round of CGD bidding. A Joint Venture Company has been incorporated in association with HPCL in respect of Kolhapur and Ambala-Kurukshetra Geographical Areas granted in 8th round of CGD bidding and project is under execution.
- In the area of Renewable Energy, total installed capacity of the Company stood at 188.10 MW as on 31.03.2019, consisting of 174.10 MW of wind projects and 14 MW of solar projects. Total revenue generated from these assets was Rs154.62 crore during the year.
- Sri Bora also informed that, OIL has assisted new entrepreneurs under “Start Up initiative of Government of India” to develop and contribute to overall well- being of the nation as a whole. Till 31st March, 2019, the Company has funded four Start-ups with a commitment of Rs 455.03 lakh.
- The CMD next informed that OIL is adopting emerging & cutting edge technologies to drive innovation, strategy, growth and increased competitive advantage. Further, collaborative studies with premier International and National Institutes like University of Houston, M/S Belorusneft Indian Institute of Chemical Technology, Pandit Deendayal Petroleum University etc are also being undertaken for training and transfer of knowledge, to prolong the plateau production and increase recovery factor of mature fields.
- Giving an account of Oil India’s Corporate Social Responsibility (CSR) initiatives, Shri Bora underlined that, OIL’s efforts for achieving inclusive growth is well reflected in its CSR initiatives for all round development of the people, in areas such as, health, education, livelihood generation, placement linked skill building training, women empowerment, flagship Government of India projects like Swachh Bharat, Pradhan Mantri Ujjwala Yojana (PMUY) for providing deposit-free LPG connections to women belonging to the Below Poverty Line (BPL) families, promotion of rural sports etc. He also informed that under Skill Development, OIL, along with other major oil and gas PSUs, has set up a Skill Development Institute at Guwahati to cater to the skilling needs of the youth of North East region to enhance their employability in hydrocarbon and other sectors. Presently the institute runs ten courses of 3 to 6 months duration each and certification is provided by other Sector Skill Councils and Hydrocarbon Sector Skill Council. As on 31st March, 2019, 570 youth have been trained in different courses and majority of them have been placed successfully.
The CMD concluded by re-assuring all shareholders that the Company shall always make sincere efforts combined with high level of commitment to take OIL to its next level of excellence.