Noida: Oil India Limited (OIL) has outlined an ambitious growth roadmap focused on increasing domestic oil and gas production, accelerating exploration in deep and ultra-deepwater areas, strengthening its integrated energy value chain and expanding its clean-energy portfolio.
The roadmap was presented at OIL’s 67th Annual General Meeting (AGM) held under the chairmanship of Dr. Ranjit Rath, Chairman and Managing Director.
Dr. Rath said the company’s future growth priorities are supported by two recently approved government initiatives — Samudra Manthan – National Offshore Exploration Scheme and GOBARdhan – National Circular Bioenergy Scheme.
OIL Targets Around 10 MMTOE Oil and Gas Production
During FY 2025-26, OIL produced 3.450 million metric tonnes (MMT) of crude oil and 3.186 billion cubic metres (BCM) of natural gas.
Despite operating largely mature fields, the company achieved a terminal crude oil production rate of 10,566 MTPD, the highest in 14 years. The performance was supported by intensified drilling, workover activities and reservoir-management initiatives.
OIL completed 74 wells during the year, including:
- 22 exploratory wells
- 52 development wells
The company also improved its Reserve Replacement Ratio (RRR) to 1.02 in FY 2025-26, strengthening its hydrocarbon reserve base.
Looking ahead, OIL is targeting around 10 MMTOE of oil and gas production by the end of the decade, supported by increased exploration, drilling and production-enhancement activities.
Q1 FY27 Crude Oil Production Rises 11%
OIL maintained its operating momentum during the first quarter of FY27.
Crude oil production increased 11% year-on-year to 0.950 MMT in Q1 FY27.
The company also recorded its highest-ever daily crude oil production of 10,921 MT, equivalent to around 84,109 barrels.
The production growth forms part of OIL’s broader strategy to increase domestic hydrocarbon output and strengthen India’s energy security.
OIL Aligns Offshore Exploration With Samudra Manthan
The Government’s recently approved Samudra Manthan – National Offshore Exploration Scheme has an outlay of ₹84,084 crore up to FY2030-31.
The scheme provides for:
- Large-scale offshore seismic acquisition
- Faster deep and ultra-deepwater drilling
- Common offshore infrastructure
- Development of domestic manufacturing capabilities
- Expansion of domestic oilfield services
OIL’s expanding offshore exploration programme is aligned with these objectives.
The company has an exploration footprint of more than one lakh square kilometres across multiple onshore and offshore sedimentary basins.
Its offshore portfolio currently includes acreages in the Andaman, Krishna-Godavari, Mahanadi and Kerala-Konkan basins, including ultra-deepwater blocks.
Andaman Basin Shows Encouraging Gas Potential
OIL has reported encouraging results from its exploration activities in the Andaman Basin.
The Sri Vijayapuram-2 well established a natural gas occurrence, while Sri Vijayapuram-3 resulted in a gas discovery with continuous flaring.
According to the company, these results provide encouraging evidence of an active petroleum system in the frontier Andaman Basin.
OIL is strengthening its deep and ultra-deepwater capabilities through advanced seismic evaluation, technology partnerships and preparations for future offshore drilling campaigns.
OIL Strengthens Refining and Pipeline Infrastructure
Beyond exploration and production, OIL continued to expand its integrated energy value chain.
The expansion of Numaligarh Refinery Limited (NRL) from 3 million tonnes per annum (MMTPA) to 9 MMTPA progressed during FY 2025-26.
The company also completed the augmentation of the Numaligarh-Siliguri Product Pipeline, increasing its capacity from 1.72 MMTPA to 5.5 MMTPA.
These projects are aimed at strengthening energy infrastructure and improving the supply network in the Northeast region.
OIL Reports ₹7,551 Crore Consolidated PAT
OIL reported a consolidated Profit After Tax (PAT) of ₹7,551 crore for FY 2025-26.
Its consolidated net worth stood at ₹53,716 crore.
The company declared a total dividend of ₹11.50 per equity share.
During the year, the OIL Group invested more than ₹21,673 crore across exploration and production, refining, pipelines and other strategic growth projects.
The company’s strong operating performance continued into Q1 FY27, when OIL recorded its highest-ever standalone quarterly PAT of ₹2,870 crore.
GOBARdhan Scheme Supports OIL’s CBG Expansion
OIL is also expanding its clean-energy portfolio in line with its Net Zero 2040 ambition through OIL Green Energy Limited (OGEL).
The company is focusing on:
- Compressed Bio-Gas (CBG)
- Integrated CBG and Waste-to-Energy projects
- Renewable energy
- Other low-carbon energy opportunities
The recently approved GOBARdhan – National Circular Bioenergy Scheme has an outlay of ₹23,731 crore.
The scheme provides an integrated framework for scaling up CBG through assured offtake, stable pricing, capital assistance, pipeline connectivity, access to finance and technology support.
It covers municipal organic waste as well as agricultural residue, cattle dung, press mud and other biomass, supporting waste-to-wealth and circular-economy opportunities.
OIL Expands CBG and Waste-to-Energy Projects
Through OGEL, OIL is progressing multiple CBG projects and exploring opportunities for municipal solid waste-based integrated CBG and Waste-to-Energy projects.
The company views bioenergy as an emerging growth area within its clean-energy portfolio.
OIL has also made progress in reducing its environmental footprint. It has reduced Scope 1 and Scope 2 emissions by around 18% against the FY24 baseline, while gas flaring has declined by 32%.
These initiatives form part of the company’s roadmap towards its Net Zero 2040 target.
OIL Strengthens Energy Technology and Innovation
OIL is also strengthening its innovation ecosystem through the MC2 platform, a collaborative PSU initiative focused on supporting emerging energy technologies and developing indigenous capabilities for the energy transition.
The initiative complements OIL’s efforts to expand its capabilities across conventional hydrocarbons and emerging energy businesses.
The company plans to continue developing new technologies and partnerships as it expands into frontier exploration and low-carbon energy.
OIL Plans Continued Expansion in Oil, Gas and New Energy
Looking ahead, Dr. Ranjit Rath said OIL will remain focused on increasing domestic oil and gas production, expanding India’s hydrocarbon resource base and developing capabilities for frontier offshore exploration.
The company also plans to develop scalable new-energy businesses while maintaining capital discipline and a strong balance sheet.
With its expanding offshore portfolio, refining and pipeline infrastructure and growing clean-energy investments, OIL is positioning its operations around both conventional energy security and the country’s longer-term energy transition.
About Oil India Limited
Oil India Limited (OIL) is a Maharatna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas, Government of India, and one of India’s leading integrated energy companies. Its operations span exploration and production of crude oil and natural gas, transportation, refining and emerging clean-energy businesses. OIL has a presence across major sedimentary basins in India and is expanding its offshore, renewable energy, CBG and other low-carbon initiatives as part of its long-term growth and Net Zero 2040 strategy.
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