New Delhi: Oil India Limited (OIL) has indicated for the first time a potential timeline for repatriating nearly USD 300 million in dividend payouts currently stuck in Russia. A senior company official, speaking during a recent post-earnings investor call, said the state-run explorer is hopeful of “positive news by early next financial year,” noting that the management is assessing compliant mechanisms to move the blocked funds out of Russia.
The funds remain locked due to Russian counter-measures restricting outward remittances amid geopolitical and financial sanctions. Discussions are ongoing to identify a secure and regulatorily acceptable method for transferring the pending dividends.
Crude Oil Production Target Cut Following North-East Blockade
Oil India has revised its FY26 crude oil production target downward due to disruptions triggered by an ethnic-group blockade in the North-East. The blockade restricted staff movement and forced temporary shutdowns at multiple operational wells.
According to company officials, crude output had plunged to around 8,100 mt per day during the peak of the crisis, before partially recovering to approximately 9,600 mt per day as conditions improved. Consequently, OIL has reduced its crude output guidance from 3.776 MMT to 3.55 MMT for FY26.
Natural gas production guidance remains unchanged, though the company highlighted seasonal variations in consumption—particularly by tea gardens—which impact short-term utilisation rates.
Oil India Exits Overseas Assets in Bangladesh and Gabon
In a strategic move to streamline its global portfolio, OIL confirmed its exit from two international upstream blocks. The company, along with ONGC, is fully withdrawing from its JV-operated block in Bangladesh, while its offshore asset in Gabon is already in the “closure stage”. Officials noted that no significant additional expenditure is expected during the exit process, signalling a shift away from non-core international exploration ventures.
DNPL Pipeline Expansion Nears Commissioning
Oil India reported substantial progress on the DNPL pipeline expansion, stating that mechanical completion has been achieved. The company now awaits final approvals from PESO and PNGRB.
A senior project official said that the final integration—connecting the new line to the existing system—will require a seven-day shutdown. Once completed, the expanded pipeline will facilitate a significant increase in natural gas evacuation, boosting capacity from 1.2 MMSCMD to 2–2.5 MMSCMD.
NRL Expansion to Triple Natural Gas Intake
Subsidiary Numaligarh Refinery Ltd (NRL) announced that its ongoing refinery expansion will sharply raise its gas consumption. NRL currently takes about 0.9–1 MMSCMD of natural gas, which is expected to rise to up to 3 MMSCMD once the expansion reaches full operational levels.
The refinery expects to begin crude intake for the expanded facility in December 2025, with stable throughput projected from Q2 FY27. Additionally, NRL clarified that its first planned shutdown will be scheduled in FY27, not during the commissioning phase.
About Oil India Limited
Oil India Limited (OIL) is India’s second-largest national oil and gas company and a public sector undertaking under the Ministry of Petroleum & Natural Gas. The company engages in exploration, production, and transportation of crude oil and natural gas across India and select overseas markets. With a legacy spanning more than six decades, OIL plays a crucial role in strengthening India’s energy security through sustained E&P activities, infrastructure development, and strategic partnerships.
