New Delhi: Oil India Limited (OIL) is closely monitoring developments in Venezuela and may increase its investment in the Carabobo oil project if production improves, Chairman and Managing Director Ranjit Rath said in an interview with CNBC TV18. The firm also reaffirmed its domestic growth plans, including heightened drilling activity and refinery expansion, as part of its long-term strategic outlook.
Venezuela Investment Prospects
Oil India holds a 3.5% stake in the Carabobo field through a subsidiary, with an investment exposure of about USD 60 million. Rath noted that while there are no pending dividends from the Venezuelan asset, the company is keeping a close watch on production trends at the project. “Production prospects at the field now look better,” he said, adding that OIL would consider further investment to support increased output if required.
Russian Assets and Dividend Status
Addressing concerns about its overseas portfolio, Rath said the company has largely realised dividends from its Russian joint ventures. OIL has already received 100% of the dividend from one Russian asset and about 90% from another, with the remaining amount held in local accounts due to transaction restrictions. He clarified that there are no sanctions on OIL’s operations in Russia, and the company has no immediate plans to divest its holdings there.
Drilling Activity and Output Guidance
Domestic activity has gained momentum, with Oil India completing more than 50 wells this year and targeting around 80 wells, a significant increase compared to about 30–35 wells drilled three years ago. The company plans to exceed 70–75 wells in the current year and aims for around 100 wells next year. With an inventory of over 200 wells ready for drilling over the next three years, OIL expects to raise production guidance by 2–2.5%, building on last year’s record output of 6.71 million metric tonnes of oil and oil equivalent.
Numaligarh Refinery Expansion and Capex Plans
Rath also highlighted progress on the Numaligarh Refinery expansion project, which has begun commissioning with an expanded capacity of 9 million tonnes per annum. The crude distillation unit is operational, while full commissioning is expected within six to nine months, followed by a stabilisation phase. The total capital expenditure for the expansion, including the refinery, crude pipeline, and polypropylene unit, is estimated at around ₹40,000 crore. For FY27, OIL projects 40–50% capacity utilisation with a distillate yield above 87%.
Prepared for Geopolitics, Confident on Growth
On global crude markets, Rath said Oil India factors geopolitical risks into its strategic planning, maintaining confidence in its medium- to long-term production outlook. Higher drilling intensity and expanded exploration activity underpin the company’s assurance in its growth prospects.
About Oil India:
Oil India Limited is a Maharatna public sector enterprise and a key player in India’s energy sector with operations across upstream, midstream, and downstream segments. With a diverse international portfolio, expanding drilling activities, and strategic refinery upgrades, OIL aims to strengthen domestic energy production and support national energy security objectives.
