Oil India commences gas production from Bakhritibba Block in Jaisalmer
OIL has set benchmark by achieving fast monetization from DSF III block by successfully drilling 3 MWP wells within the development period leading to supply of 67,200 SCMD gas to be further enhanced to production of 100MSCMD gas from the Bakhritibba Block in Jaisalmer district in Western Rajasthan.
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Business Standard
20 hours ago
- Business Standard
Govt likely to set up corpus for strategic deepwater exploration
The government is planning to set up a corpus under the National Deepwater Exploration Mission to support strategic oil and gas exploration efforts in deepwater and ultra-deepwater areas. The exact contours of the plan are yet to be finalised, including the size of the corpus and its sources. 'The Prime Minister has emphasised upon the National Deepwater Exploration Mission where a corpus is identified by the Government of India for a focused and concerted strategy-driven exploration in deepwater and ultra-deepwater areas and Oil India Ltd (OIL) remains committed to this clarion call,' OIL Chairman and Managing Director Ranjit Rath said in an address to employees. Under the ninth round of the Open Acreage Licensing Policy (OALP) bidding, OIL has already secured 40,000 square kilometre area in deepwater and ultra-deepwater exploration acreages in Mahanadi and KG Basins, and it is going to launch the seismic 3D and 2D data acquisition very soon, he said. Rath added that PM Modi has stressed upon the National Critical Mineral Mission, under which a corpus has already been identified to enhance exploration and production and also overseas assets acquisition with identified PSUs, in which OIL is also reflected. The company is pursuing such diversified alternatives aligned with national priorities. 'We have recently diversified to critical minerals. We have bagged two blocks, including a graphite and a vanadium block in Arunachal Pradesh, and a potash block in Rajasthan. We are also looking at acquisition of overseas assets of critical minerals,' he said. Rath said the company is on track to meet production targets, but more needs to be done. OIL operates primarily in upper Assam where the market for natural gas is still constrained. He congratulated the OIL team managing the Rajasthan asset for achieving the fastest monetisation of the Bakhri Tibba Discovered Small Field (DSF) block. 'We are supplying 30,000 standard cubic metres of natural gas towards power generation from that field. A similar call of duty is emerging in Tripura. I would call upon the Tripura asset team to ensure that by March 31, 2026, or before, we are able to monetise the Tulamara DSF where we have already done the first well and we intend to drill three more wells soon,' he said. India's crude oil import bill last financial year stood at around $140 billion, with import dependence of 90 per cent in case of crude oil and 50 per cent in case of natural gas, as on May 2025. 'Every drop of crude oil extracted from the sub-surface is a huge contribution. Gone are the days when we used to get price realisation of $80-85 per barrel. The current realisation is only $66 per barrel, a drop of 22 per cent. That is why enhanced production matters,' he said. OIL is also working on mapping areas where potential exists for productivity enhancement with a focus on cost optimisation.
Hans India
a day ago
- Hans India
India should take steps to lessen impact of US tariffs
US President Donald J Trump recently took an aggressive action on India by imposing an additional tariffs of 25 per cent over and above 25 per cent already imposed recently as the order cites threats to the United States by the Government of Russian Federation as the India continues to purchase of Russian Federation Oil, which has not been responding adequately to the peace efforts taken by President Trump but continues to attack Ukraine. US President Trump feels that purchasing oil from Russia in this period of Russia and Ukraine war, gives the necessary financial support to Russia and that would directly or indirectly help Russia in carrying out its war against Ukraine. It can be recalled that President Trump had earlier expressed his dissatisfaction with India over its oil purchase from Russia. This order imposing an additional tariff of 25 per cent on Indian imports as an action against continued purchase of Russian oil, established a process for the potential imposition of similar tariffs on other countries that directly or indirectly import oil from Russia. These measures are taken as the US feels that Russian Federation actions in Ukraine pose a threat to US national security and foreign policy. The reasons stated that India's importation of Russian Federation oil undermines US efforts to counter Russia's harmful activities. India's subsequent reselling of this oil on the open market, often at significant profit, further enables Russia to fund its aggression. By imposing a 25 per cent tariff, President Trump aims to deter other countries from supporting the Russian Federation's economy through oil imports. China, India and Turkey are the biggest customers of Russian oil and there are other countries too like Hungary, Belgium, France, Slovakia and Netherlands. These European countries bought natural gas. India, in its response, stated that India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged imports by India for strengthening global energy markets stability. It's a known fact that India depends upon external countries for supply of oil as it imports 85 per cent of its requirements and oil is the essential requirement for India and it is in national interest to ensure supply of oil to the people. Apart from Europe which not only imports energy, but also fertilizers, mining products, chemicals, iron and steel and machinery from Russia, the US continued to import Uranium Hexafluoride for its nuclear industry, palladium for its EV Industry, fertilizers as well as chemicals from Russia. Hence, India has categorically stated that in this background, targeting it is unjustified and unreasonable. India further said that like any major economy, it will take all necessary measures to safeguard its national interests and economic security. However, President Trump may be irritated with the tough stand taken by India on opening of the agricultural sector and animal husbandry, etc., and the interim/ final trade agreement could not be achieved within the deadline. But India made its intention clear. 'We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India,' the Indian government said in a statement. It is therefore extremely unfortunate that the US chose to impose additional tariffs on India for actions that several other countries also taking in their own national interest. With this additional tariff, India has the highest tariff of 50 per cent along with Brazil which is also facing highest 50 per cent. This additional tariff on India will be effective from August 27. The textiles exports, gem and jewellery, automobiles and auto components, marine products and some agricultural and processed foods are likely to be significantly affected by the US' additional tariffs on the Indian goods. Other sectors that could be impacted include steel, aluminium and some other petrochemical products. However, India can reduce the adverse impact of the US tariffs by reducing operational costs for manufacturers through ease of doing business measures. It can also go for market diversification. Few experts have said that this could be an opportunity for India to bring in significant reforms to reduce the burden by improving the supply chains. Efforts should also be made to reduce logistics cost and pave way for easy and quick turnaround time at ports and airports. Indirectly referring to the US tariffs, Prime Minister Narendra Modi stressed that India will never compromise with the interests of its farmers and fisherman. He further added that while he knew he would 'have to pay the price' for his stand, he said he was ready to do it for farmers. He is bang on, to say the least. Whatever the motive of Donald Trump, the tariffs being imposed by the US on India are unreasonable and unjustified. Such unreasonable decisions will have an adverse impact on the long-standing relationship India and USA have. Hopefully, a trade pact between India and the US will reduce tensions between the two countries.
Mint
3 days ago
- Mint
ONGC beat Oil India in Q1, but the tables could turn soon
Oil exploration and production companies Oil and Natural Gas Corp Ltd (ONGC) and Oil India Ltd reported divergent earnings for the June quarter (Q1FY26). ONGC's standalone Ebitda remained unchanged year-on-year at ₹18,700 crore with the decline in crude oil prices being offset by lower statutory levies. Oil India's Ebitda fell by 19% to ₹2,100 crore, weighed down by higher 'other expenses'. However, ONGC faces the challenge of arresting its declining production even as Oil India is looking at a consistent rise in production. Sales volume (including share in joint ventures) stood at 8.6 million tonnes of oil equivalent (mmtoe) for ONGC, and 1.52 mmtoe for Oil India, each clocking about 1% growth. Oil India's sales were affected by plant shutdowns by some of its consumers. ONGC's revenue fell 10% to ₹32,000 crore, supported by higher new wells gas (NWG) volumes, against Oil India's 14% revenue drop to ₹5,000 crore. While ONGC's crude oil price realisation fell by 20% to $66.4 per barrel, gas realisation was up 9% to $7.6 per million British thermal units (mmbtu), helped by NWG, which fetches a price premium of 20% over conventional gas. Management expects NWG volumes to account for 13-14% of total gas production in FY26 and 25% in FY27. For Oil India, while crude oil realisation fell at nearly the same rate to $66.2, gas realisation also fell marginally to $6.4 per mmbtu in the absence of NWG benefits. Oil India has also sought permission from the ministry to sell NWG gas at a premium, in line with ONGC. ONGC's production woes Despite better profitability, ONGC has struggled to raise its production, with the KG basin ramp-up being delayed by the early monsoon, hampering infrastructure build-up. Management has cut its production guidance for FY26 by 3% to 41.1 mmtoe, which means no incremental production over FY25. The basin currently produces 3 million standard cubic metres (mmscmd) of gas, which is expected to hit a peak of 10 mmscmd in FY27. Despite the delays, the block holds hope for the company, which has seen production decline by more than 5% over FY22-25. JM Financial Institutional Securities estimates cumulative output growth of 8-10% over FY26-28 for ONGC, driven by the KG basin and western offshore blocks. Oil India has fared better on production, clocking a 4.3% compound annual growth rate (CAGR) over the past three years. The company aims to achieve production of 7.4 mmtoe in FY26, a 9% increase over FY25. It expects higher output after the start of phased commissioning of the Numaligarh refinery expansion project in December. An Antique Stock Broking report projected the company's oil and gas output would grow at a 5% and 15% CAGR over FY25-28. Shares of both oil majors have been bogged down by the decline in crude oil prices. Oil India stock is down 40% over the past year and ONGC's is down 28%. Oil India trades at enterprise value (EV) of 8.1 times estimated FY26 Ebitda, supported by a better production outlook, as per Bloomberg. ONCG's EV/Ebitdta multiple is 5. With crude prices expected to remain subdued in the foreseeable future, production ramp ups will determine the movement of the stocks from here.
