Latest news with #OIL
Time of India
a day ago
- Business
- Time of India
India witnesses renewed spurt in oil and gas exploration: Petroleum Minister Puri
India is witnessing a renewed surge in oil and gas exploration, particularly in offshore regions, underscoring the country's vast untapped hydrocarbon potential, Petroleum Minister Hardeep Singh Puri told the Parliament on Tuesday. Puri in Rajya Sabha stated that the opening of nearly one million square kilometres of erstwhile 'No-Go' offshore areas in 2022 has been a landmark development. This move has unlocked significant exploration frontiers, especially in deepwater and frontier regions such as the Andaman-Nicobar (AN) offshore basin, and has been instrumental in triggering the current momentum in offshore activity, the Minister stated, according to the Ministry of Petroleum & Natural Gas. Since 2015, Exploration and Production (E&P) companies operating in India have reported 172 hydrocarbon discoveries, including 62 in offshore areas, he said. The Minister highlighted the geological significance of the Andaman-Nicobar basin, which lies within the Bengal-Arakan sedimentary system. He stated that the tectonic setting located at the boundary of the Indian and Burmese plates has led to the formation of numerous stratigraphic traps that are conducive to hydrocarbon accumulation. This geological promise is further amplified by the basin's proximity to proven petroleum systems in Myanmar and North Sumatra, he added. The region has attracted renewed global interest following significant gas discoveries in South Andaman offshore Indonesia, underlining the geological continuity across the region, he stated. While the favourable geology sets a strong foundation, Puri emphasised that the real breakthrough has come from the government's strategic policy interventions and a new exploration approach. "The revised strategy has enabled aggressive acquisition of seismic data, initiation of both stratigraphic and exploratory drilling, and increased engagement with international exploration partners, several of whom have shown keen interest in the newly accessible frontier blocks," the Minister added. Puri said that the national Oil Companies have planned to drill four offshore stratigraphic wells, including one in the AN basin. "These scientific wells are designed to test geological models, validate the existence of petroleum systems, and help de-risk future commercial exploration. Although commercial accumulations have not yet been confirmed, these efforts mark a major step forward in systematic and knowledge-driven hydrocarbon exploration," he added according to the Ministry's release. In a significant development, ONGC and Oil India Ltd (OIL) have launched an ambitious exploration campaign in the Andaman ultra-deepwater region. For the first time, drilling operations are targeting depths of up to 5000 metres. Providing an overview of the exploration outcomes so far, the Minister informed that ONGC has made hydrocarbon discoveries in 20 blocks, with an estimated reserve of 75 million metric tonnes of oil equivalent (MMTOE). OIL, on its part, has made seven oil and gas discoveries over the past four years, with reserves estimated at 9.8 million barrels of oil and 2,706.3 million standard cubic meters of gas. Referring to the Hydrocarbon Resource Assessment Study (HRAS) of 2017, which estimated the AN basin's hydrocarbon potential at 371 MMTOE, the Minister stated that a 2D broadband seismic survey covering approximately 80,000 Line Kilometres (LKM) of India's Exclusive Economic Zone, including the AN offshore region, was completed in 2024. Additionally, OIL acquired 22,555 LKM of 2D seismic data during the Deep Andaman Offshore Survey conducted in 2021-22. Several promising geological features have emerged from this data, which are now being validated through ongoing drilling campaigns by ONGC and OIL, Puri added in his reply.
Time of India
16-07-2025
- Business
- Time of India
Oil breakthrough: Assam to become the first state government in India to produce and profit from crude
Assam is set to become the first state government in India to take a direct role in oil production, marking a significant turning point in the country's energy sector. The move follows a hydrocarbon discovery in the Namrup Borhat-1 well, located in the Dibrugarh district, a project in which the Assam government holds a 'significant stake' alongside Oil India Limited (OIL). Chief Minister Himanta Biswa Sarma called the development a 'major step forward in energy security and economic resilience.' In a post on X, he declared, 'This discovery makes Assam the first state govt to be a direct oil producer, makes exploration efforts successful, empowers Assam with revenue & royalty, and ensures steady availability of energy for the country.' He also described it as a 'proud moment' for the state. Assam's role in oil is no longer passive For decades, Assam has played a key role in India's oil story. Home to the country's first oil well at Digboi, it has long been a vital source of crude. Decades on, it remains a heavyweight in domestic crude production. In 2023–24, the state produced 4,361 thousand metric tonnes (TMT) of crude oil, ranking third after Rajasthan and Gujarat, according to the Ministry of Petroleum and Natural Gas . Over the past three financial years (2021–22 to 2023–24), India's total crude oil output stood at 88,223 TMT. Assam's contribution was 12,518 TMT, making it one of the top onshore producers. Rajasthan led with 15,380 TMT, followed by Gujarat with 14,425 TMT. Tamil Nadu (985 TMT), Andhra Pradesh (688 TMT), Arunachal Pradesh (147 TMT), and West Bengal (a negligible 0.06 TMT) followed at a distance. Offshore production, meanwhile, dominated the landscape with 44,078 TMT over the same period. Until now, Assam's role had been limited to supplying resources and collecting royalties. But with its new direct stake in upstream oil operations, the state is no longer just a crude supplier, it's a partner in production, entitled to a share of both revenue and risk. Understanding the "significant stake" "Oil India Limited has discovered hydrocarbon presence in Namrup Borhat-1 well, a well where Govt of Assam holds a significant stake," the Chief Minister posted on X. While the state government hasn't disclosed the exact size of its stake in the Namrup Borhat-1 well, a December 2020 Economic Times report offers a likely clue. It refers to a memorandum of understanding signed between Oil India Limited (OIL) and the Assam Hydrocarbon and Energy Company Limited (AHECL), a state-owned entity. Under that agreement, AHECL was granted a 10% participating interest in the Namrup Block, which spans 125 square kilometres. Since the Borhat-1 discovery falls within that block, it's reasonable to assume that Assam, through AHECL, holds the same 10% stake in the well. That's more than symbolic ownership. A participating interest gives Assam a share in both the risks and revenues of exploration and production, earnings from crude oil sales, not just royalties or taxes. However, Economic Times could not independently verify the precise shareholding structure specific to the Borhat-1 well. Investing, not just facilitating This isn't the only example of the state building long-term equity positions in the energy sector. In April 2023, the Assam Gas Company Limited (AGCL), also state-owned, signed a joint venture agreement with OIL to roll out city gas distribution networks in parts of Assam and Tripura. The JV company is majority-owned by AGCL with a 51% stake, while OIL holds the remaining 49%. The plan includes laying pipelines, setting up CNG stations, and supplying piped gas to homes and businesses in districts like Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur, Biswanath Chariali, and select parts of Tripura. With an authorised capital of ₹500 crore and an initial paid-up capital of ₹100 crore, the Chief Minister described the venture as a milestone that will help strengthen the state's economy. Additionally, in December 2024, the state cabinet cleared a 40% equity stake in the Namrup-IV Fertilizer Plant, part of the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL). It's another example of the state stepping in not just as a facilitator, but as a co-owner with skin in the game.
Time of India
16-07-2025
- Business
- Time of India
Oil breakthrough: Assam to become the first state government in India to produce and profit from crude
Assam is set to become the first state government in India to take a direct role in oil production, marking a significant turning point in the country's energy sector. The move follows a hydrocarbon discovery in the Namrup Borhat-1 well, located in the Dibrugarh district, a project in which the Assam government holds a 'significant stake' alongside Oil India Limited (OIL). Chief Minister Himanta Biswa Sarma called the development a 'major step forward in energy security and economic resilience.' In a post on X, he declared, 'This discovery makes Assam the first state govt to be a direct oil producer, makes exploration efforts successful, empowers Assam with revenue & royalty, and ensures steady availability of energy for the country.' He also described it as a 'proud moment' for the state. Assam's role in oil is no longer passive For decades, Assam has played a key role in India's oil story. Home to the country's first oil well at Digboi, it has long been a vital source of crude. Decades on, it remains a heavyweight in domestic crude production. In 2023–24, the state produced 4,361 thousand metric tonnes (TMT) of crude oil, ranking third after Rajasthan and Gujarat, according to the Ministry of Petroleum and Natural Gas . Over the past three financial years (2021–22 to 2023–24), India's total crude oil output stood at 88,223 TMT. Assam's contribution was 12,518 TMT, making it one of the top onshore producers. Rajasthan led with 15,380 TMT, followed by Gujarat with 14,425 TMT. Tamil Nadu (985 TMT), Andhra Pradesh (688 TMT), Arunachal Pradesh (147 TMT), and West Bengal (a negligible 0.06 TMT) followed at a distance. Offshore production, meanwhile, dominated the landscape with 44,078 TMT over the same period. Until now, Assam's role had been limited to supplying resources and collecting royalties. But with its new direct stake in upstream oil operations, the state is no longer just a crude supplier, it's a partner in production, entitled to a share of both revenue and risk. Understanding the "significant stake" "Oil India Limited has discovered hydrocarbon presence in Namrup Borhat-1 well, a well where Govt of Assam holds a significant stake," the Chief Minister posted on X. While the state government hasn't disclosed the exact size of its stake in the Namrup Borhat-1 well, a December 2020 Economic Times report offers a likely clue. It refers to a memorandum of understanding signed between Oil India Limited (OIL) and the Assam Hydrocarbon and Energy Company Limited (AHECL), a state-owned entity. Under that agreement, AHECL was granted a 10% participating interest in the Namrup Block, which spans 125 square kilometres. Since the Borhat-1 discovery falls within that block, it's reasonable to assume that Assam, through AHECL, holds the same 10% stake in the well. That's more than symbolic ownership. A participating interest gives Assam a share in both the risks and revenues of exploration and production, earnings from crude oil sales, not just royalties or taxes. However, Economic Times could not independently verify the precise shareholding structure specific to the Borhat-1 well. Investing, not just facilitating This isn't the only example of the state building long-term equity positions in the energy sector. In April 2023, the Assam Gas Company Limited (AGCL), also state-owned, signed a joint venture agreement with OIL to roll out city gas distribution networks in parts of Assam and Tripura. The JV company is majority-owned by AGCL with a 51% stake, while OIL holds the remaining 49%. The plan includes laying pipelines, setting up CNG stations, and supplying piped gas to homes and businesses in districts like Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur, Biswanath Chariali, and select parts of Tripura. With an authorised capital of ₹500 crore and an initial paid-up capital of ₹100 crore, the Chief Minister described the venture as a milestone that will help strengthen the state's economy. Additionally, in December 2024, the state cabinet cleared a 40% equity stake in the Namrup-IV Fertilizer Plant, part of the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL). It's another example of the state stepping in not just as a facilitator, but as a co-owner with skin in the game.
India Gazette
10-07-2025
- Business
- India Gazette
GAIL signs 15-year gas sale and purchase agreement with Oil India
New Delhi [India], July 10 (ANI): GAIL (India) signed a Gas Sale and Purchase Agreement with Oil India Limited (OIL) for extending the existing Gas Sale and Purchase Agreement for another 15 years, starting from 1st July, 2025, according to an official statement by the company. GAIL on Thursday stated that the agreement is to supply up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas from OIL's Bakhri Tibba Block of Rajasthan, covering Dandewala, Tanot and Bagi Tibba fields. The agreement was executed by Sumit Kishore, ED (Marketing-Gas), GAIL, and Ranjan Goswami, ED (BD), OIL, in New Delhi. GAIL also noted that this agreement highlights the dedication of both Maharatna CPSEs in the production, transportation, and distribution of natural gas available from domestic gas fields, demonstrating their collaborative approach to enhancing energy security and accessibility. The sourced gas will be supplied to the state-run power plant of M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL). GAIL owns and operates a 16,421 km network of natural gas pipelines spread across the length and breadth of the country, transmitting more than 127 MMSCMD of natural gas in the financial year 2024-25. It is also working concurrently on the execution of multiple pipeline projects to further enhance the spread. The company also owns and operates a gas-based Petrochemical Complex at Pata and has a capacity of 810 KTA at Pata and 280 KTA at BCPL. In addition, GAIL's LNG portfolio stands at 16.56 MMTPA (approximately 60 MMSCMD), accounting for 61 per cent of India's total LNG imports. GAIL and its Subsidiaries / JVs also have a formidable market share in City Gas Distribution. According to the company statement, it is also expanding its presence in renewable energy like solar, wind, and biofuel. (ANI)
&w=3840&q=100)
Business Standard
09-07-2025
- Business
- Business Standard
Oil India, GAIL extend 15-year gas supply deal from Rajasthan fields
Oil India Limited (OIL) and GAIL (India) Limited have signed an agreement to extend their existing Gas Sale and Purchase Agreement for another 15 years, beginning July 1, 2025. The deal involves the supply of up to 900,000 standard cubic metres per day (SCMD) of natural gas from OIL's gas fields in Rajasthan, Oil India said in a BSE filing on Wednesday. The agreement was signed between Ranjan Goswami, Executive Director (Business Development) at OIL, and Sumit Kishore, Executive Director (Gas Marketing) at GAIL in New Delhi. 'This agreement highlights the dedication of both Maharatna CPSEs in the production, transportation and distribution of gas available from domestic gas fields,' the companies said in a joint statement. GAIL and OIL Q4 results In the fourth quarter of financial year 2025, GAIL (India) Limited reported a consolidated net profit of ₹2,491.76 crore, nearly flat from ₹2,468.71 crore recorded in the same quarter last year (Q4 FY24). Consolidated revenue from operations rose by 11.3 per cent to ₹36,551.15 crore in Q4 FY25, compared to ₹32,833.24 crore in the corresponding period of the previous year. In contrast, Oil India Limited posted a consolidated net profit of ₹1,310.10 crore for Q4 FY25, representing a decline of nearly 39 per cent from ₹2,140.72 crore in Q4 FY24. Revenue from operations fell by around 6 per cent to ₹9,587.82 crore, down from ₹10,165.78 crore in the year-ago quarter. On Wednesday, GAIL's shares closed at ₹185.05 apiece, while Oil India's shares ended at ₹445.30 each on the BSE.
