Latest news with #OIL
Time of India
7 days ago
- 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
7 days ago
- 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)
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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.
Time of India
09-07-2025
- Business
- Time of India
OIL, GAIL sign 15-year agreement for supply of up to 900,000 SCMD natural gas from Rajasthan fields
New Delhi: Oil India Limited (OIL) and GAIL (India) Limited have signed a 15-year Gas Sale and Purchase Agreement (GSPA) for the supply of up to 900,000 standard cubic meters per day (SCMD) of natural gas from OIL's gas fields in Rajasthan, with effect from July 1, 2025. The agreement aims to support the natural gas requirement of Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state government power utility. The deal was signed at GAIL's corporate office in New Delhi by Ranjan Goswami, Executive Director (Business Development), OIL, and Sumit Kishore, Executive Director (Gas Marketing), GAIL. The supply arrangement builds on an existing commercial relationship between the two Maharatna Central Public Sector Enterprises under the Ministry of Petroleum and Natural Gas. The agreement aligns with the government's plan to increase the share of natural gas in India's energy mix and promote cleaner fuel usage across sectors. As per the agreement, the gas from OIL's Rajasthan fields will be supplied through GAIL's transmission network to RRVUNL's power plants. OIL stated that it will continue to expand its upstream operations through exploration and development efforts in existing and new acreages across the country. GAIL reiterated its focus on gas monetisation through its infrastructure and marketing presence. The agreement is expected to ensure continuous gas supply from domestic sources for the power sector in Rajasthan.
