Oil’s Crude Oil Production Stood At 3.277 MMT In 2016-17

Oil’s Crude Oil Production Stood At 3.277 MMT In 2016-17

Image Credits By: oil-india.com

Oil India Limited (OIL) Chairman and Managing Director Utpal Bora said that while natural gas production was 2937 MMSCM in 2016-17 as against 2838 MMSCM during 2015-16, natural gas sales was 2412 MMSCM as against 2314 MMSCM during 2015-16.

Oil had its 58th AGM on Saturday. The company stated Crude oil production in 2016-17 was 3.277 MMT as compared to 3.247 MMT during 2015-16 while Crude oil sales were 3.221 MMT as compared to sales of 3.237 MMT during 2015-16.

He mentioned that, this year, the Company not only could contain last few years’ fall in crude oil production but also achieve increase in production.

The turnover of the Company stood at Rs 9510.39 crore as against Rs 9764.87 crore in 2015-16 while the Profit after Tax (PAT) was Rs 1548.68 crore against PAT of Rs 2,301.67 crore during 2015-16.

He mentioned that the profitability of the Company was affected mainly due to payment of differential royalty of Rs 1151.73 crore on crude oil for the period February, 2014 to March,2016, as per Government directive. During 2016-17 the Company declared dividend at 142.50%.

Giving an overview of the Company’s scenario, the CMD mentioned that as on 31.03.2017, OIL is holding Participatory Interest (PI) in total of 09 NELP Blocks out of which OIL has the right of operatorship / joint operatorship in 06 blocks and as non-operator in 03 blocks.

The CMD mentioned that OIL has started its High Pressure-High Temperature drilling campaign in the block KG-ONN-2004/1 and also drilled its first deepwater offshore well in block CY-OSN-2009/2.

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Bora informed that, during the year, OIL made a total of ten hydrocarbon discoveries, all of which were in the Upper Assam basin.

Bora added present gas production potential is about 7.85 MMSCMD from Assam and Arunachal Pradesh fields and about 0.95 MMSCMD from the Rajasthan fields. He also informed that action is at hand to increase the gas production potential to a level of 10 MMSCMD in the North East for uninterrupted supply of gas to all customers.

The CMD next mentioned that, after successful completion of experimental production testing in Bikaner-Nagaur basin, Rajasthan, production of heavy oil is being started. Presently, the production of heavy oil is not very significant as only two wells are on production. Drilling campaign, targeting cyclic steam injection will start from the end of this year. The heavy crude stands monetized with effect from 1st May, 2017 and revenue is being generated on regular basis.

Bora gave an overview of the Company’s overseas activities. OIL’s overseas E & P portfolio comprises of 17 blocks and is spread in 10 countries covering Russia, Venezuela, USA, Mozambique, Libya, Gabon, Nigeria, Yemen, Bangladesh and Myanmar.

Bora gave an overview of OIL’s focus on Renewable Energy as part of which the Company undertook its fourth Wind Energy Power Project, of capacity 52.5 MW, split between Gujarat (27.3 MW in Kotiya, Gujarat) and Madhya Pradesh( 25.2 MW in Unchawas, Madhya Pradesh). Commissioning of the project has started and as of 31st March 2017, 8.4 MW sub-part was commissioned at Kotiya and a 6.3MW sub-part was commissioned at Unchwas. With commissioning of these sub parts, the total Installed Capacity in commercial Renewable Energy Projects of OIL stands at 150.3 MW, comprising of 136.3 MW of Wind Energy Projects and 14MW of Solar Energy Projects.

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Further, Wind Resource Assessment (WRA) exercise in Assam, an initiative being sponsored by OIL, is in progress. Wind Monitoring Stations (WMS) have been installed and commissioned at nine (09) identified sites, spread across eight districts of Assam. Wind and other associated data are being recorded to assess the wind energy availability in Assam. Read more

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