Indian Oil is looking at sourcing at least 10 per cent of its crude oil requirement from its own assets, a signal that the state-owned refiner might focus on increasing its portfolio of producing hydrocarbon assets within India and abroad.
The company has stated the intention in its latest annual report.
The timing of announcement assumes significance given that there is a plan afoot for merging upstream Oil India with the refining major. The plan is part of the government’s strategy to create public sector giants that could compete with international oil companies.
IOC aims to raise its refining capacity by about 89 percent to 3 million barrels per day (bpd) by 2030 by setting up new plants and expanding some existing ones, the report said.
India, the world’s third biggest oil consumer, imports about 80 percent of its oil requirements as its local production continues to stagnate while consumption grows at a brisk pace.
IOC holds stakes in eight domestic and nine overseas oil and gas blocks in countries like Libya, Gabon, Nigeria, Yemen, Venezuela, Russia, Canada and the US.
It controls 50 per cent of the downstream marketing infrastructure and is beefing up its sales network to cater to rising fuel demand in India, the world’s third biggest oil importer.