Oil India plans to spend ₹15,000 crore for deepwater exploration over three years: CMD

Oil India Ltd (OIL) has outlined ₹15,000 crore capital expenditure towards its exploration activities in deepwater and ultradeep-water areas over the next three years, Ranjit Rath, Chairman and Managing Director (CMD) told reporters at a press interaction Wednesday.

“In terms of preparedness, we have already created a capex of ₹15,000 crore [for deepwater and ultradeep water exploration],” stated Mr. Rath.

The OIL chief further informed that it expects the 9 million tonnes per annum (MTPA) expansion of Numaligarh refinery to be completed by the end of the ongoing fiscal with stabilisation likely to take another 9-12 months.

About overseas activities, Mr. Rath said OIL would focus on both exploration and producing assets though primary interest tilting towards the latter.

Offshore exploration

The capital expenditure will further strengthen the Maharatna explorer-producer’s offshore exploration footprint across the Andaman, Kerala-Konkan, Krishna-Godavari and Mahanadi basins.

Oil India has already undertaken seismic studies, and the interpretation of the findings will help identify potential drilling locations, said the company’s chief. Responding to a query from The Hindu, Mr. Rath said the company does not anticipate any major challenges in accessing the infrastructure or technology required for offshore exploration and production.

Exploration mainstay on domestic front

Mr. Rath informed that the state-owned explorer-producer has relinquished their assets in Bangladesh and Gabon as part of the broader consolidation strategy.

Speaking to The Hindu separately, he explained, “As part of our overseas assets, we would continue to look at more prospective areas – both producing and exploration assets, but primary interest would be producing assets which will give us an early or an immediate monetisation opportunity.”

He added exploration would continue to be the mainstay on the domestic front.