Oil India CMD reveals profits in tough Covid-struck year

Source :Sify
Author :Finance Desk
Last Updated: Tue, Sep 29th, 2020, 19:04:09hrs
Oil India

Oil India Limited on Tuesday revealed revenues of Rs 2,584 crores against a revenue of Rs 13,649 crores for the fiscal year 2019-20.

CMD Sushil Chandra Mishra revealed the numbers speaking at the 61st virtual AGM. He added that the year was a challenging and pointed to weak global economic growth, resulting in weaker demand across sectors.

"Lower average crude oil prices, as compared to the previous year, and other factors beyond control affected the company's activities in the main producing area, especially in the last quarter of 2019-20. However, despite the difficulties, OIL completed the year 2019-20 on a positive note, leveraging the best of available advantages and building on available opportunities," Mishra said.

The OIL drilled 11 exploratory wells in the PML (Petroleum Mining Lease) areas in Assam and Rajasthan with a success rate of over 70 per cent. The company has made one more HPHT (High Pressure High Temperature) gas discovery in the NELP (New Exploration Licensing Policy) Block in KG basin.

The CMD also told the AGM that the success of the Cyclic Steam Stimulation process, implemented in 2018-19, led to production increase of 168 per cent from OIL's Rajasthan field.

This year, Oil India recorded highest ever dividend earned from overseas businesses.

"Production from overseas assets corresponding to OIL's participating interest was 2.177 MMTOE. Cumulative dividends till March 31 corresponding to OIL's share received from producing assets in Russia stood at $406 million, equivalent to about Rs 3,000 crore...

"OIL recovered close to 47 per cent and 29 per cent of its investments in Vankorneft and Taas Yuriakh, respectively," he said.

Mishra also said that OIL has drawn up ambitious plans for the future, including fast tracking of exploration in Arunachal Pradesh and developing the Baghewala heavy oil field in Rajasthan besides strengthening OIL's presence in other sectors of the hydrocarbon industry.

"OIL committed to success of the 'Aatmanirbhar Bharat Abhiyan' recently launched by the Prime Minister. With a view to expedite action in this direction, OIL has created a new department 'INDEG' for development of items indigenously," he said.

In the renewable energy sectors, the CMD told the AGM that total installed capacity of OIL stood at 188.10 MW as on March 31, consisting of 174.10 MW of wind projects and 14 MW of solar projects, and a total revenue of Rs 138 crore was generated from these assets in 2019-20.

He also that during 2019-20, a new joint venture company (JVC), the Purba Bharati Gas Private Ltd, was incorporated with equity participation of OIL, GAIL-Gas and AGC to develop CGD networks in two areas of Assam.

Also, HPOIL Gas Private Ltd (HOGPL), a 50:50 JVC with HPCL, was set in respect of Kolhapur and Ambala-Kurukshetra areas, Mishra added.

*with inputs from agencies.