New Delhi: Oil India Ltd (OIL) is preparing for a busy year ahead with a mix of overseas and domestic developments as it focuses on production enhancement and cost optimisation amid subdued crude prices.
Chairman & Managing Director Ranjit Rath said the company expects the $20-billion Mozambique liquefied natural gas (LNG) project, operated by Total Energies and in which OIL holds a stake, to restart by the end of 2025. The project had been halted in 2021 after Islamic State-linked insurgent attacks led to a force majeure declaration. “With improved security conditions, the project is expected to restart in the second half of 2025 and is well-positioned to meet the growing demand of the Indian gas market,” Rath said at the annual shareholder meeting.
On the domestic front, OIL will acquire seismic data covering 40,000 sq km in the Mahanadi and Krishna-Godavari (KG) basins in FY26, marking one of its largest exploration campaigns. “Our focus on cost optimisation is to enhance production. After establishing prospects, we will move to drill deep and ultra-deepwater wells by engaging drill ships in one or two years,” Rath noted.
Separately, OIL Director (Finance) Abhijit Majumdar confirmed that the company has received \$942 million as dividend from its Russian assets, recovering over 91% of its \$1 billion investment in projects there. However, he flagged that banking sanctions on Moscow continue to pose repatriation challenges, though funds remain secure in its SBI Moscow account.
The company remains committed to sustaining shareholder returns, with no concerns on dividend payout, Majumdar added.
