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Informist, Monday, Aug. 10, 2026

 

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--Oil India: Hope to get oil output of 1 mln tn every qtr vs 950,000 tn now
--Oil India: Achieved highest oil output of 11,017 tonnes on Aug. 3
--CONTEXT: Comments by Oil India mgmt in post-earnings analyst call
--Oil India:Numaligarh Refinery to raise gas reciept to 2.5 mscm/d by Q3FY28
--Oil India: Numaligarh Refinery has gas receiving capacity of 1 mscm/d now
--Oil India: On track to drill 100 wells in FY27 vs 74 in FY26
--Oil India: Hope to raise number of wells drilled by 10% every year
--Oil India: Spent around INR 30.50 bln as capex in Q1 FY27
--Oil India: FY27 capex figure may undergo change in the remaining quarters
--Oil India: Consolidated net debt at group level at INR 372.33 bln
--Oil India: Target 4.2 mln tn oil production in FY29
--Oil India: Discount on diesel stood at INR 10/ltr at beginning of Q1
--Oil India: Discount on diesel stood at nil at end of Q1
--Oil India: Discount on petrol stood at INR 13/ltr at beginning of Q1
--Oil India: Discount on petrol at INR 3/ltr at end of Q1
--Oil India: No impact of recent Assam floods on company's operations
--Oil India: Aim to reduce operating cost per barrel to $3.5 from $4.5-$5 now
--Oil India: Target 3.9 mln-4 mln tn of oil output in FY27

 

By Sunil Raghu and Arya S. Biju

 

AHMEDABAD/MUMBAI – Oil India Ltd. is hoping to raise its quarterly crude oil production to at least 1 million tonnes a quarter from 950,000 tonnes per quarter currently, a company official said in a post June quarter earnings analyst call Monday. The official said the company's oil production is seen reaching 3.9-4 million tonnes in 2026-27 (Apr-Mar) and 4.2 million tonnes in FY29.

 

The optimism is based on the company having achieved the highest-ever daily oil output of 11,017 tonnes on Aug. 3, 2026. "From an operational point of view, we achieved 1.707 billion oil and oil equivalent of production during this quarter. The crude oil production for the quarter was 0.95 MMT (950,000 metric tonnes), which has increased by 11% on a year-to-year basis," the official told analysts. The crude oil price realisation was $98.73 per barrel in the June quarter, which is $26.20 per barrel higher compared to a year ago.

 

The company's officials said they also offered a discount of INR 10 per litre on diesel at the beginning of the June quarter, which declined to nil by the end of the quarter. On the other hand, the discount on petrol fell to INR 3 per litre at end of the June quarter from INR 13 per litre at the beginning of the quarter.

 

The upstream oil company reported a net profit of INR 28.70 billion for the June quarter, up more than three-and-a-half times from INR 8.13 billion in the year-ago quarter. The company's net revenue from operations for the June quarter was INR 79.58 billion, up 59% from INR 50.12 billion in the year-ago quarter.

 

On natural gas, the official said that during the June quarter, the natural gas price stood at $7.19 per cubic metres, compared to $6.72 in the previous quarter. The company plans to raise its natural gas production from 2.93 billion cubic meters currently to over 5 billion cubic meters by 2029. One of the important growth points in gas sales for Oil India will come as its Numaligarh Refinery Ltd. ramps up its gas receipt capacity to 2.5 million standard cubic metres per day in the December quarter of FY28, from its current receiving capacity of 1 mscmd.

The company official reiterated the company's stand to increase upstream production to 10-12 million tonnes of oil equivalent by FY30 from 8.7 million tonnes equivalent in FY26, by drilling 100 wells in the financial year 2026-27, up sharply from the record 74 it had drilled in FY26. Going forward, the official said "they would like to stretch further and try to, again, ride on at least 10% increase in the number of wells to be drilled."

 

The company has also reported discovery of natural gas in the Vijaya Puram-3 exploratory well in the Andaman Basin, reaffirming the basin's hydrocarbon potential. The official said the company spent nearly INR 30.50 billion in capital expenditure during June quarter, and may accordingly have to change its capex numbers for the remaining quarters. For FY27, the company had set a target to spend INR 86 billion. The company, which has already spent nearly INR 300 billion on Numaligarh Refinery till date, proposes to spend another INR 110 billion-INR 120 billion on its expansion.

 

The aggressive capex has seen company's net debt on a consolidated basis reach INR 372.33 billion. Of this, it has taken debt of INR 190 billion for Numaligarh Refinery, another $1.4-billion loan for its project in Mozambique and a $550-million bond of its Singapore subsidiary, that needs to be repaid on May 27, 2027.

 

Talking about the recent floods in Assam that have led to extensive damage to life and property, the company said its operations had not seen an impact.

 

On Monday, shares of Oil India closed at INR 453 per share on the National Stock Exchange, up 2.3% from Friday.  End

 

US$1 = INR 95.30

 

Edited by Avishek Dutta

 

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