OIL strikes more gas, to focus on renewable energy

Ron Duarah
 DULIAJAN, Sept 23 – Oil India Limited (OIL), country’s second largest national ‘Navratna’ exploration and production company in terms of total proved plus probable oil and natural gas reserves, held its 58th Annual General Meeting at its Field Headquarters here today.In his address to the shareholders, OIL Chairman and Managing Director Utpal Bora shared the significant highlights of fiscal 2016-17 during which OIL achieved the highest ever production and sale of natural gas in the history of the company. While natural gas production was 2,937 million metric standard cubic metres (MMSCM) as against 2,838 MMSCM during 2015-16, natural gas sales was 2,412 MMSCM as against 2,314 MMSCM during 2015-16.

Crude oil production in 2016-17 was 3.277 million metric tonnes (MMT) as compared to 3.247 MMT during 2015-16, while crude oil sales were 3.221 MMT as compared to sales of 3.237 MMT during 2015-16. He mentioned that this year, the company not only could contain last few years’ fall in crude oil production but also achieve increase in production.

The turnover of the company stood at Rs 9,510.39 crore as against Rs 9,764.87 crore in 2015-16, while the profit after tax (PAT) was Rs 1,548.68 crore against PAT of Rs 2,301.67 crore during 2015-16. He mentioned that the profitability of the company was affected mainly due to payment of differential royalty of Rs 1,151.73 crore on crude oil for the period February, 2014 to March, 2016, as per the government directive. During 2016-17, the company declared dividend at 142.50 per cent.

He also mentioned about OIL’s substantial contribution both to the State and Central exchequers in terms of cess, royalty, sales tax, etc. The contribution to the State exchequer during the financial year was Rs 3,011.94 crore and that to the Central government was Rs 2,928.18 crore.

He also mentioned that it is a matter of great pride that OIL’s audited annual accounts have ‘Nil’ comments from the Comptroller and Auditor General of India for the 15th year in succession.

Bora announced that OIL’s sound financial performance has enabled the company to retain international credit ratings for the fourth consecutive year – Moody’s ‘BAA2’ (stable; higher than sovereign rating) and Fitch Rating ‘BBB(-)’ (stable; equivalent to sovereign rating). Also, the company retained highest domestic ratings from CARE Ratings – ‘AAA’ (for long term facilities) ‘A1+’ (for short term facilities).

Giving an overview of the company’s scenario, the CMD mentioned that as on 31.03.2017, OIL is holding participatory interest (PI) in nine NELP blocks out of which OIL has the right of operatorship/joint operatorship in six blocks and as non-operator in three blocks. The company is also holding 40 per cent PI in JV block Kharsang PSC and 44.086 per cent PI in pre-NELP (JV) block AA-ON-94/1.

Bora informed that during the year, OIL made a total of ten hydrocarbon discoveries, all of which were in the Upper Assam basin. Further, hydrocarbon reserve accretion during the year was 7.5489 MMT of oil and gas.

Speaking about OIL’s natural gas production, the CMD apprised that the company could achieve the all-time highest natural gas production due to actions initiated to effectively monetize the natural gas reserves.

The present gas production potential is about 7.85 MMSCMD from Assam and Arunachal Pradesh fields and about 0.95 MMSCMD from the Rajasthan fields. He also informed that action is at hand to increase the gas production potential to a level of 10 MMSCMD in the Northeast for uninterrupted supply of gas to all customers.

Bora also gave an overview of OIL’s focus on renewable energy as part of which the company undertook its fourth Wind Energy Power Project of capacity 52.5 MW, split between Gujarat (27.3 MW at Kotiya) and Madhya Pradesh (25.2 MW at Unchawas). Commissioning of the project has started and as of March 31, 2017, 8.4 MW sub-part was commissioned at Kotiya and a 6.3 MW sub-part was commissioned at Unchawas. With commissioning of these sub parts, the total installed capacity in commercial renewable energy projects of OIL stands at 150.3 MW, comprising 136.3 MW of wind energy projects and 14 MW of solar energy projects.

The Wind Resource Assessment (WRA) exercise in Assam, an initiative being sponsored by OIL, is in progress. Under this, wind monitoring stations have been installed and commissioned at nine identified sites spread across eight districts where wind and other associated data are being recorded to assess the wind energy availability in the State. The process is scheduled to continue for two complete wind cycles.

Source : http://assamtribune.com