OIL posts Rs 2,584-cr profit: CMD

Guwahati: State-owned Oil India Ltd (OIL) has posted a profit after tax of Rs 2,584 crore with revenue of Rs 13,649 crore in fiscal 2019-20, its Chairman and Managing Director (CMD) Sushil Chandra Mishra said on Tuesday. Addressing the 61st Annual General Meeting (AGM) virtually, he said that during 2019-20, OIL's annual domestic production of crude oil stood at 3.133 million metric tonnes and domestic natural gas production was 2,801 million metric standard cubic metres.

"OIL reported revenue of Rs 13,649 crore and profit after tax of Rs 2,584 crore," he said, describing 2019-20 as a challenging year with 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.

Meanwhile, the company recorded its highest-ever dividend from overseas business.

"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.