Oil India Sets Record 61 Well Drilling

Oil prices volatile, exploration challenging

Ranjit Rath, Chairman and Managing Director of Oil India Limited, announced that the company will begin drilling in the offshore waters of the Andaman and Nicobar Islands as part of its exploration activities.

Regarding fluctuations in crude oil prices, Rath emphasized that stability is crucial for effective exploration planning. He acknowledged that oil prices are influenced by various factors, including geopolitical conditions, which play a significant role in the overall market dynamics. Although he refrained from making specific predictions, Rath highlighted the importance of understanding the impact of these global factors.

Oil India Sets Record 61 Well Drilling, Eyes Offshore: “We aim for stability in oil prices as it facilitates better planning for our exploration activities and provides clarity for our offshore exploration efforts. We are about to begin drilling in the offshore waters of Andaman and Nicobar Islands as part of this commitment,” said Ranjit Rath after the company’s Annual General Meeting on Sunday.

He also noted that Oil India Limited was granted Maharatna status last year. For the fiscal year 2023-24, the company achieved a growth of 5.5 to 6 percent in oil and gas production.

He added, “We achieved a record high with 61 drilling operations and 228 workovers, which are the highest numbers ever recorded. Additionally, we reached our highest-ever EBITDA of around ₹11,600 crore.”

He continued, “These milestones were accomplished through our focused strategy to boost both exploration and production efforts. Looking ahead, we have set ambitious targets of 4 million metric tons of crude oil production and 5 billion cubic meters of natural gas. We see significant potential in these goals.”

Oil India Sets Record 61 Well Drilling, Eyes Offshore: Oil India Limited (OIL) held its 65th Annual General Meeting (AGM) on Saturday, where the Chairman and Managing Director (CMD) spoke to shareholders, expressing gratitude for their ongoing trust and investment in the company.

The CMD highlighted that OIL is implementing a phased exploration strategy, which combines drilling activities with additional seismic acquisition, processing, and interpretation (API). The past year saw a notable achievement with the company drilling a record total of 61 wells—comprising 17 exploratory and 44 development wells—during 2023-24, marking the highest number since the company’s inception.

Oil India Sets Record 61 Well Drilling, Eyes Offshore: On the production side, CMD Rath announced that efforts are being made to improve hydrocarbon recovery from deeper layers through the use of replacement and infill development wells.

During the AGM, he reiterated OIL’s commitment to reaching Net Zero by 2040. The company plans to broaden its non-fossil fuel energy portfolio by focusing on solar, wind, geothermal, green hydrogen, and compressed biogas.