- State-run Oil India (OIL) is planning to invest around ₹8,000 crore in the 2G ethanol space, as part of its overall target of achieving net zero emissions by 2040.
- The company is investing ₹25,000 crores to achieve net zero by 2040, in areas including 2G ethanol, green hydrogen, compressed biogas (CBG), and solar power.
- Crude oil prices have been on the rise in recent times, Oil India, being a prominent player in the industry, is well-prepared to handle such fluctuations and maintain its production goals.
- In terms of solar power, the company would set up a 640-MW solar power plant in Assam and a 150-MW solar plant in Himachal Pradesh.
- In terms of financial performance in FY23, the company registered its highest-ever standalone net profit of ₹26,810 crore, a growth of 75.20% YoY.
Amid India’s push for biofuels and the recent launch of the Global Biofuels Alliance, State-run Oil India (OIL) is planning to invest around ₹8,000 crore in the 2G ethanol space, as part of its overall target of achieving net zero emissions by 2040. This substantial investment will be a consolidated effort between Oil India and its subsidiary, Numaligarh Refinery Ltd (NRL), with the latter being responsible for establishing the ethanol plant.
Speaking to the media, Oil India CMD Ranjit Rath said that overall, the company is investing ₹25,000 crore to achieve net zero by 2040, in areas including 2G ethanol, green hydrogen, compressed biogas (CBG), and solar power.
That’s not all, Oil India is also looking at displacing diesel with natural gas for all operations wherever possible and using water injection technology to enhance oil production efforts.
Crude oil prices have been on the rise in recent times, a trend that the CMD views as a “welcome” development. He emphasized that these price increases are closely linked to international oil prices and play a pivotal role in encouraging “upstream players to invest more” in the sector. Oil India, being a prominent player in the industry, is well-prepared to handle such fluctuations and maintain its production goals, Rath said.
Oil India’s current operations primarily focus on mature fields, where the decline rate in production is approximately 8-10 percent. Despite this, the company reported a net growth of 5.5 percent in production last year, with a gross growth of 15 percent.
Rath attributed this success to a “variety of interventions” undertaken by the company.
Further, in terms of solar power, the company would set up a 640-MW solar power plant in Assam and a 150-MW solar plant in Himachal Pradesh. The CMD also informed that subsidiary NRL is in the process of setting up a petrochemical plant with an investment of ₹7,200 crore.
Oil India Limited, a fully integrated oil & gas Maharatna CPSE, recorded its highest-ever gas production of 3.18 BCM in FY23, while production of crude oil recorded a growth of 5.5% YoY at 3.18 million metric tonnes (MMT).
In terms of financial performance in FY23, the company registered its highest-ever standalone net profit of ₹26,810 crore, a growth of 75.20% YoY, while the consolidated net profit was also the highest ever at ₹29,854 crore, with a growth of 46.66% YoY.
Rath also said the company is looking at enhancing its gas portfolio, expressing confidence in the new gas price formula based on crude oil prices. The company increased its total operating acreage to 62,911 sq. km.
The company is looking at further enhancing its crude oil production through enhanced exploration and expedited production in line with ‘Mission 4+’.
(With inputs from agencies)
