Oil India Limited (NSE: OIL) Q3 2025 Earnings Call dated Feb. 08, 2025
Corporate Participants:
Abhijit Majumder — Director (Finance)
Rupam Barua — Executive Director (F&A) & CFO
Unidentified Speaker
Analysts:
Sabri Hazarika — Analyst
Probal Sen — Analyst
Vivekanand S. — Analyst
Gagan Dixit — Analyst
Kartik Kohli — Analyst
Nitin Tiwari — Analyst
Mayank — Analyst
Varatharajan Sivasankaran — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Oil India Limited 3Q FY ’25 Earnings Conference Call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. I now hand the conference over to Mr Sabri Hazarika from Emkay Global Financial Services Limited. Thank you, and over to you, sir.
Sabri Hazarika — Analyst
Yeah. Thanks. Good morning, everyone. On behalf of Emkay Global Financial Services, I welcome you all to the Q3 FY ’25 earnings conference call of Oil India Limited. We have with us the senior management of the company, led by Mr Bijit, who has recently taken over as Director of Finance. We also have, who is Director of Operations and we have Mr Rupam Barwa, Executive Director, Finance and Accounts; Mr Ranjan Guswami, Executive Director of Business Development; and Mr Singh Manzal, our Chief General Manager, Exploration and Development. So today’s session will be brief on the results by the management and that will be followed by the question-and-answer round. So without any further delay, now I would request our India management for their opening remarks. Over to you, sir.
Abhijit Majumder — Director (Finance)
So good morning to all the participants who have joined us for this investor and analysts con-call. So I am Abhijit Majenda, Director of Finance, Oil India Limited. With me, I have my team are represented by the senior executives from the operations department from business development, from finance. So may I now request our EV finance to make the opening remarks.
Rupam Barua — Executive Director (F&A) & CFO
Good morning your friends. At the outset, I would like to thank Mr Emkay Global Financial Services Limited for organizing today’s analyst call. I am Rupam, EV Finance and Accounts Award. The company’s financial results of Q3 financial year ’25 were published on 7th April 2025. I’ll briefly give some highlights about the performance of the company in both physical and financial terms. Now coming to the standalone results and the beginning with the production front, the company has continued to improve its crude oil production, which is higher by 1.4 percentage in-quarter ended 31st December 2024 at 0.868 MMT vis-a-vis 0.856 MMT in-quarter ended 31st December 2023. Crude oil production has increased by 4.1% in nine months ended 31st December 2024 at 2.614 mmt vis-a-vis 2.511 MMP in the nine months ended 31st December 2023. Natural gas production during nine months ended 31st December 2024 is at 2.446 Bcm, increased by 2.90 percentage over-production during nine months ended 31st December 2023, which was 2.377 Bcm. The gas production for quarter ended 31st December of 2024 is marginally higher by 0.85% is at 0.0 per 0.8 to nine Bcm vis-a-vis 0.822 Bcm for quarter ended 31st December 2023. On the financial side, Everest crude oil product price realization for Q3 FY financial year 2025 is $73.82 barrel vis-a-vis US dollar, 84.14 per barrel for Q3 of financial year ’24, which decreased by 12.2.27 percentages for nine months ended 31st December 2024. Average cruiser realization is USB of 79.35 per barrel vis-a-vis, USB 82.89 per barrel for nine months ended 31st December 2023, which has decreased by 4.27%. Average the gas price for Q3 financial year 2025 has remained unchanged at 6.5 per MMBt. The turnover for nine months ended 31st December 2024 has increased by 1.38% to INR16,98.28 crore compared to INR16,73.06 crore for nine months ended 31st December 2023, which is mainly due to higher crude oil and gas sale-in nine months of financial year 2025 compared to nine months of financial year 2024. EBITDA margin for Q2 — Q3 financial year ’25 has increased to 42.76% is vis-a-vis 41.34 percentage for Q3 of our financial year 2024. Profit-after-tax for Q3 51 for financial year 2025 is INR221.80 crores vis-a-vis 1,584.28 crores for Q3 of financial year 2024. The profit-after-tax for nine months ended 31st December 2024 has increased by 28.38 percentage to INR4,522.71 crore vis-a-vis 3,523.02 crores for nine months ended 31st December 2023. The earnings per share for nine months ended 31st December 2024 is INR27.80 shares vis-a-vis 21.66 per share for nine months ended 31st December 2023. Just giving you the financial performance of refinery also. Profit-after-tax of annual during quarter three — I mean, quarter three of financial year 2025 is 30 — sorry, INR385.36 crores vis-a-vis 850.72 crore during Q3 of financial year 2024 and profit-after-tax for nine months ended 31st December 2024 is INR990.94 compared to INR1,516.66 crores for 9 — for the corresponding period of last year. NRS gross refining margin during quarter three of financial year ’25 is USD — USD2.10 per barrel vis-a-vis USD12.72 per barrel during quarter three financial year ’24 and gross refining margin for the nine months ended 31st December ’24 is USD3.61 per barrel vis-a-vis USE 13.12 barrel for the corresponding period last year. And EBITDA for the quarter three financial year ’25 is INR656.7 crores or vis-a-vis 1,218.19 INR1,218.19 crores for the Q3 financial year ’24. While EBITDA for the nine months ended 31st December ’24 is INR1,789.21 crore vis-a-vis INR2,297.57 crores for the nine months ended 31st December 2023. Our consolidated results, the oil group turnover for the nine months ended 31st December 2024 is INR26,575.93 crores vis-a-vis 26,137.84 crores for nine months ended 31st December 2023 and consolidated profit-after-tax for the nine months ended 31st December 2024 is INR5,542.66 crores vis-a-vis INR4,647.51 crores for the nine months ended 31st December 2023. The Board of Directors of the company has recommended an interim dividend of INR7 per fully paid equity shares. With this total interim dividend declared by the company till 3rd-quarter is INR10 per this year. So with this, my opening remarks on the performance is over and we are now open to question-and-answer session.
Questions and Answers:
Operator
Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Probal from ICICI Securities. Please go-ahead.
Probal Sen
Thank you for the opportunity. Very good morning, sir. The first question was actually on NRL. We have seen NRL’s performance over the last couple of quarters actually being a little bit more subdued than what we used to. You know-how much of this can be attributed to the ongoing expansion of capacity activities of stabilization related to that or would you say that it’s pure operational issues or the fact that Singapore margins have fallen in Asia, that is to account for this sharp fall in GRMs. How should we look at it and how should we look at it going-forward, sir? That was my first question.
Rupam Barua
Yes, sir. Regarding the physical progress of the expansion plans, it has already progressed up to about 70%, 70%, 73% till 31st December ’24 and
Probal Sen
How much percent, sir, sorry?
Rupam Barua
17%,
Probal Sen
76% okay. That’s physical completion, right?
Rupam Barua
Yeah. Physical completion I’m talking about.
Probal Sen
Okay.
Rupam Barua
And as regards, the capex incurred is already about INR23,000 crore till December. Out of which about INR12,000 crores are by way of debt financing.
Probal Sen
Yeah. So is this something that we should look at as a reason for the drop-in operating performance in the last couple of quarters, these expansion activities going on and so on?
Rupam Barua
No,
Probal Sen
Because the GRMs and all will have fallen very, very sharply.
Rupam Barua
Yeah, GRM — fallen compared to last nine months. In last nine months was about 13.13.12, whereas this end this VRM is 3.61, okay. So there are several reasons actually if you — even if you look at the Pan-India year-end, the year-ends are not as impressive as corresponding period last year for order dependent also. That is the first thing. Second thing is, there are some inventory adjustments which takes place while calculating the DRM. Now if you knock-down those inventory adjustments, then the ideal GRM would have been about 5.10 without excess duty benefit and whereas the extensity benefit is roughly about 18 events about 18 maybe 18 5 barrels okay. So if you take into account these events on 18.5 plus another $6 without taking into account this inventory adjustment, then the VRM is roughly about $24.
Probal Sen
Okay. Just to start if I can just for my clarity, so the inventory adjustment was for nine months was about $2 a barrel and about $18 a barrel is the additional excise benefit that we are getting for the nine-month period, right, sir?
Rupam Barua
Right.
Probal Sen
Okay, got it. So that’s one. The second part was just the other income seems to have fallen quite sharply in this quarter. Is it that some of the dividend payout we received was front-ended for the second-quarter?
Rupam Barua
No, absolutely actually, BCA till 31st of December, we could receive dividend of about INR690 crore only. Out of which INR190 crores from NRM and another roughly INR310 crore is from IOCL. So previously what happened last year, we had some impressive dividend receipts, of which about INR209 to have about INR200 we had received from our Singapore subsidiary. So that it was a major dividend received last year, which is not present this time. That is one thing. Another thing is that the dividend which we had received from NRL last year was around INR160 crores apart from them, some dividends we also received although my not very significant from DCPL and DNPL also, which are not present this year corresponding period. And NOI dividend last year was INR164 crores. So that is why roughly about INR1,200 crore INR1,100 crores to INR200 crore was the total dividend receipt that we had last year, which year is about only INR700 crores. So there is a fall in the dividend receipt. So which has reduced my — our income is compared to last year.
Probal Sen
Very clear, sir. Last question, if I may squeeze in. Sorry.
Unidentified Speaker
Addressing your query on the drop-in GRM, if I can just step-in, what has happened is across-the-board, you would see that GRMs have fallen and according to my understanding, except for MRL, none of the other companies are ahead of NRM so-far as GRM is concerned. So that also has to be taken into account while you look at the bigger-picture.
Probal Sen
Got it
Unidentified Speaker
That much I just wanted to underline.
Probal Sen
Sure. Sir, one last question, if I may squeeze in. Can we get an updated number, if at all of the production guidance for both oil and gas for FY ’26, if you have any updates.
Rupam Barua
The production, product and production guidance. Okay. The production actually now is expected to be around finally around 3.49, 3.48 with respect to the thing for 2025. Although we targeted 3.57, 3.6 around. But because of number of reasons, we had some of the areas where this direction, by the way, totally covered mine. So we are expecting around 3.5, close to around — we will be trying very hard to reach 3.5.
Probal Sen
This is for oil.
Rupam Barua
There’s the outlook for oil.
Probal Sen
And for gas,
Rupam Barua
It would be 3,300 for gas. That’s the — that is our target now.
Probal Sen
That is for this financial year, sir, right, FY ’25. Yes. So as far as product I was actually asking for FY ’26 if there is a target as of now.
Unidentified Speaker
See, our target is to become a 4 billion ton crude oil and a 5 BCM company 2600. So that’s our target. So we are inching towards that. This year possibly even though the target is 3.5, we may still reach that target. I’m not writing up that possibility. However, as you have seen that there are huge challenges. Our fields are all depleting fields, steel onion, most of the peer companies, they are suffering a decline and while we are still maintaining and this year also our production has gone up by 4.1%. So we are quite hopeful that possibly in the days ahead, we’ll again be achieving a bigger ton and we reach that 4 million ton target by the year ’27,
Rupam Barua
’27,
Unidentified Speaker
’27.
Rupam Barua
So ’26, you can expect that we will maintain it. And most probably we are going to drill in some of the high-potential areas year like. So we are targeting those areas. And once we enter there. Once we enter there, I think our production will pick-up. And maybe we’ll be around 7 at least 3.61.65.
Unidentified Speaker
Just for your information, we have already crossed the Gamma and gone to the northern Bank of the river where also we have observed — we have identified cases of hydrocarbon there.
Probal Sen
Right.
Unidentified Speaker
I have seen exploration and development from exploration and development. Then we talk about the production and the production profile and what is going to happen till the end of this fiscal year and what is going to happen onwards. I would just like to tell you that India Limited has been aggressively acquiring exploration acreages under the open acreage licensing policy. And so was the case that you know that we are producing primarily from our main producing area in the South Bank of the river,. When I say South Bank of, I essentially mean that the river is flows from the mountains down to the planes, it divides the — our operational area into North Bank and South Bank. So this is the context we need to understand first. So our primary production from the Assam and Assam, Ranachal Pradesh or Assam and Assam Shal Basin is coming from the main producing areas. So post-acquisition of these acreages, we have aggressively carried out exploration activities. And I would like to tell you that after three decades of perseverance in the North Bank of River,, it is for the first time that we have tasted crude oil in the sense that we have established the working system over there. There have been several companies who have worked in over there in the past, including us, but our perseverance has led us to establish a hydrocarbon system over there in-place. So what we are doing now in order to further monetize this discovery, we are planning extensive supplementary sesmic and geophysical investigation so that these can be brought on to production because this has opened a of area for us and new, new frontiers in the North Bank of River. This is one. Another — another thing that we are doing in order to increase and enhance our production from our main producing area from our in the West is that we are carrying out extensive G&G studies and petrolin system modeling studies, both in-house and through the hiring of international consultants, why so? Because the oil and gas it lies in the minds of the geologists, geophysicists and the reservoir engineers who think about it. So perceptions, opinions can bring about new insights. And let me tell you that even in South Bank of River, what we have been able to do is we have built the deepest onshore oil well in India, which is to the depth of 5,779 meters, which is not a rear feet. And the most important I think on the KK is that in one of the wells, we are from these deeper horizons, we are producing crude oil at the rate of around 40 kiloliters per day. So with the appraisal and the development of these discoveries, it is going to certainly aid in development of hydrocarbon resources.
Probal Sen
Thank you. Thank you, sir. Thank you so much for the detail. Thank you.
Operator
The next question is from the line of from Ambit Capital. Please go-ahead.
Vivekanand S.
Yeah, thank you for the opportunity. So my first question is on NRL. You — you had spoken about getting additional approval for petrochemical as well. So what is the status of the total capex that is envisaged for NRL? And if you could give us an update on the timelines for that to come on-stream? And simultaneously, how is the progress of the DNPL debottlenecking that you are doing? That’s question one. I have one more on Oil India. Maybe we will talk about that after answer question.
Rupam Barua
Yeah. As far as petrochemical project is concerned, that is a project of about INR7,200 crores capex. Okay. And till now the company has — the has already spent about INR900 — almost 990, 950 crores to INR990 crores on this project and the expected completion is maybe after three years. By December 2028.
Vivekanand S.
Could you also give us an update on the 3 to nine mmtpa capacity expansion and the DNPL debottlenecking that you were planning simultaneously.
Rupam Barua
3P to nine MMPA capacity expansion of the NOL is concerned, that has already exceed about 70 — more than 70% completion physical progress has been made and already around INR23,000 crores of capex has already been spent on this project till now.
Unidentified Speaker
Out of which around INR12,000 is debt funding, yeah. So that’s the status and it is likely to be commissioned by end of this year.
Unidentified Speaker
And as far as, GLP. In this GLPL upgradation is going on actually this is a older line. So now a new — in the next phase capacity expansion is going on. So it will expand to 2.5 and.
Rupam Barua
Actually, sir, GNPL line, this was an exclusive line used by Oil India Limited and NRL for evacuating the oil natural gas specifically to refinery limited. So this was a dedicated pipeline, which was constructed with one MMPA capacity. But as on this one. But as on that as molecule refinery is under expansion, so they will require more appetite for natural gas. So as on that, although they are taking 0.9 to Bcm of gas from us through this pipeline, but they will be requiring additional gas up to around 2.5 to 2.75 MM Bcm after completion of their expansion in December, which is targeted in December ’25. So this BNPL line is under augmentation and expansion for that reason. So the project is progressing, which is being undertaken under two phases. First phase is of about 53 to 58 kilometers and the next phase is 53 to under 190 kilometers. Yes. So that particular project is undergoing — is undergoing under DNPL own window and it is having a capex of about INR433 crores.
Unidentified Speaker
And the first phase is rate March.
Rupam Barua
Yeah, first phase is expected to be completed by 31st of March ’25 and second phase is expected to be completed by March 2026, so that it gets matched with the completion of our expansion
Vivekanand S.
Okay, understood. As far as your current consumers are concerned for gas, how much — could you give us a broad split of the key consumers for your natural gas output, the current 3.3 Bcm that you are generating, where-is it being sold to? Could you give us a rough sense of that?
Unidentified Speaker
It is not 3.3 sir?
Vivekanand S.
Okay. No, no meant annual, sir.
Rupam Barua
It will be around 7. Sir, actually our major customers are basically some fertilizer companies, some we have — we have — I mean is the power company. We have and gardens, these gardens. So out of that, the major customers to name a few, this is one is the Asam power generation company in India, which is called APCCL. Then there is Neppro –. APCCL is taking our guests for two of their plants, one is Thana Power plant and power plant. Then it goes to. So — and as far as fertilizer is concerned, it goes to and APL. So then tea garden, some of them go to the tea garden and some small power plants, correct this is how this
Unidentified Speaker
Our expectation is that once the IGGL is commissioned, we will scale-up our production. We have plenty of gas there. The current situation doesn’t quite prompt us to scale-up our production. How the moment the IGGL happens at the CGD — I mean blocks that have already been and those companies are all doing their back-end work. So this integration of their network, our industrial network will help us to spend gas to all parts of the country and all major parts of our country.
Rupam Barua
And already additionally, one thing has developed for the key garden and generally the figures has been take case. So the figures in the middle part of and lower part of they don’t — they were not taking. Now there is discussion going on to supply the guests to them also for these networks. Yes. And another part,
Vivekanand S.
How big are
Unidentified Speaker
Mentioned in the previously? Yeah. Yes, yes. We got
Vivekanand S.
These customers, sir, could you could you explain in terms of, let’s say, scalability of your supply there
Rupam Barua
You — what exactly is your?
Vivekanand S.
Because my question is how big can it be from a scalability and supply perspective?
Unidentified Speaker
Hello, just please. He can list out the name of the customers along with the concept consumption.
Unidentified Speaker
He just told Anna, he is fine.
Unidentified Speaker
As far as tea gardens are concerned, most of our tea gardens are supplied through our Assan Gas Company Limited, which is a CGD player and gas transportation company in the area. So currently they have close to 650 key customers, mostly in the upper Assam region and Golagat. And this same company is also expanding its own network, downstream network in few other districts in their upper Assam DLs. Now what Director of Operations was mentioning, with the IGGL network coming in and connecting to Oil India’s own upstream network, this gas will now become available even to the tea Gardens, politic tea gardens on the North of, specifically Sunitpur,,,, all those areas. So which will currently give us to doubling the non — doubling the number of tea gardens that we are servicing currently.
Rupam Barua
Look, I think his question was how big customers.
Unidentified Speaker
So in terms of — in terms of quantification for the risk 650 customers and their how much they are taking. Thank you. So in terms of the bulk consumers of gas, industrial consumers, we have BCPLs which is taking around 1.35 of gas. NRL is taking around 1 million standard cubic meter of gas. Then there is an APL, which is 0.5, BBSCL is taking 1.1 MMFCMD of gas. Is taking 1.4 of gas, currently this year has two power plants at and, they are taking 1.16 million metrics 100 cubic meters per day of gas. Assam oil division AOD refinery is taking 0.3 Gardens is around 0.723 and on SCMD. So that’s largely the big customers. There are other various small customers like and small industrial units, which take around 0.1, 0.1 to 0.2 depending on the requirement.
Rupam Barua
Once the CGD happens, then you will have a lot of industries coming up in Assam which are now using other sources of fuel, they would also be buying gas from us because gas is the country’s the objective is to transform to a gas-based economy. And then targeting the tea gardens in the northern part of the river that all of that will help us to develop a real gas market in the northeastern part of the country.
Unidentified Speaker
If I may add, sir, there is a development coming up where whereas a new fertilizer plant has been plant in. So that also will may probably become a source of gas consumption.
Unidentified Speaker
One millions can been
Unidentified Speaker
Which would be — currently they are consuming around 1.1, which might go up to 2.3. Thank you so much.
Vivekanand S.
That’s very helpful, sir. Thanks so much for the detailed explanation. Just one small second question, which is related to the new well gas. So ONGC, we heard them say that 10% of their production, the DGH has reviewed and classified as new well gas where they are getting higher realization, 12% of the last month crude basket. So when do you expect some of your production efforts, the hard work getting rewarded with higher realization, sir?
Unidentified Speaker
Yes. Yeah. Very interesting question and we are we have already, you know, built-up sufficient volumes of this new wells and intervention gas. And with our expansion plans as Director of Operations mentioned, we expect this new well gas to multiply even further and become a large portfolio of our total gas production in the next two years to come. For the volumes which we have already, you know, under these guidelines, we have already submitted to DDH, which has been assigned the northur responsibility of identifying and validating this gas. And very recently, BPS has vetted the quantities of gas, which might be qualifying for this premium pricing. So we are — now since you would understand this requires an allocation from the ministry. From our side, Oil India has already given some numbers once those numbers are vetted by the ministry and we are expecting it to come soon and it would — and we expect it to coincide with the augmentation and NRL coming — NRL refining capacity coming up. Those two events should finally coincide.
Operator
Sorry to interrupt, may I request Mr to please rejoin the queue. We have participants waiting for the turn.
Vivekanand S.
Yeah, I’m done. Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. If you have a follow-up question, you may rejoin the queue. The next question is from the line of Gagan Rakshit from Elara Securities. Please go-ahead.
Gagan Dixit
Yeah, yeah. Thanks for taking my question. Sir, when you say that this you are waiting for the — in gas grid to get completed, then you have the access for the rest of the India. So my — if I’m my understanding correct that you are waiting its connectivity till Numari Gar, I think, because after that it’s a Bengal Baroni pipeline, you will get it. So this how much is the kilometer of the sections that is left by the IGGL to be connected with your major field, I think it’s in the far more natural, I think.
Unidentified Speaker
Yeah. So there are two propositions. One proposition is the DNPL pipeline, which is already getting augmented and there is a proposal for interconnecting at NRL at Numoligar with the Northeast gas grid. There is another proposal wherein Northeast gas grid has applied — has been given authorization from the ministry under Section 42 to layer line-up to Oil India’s facility in Dulia Jan, which is the central hub of oil gas processing for salmon and natural fields. So this pipeline will directly get connected from Oil India’s fields to the Northeast gas through a pillar pipeline. This pipeline will have a capacity of 3.3. I hope that answers the question.
Gagan Dixit
Okay. And sir, if my understanding correct, it’s most likely should be the July Jan to the Khar sang somewhere. That’s why you’re waiting for the connectivity back for the — in the news gas.
Rupam Barua
That I’d like to answer you in that., is a little bit different because we are connecting with Kumsai already we have connected. Some 81 kilometers of pipeline has already been connected and the Kumsai gas is coming. So by that way, we have reduced the in Kunsai also and we have increased our production also in Oro. So, Kathan, there is a proposal that will also connect to the this comes from Sal, actually southern part of from eastern district of this Sanglan district is. So it is a 81 kilometer pipeline. So it crosses the many rivers and it was a very daunting and our people have completed it. So I think about if, any more guests comes up because that is another JV. So there guests can be connected to this particular borrowing the line and by anothercome.
Gagan Dixit
So sir, final question is when it is expected to be completed, sir?
Rupam Barua
No, actually completed.
Gagan Dixit
Okay. Okay, okay. So in Danush, I mean in Danush gas grid, that’s a portion that you are expecting so I think as you said that when it come back then your production you able to sell outside. So that’s why just — I’m just want to understand
Unidentified Speaker
Talking about we are talking about. Yeah. So Indus gas brid has been given authorization by MOPNB. Now the proposal is with PNGRB. Once the PNGRB authorization comes, it’s an 18 month project.
Gagan Dixit
Okay, sir. Yeah, that’s from my yeah. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Karthik Kohli from CLSA. Please go-ahead
Kartik Kohli
Hi, sir. Thank you for taking my questions. I just had a bookkeeping one. Could you please let me know the sizing cost for the quarter and for the Nine-Month period?
Operator
Thank you, Mr, but we cannot hear you that clearly. Your voice is sounding muffled, sir.
Kartik Kohli
Hello. Am I audible now?
Rupam Barua
Could you please repeat the question?
Kartik Kohli
Hello.
Rupam Barua
Could you please repeat the question?
Kartik Kohli
Yes, sir, could you let me know the cost for the quarter?
Rupam Barua
Yeah. It is about INR535 crore
Kartik Kohli
And what was this last year?
Rupam Barua
Nine months, I’m talking about the nine months and for the quarter it is about INR200 crores, INR110 crores.
Kartik Kohli
And what was this in 3Q FY ’24?
Rupam Barua
Yeah. FY ’24 it was INR388 crores — INR2,390 crores for the nine months and INR125 crore for the quarter three.
Kartik Kohli
Okay, sir. Thank you so much. And just wanted to clarify. You said will take 18 months or the overall process will take 18 months.
Unidentified Speaker
We just think the project will be completed project completion is 18 months.
Kartik Kohli
18 months from now from okay, sir. Thank you so much, sir. Thank you.
Operator
The next question is from the line of Nitin Tiwari from PhillipCapital. Please go-ahead.
Nitin Tiwari
Good morning, sir. Thank you for hosting our call and giving me the opportunity to ask this question. So sir, I’m like just to like get clarity on the questions which were asked earlier as well. If you can just lay out the roadmap for reaching the four MMT and 5 BCM that we spoke about. So I’m like not very clear on your FY ’26 production guidance. So one, if you can help with that first. And then what is the timeline we are looking at for 4 MMT and 5 BCM pricing secondly, what are — what are the infrastructure requirements that are pending for ramping-up of our gas production because you — there were a couple of pipelines mentioned when you — when you gave out the details. So I’m not very clear on which pipelines are like under-construction and which are pending authorization. You mentioned a authorization pending for one pipeline. So if you can just put the entire like the picture clearly in front of them, that would be very helpful. That would be my first question. Thank you
Rupam Barua
For that perspect. Thank you. Yes, the four MMTs, the target. Initially we had the plan for five specific five areas we targeted to give maximum impetus on drilling — new drilling. So these were like, I don’t know the name the name the areas. This time we have added two more areas, two more areas. So seven areas we have taken-up. So one of the areas, there are little bit of supply, little bit of production as expected, but all other areas, like we have added this time the, specifically we have added and also, two more areas. So these are new discover — is a new discovery and we are planning to drill a number of wells. Specifically in, we are going to drill around 15 wells, 15 more wells in coming days. And in, we are planning for another three, four wells. So the production will ramp-up from these areas and at the same time, we are working on the other five areas. So like Kumsai, we are planning to put — I think mostly we’ll be able to put two rigs together at the same time. So the production will also ramp-up. So these are some of the activities we are picking-up. And with this, we are planning — we are hopeful that we’ll be able to reach 4%. Yeah.
Nitin Tiwari
And what is the timeline for that and what is happening?,
Rupam Barua
We are planning from 700 million right now.
Nitin Tiwari
The timeline for 4 MMT, when are you going to see the 4 MMT production at 27
Rupam Barua
As of now it will be 27. 26 27. Yes.
Unidentified Speaker
We are almost at 3.6, so it won’t take us much time to reach that level. So these are the immediate term activities that we have taken-up. Apart from that, this is the announcement of the ninth round of OLAP BD, we were holding around 55% of exploration encourages. After the announcement, we are yet to receive the letter of award from, our acreage will go up to more than a lakh square kilometers. So these shows our intent to scale-up our production and go even beyond four, four is the target for even
Rupam Barua
So what is happening is that this time we are targeting areas outside of Northeast also. So some prospective areas we have already and we are mostly we are — if we get those areas, we may not go for because is already available in those areas and we will directly go for drilling in some hyperspective area. So this is one action we are taking up.
Unidentified Speaker
I just for the sake of an opportunity. I would just like to summarize it that in order to uncover oil and gas production, what all initiatives we have been taken. Apart from the fundamental target of 4 million metric tons that we want to achieve by the next fiscal year or next to next physical years, which our Director official commented. See, what happens is that we are primarily an upstream company with, of course, our presence in downstream and even in alternating green and renewable energies and even going into the mineral resources as well now. But to fuel all these initiatives, we need to have our bottom-line fixed. So what we have been doing over the past is, over the past four, five years, we have increased our exploration at rates by six to sevenfold. So what does this essentially mean? This essentially means that if we don’t explore, we don’t identify. If we don’t identify, we don’t evaluate. If we don’t evaluate, we don’t exploit or harness hydrocarbons and we do not develop them. So exploration is our forte. We’ll keep on exploring, exploring and exploring because this is only what is going to lead to reserve accretion. And as I already mentioned in one of the previous questions that this is bound to lead to reserve accretion and more — more reserves for us in the future, which will translate into better production of oil and gas. So then and then what I mean to say is that what happened is that the government of India has recently released around 1 million square kilometers of area in the no-go zone areas in the east and western offshore of the Indian subcontinent. This is a are very promising areas, which for the last 10 to 15 years, the government did not — we were certain statutory problems, defense installations that these were not in-place. But since the release of these new areas, Oil India Limited has taken a very aggressive and very calculated step-in acquiring around 40,000 square kilometers of as an operator, which is yet to be notified by the government of India, but we know that we are the lead winder and these basins are, KG. And the most important thing is that we have, for the first time put our foot onto the land of Gujarat in Cambe, where we were nowhere present. So this is another milestone that we have acquired and, which is prospective. Apart from this, we have also tied out — we have also extended our collaboration and outreach because you know that exploration has inherent in uncertainties in terms of exploring, exploring of hydrocarbon resources, which we have tied-up with national and international oil companies for collaborating and have got three blocks in the Indian subcontinent to forward our exploration, development and production targets. Thank you.
Unidentified Speaker
Steve also answer about fuel gas. Gas for the gas we are we are doing some of the some of the areas where like in terms of allocation of gas. We have already applied to the government that we need to allocate the increased — increased amount of gas that needs to be given to the customers because gallocation is not done by us. So that is one part. And that debt already we have applied. From our side we have applied that this must of guess we are going to give it to the customers. So that application has already gone to the ministry and ministry is looking at it. The other point I would like to raise here might tell you here is that sometimes because of the seasonal fluctuation and many other regions, the wells of gas wells needs to be shut-down. So what we are doing this time is that when we shut-down the gas, we lose the associated oil that comes up or condensate whatever that comes up, it is a loss to us. This time what we have done is that we are looking at underzone gas storage means when we produce a gas, this undergon gas will be stored in the reserver while we take the liquid at the same time. So our mild liquid production doesn’t go down. And so this is what is already we have — we have done. And in one area in well called 257, we have already started putting the gas in the as a storage. So if there is any demand-supply issue then we can immediately put it in the dry gas into the, but at the same time, we can produce the oil. So these are some of the steps we have taken.
Nitin Tiwari
Great. So that’s very helpful. On the pipeline, we just wanted to understand that which pipeline has a pending authorization from PNGR because I suppose we were talking about two pipelines here. One was IGGL, of course, another was the expansion of DNPA. So — and then you also spoke about the connection to Dolia Jan. So which pipeline is where the authorization is still pending?
Unidentified Speaker
Just one minute, I’ll explain one more area also. So sometimes what happens is that we have a pipeline from some — because of — in one area called in the northern side called and Aqua. So what happens there also? Because of low uptake — offtake — uptake from other customers, there issue that we have to shut-down the well and we use a lot of gas. So what we are doing now is that we are bypassing it with another pipeline. So we are bringing a 20 kilometers of pipeline. We are planning that. So this will also help us. This is a local pipeline, of course. This should help us in mitigating the risk of losing the gas in the process. So — but regarding the other pipeline, I’m requesting my colleagues to to that.
Unidentified Speaker
Just to be clear, sir, the DNPL pipeline that there is a capacity augmentation which is already underway from 1 to 2.5 MMSCMD. The other pipeline we were referring to is the IGGL pipeline, which has been permitted by orders by MOPMD that is directed from MOPMD to for authorization. And once that authorization comes, it’s an 18-month project. Third pipeline, which was referring to, is the pipeline, which connects our Aruna Sal Pradesh fleet to our main — our central gas-gathering station in. So this pipeline has unlocked that Pradesh field, which was long disconnected from the gas network and that gas has been monetized. Now since this pipeline is in is in-place now that Ul this field can be developed further and it has a capacity of another 1 million cubic meter per day.
Operator
Sorry, may I request the participant to please rejoin the queue. We have other participants waiting for the turn. The next question is from the line of Nitin Tiwari from PhillipCapital. Please go-ahead.
Nitin Tiwari
Ma’am, I’m already online. Thank you.
Operator
Sorry.
Nitin Tiwari
Yeah. So basically, the pipeline that we talked about is connecting to Jan, that’s what the pipeline you’re talking about where authorization is pending.
Unidentified Speaker
No, no, that pipeline is already operational. We have constructed that pipeline. There are nothing INR2 billion pipeline is already operational now. The one is pending the not bank. Yeah.
Nitin Tiwari
Pending is not bank. Understood, sir. Thank you, sir for the clarification. And second question, sir, is like as you mentioned that you’ve acquired a of acreages. You are —
Operator
Mr Diwali, may I request you please rejoin the queue.
Nitin Tiwari
Four questions are allowed, right? So this is the second question I’m asking.
Operator
Please go-ahead, sir.
Nitin Tiwari
Yeah. Thank you. Sir, as you mentioned that you have acquired quite a bit of acreage in the recent licensing loan. So like when you see has entered into a collaboration, a technical collaboration with a global major, are you also evaluating something like that? Can we expect some announcement on that end, sir? Thank you, sir. That is the second question from my.
Rupam Barua
Yeah, of course, we have been extending our outreach to various informational oil and gas companies, both not just in terms of physical coexistence or physical — fiscal collaborations, but what we are looking at technology, knowledge partnership and even PIs means participating interest. So let me tell you that we have signed a technical service agreement with Total Energies, France for helping us in our exploration and development endeavors in deep and offshore waters so that we can leverage their expertise and knowledge. So it is prima expertise and knowledge and thereafter, later if we find them to be prospective together, we can mutually decide upon areas of potential interest where we can farm-in or do other types of exploration activity. But as far as other collaborations are there, we are already in touch with various informational oil companies, which I have not willing to mention right now because we have not been able to freeze on to them, but they are in advanced stages and the evaluations on the prospectivity perception and the exploration endeavors that will go into these acreages is already in-place and in advanced stages. Thank you.
Nitin Tiwari
Thank you, sir.
Operator
Thank you. The next question is from the line of Pranita from Morgan Stanley. Please go-ahead.
Mayank
Sir, Mayang from Morgan Stanley. Just two questions. First, in terms of, sir, you talked about flaring. Now in terms of percentage flaring because of lack of pipelines, because of the other issues in terms of demand, would you give us an idea of what percentage of your gas is right now getting flared or if you were to kind of put the question other way, what would be your total production capacity today if you did not have the supply or the demand constraints on the pipeline side?
Unidentified Speaker
So clearing, where the clearing primary reason was not only due to pipelines, it was due to remote facilities, removed installations where there was associated gas where oil was being produced and that there was not sufficient capacity to put it into gas pipelines. Now what we have done is we have progressively reduced the flares over last one year in 20 — over the last two years to a level of 0.2. But at the same time, we have a plant at 11 sites, new compressor facilities, which are remote facilities where compressors will be installed to put the low-pressure gas which is being flared into our gas distribution network. Now this — the compressors have already started getting stacked and delivered to our sites and the first of these compressors will get installed in March 2025. So we expect to reach a level of zero normal players in the course of next year.
Unidentified Speaker
So in percentage terms of less than 2%. It has come down from 8% to 4%. The preceding nine months, that is FY ’23, our flaring percentage was age. Now in the current nine months ended 31st December, this has come down to 4%.
Mayank
And does it go to zero after the compressors?
Unidentified Speaker
Yes. Yes. After the implementation of all the, 11 compressor — compressions we are bringing, I think it will go further — further go down. So maybe close to — close to INR1.5 or want to give you —
Unidentified Speaker
Not just monetizing the gas. This is also our green effort, yes, that there shouldn’t be any scape of emissions into the environment. So it is a double kind of a money for us. It will help us generate more revenue and at the same time, serving the environmental cost.
Mayank
And sir, the second question was more in terms of NRL. Can you share us the progress on the NRL project, how much is complete, what’s the timelines are and the capex, etc?
Unidentified Speaker
Yeah. Sir, more than 72%, 73% and the physical progress is 78%, sorry, 78% significant progress has been done. And the project cost already spent is about INR23,000 crores and it is still expected to be completed by December ’25.
Mayank
So all the major equipment and every city everything is all-in place and the pi I suppose the last pipeline works going on, so you can start mechanical completion in December 25
Rupam Barua
Majority of the units have already been physically completed by about more than 90%
Mayank
Okay. So sir, when do you start commercial operations? Like is it somewhere March ’26 or
Unidentified Speaker
Anything is that as soon as the new refinery, this new capacity gets completed, it is not that overnight, it will pick-up to 100%. It will gradually pick-up to 100%. Maybe say first year it will run at about 50% to 60%. Then going-forward to say 75%, then 75% to 100% will be achieved in the 30 years year expected.
Unidentified Speaker
And what we are basically doing is that because refinery expansion is a progressive thing, it will happen over a period of time. However, at the other end, once it picks up so that the associated facilities are all-in place. So what we are doing is we are almost at the completion stage of the pipeline that also is being augmented so that this capacity will go up from 1.7 to 108 to. Things are happening simultaneously.
Unidentified Speaker
This is the — this is what the Director of Finance is telling is that is a product pipeline. Like once we bring the cruise, at the same time, we need to have the product going out because if we cannot deliver the product, so in this case, our product pipeline is around 90% we are complete and by April, April, it will — by April of this year, 2025, it will complete before — before completion of the — Paradeep to Paradip to pipeline, — pipeline. So that is the outlook. Yeah.
Mayank
So sir, is it fair to say that everything will be ready by December ’25 or whatever the logistical requirements are there and then you can kind of ramp-up by from December ’25 or you will ramp-up from April — March ’26.
Unidentified Speaker
We are completing mechanical — mechanical completion will be by December 2025. There will be some commissioning exercise that will be there. So it will take some time. After that, it will be started like what he already say that accordingly, this will start — like the production will be getting on. It will be a step-by-step process.
Mayank
And sir, from mechanical completion, you don’t need any shutdowns or anything of that of the existing refinery units, correct? That should be all normal.
Unidentified Speaker
I think the commissioning exercise will be done, then accordingly, this will be getting augmented.
Operator
Sorry to interrupt.
Mayank
Thank you.
Operator
Thank you. The next question is from the line of Rajan Shankaran from Antique Limited. Please go-ahead.
Varatharajan Sivasankaran
Thank you for the opportunity. Sir, two questions. One on the program. How is it going and what are the milestones we should look-forward to.
Unidentified Speaker
Yeah. The Andaman, see all-India Limited has operated in the Andaman northeast coast of India in the past, but recently we have again started our exploration activities in Andaman, shallow off blocks. There are two blocks over there where four number of locations have already been identified. One-well has been spotted and it has reached a target of around 805 meters. The drilling operations are now on and the targets are reservoirs, which are expected at around 3,500 meters plus. So we are expecting and hopeful for making a discovery over there. Things are going on as we had planned as of now. So following this well, we’ll be drilling another three wells in the Andaman offshore block
Varatharajan Sivasankaran
Thanks, sir. On the Nimaligar front, one about the crude pipeline progress? And secondly on the petrochemicals, what is the position currently and is the approval still pending from the Board or is it more like approval is done and the ordering is pending.
Unidentified Speaker
Etc. is concerned, these have already been received.
Varatharajan Sivasankaran
I’m talking about the petrochemical side of the story.
Unidentified Speaker
That is what I’m saying. Petrochemical as petrochemical plant is concerned. So all environmental clearance, et-cetera have already been obtained. And we have already spent about say, 900 crore INR800 crores to INR900 crore on this project till now. But since refinery expansion is also going ahead on putting. So that is why these plants would not be taken-up so aggressively and because we have got target completion of next within next three years time. So by December ’28, we are expecting this plant also to be completed — to be in-place. So total project under cost is about INR7,200 crores.
Varatharajan Sivasankaran
And the progress on the crude pipeline, percentage completion as of now?
Unidentified Speaker
Crude pipeline is in track.
Varatharajan Sivasankaran
Start for completion by — what date?
Unidentified Speaker
Yeah, yeah. It is expected to be completed along with the refiner advance on completion target of December
Varatharajan Sivasankaran
So thanks a lot.
Unidentified Speaker
Yeah.
Operator
Thank you. The next question is from the line of Sabri Hazarika from Emkay Global. Please go-ahead.
Sabri Hazarika
Yeah. Yeah, sir. Thank you. Thank you for the call. So this will be the last question. So I just wanted to clarify a few things. You mentioned that you mentioned about the OE guidance, but what is the gas production guidance for FY ’25 and ’26 and 5 Bcm when it is expected to be hit?
Rupam Barua
5 BCM is targeted around in the year ’27, venture ’28.
Sabri Hazarika
Okay. And what will be the production for FY ’26, how much are you planning?
Rupam Barua
It will be close to-4 it will be close to 4.84 will be same
Sabri Hazarika
Right. Okay. And regarding the natural pipeline that you said, this pipeline is commissioned, right?
Rupam Barua
Yes. Only the pipeline is commissioned, all other pipeline. Yes, there is already coming to — coming to on the endura.
Sabri Hazarika
Okay, sir, this pipeline will basically monetise around one MSCMB potential gas from the natural fields right, including, right?
Unidentified Speaker
Yes, yes, you are right. Yes, not including, not.
Sabri Hazarika
So this is different, right? Okay. Okay. And last question is, you mentioned two more areas being added to that mission 4. What was the — what I didn’t get the names properly, deal or which
Unidentified Speaker
You want to be specific. So these are and the
Sabri Hazarika
And, right?
Unidentified Speaker
Yes, yes.
Sabri Hazarika
Okay. Okay, fair enough. And last question, this North Bank pipeline IGGL is a new one which will connect with directly. So you said PNGRB approval is expected in one month, then it will take another one and a half years to commission the pipeline. Is that right?
Unidentified Speaker
Yes. So we have said that MOPNG has given its directive to PNGRB for authorization followed by that has already applied for authorization and the authorization is expected anytime soon. So anything the project
Sabri Hazarika
Two months, right?
Unidentified Speaker
It can’t be that specific.
Sabri Hazarika
Yeah. Yeah, got it.
Unidentified Speaker
But however, we are expecting that it will come.
Sabri Hazarika
Okay, fair enough. And is there any major NRL shutdown which is expected because of the commissioning of the expanded capacity?
Unidentified Speaker
No, no. As of now. Nothing as of now.
Unidentified Speaker
Actually shutdown may not be required because as you know, with both these two units are independent.
Sabri Hazarika
Okay.
Unidentified Speaker
So these are the previously the old units can run independently of the new unit. So that is why of the old unit may not be required when this new unit will be coming down.
Sabri Hazarika
Okay, got it. Got it, sir. Thank you so much for this for this conference call and I hope it was quite informative and insightful for participants. So, sir, we’ll end the call and before doing so, any closing comments from your side?
Rupam Barua
So it’s pleasure having you all with us for this interactive session on-call — on-call. So I extend my sincere thanks to all those who participated in the phone call and wish you all the very best.
Operator
Thank you.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thank you so much.
Unidentified Speaker
Thanks everyone.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thank you. Can discon in?
Operator
Yes. Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.