Oil India Limited (NSE: OIL) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Nirav Sheth — Chief Executive Officer, Institutional Business, Emkay Global Financial Services Limited
Ranjit Rath — Chairman and Managing Director
Debojeet Hazarika — General Manager, Finance
Bhaskar Jyoti Phukan — Managing Director, NRL
Analysts:
Siddharth Chauhan — Analyst
Unidentified Participant
Varatharajan Sivasankaran — Analyst
Ramesh Bhojwani — Analyst
Pranita Ghag — Analyst
Somaiah Valliyappan — Analyst
Kunal Bhakta — Analyst
Presentation:
Operator
Ladies and gentlemen, it is indeed a real pleasure to welcome you all to Oil India Limited’s annual investors and analyst, Smith 2025. First and foremost, I would like to extend my heartfelt gratitude to all our esteemed investors, analysts and stakeholders for your unwavering trust and support. We deeply appreciate your time and interest in our company today. It’s indeed an immense pleasure for us as we gather here to discuss our company’s performance, progress, achievements and future endeavors.
Ladies and gentlemen, your belief in our mission fuels our drive to push boundaries and create a lasting impact. At the outset, I am happy to announce that today we have with us the members of the Board of Directors of the company, led by our Chairman and managing director Dr. Ranjit Rath and other senior executives of the company. We are also honored to have the Managing Director and Director of Finance of NRL among us. I would like to convey our special thanks to MK Global Financial Services Limited for coordinating this event.
Dear friends, being investors and analysts, you have been an integral part of our success story. Your unwavering support, financial backing and guidance have helped us not only to sustain and grow, but also to create values for our stakeholders. It’s needless to mention that together we have overcome challenges, embraced opportunities and consistently strive for excellence. Over the past, we have witnessed various milestones, embraced challenges and seized opportunities that have strengthened our position as an important partner in nation building.
As we look ahead, we remain committed to sustainable growth, new technology induction and delivering value to our stakeholders. The during today’s interactions, we’ll provide you with a comprehensive update on our operating and financial performance. Key Business initiatives our strategic partnership across the energy value chain, the initiatives being taken by the company towards our commitment to environmental sustainability and our corporate social responsibility initiatives. This investor made serves as an invaluable platform for us to engage in meaningful dialogue, exchange ideas and address any concerns or queries which you may have. We value your insights, feedback and perspectives as they contribute to our continuous improvement and long term success. Once again, we thank you for your presence and partnership. We look forward to a productive and inspiring session.
Without further ado now I would like to invite Mr. Nirav Seth CEO Institutional Business MK Global Financial Services Limited for an address to our esteemed audience.
Nirav Sheth — Chief Executive Officer, Institutional Business, Emkay Global Financial Services Limited
Thank you. A very good afternoon and a very warm welcome. I really appreciate because the audience has taken. You know you face the very. You have been brave enough in terms of facing the rains that you have seen today and you’ve been on time. I also deeply thank the management of All India for making MK as a partner for hosting this analyst meet. Very quickly, a big thank you for Dr. Ranjit Rath, the CMD of all India. He doesn’t need any introduction. But let me tell you that since morning he has hosted almost about four meetings non stop. Not even taking a lunch for break. So that tells you that the company is in very safe hands.
Mr. Abhijit Mazumdar, Director Finance. Mr. Thor Lakhia Boreham, Director Operations. Dr. Ankar Barua, Director HR. We also have representation from NRL led by Mr. Bhaskar Jyoti Fukan who is the MD. And Mr. Sachinandan Maharana, Director of Finance. I will not take too much of time. You know All India is a very well known company, doesn’t need any introduction. You guys are all specialists and domain experts.
Dr. Ranjit, I want to call you over here for making the opening remarks.
Ranjit Rath — Chairman and Managing Director
Thank you. Good afternoon. First of all, heartfelt gratitude to everyone present in this room. While I would like to address you as distinguished shareholders and distinguished analysts. But more than that, it was actually a rainy day so we were not very hopeful. But we are so thankful to each one of you that you braved the inclement weather and made it a point to participate in this discussion where we would like to share our growth story. And we would also honor your feedbacks.
Now as far as the morning engagements, let me clarify that my. That’s my job. And together we are here to look for the possibly one of the biggest discovery being an oil and gas company more in the upstream sector. That’s what is the minimum ask of all of us on the dais here as oil India we are looking forward to a biggest discovery. And that’s the what, that’s what country needs. And that is where your unwavering contribution and support to Oil India limited is very hugely acknowledged. And may I request to have a one round of applause for all of you in the hall.
Now in the next few couple of minutes I will summarize our fiscal 2025 results. We would also like to share a thought process. What is the outlook that we are all interested to look at and what has been our ambition as far as 2030 is concerned. So during FY 2025 we maintained a consistent revenue and profit regime with a revenue of about 37,830 crore. That’s 0.5% higher than FY24. The EBITDA witnessed 12,824 crore and the PAT is 7,039 crore consolidated. As far as standalone is concerned we did about 6111 crore which is about 10% of last year. And we achieved the highest 6% higher revenue in the fourth quarter. That is 9970 crore and 3% higher PAT of 1497 crore. That’s the Q4. These results were achieved against a volatile which is we are all aware of commodity backdrop without stretching the balance sheet.
One thing I would like to share with you that while we all know that volatility is volatility of the commodity price as part of our ecosystem. It’s part of our business portfolio. So we are aware of it. But what is not we do not know is the degree of volatility. So what we do whenever there is a drop or depletion or an outlook we immediately kickstart our strategy of optimizing our operations in terms of cost efficiency. And that’s what we have already initiated. So that’s a comfort assurance. Comfort or assurance that I would like to give to each one of you here.
Solid free cash flow enabled the board to has recommended about final dividend of 1.50 rupees per share bringing a full year payout of 11.5 rupees per share. That is 115% on a face value While still funding the largest capital program of Oil India Limited in during this period. That that’s about 8,600 crore now.
So what assurance we would like to give to each one of you that we will continue to be a dividend paying and meet through each internal accrual our ENP investments. Because we strongly believe that this ENP investments will not only help us to reach our target of 4 million metric ton ambition and 5 bcm of natural gas, we would necessarily do this for enhancing our discovery possibilities in the Indian ecosystem. The healthy financial position leaves us well placed to seize India’s policy tailwinds. And I would like to add a bit on that particular thing. Plus the rising energy demand that align closely with our focus and our portfolio, the national oil and gas.
Just to give you a perspective, by 2040 we are looking at a refining capacity on from a demand point of view about 440 million metric ton. And if I take 88% of current import and we take the Clarion call of Hon. Prime Ministers advise that we must attempt 10% import reduction while several other initiatives are on. We need about 19 million metric ton, 90 million metric ton, 2040 domestic production and today we are hovering around 30 million metric ton. That’s the opportunity that we are talking about. And we strongly believe that the Indian ecosystem or the geology of India or Indian subcontinent offers that kind of possibilities. With the demand and how the policy tailwind is supporting.
Let’s look at the no go zone area getting unlocked for the purpose of exploration which we have already witnessed in the OLP 9 round. And I must be very happy to share with you. We secured about 40%, sorry 40,000 square kilometer of area as part of our petroleum explosion exploration license. So that gives us a total number of together along with our partners 1 lakh 12,000 square kilometer of exploration accurate per se. And on top of it we have access to 4800 square kilometer of petroleum mining lease that is with us under nomination acreage. And there is a three pronged strategy on which we are working. And the current amendment which has happened oil regulation, Oil Field Regulation and Development act amendment is actually enabling us to seek collaboration with international oil companies and national oil companies to undertake these deep and ultra deep water exploration that we are forcing.
I will share a bit more about it in terms of the category 2 and category 3 basin where these exploration acreages are there, we are talking about seismic to be captured first, identify prospects and undertake drilling. That’s the potential which is the policy Tailwind is offering today to the ENP company. In addition to that to maintain the production. Because while this is a two year to five year timeline to maintain the production for all of you in terms of Q1 Q2 analysis or year on year two analysis, we undertake near field exploration within our mining lease. And that is what has resulted in the growth story that Oil India is scripting since last three years to share. In addition to that for Q1, Q2 modifications or observations or financial reporting, we undertake development drilling within the existing fields. So this is the three prong strategy which Oil India limited has adopted.
Now in addition to this there is a negotiation which we do having the mature fields that we do or we negate or we negotiate in terms of the field or the formations. So a decline rate of about 10% is seen and we however skipped a growth of 5 to 3 to 5%. That means we not only negate the production decline by virtue of our active near field exploration and development well drilling, we also script 3 to 5%. And going forward we will do the same strategy for year on year. And that is reflected on the numbers that you would have seen that earlier. We used to drill about 30 to 35 number of wells. Today we are drilling 60 plus wells and as we speak this year we plan to do about 75 to 80 wells. And we will have a mix of exploratory wells for our long term strategy and development wells in the near field exploration and in the field of production for our short term strategy in terms of performance in the upstream segment, the total hydrocarbon Production rose to 6.7 million ton of oil and oil equivalent.
The average crude realization this year witnessed about 78.$09 per barrel from last year’s 83.$03. And despite the drop because of the growth that we have seen in terms of our physical performance, we could maintain the revenue and script a 10% growth on the pat. We will continue to do our exploration portfolio that I have shared in terms of our OLP9 round. And as we speak we have also drilled the first well in Andaman Nicobar. The second well drilling is undergoing right now and we are already ready with the letter of award given for the jackup reek which will be used for our Kerala Konkan offshore project at the downstream part.
Since now we are a Maharatna and an integrated energy company. Numalikar refinery gave us 3.06 million tons of crude processing. That’s more than 100% capacity utilization. The gross refining margin and I must tell you that this is by far one of the best numbers in the current depleted crude oil price outlook and dropped spread is 5.414 barrels per $5.14 per barrel is the GRM and the spread that we encountered in the last year is 7.$9 per barrel as far as Ms. Or petrol is concerned and about $11 plus barrel for HST and in terms of distillate yield we achieved at NRN level about 87%. So we maximized diesel production visa vis the petrol production aligning ourselves with the spread that is available. Our pipeline network enabled seamless movement of crude, natural gas and product with highest reliability in new and alternate energy sector.
I am very happy to say that we have got an collaborative framework with Government of Assam for 600 plus megawatt of solar photovoltaic project out of its 25 was already kick started and recently we have signed and collaborative framework with Government of Rajasthan for about 1000 megawatt of solar photovoltaic. And as all of you would know the Assam Biorefinery project or we call it as Basam bioethanol project is on track and as we speak it’s a JV of NRL as we speak. The pre commissioning process is in the final stage now one more thing which I would like to share from an outlook perspective.
The brownfield expansion of Namaligarh refinery from 3 million ton to 9 million ton is on track and we are extremely confident of commissioning by December 2025. And that’s what would also kind of give us an outlook for for year 26 some kind of a trickling revenue because the refinery new refinery will take some time for stabilization. And so FY27 we are very hopeful to have stream of revenue from the capacity expanded Namali government refinery. Two more positives. We have one captive pipeline which is Dulia Janmaligarh pipeline which currently is a captive use. We are supplying natural gas 1 million standard cubic meter of meter per day to Namaligarh pursuant to expansion.
We have also undertaken capacity expansion of or upgradation rather of the DNPL line. That would be 2.5 million standard cubic meter. And in order to connect the major gas source of Oil India limited to the IGGL that is Indra Dhanu gas grid which is a northeast gas grid. The Dulia Jan feeder line is in the approval process advanced stage. There was a rerouting has to be done which we will cover in the presentation. That will take about two years to complete and that will add an opportunity for Oil India limited to evacuate the gas pool that we are having.
In addition to that, as far as our overseas assets are concerned, we will cover it in the presentation. But by and large our Russian assets has been dividend yielding. The TAS asset has already given us 100% plus dividend. So all the money is recovered. The Wanker net asset has already given us about 88% dividend. One of our major stake in terms of overseas investment is the Mozambique asset. That’s a LNG project. All of you know Total is the operator along with OVL, BP, RL and Oil India. We have got 30% stake there as we speak. Since though I’m not a spokesperson of the operator. But we are hopeful by this mid July we should have the project again restarting which was on hold because of some security concern there.
But let’s now talk about a kind of strategic roadmap. By end of this decade we aim to increase our upstream production to from 6.7 to 8 with near field exploration and with additional discoveries it would be about 10 to 12 million ton of oil and oil equivalent. We will be able to triple our refining capacity. By then the refinery will be fully stabilized, operating to its hilt. We will be by then also be able to complete the polypropylene unit, another 7,000 crore downstream of the refining capacity which is an integrated one because the upfront investment is already there. And this will also take the petrochemical intensity index of the refinery to 4%. By then we will have our interest in biofuel which will be a blending requirement for our petroleum Mississippi production that will be up and running by then.
We will have about 10 odd compressed biogas plants upon running. That’s one thing which we have covered in the presentation. And we will have a big pool of renewables in Assam and in Rajasthan. So we will continue to have our focus more on upstream. That’s an ENP player then the downstream. That’s nrl. The pipeline part, that’s the midstream part. One more thing which I will share with 9 million ton refinery, the product evacuation. We have already created that narrative. The existing product evacuation pipeline which is Namaligarh Siliguri NSPL pipeline currently operating at 1.7 million million metric ton has been upgraded to 5.5 as we speak.
The mechanical completion is over. So in another three months time that would also be ready well before the refinery is commissioned. We have an Indo Bangladesh Friendship Pipeline, 1 million metric ton capacity that’s also in place. And as we speak without any disturbances 0.4 million metric ton is is moving. We have got a collaboration with Assam’s Inland Water Transport so that we can utilize the IWT for moving our cargo.
We are looking at Locust policy basis markets. We have already got a collaboration which is a public knowledge with BPCL to help NRL in sourcing our crude. Because more we produce in the domestic field we would kind of offset the import requirement. Nevertheless that would hover around 5.5 to 6 million metric ton going forward which will happen at BPCL level giving us a leverage in price point in terms of upstream. We are looking at a 20% boost in next five years through our near field exploration campaign and evacuation infrastructure scale up.
In fact one more interesting thing which I would like to share. We would have noticed our flaring has reduced substantially. So two things what we have done. We have got additional compressor stations in our stranded fields which is actually helping us to evacuate those natural gas. And there is a field called Kumchai in Arunachal Pradesh. We have already built a pipeline and we are evacuating 1 million standard cubic meter of gas per day which was getting flared. So by virtue of that pipeline we are evacuating. So a we are gaining our sorry reducing our carbon footprint towards our 2040 carbon neutrality approval.
But also we are monetizing it. And all of you would know that it gels well with the kind of geographical area we have access to. We have our solid presence in Northeast and Tripura. We have got six districts. The entire Nagaland and Arunachal provinces are with Oil India in collaboration with HPCL and BPCL respectively. We foresee that these are those sunrise sectors where the consumption and the growth opportunities will come. So just to summarize, we are looking at six key enablers. I can assure you that the technological capabilities of Oil India Limited is at par excellence when we compare it with global standards. A skilled talent pool that we have. We are looking at strategic partnerships. One, I can say, two I can share which is in the public domain. Otherwise we are bound by the confidentiality agreement.
We have got a collaboration with Petrobras Brazil which are actually pioneers in deep water and ultra deep water drilling. So we are having discussions for a possible collaboration not only to collaborate for the OLP 9 possible drilling locations, but also LP 10. We have got a technological service agreement with Total Energy who are going to support us in selection of our locations for drilling which is the best thing that can happen to any ENP process, but also to help us design the well, which is about the most complex thing when you are looking at a water depth of about 2000 meter and a depth of drilling of about 7000 meter.
In terms of capital allocation this year we did about 8,600 crore and together with NRL we are looking at about 15,000 to 16,000 crore investment. And one thing is an assurance from all of us on my behalf, behalf of board of Oil India limited and nrl, we are remain committed to maintain the conservative leverage that we have today. At Oil India level it is 25%. At NRL level consolidated it is about 55%.
With before I close with the outlook that we have, I’m sure all of you would have that particular thought. With the current outlook of crude price point, we have already initiated, I’ll not say cost cutting per se. We have already initiated an efficient mechanism of doing business in terms of our efficiency in doing more drilling within the timeline of 365 days, creating more prospects in terms of doing GNG and then creating drillable locations and more importantly identifying better pools which would give us a higher production. So with this once again thank you very much for joining us today. As part of this analyst and investor meet since morning I had excellent interactions and feedbacks from couple of our friends from analysts and we will look forward to having a very very constructive and open feedback.
Operator
Thank you very thank you Cmd sir for such a detailed and valuable speech to the audience. Now I request Mr. Debazit Hazarikar of GM Finance Oil India Limited to deliver the presentation to the audience. Thank you.
Debojeet Hazarika — General Manager, Finance
Thank you. Very good evening to esteemed friends from the investors and analyst community. Dignitaries on the dais of the dais, ladies and gentlemen. It’s indeed heartening to see a full house today in a rainy evening. And it gives us the much needed Phillip to the oil team to work hard and take our esteemed organization to newer heights and conquer newer horizons. Yes indeed. The theme of today’s presentation is Conquering Newer Horizons. It reflects our commitment to strategic transformation, building on a legacy of operational excellence while embracing the future of energy. Today we’ll walk you through an overview of the company, our performance in financial year 25, our operational performance, all India’s 2030 strategic priorities and roadmap aimed at delivering sustainable value for all stakeholders.
Let me take a minute to walk you through today’s agenda. We’ll begin with an overview of who who we are, what defines Oil India today, our scale, our integrated presence and the core differentiators that make us resilient and investment worthy. From there we’ll dive into our financial highlights which reflect not just strong top line and bottom line delivery, but disciplined capital deployment and long term value creation. And finally will walk you through our strategic and operational performance Looking at upstream, midstream, downstream and new energy in detail.
A glimpse of oil’s six decades of journey. We started our journey linked to the first oil discovery in Asia. That’s in Digboy in the northeastern state of Assam. We have our origin in depth place from 1889. We got formally incorporated as Oil India in 1959. The company got nationalized as a Central CPSE in 1981. Going ahead 200910 was the year when we were elevated to Navaratna status and that was the year when we did our first ipo. The next decade was the story of international acquisitions our diversification initiatives into renewable into the CZD space 2021 we acquired Numalgarh Refinery the majority stake of 69.63% and that makes Oil India a truly integrated both in the upstream and downstream.
From landmark global partnerships to India’s first green hydrogen plant and our recent offshore expansion in the Andaman last few years have marked a significant phase of transportation and and strategic growth. Oil India is a fully integrated energy platform spanning upstream, midstream, downstream and new energy build through discipline expansion and strategic partnerships. Today we operate across 62 E&P blocks with 93,000 square kilometers of acreage. We have overseas presence in seven countries in 10 projects with a mixed portfolio of producing, developing and exploration assets. We manage a 3,700 plus kilometer pipeline network comprising of crude oil product and gas distribution network.
Our refinery Numalgar Refinery is going through a major capacity expansion from 3 million to 9 million metric ton. We also have presence in Petcamp through our holdings in BCPL and assam. Petrogram Cairns Limited Nuulgarh Refinery is coming up with a 360 KTPA Petcam unit. We have 188 megawatt installed capacity of renewable energy and already in collaboration with Government of Rajasthan and Assam aims to set up additional 1.8 gigawatt solar plants. Numalingar is coming up with a 2.4 km green hydrogen plan. We also aim to set up 25 CBC plants pan India. The company has entered also into the critical mineral space by winning one graphite and vanadium block in Arunachal Pradesh. This entire integration enables full cycle value capture cost efficiency and structural resilience across commodity and transition cycles.
This slide gives an overview of oil’s accuracy both in country and international. Strategic wins under OLP and DSF have given us about 93,000 square kilometers of operated acreage across 62 blocks spanning Pan India, covering every major Indian basin and ensuring a rich inventory of drilling opportunities. Our international portfolio spans across 10 assets in seven countries with a 2P reserve of 41 million metric ton of oil equivalent. The investments in the two Russian assets are giving regular dividends to the company against a total investment of USD1 billion we have recovered till date USD942 million.
Against two investments that’s in TYNZD and Banker NFT, we have already recovered 100% of our investments against the project TYNZD and against Vancouver NEP, we have recovered around 84 to 85% of the investment. Our growth is underpinned by a well structured portfolio of strategic joint ventures and subsidiaries across the energy value chain. In particular, we have established ourselves as a key energy player in the Northeast through our portfolio to exclusively manage the company’s green initiatives. We have formed a Holion subsidiary this year in January 25th naming Oil Green Energy Limited and we have also found another JV with APJCL Oil Green Power Limited to set up 650 megawatt solar plants across the State of Assam.
Internationally we operate in seven countries across 10 upstream assets through a mix of wholly owned subsidiaries and equity partnerships. This structure offers diversification and risk balance exposure to global opportunities. Oil board comprises of five functional directors led by our esteemed chairman Dr. Ranjit Rath. A high caliber leadership team with deep industry technical and and policy expertise together is steering the company’s performance and strategic direction. Oil Board currently have one government nominee Director and four independent Directors. All comes with rich experience in diverse fields and immensely contributing with their invaluable inputs to steer the competitors excellence at the same time ensuring strong corporate governance. Oil is rated domestically by Crystal and Care. We have got the highest domestic rating. We are rated by Moody’s and Fitz.
As an international agency we have got investment grade ratings which is at par with the sovereign rating of the country. Government of India holds majority stake in the company with 56.66% shareholding. With over 65 years of heritage and now elevated to Maharashtra status, Oil India stands as a strategic pillar in India’s energy ecosystem and a consistent value creator for shareholders. Our growth momentum is fueled by strong upstream engine gas lit production high quality reserves. We have maintained a 3% production CAGR with gas now comprising more than 50% of the output and a high margin fuselage aligned growth driver. We have a fully integrated oil and gas portfolio spanning across the E and pipelines, refining and petrochemical enabling us to capture and control margin across the energy value chain.
The NRL expansion and polypropylene plant will further strengthen this integration. We are building a de risked future ready energy business. Over 20,000 crore has been committed towards our target of achieving net zero by 2040. All of this is translating into consistently outperforming shareholders returns backed by disciplined financial performance. We have delivered a 38% plus 3 year TSR outperforming PSU peers and with an ebitda of around 34% margins. In essence, Oil India is a high growth focused enterprise with integrated operations and diversified portfolio that enable a high margin de risked sustainability oriented play that drives superior shareholder value creation for investors. Oil India’s focused execution and disciplined strategy have translate translated into outstanding shareholder value which had 2.7 times share price growth over the last three years and a market cap of 69,000 crore as of May 2025. Our fundamentals remain strong. We have achieved 3.46 MMT of crude, 3.25 MMToe equivalent gas production and a steady 3132% dividend payout. Final year 25 delivered 7,039 crore in PAT and 8,467 crore in capex commitments reinforcing both operational strength and financial resilience. Now we’ll move into the second section of financial highlights.
FY25 has been a strong year for Oil India reflecting both operational resilience and disciplined execution. We delivered standalone revenue of 23,987 crore, EBITDA of 10,636 crore and a 10% growth in profit after tax on a standalone basis with an achievement of 6114 crores. Our dividend payout for the year totals 115% per share, fueled by robust earning per share of 37.59 rupees per share and market capitalization of 69,000 crores. It is a true reflection of the value that we continue to deliver to our esteemed shareholders. A glimpse of the standalone financial performance of the company Standalone revenue has remained steady at around 24,000 crore over the last three years even as crude price and gas price moderated from financial year 23 peaks. Importantly, we have protected profitability with FY25 EBITDA at 10,836 crore and a PET at 6,114 crore. Key financial ratios remain strong, operating margin are stable at 31%, net profit margin at 27.6% and return on capital employed at a healthy 15%. Net worth has grown steadily reaching 39,531 crore in FY25 reflecting both earnings momentum and a balance sheet strength.
On the price relation front though, there has been a decline in crude price gross realization, but thanks to the withdrawal of the SAE from December 2024 we could realize and maintain our net realization at around $50 per barrel. On the gas price the outlook is quite positive. Last year it was the gross relation was $6.50 per MMBTU. This time going ahead by government’s policy, the gas price now is $6.75 per mm BTU. And also in view of the government’s policy regarding the 20% premium that will be applicable on new well gas production, we have a quite positive view on the grass pricing scenario going forward. Despite the normalizing in pricing, our margins have remained resilient reflecting cost control and portfolio balance.
At the consolidated level, revenue reached 37,830 crore, largely stable versus FY24 with an EBITDA of 12,823 crore. Profit after tax grew to 7,039 crore up from 6,980 crore last year and the net worth grew by 10% to 48,955 crore. We now move to the strategic initiatives and operational performance of the company. Oil’s strategic focus is aligned with India’s evolving energy priorities. By targeting high growth high impact energy sectors India’s upstream story is robust with consistent increase in oil and rapid growth driven by gas in market demand for refined output petrochemicals further driven by strong policy impetus. Given the global energy transition, new energy will dominate India’s energy capacity additions over the next two decades.
Let us now delve deeper into the vast area of opportunities within India’s upstream sector. India’s demand for crude oil and natural gas is projected to almost double by 2040, with gas consumption growing faster than oil to achieve 10% points reduction in import dependence, domestic output have to increase to around 90 million tons of crude oil and 11 million tons of gas by 2040. Meeting these targets will require sharper exploration, quicker project sanctions and seamless midstream connectivity areas in which oil India already delivers consistently. The country’s national 2P reserves are drifting lower with oil moving from 450 to 434 million metric ton and gas from 655 to 643bcm. Between FY22 and FY24 the reserve replacement ratio has slipped to 0.5 for oil and 1 for gas and the reserves to production life of both wells continues to shorten. These trends underline the need for more aggressive exploration, faster development drilling and advanced recovery methods to underpin the demand outlook.
Key policy reforms from the government side continue to drive exploration and strengthen upstream sector attractiveness. Benchmark lead crude pricing reforms now align domestic prices with global markets, introducing netback pricing and offering incentives for mature and marginal fields, making exploration economics more attractive. The paddy gas pricing framework links pricing to the Indian crude basket and grants a premium for new well gas, significantly improving gas field returns. The draft Oil Field Regulatory and Development Bill’s recent amendments provides stable lease tenures, a single license covering all hydrocarbons, shared infrastructure provisions and rationalized penalties, thus creating a predictable operating environment. Opening previously restricted offshore no go zones has already freed about 1 lakh square kilometer forbidding with 54,000 square kilometer awarded under OLP and more than 8 lakh square kilometer yet to be opened, unlocking substantial future exploration potential in the country.
OIL’s 2030 strategy is built primarily on four core pillars reinforced by critical enablers. Our 2030 vision is anchored by three engine drives towards integrated oil and gas scale up. First one is the upstream scale up of expected 10-12mm TPA through expansion via strategic bidding in OLP and DSU blocks and selective equity partnerships in high potential clusters. On the downstream side, we aim to expand our capacity to 9 million metric ton with the commissioning of numaligar refineries. Expanded capacity a 360ktpa polypropylene PET cam and 500 plus CNG stations across the country. On the midstream we target to scale up to 18/ MMTPA of crude oil pipelines, 2.6 MMTPA plus gas transportation pipelines and 5.5 MMTPA plus product pipeline capacity.
On the new energy front with a 20 crore committed capex, we aim to invest continuously into solar, wind, green, hydrogen, CBG and other new energy spaces to support these four core pillars. We have identified six key enablers. All India’s upstream business has demonstrated consistent delivery over the years. In the last five years we have maintained over 3% production CAGR supported by targeted interventions and disciplined execution on the ground. Across our asset base we have deployed a wide range of advanced recovery techniques to improve productivity while keeping our lifting costs firmly in the lower quartile. Our domestic Footprint now includes 62 operated blocks covering approximately 93,000 square kilometers, securing primarily through successive OLP and DSF rounds. This has been complemented by substantial subsurface insights with over 17,000 lkm of 2D and 5,300 square kilometer of 3D seismic acquired over the last five years.
Looking ahead, our aspiration is clear to reach 10 to 12 mmtoe of production annually by 2030 and we believe we are well positioned to achieve this given focus on three areas. Scaling up of exploration Our exploration activity has significantly scaled up with over 230 wells drilled in recent years backed by new rig deployments, integrated contracts and strengthened gas infrastructure. Secondly, strategic partnerships we are leveraging partnerships with international oil companies with performance based production enhancement contracts and through deep water collaborations including our engagement with TotalEnergies. Thirdly, it is the tackled efficiency and we continue to embed technology across the value chain from integrated seismic and drilling to digital reservoir modeling and advanced development planning.
Combined with our international upstream portfolio, we believe we have both the operational foundation and strategic levers to deliver this vision with confidence. Over the past five years our stream production has climbed from 5.6 to 6.7 mm toe, delivering highest output in our history. Gas volumes have consistently contributed almost half of our total barrel equivalent mix, enhancing margins and lower carbon intensity. Our resource base remains strong and balanced, holding sizable proof, probable and possible reserves in both oil and gas across domestic and internal assets. Domestic 2P oil reserve is 69 million metric ton and gas reserve is 121mmtoe.
In FY25 we achieved a reserve replacement ratio of 0.94 on a 2P basis. The reserves to production life stands at about 31 years giving us a long Runway to support growth while we pursue additional discoveries. The government’s latest licensing rounds present a sizable opportunity to expand our exploration portfolio. OLP Round 10 offers 25 blocks spanning 13 basins and about 1.9 lakh square kilometers distributed across onshore, shallow water and deeper offshore settings.
In parallel, we are screening the discovered small fields round four which bundles 55 pre discovered accumulations across nine contract areas. These brownfield assets can be fast tracked through simplified development plans and carry lower subsurface risk. By combining selective bidding in OLP with quick cycle DSF opportunities, we aim to secure a robust pipeline of future projects that will sustain our upstream growth strategy and support the national goal of higher domestic output oil India’s midstream network is one of the most reliable in the country and central to our integrated model. We operate over 1247 kilometers of fully automated crude pipeline, one of ACS oldest and most trusted.
In addition, we manage 192 km of gas and 654 km of product pipeline. This network connects key hubs across the eastern frontier including Duliazan, Numaligar, Digbui, Siliguri, Bangaigaon, Guwahati and Barauni, ensuring seamless supply and high utilization. We are modernizing this infrastructure through a 30 year life extension project. Palm stations and terminals are being upgraded with next generation systems for better reliability and throughput. By 2030 we aim to double capacity reaching over 18 million metric ton per annum for crude, 2.6 million metric ton per annum of gas transportation and 5.5 million metric ton per annum for product transportation. This will be driven by three levers. First, integrated growth planning with new projects like the 9mmTPA Paradep Numalgar crude line, the 5.5mm TPA NSPL product pipeline and a 4.5mm SCMD of IGGL gas grid.
Several key projects are already underway. Secondly, execution strength proven through complex builds like the Ganga SDD coursing and macro tunneling in challenging terrain. This demonstrates our strength of execution of all these projects. Third, digital operations enabled by a centralized integrity management system, inline inspection tools, AI driven SCADA and predictive leak detection. All this gives us a midstream platform that is scalable, future ready and aligned with both energy security and clean energy integration. To underpin our growth, expansion and market reach, we are building out the next wave of pipelines. The 9 million metric ton Paradeep Numalgarh Crude link will feed imported crude from Paradee port to the refinery and is scheduled for commissioning in October 2025.
Product evacuation capacity is being lifted through the Numaligar Siliguri pipeline where a 5.5 MMTP augmentation will be completed by July 2025 to further open northern markets. On the gas side, we are replacing and upgrading the Delia’s Numalinger line from the current capacity of 1 mm SCMD of gas to 2.5 mm SCMD scheduled to be commissioned by October 25, ensuring stable natural gas feed for the refinery. Finally, our participation in the 4.5 mm SCMD Indraduno’s gas grid will connect the Northeast to the national network in three phases starting July 2025 enabling pan India customer assets and unlocking new gas opportunities. The phase three of IGGL is scheduled to be completed by Mars 2027 in the downstream platform led by Nomalgarh refinery, we have delivered ropes boost performance year after year.
In FY25 we recorded 102% capacity utilization and 87% distilled yield and GRMs of 5.14 per barrel, outperforming the Singapore benchmark. With a further upside from excise duty concession that is available to the refinery, we are now scaling this platform. Capacity is being tripled from 3 to 9 million metric ton targeted for completion by end of 2025 with the Paradiv Namalugar pipeline securing imported crude supply in parallel, a 360 KTPA propylene unit is being developed to serve regional and export markets. On the diversification front we are progressing high margin derivative projects through BCPL and APL including a 40ktpa dimethyl plant in collaboration with Korean partner Biofranch.
We are also expanding reach and integration through czd with over 500 CNG stations planned across nine geographical areas and 25 CBG plans to support fuel availability and circularity. This integrated downstream approach positions us strongly not just for volume growth but for sustained margin leadership and future ready product diversification.
Diving deeper into Numalingar refinery in FY25 the plant ran at 102% utilization delivering a distilled yield of 87 at a gross refining margin of 5.14 per barrel. The facilities Nelson complexity is 9.5 supported by a AAA credit profile which ensures competitive conversion and financing strength for the refinery. Expansion from 3 to 9 million tons per year is underway backed by 50% excise benefits for northeast refineries and pipeline evacuation to move substantial portion of the products to market at the low unit cost. Offtech is secured through marketing tie ups with bpcl, SPCL and IOCL while direct sales to industrial customers such as ongc, Nalco, Hindalco and Gale provide additional resilience. High speed diesel and motor spirit account for 88% of sales for the refinery complemented by other products like lpg, ATF solvents and a growing slate of value added wax and petrochemical grids. Together these attributes make Numeligar a cornerstone of our integrated value chain as a major earnings lever as the capacity triplets by 2025.
Despite a normalizing margin environment, Numiligar refinery continued to post resilient operating metrics. The capacity utilization rebounded to 102% FY25 from 84% in the turnaround year and distilled yield held farm at 87%. Revenue rose to 25,001 and 50,000147 crore up 6% over FY24 even though benchmark cracks softened and the GRM compressed to 5.14 per barrel EBITDA margin settled at about 12% still comfortably above peers thanks to the high purity feedstock, pipeline evacuation and excise concessions that continue to protect returns while we walk towards the 9 million metric ton capacity expansion for the refinery.
Oil has built strong in house capabilities across the full ENP value chain with in house seismic crews, full house logging units over set of walkover rigs, drilling rigs with in house seismic crews enabling cost efficient and reliable execution that is required in the upstream segment. Over the years FY21 to 25 we spent 700 crore in research and development. We also hold 18 patents and incubate 15 plus startups driving innovation. Additionally we continue to invest heavily in key technologies such as enhanced oil recovery for mature fields, low pressure compressor units to cut flaring and H2 fuel cell and battery. Our GNG studies have resulted in 90 plus new prospective locations. We have established a robust network of strategic partnerships including joint exploration initiatives with leading international and national oil companies.
Our collaboration with TotalEnergies focuses on stratigraphic well design for deep water assets and and innovative methane emission detection. Additionally we maintain strong research alliances with premier academic institutions such as IIT Kharagpur IIT Lucknow to name a few driving innovations across All India’s value chain. All India’s capex for our financial year 25 was rupees 8467 crore. It reflects a clear focus towards upstream and high margin downstream investments with growing allocation to new energy. Around 80% of the capex was allocated to upstream while remaining went into midstream and downstream.
The planned Capex profile for FY26 remains broadly similar maintaining strong emphasis on exploration, development, drilling and strategic downstream growth. Additionally, a planned capex of 9,133 crore has been earmarked for Numaligarh Refinery in FY26 including rupees 5,648 crore for refinery expansion and another 2,300 crore for the petrochemical project. Our funding strategy remains conservative with borrowings limited to select international projects.
All other investments are made through internal accruals, maintaining a strong debt to equity ratio of 27% on a standalone basis and an interest coverage of more than 12 times oil has a robust risk management approach to mitigate salient risk we follow a structured forward looking risk management framework that addresses operational, financial, strategic and transition related risks through diversification, technology and disciplined execution. For example, to mitigate business continuity risks from external shocks such as geopolitical conflict or trade disruptions, we have built geographic diversification into both our asset base and supply routes.
On strategic and transition risk, we have proactively diversified beyond core upstream to downstream expansion and new energy ensuring we are not overexposed to any single transition path and operationally we are investing in evacuation infrastructure like DNPL and IJJL alongside robust ACC systems and technology LED upgrades to improve field reliability and reduce downtime. Oil has a strong ESG commitment and has been driving responsible, inclusive and sustainable growth via several key initiatives we’d like to highlight. Oil’s efforts have been recognized by several global agencies and with an upgraded CDP climate rating of C, water security rating of B and S and P, global ESG score has been doubled from 22 previous year to 44. Oil is committed towards nation building with a cumulative spend of around 620 crore on CSI initiatives in the last five years across healthcare, education, skill development, community development, environmental sustainability and other initiatives.
As we close dear friends, let me leave you with a clear view of why Oil India is a high conviction investment opportunity. We are driving accelerated future production growth led by gas focused developments and enhanced recovery initiatives. Our exploration driven upside is encoded in a strong domestic acreage base with nearly 90% from OLP and strategic global assets that support long term resource visibility. We operate a diversified DE risk and resilient portfolio integrated across the oil and gas value chain and active in key global markets.
We benefit from integrated value chain synergies which drive margin resilience operational efficiencies and control over cash flows. Our model remains high margin and capital discipline underpinned by gas weighted production and strong refining economics. Our energy transition play is focused and future proof with early leadership in green hydrogen and ccus alongside select scalable renewables.
And lastly, all of this is backed by proven leadership, operational depth and a clear strategic roadmap. We have got dedicated investors management team with Chief Investor Relations Officer Sri Abhijit Das and Company Secretary Sri AK Sahu. For any investment related, any shareholder related issues. We have got dedicated teams to take care of your requirements. Thank you. Thank you all.
Operator
Thank you Davosit Hazariga for such a detailed and insightful presentation to our esteemed investors and analysts.
Questions and Answers:
Operator
So dear ladies and gentlemen, now the floor is open for question and answer. So you can kindly raise your queries after mentioning your name and name of your firm. Thank you.
Siddharth Chauhan
Hi. Hi sir. Ranjit sir, this is Siddharth here from BNK Securities. So my question is in case the DNPL expansion takes place but there is a delay in NRL commissioning, can we still increase our production by 1.5mm SEMD?
Ranjit Rath
We will take couple of questions and then. So I am taking note. We will answer sure and but to give you a comfort. Yes, I will explain how but. Yes please.
Siddharth Chauhan
And the second question is. So ONGC has mentioned that 20% of their APM production is now Nueval gas. So what is the status at our end and will this incremental 1.5 mm SEMD be completely classified as Nival gas? I think These are my two questions. Thank you.
Ranjit Rath
Okay, first is. Yes 1.5. Now how does that work? The IGGL Phase 1 is already as we speak getting commissioned. The hookup between DNPL pipeline and IGGL phase one would happen within the premises of Numaligarh. So it’s a three months time phase. Then the gas can flow from Assam to mainland India. So that’s yes. As for as new well gas is concerned, there is a two stage approach here. One is identification of the gas component. Second is allocation for the price point. Identification is a continuous process. It’s simple. If you register a growth over 7 1/2% decline, it is identified. Second, if it is a new well gas new well first a, then it is identified. Now that is easy. The allocation is under a construct where all of you would know that we have a priority allocation of cgd. Where CNG PNG comes first. Then if I remember correctly, it is fertilizer, petrochemicals, then power and refinery. In that order I suppose. Now in Northeast the growth opportunity of CGD exists. But as we speak it is at a very nascent stage. Only recently the CNG pump stations are getting inaugurated in Guwahati where we have a stake. One of them probably day before yesterday has been inaugurated in north bank where we have a stake now. Unless it grows, the allocation cannot happen there. Therefore our dependency on mainland CGD will also be there. So once we have this connectivity and when gas will flow to the mainland, then we will have allocations. So the allocation process is happening as we speak in the Government of India level, in the Ministry level. But new well gas has already been identified and that’s a continuous process.
Siddharth Chauhan
Thank you.
Unidentified Participant
Yes. Nrl, if you can share some thoughts on what is likely to be the total CAPEX by the time we are up and running. Expected utilizations for next one or two years before it stabilizes and excise duty benefits that is 50%. If you can share some content, quantitative numbers, some colors, how you are likely to get and for how long. Thank you.
Ranjit Rath
Okay, so first the CAPEX would be hovering around 30,000 crore expanded capacity, 9 million metric ton stabilization. You are right. We are looking at commissioning of refinery by December 2025. While I was speaking, I did say that the product evacuation pipeline will be commissioned by much before. But the import pipeline which is from Paradep to Numaligat 1600 and forty one of the longest crude oil pipeline would also get commissioned by December2025.
As far as Northeast excise duty benefit is concerned it is not only available to nrl, it is available to all the other entities or refineries in Northeast and it will continue to happen. One assurance which I can give you. The GRM that has been indicated of $5.14 per barrel is not counting the excise duty exemptions. It continues. There is no sunset clause. Absolutely so.
Varatharajan Sivasankaran
Varid Rajan from antique I had three questions. Firstly, you had the earlier goal of 4 million tons of oil production and 5 bcm of gas production. So does it still stand and do we look at that number being achieved in FY28? Is that the right expectation.
Ranjit Rath
The target that we have given to ourselves or a mission mode on which we are working? 4 million metric ton of crude oil and 5 bcm of natural gas stays. There is no change. The enhanced exploration efforts and enhanced production efforts will continue. With the additional more drilling wells, more deeper wells are more production interventions will continue. And with the gas evacuation infrastructure in the line of sight, we are very hopeful that there will not be a capacity constraint to produce because we are actually sitting on one of the best basins within the seven category one basin of the country or sedimentary basin of the country. So the target stays, our efforts will continue.
Varatharajan Sivasankaran
So in that context, like you know the new pipeline which is supposed to have been approved and then you were indicating it will take 18 to 24 months to complete, that becomes critical in terms of achieving the 5 BCM kind of a gas production. So what is the status of the pipeline and what is your expectation as to the completion and hence our 5 BCM target as well?
Ranjit Rath
I’m very glad that you have asked this question. The earlier why I’m so confident about it the earlier the pipeline connecting Dulia Jaan to the NE GG feeder line, that’s called Dulaijan feeder line was already approved. So it was actually going through the north bank crossing Brahmaputra river near Bogie Bil Breeze, that is Dibrugarh and then landing at Dulayajan. When we did the study we realized that crossing Brahmaputra river is time dependent on the working window that is available A B it will be one of the longest crossing. So when we studied we found that it was not a very good idea. And if we do it, what we did right now, we reroute the pipeline and I’m very glad to say by rerouting we are saving 780 crore rupees in terms of the crossing and we are saving one year straight even ruling out the uncertainty that goes with the working window.
So what has been done? The approval process is in a very advanced stage. The the entire pipeline has been split into two parts. One is an extension of 8 inch line in the north bank up to Dhemaji which will actually look after the North Bank Tea gardens and the Arunachal Ga that Oil India and VPCL is having. The south bank pipeline would continue to will connect to Dulia Jaan and all other producers in the south part of the Brahmaputra and connecting to Nu Maligad precisely not Namaligarh at the nearby section SB station. So this way we do not foresee any major problem per se in terms of pipeline rou allocation or construction. That’s why we are more assured right now. And but yes you are right with this pipeline the evacuation opportunity will cease to exist. Sorry, Evacuation constraint will cease to exist. And 5 BCM is a given.
Varatharajan Sivasankaran
And. And in terms of dates we are looking at that 18 to 24 month period.
Ranjit Rath
18 months 2027. But I must add one more thing. We are continuously supplying gas to Brahmaputra cracker and polymer. Where the rich gas is supplied the C2 C3 fraction is retained and C1 link is given back. That construct is well known. Now considering that we need to produce more rich gas because it gives us value in terms of gross calorific value valuation that we get we have identified. I mean that is the gas pool which you would have observed in the 2P Reserve of Gas. The gas pool that we are sitting we have identified certain wells to be precise 15 Number of wells to be drilled where we are looking at reach gas availability. So that’s the level of detailing on which the plan is placed.
Varatharajan Sivasankaran
My last question on the project costs across of course refinery as well as the petrochemical plant which is just started implementation. Do we see a risk of escalation in the cost the refinery expansion?
Ranjit Rath
To share with you we have already awarded to the extent of 99%. 95% is already awarded. Only 5% residual is left. So we do not foresee any further cost escalation that would hover around 33,000 crores. As far as the polypropylene unit is concerned 360 KTPA. We have identified a cost number of about 7200 crore with the detailing or the basic design that is already done with the process licensing in place, we do not foresee any major problem there.
Varatharajan Sivasankaran
Thanks a lot.
Ramesh Bhojwani
Thank you sir. Ramesh Bhojwani from ETA and Wakil. First and foremost you have made an all encompassing presentation laying out the roadmap and the blueprint for a five year strategy that is going forward up to 2030. Thank you. Virtually each and every aspect of your enterprise both in Oil India and refinery has been very well encapsulated. As a. Also a target of 2 gigawatt of solar renewable energy is something which is a genuine CSR and ESG initiative rather than the other small, small ones which were shown. Correct. But the thought which came to me that 2030 oil India itself will show a top line of 1 lakh crore. And so will Numaligra refinery. That must be your hidden blueprint target in your boardroom. Like to have your comments on that.
Ranjit Rath
Certain things are best left to your imagination. But I am glad that you are right there. That’s the number we are carrying within ourselves. Last quarter we touched our balance sheet became 1 lakh crore. You would have noticed. Yeah. This year we by Hushkar, our net worth missed the 50,000 crore mark. But we are seized of the fact that that’s the number we are carrying within ourselves. Not only within the boardroom. I can assure you every oil Indian and NRL team member aspires to that reach. Thank you. Thank you. Very nice. You have picked up the number.
Ramesh Bhojwani
Thank you. And all the best.
Ranjit Rath
Thank you.
Pranita Ghag
Thank you. Good evening sir. Hello. Towards your right. Thank you for the presentation. Sir, I’m Pranita from Morgan Stanley. Sir, in the last quarter you had mentioned that 11 compressors are being installed to get the flaring reduced. So the benefit what you had mentioned today is that all 11 compressors are installed. And that’s true or is there more to come next year?
Ranjit Rath
This year the plan was 11 basis the identified potentials where we are flaring. So going forward should there be more such gas fields that we will establish. It is a continuous process. Because earlier and I must share with you, earlier we were flaring natural gas and now that’s considered as a big no. Because with the gas price of 6.$5 plus plus we do not want to means a molecule. That’s. One second. I must tell you again. On the compressor story. Earlier the associated gas was also getting flared. So we were actually unable to capitalize on the possibilities of enhanced production of crude oil. So we have started a construct called storage of natural gas of the associated gas. So that would require a bit of compression also. So that way we are preserving the value of natural gas and enhance keeping the enhancement of production on place. So compression and gas monetization and leading to zero flaring will be a continuous affair.
Pranita Ghag
Okay, thank you sir. Actually I just wanted to check on the question was asked earlier on the new and gas. Do you have any percentage in mind what would be the gas molecules which will be getting a higher premium next year onwards?
Ranjit Rath
I would not be able to tell you since it is in the process of getting allocation. But the percentage would hover around 20 to 25%.
Pranita Ghag
Great. Thank you, sir.
Somaiah Valliyappan
Thank you. Hi sir. Hello.
Ranjit Rath
Yes please.
Somaiah Valliyappan
Yes, after him. Is that okay? Please. Thanks for the opportunity, sir. Somaya from Avende Spark. Sir, in terms of NRL excise duty benefit. So for the exports also do we get export, I mean excise duty benefit. That’s one. So I think you did mention. Currently it’s around 0.4 million ton. This is what we are exporting. So do we get export benefits for that? I mean ED benefits for that. And second, in terms of the expanded capacity, where will we be in terms of exports versus what we’ll be selling in the domestic market? Thanks.
Ranjit Rath
On the export we better claim a premium. Bhaskarji, is that correct? Exports.
Bhaskar Jyoti Phukan
Exports. We don’t get the excess benefit, you rightly said. But we export to say Bangladesh. So there is a savings on account of transportation also we get a premium. So that offsets a large portion of the excess benefit. Otherwise we would have realized through the domestic sale. Because our products are flowing to a far flung areas. Because entire product cannot get consumed in and around Siliguri.
So therefore we have certain element of cost on account of transportation that gets reduced if we export through the pipeline that we have to Bangladesh second, we also enjoy a premium on that export. So therefore it is largely offset. But as you have rightly said, our focus is always to saturate the domestic demand first. And what is left out is only export in expansion scenario also a limited export is only kept. It’s not a very large quantity. Maybe out of entire 9 million ton whatever is production that it will give roundabout 7.5 or 8 million ton product of MSNHSD around 0.7 to 0.8 million product only will get exported. That is the quantum.
Somaiah Valliyappan
Helpful sir. So also the expansion, you know this 1.7 to 5.5 million ton the pipeline for two Silguri from there. Could you just explain how the offtake would be? Who will be the, you know offtakers there? And also I think one of the earlier participants did ask about the ramp up on utilization in NRL for the next couple of years. So if you could just touch upon that. Thanks.
Ranjit Rath
The current offtake. See normally NRL has got collaborations with the oil and oil marketing companies because we are not into the marketing of the product. So that’s already in place which is working well. And as we speak both the evacuation. Why both? Both the evacuation mode whether it is rake and the pipeline which will be in effect and once it comes to Siliguri then the opportunities of moving multiple directions and road and railway takes place. As far as the 9 million metric turn is concerned the discussions are on with the oil marketing companies and we see potential collaborations. So we do not see any concern per se from an evacuation point of view or an uptake agreement point of view.
Somaiah Valliyappan
One last question sir. This medium term plan of taking gas to 5bcm and oil would you like to break it up somewhere for FI to 26? How do you see? And also in terms of levers obviously DNPL pipeline is one that gives you an opportunity. And this flaring what you mentioned, the full benefits are there in last year number of on MMSEMD or only partly it is there and the rest we’ll see any levers that will drive us.
Ranjit Rath
I will not be able to share the exact split of it as part of the balance sheet as we speak now. But a the flaring has substantially reduced and this year we will have much control flaring, Much much control flaring. One number that I can share which I spoke during the speech is 1 million standard cubic meter which was getting flared in Kumchai, Arunachal Pradesh is now getting piped. That’s a major chunk.
As far as the breakup you are looking at from an 5 BCM. 5 BCM is a target which is actually contingent on the evacuation facilities now in ENP sector it doesn’t happen that you would be able to untap immediately. So it’s a preparation in the process, we have identified gas wells. We are drilling certain wells. But the difficulty is you cannot drill a well and keep it sucked for a longer period of time if it is a gas well. Therefore, we are strategically drilling that. And considering that the DNPL gets commissioned and gets hooked up, the H2 will give us a leverage in terms of better evacuation facility H1 of next year. We will have leverage of NRL expansion and allocation for the mainland. Therefore, while the IGGL or the Duliajan feeder line will have a 18 months time, at least we will see a substantial increase in terms of evacuation.
In this another outlook which I must share, I had not covered it in my speech recently. Government of India has approved a fertilizer plant in Namrup which is about 12 lakh ton per annum urea where it’s about 10,000 crore investment. And oil India has got a stake of 18%. There is a existing pipeline which needs to be upgraded. That also is being part of that particular program. And by virtue of the expansion of the fertilizer plant. Not expansion, the new plant which is being built we would require a gas requirement of about 2.3 million standard cubic meter per day. So that’s also will add to this. So currently when we are doing about 7 to 8 million standard cubic meter per day we can ramp up to 13 million standard cubic meter per day once we have all these customers and infrastructure in place. So the gas outlook for oil India is in very good shape. Good evening. If this gentleman gets the mic, we will take it after him. Is that okay? Yeah. Mic.
Unidentified Participant
Yeah. Good evening sir. My name is Yusuf Rangwala. I am very happy with your presentation and I’m thanking you from my side and all the team and also giving also calling us for the analyst meet. And as you. As you declare, as you explain. I am very happy to 2025. Our plan is our one is that I’m my best business for that and also why not any. Any supply with Pakistan left now? Pakistan, Sri Lanka, these two country. Any supply with these two countries? Any?
Ranjit Rath
No, we don’t foresee anything of that sort right now.
Unidentified Participant
Nothing is there?
Ranjit Rath
No, no, nothing.
Unidentified Participant
And my best is for a competition. Thank you sir. Good wishes for the good result. Thank you sir. Thank you. Have a good day sir.
Kunal Bhakta
Thank you. Yes, good evening. This is Kunal here from Kni wealth. I have two questions. So in Q4, as was also the case in Q3, the console pat was lower than the standalone path. And I assume that it might be because of maybe some of the overseas exploration entities. But what I would suggest is in terms of the quarterly presentations, it would be good to have a EBITDA bridge essentially reconciling the contribution of various overseas subsidiaries or for that matter domestic subsidiaries, because as you showed us in the presentation, right now there are a lot of entities which are stepped down, be it subsidiaries or associates. So that would be something which would help.
And the other question is with regard to the petrochemical complex, the 7,200 odd crore capex, so what’s the kind of payback period or let’s say return on capital which you are foreseeing? Because this is something which hasn’t been kind of delivering for some of the other companies as well. And everyone is skeptical. So if you can throw some light on this.
Ranjit Rath
Okay, so part of it I’ll answer and then part of it I’ll request MD NRL to answer. First is point is well taken. We will reflect this in our quarterly interactions. The second is about petrochemical. Now the issue is if you have a standalone petrochemical complex that is a challenge. Second, the price point in terms of feedstock input cost and the price point in terms of outputs because of the dumping or the cheaper products that is available, it’s a concern. But when it is integrated to a refinery, you have a golden opportunity. That’s one.
Second, if it is a gas based petrochemical complex, it is very challenging because otherwise globally the gas based petrochemical complexes are primarily driven by a very less cost gas or a feedstock cost available elsewhere in the globe, let’s say in the Middle east or in usa that’s not the case. When we convert gas through RLNG route, the precise numbers as far as Rs 7,200 crore investment is concerned. I would like MD NRL to answer.
Bhaskar Jyoti Phukan
In terms of IRR. It was showing an IRR of almost 14.5% because it’s for us for a refinery it is LPG versus polypropylene. So you can imagine the delta that we will enjoy. So for others it is LNG rlng versus same molecule. So we get a very impressive number there actually.
Kunal Bhakta
Thank you.
Unidentified Participant
Good afternoon, sir. Yeah, this side, sir, to your right. My name is Avinash and I’ve been a shareholder for the last few years. And thank you to the team because it’s been a very rewarding experience. Sir, in the last few years. If I get it right, sir, you mentioned that you’re drilling currently at the rate of 60 oil wells in the year. And if my memory serves me right, you had mentioned that the target for this year was 78, if I recall, in August. So am I correct in ascertaining that we are falling short of the target in terms of drilling? And if it is true, this drilling shortfall, is it in the development wells or the exploratory well?
Ranjit Rath
Sir, you are very right. I appreciate the numbers that you have given me. There are two things which happen. One is when we drill wells. We drill wells with a purpose of not meeting the numbers of the wells that needs to be drilled, but wells which will be fruitful or producible for us. So we would always carry a mix of three verticals as far as the drilling well is concerned. One will be rank exploration, one will be near field exploration within the mining lease, and one is the development exploration. So we have to do a balancing. The year passed by. We, I think drilled about 10 or 11 wells for the exploration purpose. The rest was a mix of near field and the development wells.
Three things happened. Despite carrying the same resources, we spotted 70 number of wells. That’s considering 11 months of operation. You must all appreciate during the last July we had a monsoon which literally taken away 30 days of submergence in the area. It came on the way. That’s number one. Number two, the testing protocols that one needs to follow once you establish sand formations takes time. If you just look at the numbers of drilling, it is easy to meet 78. That’s what you plan for. But then when we had to encounter an establish effort to establish hydrocarbon, the drilling rigs takes longer time. The third and most important despite all this, the meterage per se, if you would appreciate the mitras per se, we have actually surpassed of last year’s midrange. But I will not stop my answer with that.
I will give you some more positives. Two things happened, though we have not declared it as a discovery, because to declare something as a discovery there is a process. You have to follow that protocol and all that but basis our efforts towards exploration. We have established for the first time presence of hydrocarbon in the north bank of Brahmaputra, which was not the case before. By virtue of that, we are now carrying out supplementary seismic and identifying two more additional locations. So these are those additional benefits which happens despite a drop in the number. But just to give you an actual breakup, we spotted 70 number of locations we drilled and completed well testing 59 we completed drilling of wells 62 which is more than 61 of last year and 10 wells were actually at various stages of drilling. And just to top it all, had we got that 30 days, I think we were on track for 78. And had we drilled 78 I would have with full confidence I can share with you, our numbers would have been much better. So I’m glad that you are reminding us and we will continue to be vigil.
Unidentified Participant
Thank you sir. A couple of other questions too sir. The other thing I notice is that the borrowings have increased at probably among the high states that we’ve seen in the last recent years. So also as a ratio. Sorry, I’m sorry, I could not get that. If I’m correct, the borrowings for the company have increased at a rate that we haven’t seen in the last I think six or seven years. Also as a ratio of EBITDA that your presentation mentioned, it’s up 10%. So I mean if you could just elaborate why that is happening and if we see this trajectory actually either picking up or also how it’s going to be in the next two years in terms of borrowings.
Ranjit Rath
A small clarification in fact I would also like to seek from you. And then if you see our debt equity ratio, it’s hovering around 0.25, 0.26 the slightly increase and that’s standalone At NRL case when we take consolidated it is 0.5 because of the capex that we are incurring for the capital expenses we are incurring for the expansion plan. So therefore we do not foresee any major borrowings as far as standalone is concerned.
Let me tell you where from that point two five comes we have got two major borrowings in terms of overseas assets which is dollar denominated. One is the Mozambique one which is about 1.8 billion US dollar investment and about 1 billion for the two assets in Russia. So while you must have taken note, one asset, Tass Uriac has already given us back 100 plus dividend in terms of the entire investment. The Vancore we have got about 88%. And since these are all dollar denominated borrowings, the approvals that we have got from cabinet while we undertook these investments is that the internal accrual will not be able to serving will cannot be used for serving those borrowings. So the global, the let’s say the money that we are accruing in Russian assets will actually being used, will be used for the purpose of mojambi. So that’s the borrowing level limited we have as far as standalone. Otherwise all our exploration efforts are through internal accruals.
Unidentified Participant
Got it, sir. Thank you. And just one last question. For my answer if you could just let us know what is the current cost structure all in cost for the production of oil, crude oil as well as for natural gas. And if you could include the levies and duties in the cost.
Ranjit Rath
I think. I think in one of the slides, if I remember correctly it’s about two dollar per mmbtu. It’s for natural gas and if I remember correctly it is $49 per barrel for crude oil and net realization is about $78 per barrel.
Unidentified Participant
That’s right. Thank you. Thank you very much, sir.
Unidentified Participant
Good afternoon sir. This was regarding your 2030 vision presentation in that it is mentioned that in 2040 you’ll be having 5 gigawatt plus of renewable energy. So it will be just be domestic also. It will be international also like West Asia or Africa. Thank you.
Ranjit Rath
To be very honest, we have not worked on that. Whether that we will have overseas renewable assets going forward. Currently as we speak we have got a subsidiary, wholly owned subsidiary already approval is already all in place. The strategy for that Oil India Green Energy limited is under work in progress right now. Our focus will be domestic renewables and going forward we will see. But I do not have an upfront answer. We are not thought about it to be very honest.
Unidentified Participant
And any funds you will be allocating to this particular any benchmark figure, ballpark figure.
Ranjit Rath
See, we will continue to focus on our core in terms of ENP and the fund allocation. We don’t foresee any major issue. So once the strategy roadmap which is being worked out is given certain fund allocation is already done. In terms of our renewable energy portfolio. Let’s say the 25 megawatt which is already kick started in Assam as part of 640. The work is just on the drawing board for the thousand megawatt in Rajasthan. The CBG plant we have allocated and cost number of about 3000 crore. And I must share with you two locations we have already awarded the EPC and O M contract. One in Bhubaneswar, one in Tinsukia and three locations the tender is already floated. That’s 3000 crore at all. Along with NRL we have this Assam bioethanol. That’s one. Once it is getting commissioned, we would also evaluate future expansions. So we don’t see any problem per se on that.
Unidentified Participant
Thank you sir.
Ranjit Rath
I think any more. If there is no more questions, can we call it a day or any other feedback? Always welcome. Okay, thank you very much.
Operator
Now I request our EDFNA to kindly come and give a vote of thanks to the audience.
Nirav Sheth
Good evening everyone. On behalf of Oil India Ltd. I would like to extend our heartful thanks and gratitude to our CMD sir and other members of the board of Oil India Limited MD and DFO Manorl for being present on this occasion and providing their valuable insight and thoughts about our company.
I would also like to extend my thanks to all the analysts, investors, experts for being present here and raising their valuable points and helping us making this event a grand success. We also solicit similar support cooperation from the investors and the analyst fraternity in days to come. I must also take on record our sincere appreciation to MK Global Financial Service Limited for nicely volunteering this event for the company. I also extend my thanks to the organizing team for beautifully organizing this event in most dignified manner. Now I request everyone to join us for Haiti.