Oil India Ltd (OIL) Q4 FY21 Earnings Concall Transcript

Oil India Ltd (NSE:OIL) Q4 FY21 earnings concall dated Jun. 22, 2021

Corporate Participants:

Harish Madhav — Director (Finance)

Dr. P. Chandrasekaran — Director (Exploration & Development)

Pankaj Kumar Goswami — Director (Operations)

Analysts:

Varatharajan Sivasankaran — Antique Stock Broking Limited — Analyst

Probal Sen — Centrum Broking — Analyst

Nitin Tiwari — Yes Securities — Analyst

Sabri Hazarika — Emkay Global — Analyst

Vidyadhar Ginde — ICICI Securities — Analyst

Vipul Shah — Sumangal Investments — Analyst

Vikash Jain — CLSA — Analyst

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

Saket Kapoor — Kapoor & Company — Analyst

Manikantha Garre — Axis Capital Ltd — Analyst

Ankush — InfraRed Capital — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Q4 FY ’21 Earnings Conference Call of Oil India Limited hosted by Antique Stock Broking. 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. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Varatharajan Sivasankaran from Antique Stock Broking. Thank you and over to you, sir.

Varatharajan Sivasankaran — Antique Stock Broking Limited — Analyst

Thank you, Vipuja. Good afternoon, gentlemen and my apologies again for a delayed start. I would like to extend a warm welcome to all the participants and the management of Oil India represented by Dr. P. Chandrasekaran, Director (Exploration & Development); Mr. Harish Madhav, Director (Finance); Mr P. K. Goswami, Director (Operations). I request Mr. Harish Madhav to give a brief and then we can open the house for a Q&A. I’d like to hand over the call to Mr. Harish Madhav right now. Thank you.

Harish Madhav — Director (Finance)

Thank you, Varatharajan. Thanks for arranging this call. Good afternoon ladies and gentlemen. We declared our financial results for Q4 and financial year 2021 yesterday and we had circulated the results as well as the detailed financial analysis to all analysts and investors. Hope everybody has received that. Before we open up for the question and answer, I’d just like to give a brief about the company’s performance in last year and the results that we declared yesterday.

On the production front, the crude oil and natural gas production both suffered last year mainly because of the COVID and the Baghjan blowout incident and the other related disturbances. The crude oil production in Q4 was down to around 0.72 MMT and on annual basis, it was 2.96 million metric tonnes as compared to 3.13 million metric tonnes last year. On the natural gas front also the production was — for Q4, production has remained almost static at around 649 MMSCM, but on annual basis, the production was down to 2,642 MMSCM as compared to 2,800 MMSCM last year.

On the financial results, the first three quarters were really bad for Oil India Limited because of the very, very low level of crude oil prices and the additional expenditure on account of Baghjan incident of about INR380 crores, but Q4 because of the recovery in the crude prices, the performance has improved. For Q4, profit declared is around INR848 crores and for the annual level, we have declared a net profit of INR1,741.59 crores as against INR2,584 crores in the previous year. The EBITDA for Q4 was about INR1,780 crores.

Crude oil price realization, we all know that the previous year because of the COVID impact, the crude price internationally had suffered a severe shock and the average realization in the Q4 thanks to a recovery of prices in fourth quarter ultimately, we realized around $44, $43.99 to be precise and in the previous year, the average realization was $60.75 per barrel. So there was a drop of around $17 per barrel in the oil price realization. Similarly, in case of natural gas also, the price was lower from $3.46 average in ’19-’20 to $2.09 average in 2020-’21. The combined effect of these two price decreases is close to around INR3,000 crores on the turnover and a significant quantum on the net profits.

On the expenditure side, we have taken a write-off of about INR850 crores towards various exploration which had gone dry, wells which had gone dry, total by INR850 crores mainly in K.G. basin project and the Mizoram wells. The Baghjan blowout which happened in last year May, it was fully controlled by middle of November 2020 and we incurred a total cost of about INR449 crore in management of this blowout operation including the compensation that we have to pay as per NGT order as well as the various relief and rehabilitation operations which we undertook during that period. This additional expenditure of INR449 crores we have reflected as an exceptional item in our accounts for March 2021.

But in spite of all these challenges of COVID, Baghjan blowout, the company has — in Q4, we have recovered significantly. As I just mentioned, we have reported EBITDA of around INR717.54 [Phonetic] crore in Q4 and in fact, the last year Q4 EBITDA was about INR100 crore negative because the prices had started falling by end of February and March, so Q4 last year was really bad.

In a major development, which also people are aware now, we have already intimated the stock exchanges, we acquired additional 54.16% equity stake in the Numaligarh Refinery from Bharat Petroleum on 26th March, 2021. We paid a total cash consideration of INR8,676 crores. This has increased our equity stake in Numaligarh from 26% to 80.16% as on 31/03/2021. This acquisition of 54% stake also includes 10.53% share that we have acquired on behalf of the Government of Assam, which they intended to buy from BPCL, but because of the ongoing elections at that point of time, they could not do that. So we have purchased them and during the current year, the Government of Assam will buy these shares from Oil India Limited. Accordingly, the reflection of this transaction has been made in the accounts.

In addition to our investment in Numaligarh of INR8,700 crore, we have also made capex investment of close to INR4,600 crores in other E&P activities and infrastructure creation. During 2021, two of our major infrastructure projects, the secondary tank farm at Madhuban and a gas compressor station at Makum in — both in Assam were dedicated to the nation by Honorable Prime Minister Shri Narendra Modi. Increasing the exploration acreage, we participated further in the OALP bidding round, round five and we have acquired four more blocks in that which has increased our acreage to — by 13% during the year.

One good thing I would like to share with you. We feel it’s a major achievement. Oil India Limited under the OALP rounds of bidding, we were the first company to start and complete the survey and other exploration activities and we are also the first company to start survey and complete the activity in one of this OALP round one block. Company has been recognized by The Federation of Indian Petroleum Industry and we have been awarded the Oil & Gas Exploration Company of the Year Award for 2021.

Since we all know that country and everybody — every part of the country, people had a lot of suffering because of the COVID and as our contribution to the society, we have been in the forefront of helping and assisting the state government and the central government in COVID management. Company is providing assistance under it’s CSR initiatives for setting up several oxygen plants in hospitals, providing concentrators to governments and large scale vaccination of all the employees, their families and other related stakeholders. We have already incurred an amount of about INR55 crore, INR56 crore under the CSR initiative for COVID management in all these activities.

And last thing before I complete, our Board has declared — recommended a dividend, final dividend of additional INR1.50 per share for 2021. This is in addition to the dividend of INR3.50 that we paid in February 2021. We have along with us our Director (Exploration & Development), Dr. Chandrasekaran and Mr. P. K. Goswami who is our Director (Operations). So in case, sir, anything you wish to further add to this whatever I have said, we can do that. After that, we can open up for the question and answers.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah, good afternoon. Like Mr. Director (Finance) whatever he — he has covered almost everything. I would like to elaborate on one or two points like our continued focus and the stress was in Northeast and Rajasthan. So we continued to focus on those new acreages in these basins. So we could win four blocks here. Two in Rajasthan and two in Northeast — Assam. So like what Mr. Director (Finance) was telling, immediately within one month of the PEL, we started the seismic data acquisition and we have also completed in one block. So what I’m trying to tell is the planning is going on in the right direction and we have almost covered the exploration acreages, the seismic data acquisition whatever needs to be done is being done. We have almost covered 96%, 97% of the total target.

So with this, the exploration campaign is going on in the proper way and we were also successful in getting certain fields appraised. So, one is Lakwagaon, which show the extension of the field and then we could appraise it properly and it was a good extension of the field and this field and also Balimara and also Baghjan. So these fields we are going ahead with certain fast track appraisal-cum-development in the next two to three years. So the plants have been elaborately made and the models have been made and we are going ahead with a fast track development on this.

And we have also made — this year the success rate was 50% in exploration drilling and we have also made a gas discovery, Dinjan in Assam. Then this year we could also maintain an RRR [Phonetic] of more than 1, reserver replacement ratio which is 1.16 this year and so the 1P, 2P results are in a comfortable position. So this is in a nutshell and as Mr. Harish Madhav, our Director (Finance) has told, so all our efforts have been recognized and we have been awarded the Best Exploration Company of the Year during 2021. Any particular thing I would be willing to take. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Probal Sen from Centrum Broking. Please go ahead.

Probal Sen — Centrum Broking — Analyst

Thank you for the opportunity, sir, good afternoon. Two, three questions. One was I think the reserve replacement ratio was mentioned of 1.16. Can we get a sense in terms of absolute numbers what has been the 1P and 2P reserve addition in this year?

Dr. P. Chandrasekaran — Director (Exploration & Development)

1P was — I’ll just give you the numbers.

Probal Sen — Centrum Broking — Analyst

Yes sir.

Harish Madhav — Director (Finance)

Probal, I think you can continue with the second question. In the meantime, we provide this information.

Dr. P. Chandrasekaran — Director (Exploration & Development)

1P was 7.4136 [Phonetic] million tonnes equivalent.

Probal Sen — Centrum Broking — Analyst

Sorry, how much sir? 7.4?

Dr. P. Chandrasekaran — Director (Exploration & Development)

7.4126 [Phonetic], 7.4, yeah 7.4 and 2P was 6.03.

Probal Sen — Centrum Broking — Analyst

Is it possible to share what is the total 1P and 2P as on date, sir?

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah, the total 1P would be 105.55 and the total 2P would be 190.84.

Probal Sen — Centrum Broking — Analyst

190.84?

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yes.

Probal Sen — Centrum Broking — Analyst

Okay, sir. That is very helpful. The second question was a broader one. Before the Baghjan fire incident, I remember that the guidance was that Baghjan would be one of the most promising new areas that was in our portfolio — would be one of the key drivers for production growth. So, my question was now that the damage has been contained and work has started as before I presume, do we still maintain that level of optimism and are there some more regulatory compliances that we will need to do in order to get more permissions going ahead for further drilling and development since I believe it does become — has a part of it as a protected forest. That was the broader question sir.

Dr. P. Chandrasekaran — Director (Exploration & Development)

So the focus on Baghjan is even more optimistic than what I think I recall this sort of a question last time also. So in fact, as I told you, the appraisal of the area has been quite promising and quite encouraging and our efforts will be like as I told you earlier also, our focus is basically while we would continue to do the development and you are in all the mature fields, there are four, five trust areas which we are targeting. Chief among them is Baghjan and so we have also got an extension of some oil leg. So I won’t go into the details, but my point is that Baghjan is in fact promising, more promising than what we had envisaged earlier, number one. Number two is your question of — about the regulatory — regulations from the government or the national parks —

Probal Sen — Centrum Broking — Analyst

From the environment side, sir, on a broad level.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah, yeah, yeah. So we have been given permission to go ahead and drill extended reach wells, okay. So what we would be doing is we will not be entering any eco-sensitive area. We will be placing our rigs anywhere there and we would be following all the guidelines of maintaining the distance from the boundary. So we would be drilling only an extented reach drilling, which would be beneath the surface and so we have already identified the locations and we would be going ahead with those sort of drilling programs in the next two to three years and so we are taking care of all those things and we are not — the intention is not at all to enter any eco-sensitive areas. These we have already got the approval from the government. So we will be doing only — limited to only that. [Speech Overlap].

Probal Sen — Centrum Broking — Analyst

Sorry, go ahead, sir.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah, please, please, go ahead.

Probal Sen — Centrum Broking — Analyst

Okay, sir, just one final question if I may. Near-term guidance for FY ’22 oil and gas production or FY ’23, maybe if you can share those, sir? Any targets which we might have set or submitted.

Harish Madhav — Director (Finance)

Probal, as you know, the target fixation is basically when we declare the final targets based on the MoUs that is finally signed, but for 2021, MoU numbers I don’t recollect exactly, but as per the plan, what Director (Exploration) just now mentioned, so as per that plan, in 2021 — ’21-’22 the crude oil production I think we are going to target at around 3.05 million metric tonne and natural gas around 3.1 BCM or 3.2 BCM.

Probal Sen — Centrum Broking — Analyst

Okay, that is very aggressive, sir. That is good to know. Thank you, sir. I’ll come back if I need to. Thank so much for your time. Have a nice day.

Operator

Thank you. The next question is from the line of Nitin Tiwari from Yes Securities. Please go ahead.

Nitin Tiwari — Yes Securities — Analyst

Good afternoon, sir. Thanks for taking my question. First question is a bookkeeping one. So if you can give us some capex guidance for FY ’22 and ’23 and preferably if you are able to break it up in segments [Phonetic] like how much you are going to spend in survey, in exploration and development, drilling and so on and so forth. Sir, that would be my first question.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Could you kindly repeat. I’m sorry.

Harish Madhav — Director (Finance)

I’m taking this question sir.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Okay, okay.

Harish Madhav — Director (Finance)

Mr. Nitin, our total planned capex plan for this year is around INR4,100 crores — INR4,108 crores if I correctly remember and this includes major this thing in survey and and all those things. Breakup will be I think — our approved plan what we have as in hand today what we have planned is INR4,100 crores and last year, our survey expenditure was around INR800 crores plus because OALP rounds what we discussed in the opening remarks, survey we had undertaken, extensive survey in various OALP blocks, but current year, out of this, the survey will be around INR400 crores to INR500 crores will be the survey expenditure out of the INR4,100 crores and about INR1,700 crores to INR1,800 crores will be in the drilling operations. So total exploration will be anywhere close to around INR2,400 crores, INR2,500 crores and then the further capital equipments and the overseas acquisitions. So the overseas means the investment in Mozambique. So that’s how it is INR4,100 crores.

Nitin Tiwari — Yes Securities — Analyst

And sir, do we have like you know any number for FY ’23 as well which we have fixed as of now or that is still open?

Harish Madhav — Director (Finance)

’23 detailed plan is not there, but our investment will remain in this range around anywhere between INR4,000 crores to INR4,500 crores depending on the activity.

Nitin Tiwari — Yes Securities — Analyst

Right, sir. Sir, my second question is related to our crude oil production. So from past like in couple of quarters if we see the trajectory, the trajectory is of a decline in production. So I just wanted to understand what is the company’s outlook going ahead and which oilfields we foresee like you are going to basically add to production and so if you can maybe throw some light on that?

Dr. P. Chandrasekaran — Director (Exploration & Development)

Harish, sir.

Harish Madhav — Director (Finance)

Sir, you and Goswami sir can take this question.

Dr. P. Chandrasekaran — Director (Exploration & Development)

So, basically I would request to Director (Operations), before that I’ll just — see, as you rightly said almost — most of the fields are old and they are mature. So we are going ahead with complete digital modeling of all these fields. So we are looking for unswept areas, the normal reservoir management principles and we will be identifying those areas where there is still some unswept oil and we are also going on with certain EOR projects. So this is as far as addressing the issues in mature fields.

And also what we have — some certain positive happenings which we had in the last couple of years is like we said in response to a previous question, is we have got some good developments in three, four, five fields. One is — four fields are in Assam and Arunachal Pradesh. One is Baghjan, Balimara, then Lakwagaon. Lakwagaon we have had a nice appraisal done during 2021 and Balimara also we have done an appraisal and Baghjan as I told you that the field, so I cannot say certain things now because they are not announced, but we have got some good wells which we have indicated and extension or very which is maintaining the positive — which is not — which can be developed in a nice manner.

So in the next three years, that is ’21-’22, ’22-’23, ’23-’24, we will have a very intensive drilling program of development and appraisal program in these areas and Kumchai in Arunachal Pradesh. This particular field, which we could not get the PML for more than 15 years, we got it in 2018 and now after a lot of persuasions, the government has granted us till [Phonetic] 2038. So this has granted us an opportunity to plan properly now. So the Kumchai field in Arunachal Pradesh and these three fields in Assam and also Rajasthan, we have got Baghewala which is a heavy oil field.

So these fields we can say that they are semi virgin even now. So we are going ahead with certain intensive drilling program in these areas in the next three years. This plus the management of the mature fields will lead us to maintaining and enhancing the production slightly over the current levels in the next three to four years. So we are very hopeful that we will be able to maintain the current levels and plus add definitely something more than the current levels.

So this is — and also there is a good opportunity and potential in gas. In gas, this year also we got a discovery, Dinjan and Baghjan is a very prolific field. So Director (Operations) would explain to you that we are going ahead with some infrastructure projects for handling more gas per day and so with that infrastructure also coming up in the next couple of years, the wells will be drilled and we are very hopeful that the oil and gas production would be maintained and gas production would be enhanced substantially.

Pankaj Kumar Goswami — Director (Operations)

Good afternoon. I think most of the things are nicely explained by Director (Exploration & Development). One or two things I would just like to add. One thing is that in mature fields, there are so many non-producing wells we do have now. So we are trying to reduce the number of non-producing wells by some — incorporating new technologies for this model for these wells in which we are converting this to producing wells. That is one agenda we do have now for gaining production from the old — very old wells. So this is one thing.

And as Director (Exploration & Development) has rightly said that there are some bottlenecks in areas for infrastructure. Those also we have taken up during last two years. So some of the projects have been completed and some projects are to be completed within this year and next year. So with that, all those bottlenecks will be over and Baghjan as sir has rightly said, Baghjan is a very prolific field, we are developing Baghjan [Indecipherable] pipeline. We have started. This will be completed during two or three months. So there Baghjan production will also go up. So you have to remain patient also in Baghjan and two, three new infrastructure like in [Indecipherable] all those things are coming up. So in that production that we — everyone was thinking that production is going down, but we have all these plans ready to make it faster growth. Thank you.

Nitin Tiwari — Yes Securities — Analyst

Great sir. So basically if I understood it right, what you’re trying to do is you’re trying to maintain your crude oil production and basically grow your gas production through infrastructure addition and sir also highlighted about the appraisal program that you are going to undertake over next three years. So if the understanding is right like you know next three years, we will be undertaking the appraisal sort of program and development would like just be post that. So any reasonable incremental production would take about three to four years. Is that — am I correct, sir?

Pankaj Kumar Goswami — Director (Operations)

No, not exactly. So the appraisal of these fields has been completed to a large extent. So what we have now going ahead is only some out of field appraisal wells but otherwise, most of these would be development wells. So what will happen is yes, but the wells do take some time to get drilled and so it will take a couple of years, say two to three years. So as we look at this, we will maintain these production levels from the current year and slowly step it up in the next couple of years. So that’s the story so far.

Nitin Tiwari — Yes Securities — Analyst

Understood. Thank you so much. I’ll get back in the queue.

Operator

Thank you. The next question is from the line of Sabri Hazarika from Emkay Global. Please go ahead.

Sabri Hazarika — Emkay Global — Analyst

Yeah, good afternoon, sir. I have three questions. So first is on the cost and bookkeeping side. So if I look into your expenditure breakup, so there has been a lot of volatility since the last three, four years, even if we like consider annual numbers. So your provisions which were earlier at around INR400 crore to INR500 crore range, I think in FY ’20 there was impairment and some overseas provision but FY ’21 also it has been around INR1,000 crore. Of course FY ’21 also had some adjustments. So, going forward, how would the trend be like and out of this provision, how much could be the recurring provision and how much would be non-recurring going ahead?

Harish Madhav — Director (Finance)

Sabri, in provisions part, see, last year out of the total INR1,800 crore provision which was there, it included an impairment provision of close to — of over INR1,200 crores [Speech Overlap]. So that leaves a normal provision range of say anywhere between INR500 crore and INR600 crore. In the current year, that INR1,000 crores what we have seen, that again an impairment provision of about INR100 crores has been taken for the Russian assets where we have taken last year also on revaluation, about INR100 crores the Licence 61 Russia is there and additional provision of a well in K.G. also has been taken for about INR400 crores. So the normal range of provision if we remove the exploration write-off or impairments, etc, it remains around INR500 crore, INR600 crore value.

Sabri Hazarika — Emkay Global — Analyst

Right and this time you have taken like impairment in any assets especially overseas assets.

Harish Madhav — Director (Finance)

Overseas assets License 61 Russia which is INR100 crores and other it is — the Venezuela also we have taken an impairment of about INR60 crores.

Sabri Hazarika — Emkay Global — Analyst

Okay, so going ahead, do we have any more risk of further impairments or right now we are done actually in terms of impairment and any kind of provisions I mean from the existing assets, not the new ones.

Harish Madhav — Director (Finance)

Sabri, yes from the existing assets, whatever six, seven assets were there, see this License 61 we have taken a large provision already last year and current year. Even Oil India (USA), the shale gas assets there also we have taken a significant provision last year. So I don’t think there is any further scope of any further provision in these two assets. That leaves Venezuela. That also Venezuela only investment was about INR54 million, INR55 million out of which INR60 crores we have taken. So Venezuela also I don’t think there will be any major impairment coming up in future.

Mozambique and Russia, other two [Indecipherable]. So the current indications no impairment but anyway, this depends — everything depends on the development how it happens and so many factors which are considered in impairment testing. So if something comes up, we will have to provide but apparently there is no indication that there will be any further impairments.

Sabri Hazarika — Emkay Global — Analyst

And no decision — nothing has been like decided on that Mozambique. I think insurgency and Total taking their staff out so that thing currently —

Harish Madhav — Director (Finance)

Mozambique that is the current development and there is a force majeure in place. So the indication is that things should get resolved within six months to one year time frame and the project should be back this thing, but in any case, this factor of Mozambique the recent development of insurgency and force majeure while doing the impairment testing, we have considered this adequately and considering even one year force majeure, two years force majeure, no impairment has been worked out.

Sabri Hazarika — Emkay Global — Analyst

Okay, okay, thanks. And secondly if I look into other expense heads, another one is the cost of support service and contracts. So this has also fluctuated — it used to be around INR800 crores, INR900 crore. Then it went up to INR1,100 crore. This year, it has been INR1,400 crores. So was there any one-off or this has like — I mean considering FY ’21 is a low oil price year, so the support contract cost going up. Anything specific on that?

Harish Madhav — Director (Finance)

No, see if you see the last year’s figures, this cost of support services contract cost was around INR895 crores last year. This time it has increased to INR1,400 crores. One major element which comes into the contract services is the cost of surveys, G&G studies that we undertake. As we mentioned in the beginning also in the OALP blocks, this time we have undertaken extensive survey. Total expenditure on surveys which used to be around INR350 crores to INR400 crores, this has increased to around INR800 crores plus in current year 2021. So because of that, that about INR500 crores additional cost is coming in this.

Sabri Hazarika — Emkay Global — Analyst

So this will continue for some time or we are done largely?

Harish Madhav — Director (Finance)

Not necessarily. I think OALP major survey work has been done, but still around INR500 crores annually survey we will continue.

Sabri Hazarika — Emkay Global — Analyst

INR500 crore annual survey we will continue.

Harish Madhav — Director (Finance)

Maybe so next one or two years till all the blocks or these studies are done.

Sabri Hazarika — Emkay Global — Analyst

Okay and another is insurance, rent and all, that has actually fallen significantly in FY ’21. It used to be around again on the INR700 crore range. It has fallen to INR220 crores. So anything on that? There has been some reversals, I guess some negative numbers.

Harish Madhav — Director (Finance)

I think that is basically because of the exchange rate variation. This also includes the exchange rate gain or loss. Last year because rupee had depreciated from about INR69 to INR74, there was a loss of about INR500 crores. This time there is an exchange gain of INR100 crores. So because of that only this variation is there.

Sabri Hazarika — Emkay Global — Analyst

Okay and just one last question. Sir, your dividend this time was high? This was because of NRL, right? The final dividend?

Harish Madhav — Director (Finance)

Yes. NRL and IOC, yes both.

Sabri Hazarika — Emkay Global — Analyst

NRL and IOC both. Okay, sir. Thank you so much and all the best.

Operator

Thank you. The next question is from the line of Vidyadhar Ginde from ICICI Securities. Please go ahead. May I request Mr. Ginde to please unmute themselves if muted from your handset.

Vidyadhar Ginde — ICICI Securities — Analyst

Yeah, sorry. My first question is if you could give us the breakup of your oil and gas 1P and 2P reserves.

Harish Madhav — Director (Finance)

I think Vidya, it’s the first question our Director (Exploration) already gave that response.

Vidyadhar Ginde — ICICI Securities — Analyst

I don’t think he gave a — he didn’t give an oil and gas breakup. He gave the total —

Harish Madhav — Director (Finance)

You want oil and gas breakup?

Vidyadhar Ginde — ICICI Securities — Analyst

Oil and gas breakup, yeah.

Harish Madhav — Director (Finance)

If you don’t mind, we will provide you separately.

Vidyadhar Ginde — ICICI Securities — Analyst

Sure, no problem. [Speech Overlap]. So my next question is on the — what do you expect now on the gas pricing. There was some talk of some changes, but now with the global environment having changed, there will be some improvement in H2 this year and next year is likely to be far better given the significant improvement in underlying gas prices. So do you think the formula will change or we may stay the same formula. What appears to be the probability of any change on that front?

Harish Madhav — Director (Finance)

Vidya, just one thing is on the first thing on the change in the formula, I think we all know that there was a committee formed by the government. Government had conceded that prices are low, need a revision. Committee was formed. Committee has submitted its report to the government in December. It is under consideration. That’s all I think we can say on this part because it’s a policy matter, I don’t know when the government will decide this year, next year, second half or whenever but as far as the current formula is concerned, yes, the prices should start looking up and second half, we should have somewhat a little bit recovery at least the price.

Vidyadhar Ginde — ICICI Securities — Analyst

Okay, thank you. That’s it from me.

Operator

Thank you. The next question is from the line of Vipul Shah from Sumangal Investments. Please go ahead.

Vipul Shah — Sumangal Investments — Analyst

Hi, sir. So what is the consolidated debt as on 31st March?

Harish Madhav — Director (Finance)

Yeah, it will be around INR18,000 crores.

Vipul Shah — Sumangal Investments — Analyst

INR18,000 crores. Oh, that’s a lot of debt considering the size of our profit pool, so —

Harish Madhav — Director (Finance)

Don’t consider the size of profit. We also have a big asset, NRL in our fold. So it’s a big refinery which we have. So this INR18,000 crores when I say, this includes about INR6,300 crores on account of NRL.

Vipul Shah — Sumangal Investments — Analyst

Yeah. But not long ago you were cash-rich, I think cash-plus four, five years ago, if I remember correctly.

Harish Madhav — Director (Finance)

See that is — see, earlier we were cash-rich earning money from interest. Now, we have invested it in the business now. So naturally, the major investments have happened in Russia assets.

Vipul Shah — Sumangal Investments — Analyst

Yeah. So all Russia, Mozambique, but none of these assets are going to give you return in near future, sir. So my question is, how do you bring down the debt?

Harish Madhav — Director (Finance)

I don’t think your question is right. Russia is already paying us dividend, almost 60% of the total investment, we have already recovered from dividends in Russia. So Russia, two assets which we acquired in 2016, they are regularly paying us dividends and good dividends. In four years’ time, we have been able to recover about 60% of the investment.

Mozambique, yes, Mozambique, there have been issues which were not anticipated. It is going into trouble once again. So, once the asset recovers, I think it will start paying that. And Numaligarh investment in any case is going to give us continued good dividends and good investment. So we’ll be able to liquidate this loan. Out of that INR18,000 crore what I just mentioned about INR2,000 crores we have already repaid which we borrowed from Numaligarh, a fairly short-term loan, and another about INR2,000 crores, we’ll be able to liquidate within the current financial year.

From — we anticipate our cash flows to be that much. So we’ll be able to do that. So next three to four — next three years’ time frame, I think Numaligarh loan should be fully liquidated. That would leave Russia and Mozambique only. Mozambique, of course, when the production starts as anticipated in 2024 then only the flow of funds will start.

Vipul Shah — Sumangal Investments — Analyst

And sir, three or four years down the line, how should we look at your total production oil equivalent? I mean, oil and gas combined? Which hovers around 525-550 [Phonetic] currently.

Harish Madhav — Director (Finance)

Chandrasekaran?

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah. See roughly it is around 5.5 million, 5.6 million tonne equivalent for now. In all the positive it should reach anywhere above 7 million, 7.2 million tonne equivalent in the next ’23, ’24.

Vipul Shah — Sumangal Investments — Analyst

By ’23, ’24?

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah, by ’23, ’24, max ’24, ’25, we should cross 7 million, 7.2 million tonne equivalent.

Vipul Shah — Sumangal Investments — Analyst

Okay, sir. Thank you and all the best for the future.

Operator

Thank you. The next question is from the line of Vikash Jain from CLSA. Please go ahead.

Vikash Jain — CLSA — Analyst

Hi, thanks for taking my question, operator. So, I just wanted to know, so there is a lot of positive momentum exchange around the some exploration success and whatever you can see in Baghjan. Very simplistically put, Oil India has seen over the last ten years, production — oil production fall by almost 25%, okay, last nine years or so. And can we say that the number that we see, the annual average for this year is that a clear bottom and there is going to be a significant rebound from here over the next couple of years or the coming three to five years?

Harish Madhav — Director (Finance)

Vikash, you’re talking about the production levels?

Vikash Jain — CLSA — Analyst

That’s right. So oil production, which I think — which kind of you have fallen by 25% in the last nine years or so. So I just wonder if this is really the floor, and from here that all businesses that you’re seeing, and this should start looking up.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah, sir. Harish, sir? [Speech Overlap] Yeah, that’s right. See, there are lot of challenges, but as I — I’m Director (Exploration & Development). As I have been telling in response to several earlier questions, see, there are some development activities which are being taken up in certain fields. So this should definitely take us up. At the same time, the mature fields will continue to decline. So we need to — we need to top it up and then add something some — few barrels over and above. So we are very hopeful that this will happen.

So as you rightly said, if I can borrow your words, yes, this should be the rock bottom. And so we have never gone below 3 million tons, this is the first time in several years now. That is due to several other reasons, other than reservoir also. So in the next couple of years or two to three years, this bound [Phonetic] management also is likely to be much better, number one. And then this Baghjan incident and other things we are likely to come out of it — I mean, we have already come out of it, but still there could be some minor hiccups here and there. So those would be addressed.

The matured fields will continue to decline. So that, as Director (Operations) was saying, we are going ahead with liquidating the old [Phonetic] wells and then doing a lot of work over. And the development of certain, still I can call them semi-virgin, because whatever has been produced, there is still more potential like in three, four fields whatever I just mentioned. So this is the outlook which we have and we are working towards it.

Vikash Jain — CLSA — Analyst

Okay. And the other question is, sir, the debt number that you said that was standalone or concern? That — what is standalone debt overall sir? Harish sir? Hello?

Dr. P. Chandrasekaran — Director (Exploration & Development)

Hello? Harish sir?

Operator

Sorry to interrupt sir, the line of Mr. Harish Madhav got disconnected. Please stay connected while we reconnect him.

Harish Madhav — Director (Finance)

[Technical Issues]. We were disconnected in between [Indecipherable]

Vikash Jain — CLSA — Analyst

Okay. So, can I ask my question now Harish sir?

Harish Madhav — Director (Finance)

Yeah, Vikash, please carry on.

Vikash Jain — CLSA — Analyst

So you know, I was asking sir, the debt number that you mentioned that was standalone or that was concerned? That was concerned, right?

Harish Madhav — Director (Finance)

Standalone is about 15.

Vikash Jain — CLSA — Analyst

Okay. And this — the other question that I had was this particular year, I think we did touch upon this briefly, survey expenses went up significantly. So where do you see them settling down next year onwards?

Harish Madhav — Director (Finance)

Next year, we have I think total planned survey expenditure is around INR450 crore — INR450 crores to INR500 crores, that range.

Vikash Jain — CLSA — Analyst

Okay. So I mean, this went up to about INR850 crores this year, right?

Harish Madhav — Director (Finance)

Sorry?

Vikash Jain — CLSA — Analyst

This year it was about INR850 crores, right?

Harish Madhav — Director (Finance)

This year it was around INR830 crores, INR850 crores, yes.

Vikash Jain — CLSA — Analyst

Okay. That’s it. Thank you so much sir. Thank you.

Operator

Thank you. The next question is from the line of Avishek Datta from Prabhudas Lilladher. Please go ahead.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

Hello sir.

Harish Madhav — Director (Finance)

Yeah. Good afternoon, Avishek.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

Hello, sir. Sir just wanted to know like, can you just update on the Numaligarh capex program?

Harish Madhav — Director (Finance)

Numaligarh, the refinery expansion program which is approved as of now, it is INR22,000 crore-plus, and the project got approval, I think last year 2020 sometime from the cabinet. And it’s — already activities have started. The work orders etc, are being issued. And by ’24, I think the refinery is supposed to get completed. In the meantime, there is some talk of reconfiguration also, in addition of some units etc. So the revised cost will be around INR28,000 crore for the refinery. But this is subject to approval from the Government of India. So present approved cost is INR22,000 crores.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

And sir, just wanted to know like this excise benefit which you currently enjoy in Numaligarh, that will continue even post expansion of — to 9 million tonne?

Harish Madhav — Director (Finance)

It will continue, yes.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

Okay. And how do you plan to fund this revised [Indecipherable] whatever is — what you’re planning, sir?

Harish Madhav — Director (Finance)

This total investment cost is debt equity ratio is 70:30, so 30% will be the equity contribution. Out of that 30%, something will be from NRL’s internal resources, and the rest by the equity contribution by the partners. So based on INR28,000 crore, basically our equity contribution will be about INR3,500 crores.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

How much sir?

Harish Madhav — Director (Finance)

About INR3500 crores for all India, for 70% equity that we will be holding in.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

Okay, sir. Thank you, so much sir.

Harish Madhav — Director (Finance)

And this investment [Speech Overlap] will span over a period of three to four years on the project cycle.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

Sir, this revised capex will also include — will also delay the timeline project commissioning?

Harish Madhav — Director (Finance)

I don’t think so, project timelines will remain the same.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

Okay. And by that time the two pipelines will also be commissioned which is — one for product and one for the crude oil?

Harish Madhav — Director (Finance)

Yes, yes, otherwise the refinery expansion project will not be completed because crude oil sourcing has to be there and evacuation facilities, that is the complete project. Crude oil pipeline, evacuation pipeline, everything.

Avishek Datta — Prabhudas Lilladher Pvt. Ltd. — Analyst

Okay, sir. Thank you so much, sir.

Operator

Thank you. Next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead.

Saket Kapoor — Kapoor & Company — Analyst

[Foreign Speech] sir, for the opportunity. Sir, as you were alluding to the fact that a major part of the debt — not major, but a substantial part of the debt is attributed [Phonetic] toward the foreign exchange also, so how much is it for the Mozambique and Russia? Russia, I think so you clarified INR2,000 crores is what is still left as of — after the dividend payout.

Harish Madhav — Director (Finance)

See, if — our total standalone debt is about INR15,000 crore. Russia — the Russian debt figures into the consolidated results because that debt-to-fund raising was at the subsidiary company level in Singapore. This debt is $500 million equivalent, so that’s INR3,500 [Phonetic] crore. And the domestic debt, what we have about INR15,000 crore. This is INR6,300 crore as of 31st March, INR6,300 crore was from this Numaligarh refinery expansion investment, and the balanced — entire thing is for this INR15 crore minus INR6 crore, INR9,000 crores is for Mozambique.

Saket Kapoor — Kapoor & Company — Analyst

Didn’t get sir. You gave the breakup last night, I missed it. Out of the INR15,000 crores, INR6,300 crores is towards…[Speech Overlap]

Harish Madhav — Director (Finance)

Out of the total domestic standalone loan borrowing of INR15,000 crores, INR6,300 crore is for the Numaligarh investment and remaining around INR8,700 crores, INR9,000 crores is for Mozambique.

Saket Kapoor — Kapoor & Company — Analyst

Is for Mozambique? Okay. So Mozambique is there in the standalone. That is what — And sir, what is the — what is the asset size for…[Speech Overlap]

Harish Madhav — Director (Finance)

Mozambique and Numaligarh both are in stand-alone and Russia is under the subsidiary of Singapore.

Saket Kapoor — Kapoor & Company — Analyst

Okay, sir. And what is the asset size? I mean what are the equivalent oil and gas which will be anticipated once commercial production commence in Mozambique, say two years down the line as the program is?

Harish Madhav — Director (Finance)

Mozambique production is not two years. It is — I think it will be somewhere in the — as of plan it’s somewhere around 2023, 2024 only. And I didn’t get your question about the asset size, I didn’t get. What was it?

Saket Kapoor — Kapoor & Company — Analyst

Sir, I only want to understand what is the oil equivalent from the Mozambique asset? We have paid a substantial part in the acquisition, so when the oil starts flowing from the field, what is the — oil equivalent in the field as per the discovery — or as per the investment when we made? The total oil equivalent that could be extracted over the life cycle of the oil field?

Harish Madhav — Director (Finance)

I think as per the Mozambique, if I correctly remember, the Mozambique total size of the reserve it was estimated at about 75 Bcm. So that is the — of the total project’s lifecycle. Initial two traits [Phonetic] which we are developing is for 6 million metric tons per annum capacity each traits. So 12 million tonne capacity production will start in 2023, 2024 as per the current plan. And then subsequently these traits will be expanded to other five or six traits. So total production ramp-up will happen somewhere over timeframe of maybe around 10 to 15 years. But initially to begin with ’23, 24, 12 million tonne production will come out of which 4% share will be of Oil India.

Saket Kapoor — Kapoor & Company — Analyst

Right sir. And sir, as you told the technological changes that we are going, moving away from the traditional way, so what is the — what are the benefits? And in adopting these technological advancements, is the requirement for say similar size and all, which are currently used in exploration or — do this — do you see significant changes in the way the consumables will also change? In the technological advancement, which you spoke earlier?

Harish Madhav — Director (Finance)

[Indecipherable] sir, I think this you can take us sir. This is about the exploration part.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah. As far as [Speech Overlap] Oil India is concerned, we have got a very, very good system in place. So we have also inducted a number of technologies in our areas like even this cyclic steam simulation which is being inducted in Rajasthan, that is first of its kind in India. And that is also the first in the world like at that depth, around 1,100 meters, we have successfully done the cyclic steam simulation in Rajasthan, that is the first in the world itself.

So we — what we are doing is like in the exploration and the development and production, we have — so this year we have also inducted airborne Gradiometry survey in the entire — our acreages in the Northeast where doing a regular seismic is not possible because of the logistics and the terrain and things like that.

So what we are doing is, we have — it’s an airborne Gradiometry survey that we have — we have already started and we are doing. And then we have also — we are — we have entered into a lot of work association to say for example IIT Bombay, and then Norway for the carbon capture and sequestration. So we are going ahead with that. And the EOR also, we are going ahead in — both in the carbonated water and also the traditional, you know, the chemical EOR.

So — and we are also — we have also inducted something called passive cyclic thermography. It is — we have to say that we are upright, and then we are detecting as in the, it’s a purpose thing, we are…

Saket Kapoor — Kapoor & Company — Analyst

I was — sir, looking at that your traditional way, similar pipes was required for the exploration purpose. So is there any change and shift in demand due to this new technological advancement or your requirement for the same remains the same? And what has been your annual requirement for this year and your projections going forward?

Dr. P. Chandrasekaran — Director (Exploration & Development)

See, the requirement is to reduce the cost of production. So ultimately, [Speech Overlap] so when the gas price is less, so if you’re not able to produce below the cost of the — you know, below the price, it’s not going to be economical. So what we are doing is, one is in the exploration plan, another is also in the production in enhancing the productivity per well.

So this also is a bigger focus which we’re doing. Like in gas well, what we are doing is — I think the Director (Operations) will tell about this. We are going ahead with changing the whole size of the tubing and the casing, based on the productivity of the wells. And the thermal productivity, we are trying to enhance, so that less number of wells are drilled for producing same amount or more amount of gas.

So as far as the oil is concerned, we are going out of the [Indecipherable] things for this. So maybe see, in these sort of technologies when we indulge it is, if you want me to give us some quantification of the money which has being spent, it is normally around INR200 crores to INR300 crores to INR400 crores, which in the overall thing may look optimal, but along with this, we are also inducting the data acquisition in the technology in fact. So those I would like…[Speech Overlap]

Saket Kapoor — Kapoor & Company — Analyst

Sir, last point is about PSUs are investing a lot in the renewable segment. And also the government has preponed this ethanol blending program also. So anything on that front, sir, where we are making any further investment?

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah. Harish, sir, if you have these numbers like, for renewables?

Harish Madhav — Director (Finance)

Yeah. Renewables, we have total capacity of 188 megawatt, 174 megawatt in wind energy and 14 megawatt in solar in Rajasthan, Madhya Pradesh and Gujarat. And but — these all investment took place on — started with 2011, 2012, last three four years, we have not added anymore capacity.

But coming to your question of ethanol thing, we are also considering setting up a grain based ethanol plant of about 2,000 tonnes per day — 200 tonne per day capacity something like that in Assam, state of Assam. But that is very elementary stages of the study there etc. But we are thinking of setting it up. That is the only thing as per as all India is concerned on the ethanol front.

Saket Kapoor — Kapoor & Company — Analyst

And on the bio gas plant sir, anything on that? Anything in the…[Speech Overlap]

Harish Madhav — Director (Finance)

I don’t think we are anticipating anything, we’re planning anything.

Saket Kapoor — Kapoor & Company — Analyst

Right, sir. Sir, I was looking at the other income component also sir. We see a significant part of your profit, there is the other income for this quarter. What constitutes this INR1,330 crore of other income, sir?

Harish Madhav — Director (Finance)

This includes a large part of it towards the dividends that we have received from Indian Oil Corporation and Numaligarh. Numaligarh is — there was a significant increase in dividend, because of this investment thing, last portion of their reserves etc, they have distributed. So about INR700 crore plus dividend we got from Numaligarh, and about INR500 crore from Indian Oil Corporation.

Operator

Sorry, to interrupt. May I request Mr. Kapoor to please rejoin the queue. We have participants waiting for their turn.

Saket Kapoor — Kapoor & Company — Analyst

Sir, allow me to conclude sir. May I conclude?

Harish Madhav — Director (Finance)

Yes, please.

Saket Kapoor — Kapoor & Company — Analyst

Yes. Sir, then out of your profit of INR1,210 crore, if we remove this other income part, we are before excess [Phonetic] at a losses for this quarter also? That means the operational profits are not sufficient of meeting the expenses.

Harish Madhav — Director (Finance)

Gentlemen, please tell me one thing. My investment in Numaligarh is it for other income for deposits or it is for an operational income? [Speech Overlap] My investment in Indian oil corporation is purely an operational income. [Speech Overlap]

Saket Kapoor — Kapoor & Company — Analyst

But sir since revenue from operations… [Speech Overlap] Yeah, yeah. Please.

Harish Madhav — Director (Finance)

Revenue from operations, my investment this is how I basically develop my business. If I am acquiring a refinery, it’s pretty much an operational income. Just because of accounting purpose, I have a classify it as other income, does it make it an business income? That is very much an operational income.

Operator

Thank you. The next question is from the line of from Manikantha from Axis Capital. Please go ahead.

Manikantha Garre — Axis Capital Ltd — Analyst

Yeah. Thank you for providing an opportunity, sir. So I have three questions. One is, with respect to the mature fields that Chandrashekaran sir has mentioned that, production is going to decline here. So if you can just quantify that like, with EOR activities? Also are we saying that the decline would be there and how much would be that? And without EOR activities, what could be the decline? That’s my first question sir.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Yeah. See, EOR — as far as EOR is concerned, Oil India has been doing it maybe during the last — say, over the last three decades. Okay? So there is a very regular thing called a low salinity water injection, so that is to give a wide — I mean, that is a method. And almost around 15% of our current oil is produced through that only, okay?

So now what we are doing is, this sort of the system is being continued in all the fields wherever it is required. In addition, what we have done is we have carried out the screening of all of our reservoirs, and then we have got it also screened by other institutes, and we are going ahead as — with chemical EOR which is — which will be unique to each reservoir. So that would have to be done at the — so in the next two to three years, we would be completing the pilots in atleast two to three reservoirs.

So then it would be replicated in the total field. And what we hope is there may be around another five year to seven years in the horizon of seven to ten years around the 10% of the total production would be through this process.

Manikantha Garre — Axis Capital Ltd — Analyst

So if I understand it correctly, you are saying that with the chemical EOR, we’ll be still be maintaining the production or there will be reduction with that as well?

Dr. P. Chandrasekaran — Director (Exploration & Development)

No, sorry, let me try to explain it. See, in a normal manner business as usual, every reservoir will decline and the production will decline. That is due to the decline in pressure and there will be a — So that is a normal. That is normal with any reservoir.

So what we try to do is, we try to arrest this and then we try to increase the recovery factor. So this can be done through several methods, which I mean, I don’t think I would go into the details, but it is enough to say that there are several methods which we have already are implementing in our fields, which is called — which is one of the primary things is low salinity water injection which is we have got an enormous infrastructure of water injection with — which is a very low salinity. So that is one thing.

Another thing is about chemical. This chemical also we had already inducted some a few years back, and now what we have done is, we have again completely done the — we are doing the digital model, seeing the sweet spots and then planning, we need to drill wells, and inject those chemicals in that part of the field. So this is — this is a time-consuming and [Indecipherable] process. So that is why I said, there’ll be a decline and we are trying to arrest it through an enhanced oil recovery method, which worldwide if you see, it’s around 3% of the recovery which can be achieved through the production through EOR. We are hoping that it can be increased around the 7% — 7% to 8%, which is a very, very positive number for us.

Have I tried to answer your query?

Manikantha Garre — Axis Capital Ltd — Analyst

Yeah, sir. That makes it clear. Thank you. And my second question is with respect to a news article which talked about us reentering the fuel retail business. Now that we have NRL refinery, can you please throw some light there, sir? Are there any plans to enter the — in the fuel retailing?

Harish Madhav — Director (Finance)

Not immediately, no plans immediate. But certainly it is an open area and whenever time permits and the finances permit, the business opportunities are there, we will certainly like to do it. But there are no immediate plans.

Manikantha Garre — Axis Capital Ltd — Analyst

Sure sir. And the last question is, you mentioned that the debt, which was as of March 31, 2021 has already declined by INR2,000 crores. Is that what you’ve said sir?

Harish Madhav — Director (Finance)

Yes, yes.

Manikantha Garre — Axis Capital Ltd — Analyst

Thank you, sir. Thank you so much.

Operator

Thank you. The next question is from the line of Ankush [Indecipherable] from InfraRed Capital. Please go ahead.

Ankush — InfraRed Capital — Analyst

Yeah. Just one question. Just last few years the NRL dividend payout has been closer to 80%. Any thoughts on what is it going to be going forward?

Harish Madhav — Director (Finance)

The going forward [Indecipherable] NRL because they have to invest in the expansion projects, so certainly it will not be that high. Last year it was exceptionally high, but so far they were distributing high dividends because there were no major capex involved. But now since the capex is there, so dividend distribution certainly will come down. But they are also guided by the government guidelines on dividend distribution.

So certain minimum dividend, they will have to pay. So that depends on how much investments each year is coming up and how much profitability and accordingly it will be decided. But minimum 30% of the profit is what is they’re supposed to pay minimum.

Ankush — InfraRed Capital — Analyst

Understood. Thank you.

Operator

Thank you. Ladies and gentlemen, as this was the last question for today, I would now like to hand the conference over to Mr. Varatharajan Sivasankaran for closing comments.

Varatharajan Sivasankaran — Antique Stock Broking Limited — Analyst

Yeah. Thank you, Vipuja. Sir, I had one last question, of course. We seem to be getting once in a while this news in the media talking about the government considering taking away some of oil fields from ONGC and Oil India, and probably auctioning it. So is it something which is of note [Phonetic] at this point in time? Should we be concerned?

Harish Madhav — Director (Finance)

I think this question — of the exploration Dr. Chandrashekaran…[Speech Overlap]

Dr. P. Chandrasekaran — Director (Exploration & Development)

Sorry, it’s not very clear, I’m sorry, could be please repeat?

Harish Madhav — Director (Finance)

No, it was about the divestment or taking over of our oil fields, nomination fields by the government and giving to other parties. That news…[Speech Overlap]

Dr. P. Chandrasekaran — Director (Exploration & Development)

See, I don’t think we can make a comment on this. See this is what is being — this was obviously told about by honorable Chief Minister of Assam. So I don’t think we can make any comment on this. But what we can definitely tell us, yes, if they are handed over, we would definitely, you know, like to — I mean, because of our presence here for ages, we can handle it. That’s not an issue, but we don’t think we can make a comment on this. Thank you.

Varatharajan Sivasankaran — Antique Stock Broking Limited — Analyst

Not a problem. Thanks a lot all the participants and thanks a lot management for a very productive and very instructive Q&A session. Have a nice day.

Dr. P. Chandrasekaran — Director (Exploration & Development)

Thank you.

Harish Madhav — Director (Finance)

Thank you, Varatharajan. On behalf of Oil management, my sincere thanks to you and Antique Broking for organizing this call. Thank you so much. I hope we have added all the queries of the people. In case something is still remaining, they can approach us, we will give the responses through email or other ways also.

Varatharajan Sivasankaran — Antique Stock Broking Limited — Analyst

Thanks Harishji.

Operator

[Operator Closing Remarks]