The company expects crude oil production to reach 3.9-4 million tonnes in the 2026-27 financial year and 4.2 million tonnes by FY29, the official said.
Oil India’s production target comes after it recorded its highest-ever daily crude oil output of 11,017 tonnes on August 3.
“From an operational point of view, we achieved 1.707 billion oil and oil equivalent of production during this quarter. The crude oil production for the quarter was 0.95 MMT (950,000 metric tonnes), which has increased by 11% on a year-to-year basis,” the official said.
Crude oil price realisation stood at $98.73 per barrel in the June quarter, up $26.20 per barrel from a year earlier.
Oil India reported a net profit of ₹28.70 billion for the June quarter, compared with ₹8.13 billion in the year-ago period. Net revenue from operations rose 59% to ₹79.58 billion from ₹50.12 billion.
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Gas production, drilling plans
The company is also targeting an increase in natural gas production from 2.93 billion cubic metres currently to more than 5 billion cubic metres by 2029. Natural gas prices stood at $7.19 per cubic metres in the June quarter, compared with $6.72 per cubic metres in the previous quarter.Oil India expects higher gas sales as Numaligarh Refinery increases its gas receipt capacity to 2.5 million standard cubic metres per day in the December quarter of FY28, from 1 million standard cubic metres per day currently.
The company has reiterated its target of increasing upstream production to 10-12 million tonnes of oil equivalent by FY30, from 8.7 million tonnes of oil equivalent in FY26.
It plans to drill 100 wells in FY27, compared with 74 in FY26. The official said the company would seek to increase the number further.
“Going forward, they would like to stretch further and try to, again, ride on at least 10% increase in the number of wells to be drilled,” the official said.
Oil India also reported a natural gas discovery at the Vijaya Puram-3 exploratory well in the Andaman Basin.
The company spent around ₹30.50 billion on capital expenditure during the June quarter. It had set a capital expenditure target of ₹86 billion for FY27, although the company said the quarterly spending could lead to changes in its plans for the remaining quarters.
Oil India has spent nearly ₹300 billion on Numaligarh Refinery so far and plans to spend a further ₹110 billion-₹120 billion on its expansion.
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Debt rises as capital spending continues
The company’s consolidated net debt stood at ₹372.33 billion. This includes ₹190 billion of debt taken for Numaligarh Refinery, a $1.4 billion loan for its project in Mozambique and a $550 million bond issued by its Singapore subsidiary, which is due for repayment on May 27, 2027.
Oil India also said discounts on petrol and diesel narrowed during the June quarter. The discount on diesel was ₹10 per litre at the start of the quarter and had fallen to nil by its end. The petrol discount declined to ₹3 per litre from ₹13 per litre over the same period.
On the floods in Assam, which have caused damage to life and property, the company said its operations had not been affected.
