Even during the global slowdown, the Indian economy demonstrated a remarkable resilience and could achieve a growth rate of 6.7% in 2008-09. The resilience shown by the continued growth makes it evident that robust government policies and healthy performance of key sectors has proven themselves under distinct conditions.
Crude oil appears to be stabilizing around US $ 70 – 75 per barrel. In our country crude oil production increased modestly from 33.51 MMT in fiscal 2009 to 33.69 MMT in fiscal 2010. In case of natural gas we are comparatively in a better position as India registered a production growth of 44.84% to reach 47.57 BCM in fiscal 2010.
Strategy for growth
The broad Growth strategy for your Companies rests on the following cornerstones.
1) Highest emphasis on People, HSE and corporate Governance
2) Continue focus on Core Business of E&P and pipeline engineering with selective foray to Hydrocarbon value chain segments.
3) Spread wings from North East to Pan India and Global presence to have a diversified Acreage Portfolio.
4) Intensity IOR / EQR to improve Recovery Factors and enhance production.
5) Overseas acquisitions of E&P blocks as vehicle of inorganic growth.
6) Secure position as a key player in new initiatives like CBM Shale gas opportunities.
7) Continue to deploy the philosophy of More Technology per barrel in all operational activities to reduce cost and improve efficiency.
Oil India continues to be the second largest national oil and gas Company in India in terms of total proved plus probable oil and natural gas reserves and production for the year 2009-10. Under the eight rounds of NELP bidding completed so far, your company has participating interests in thirty blocks. Of these, it is the operator in twelve blocks.
For the first time in the NELP regime, your company has acquired operator-ship in an offshore block and joint operator-ship in a deepwater block in this round. Your company is committed to undertaking accelerated E & P activities for both organic and inorganic growth.
During 2009-10 Oil India achieved the highest ever production of crude oil at 3.572 MMT. This is an increase of 3.61% over the previous year’s production. Similarly the production of natural gas too was an all time high at 2415 MMSCM with an increase of 6.43% over 2008-09. Your company as on the date is producing over 10,170 tones of crude oil per day corresponding to a rate of 3.71 MMTPA. The daily rate of natural gas production is also at the highest at 6.7 MMSCMD in the North east and a potential of 0.93 MMSCMD in Rajasthan.
Oil India earned a Profit after tax of Rs 2610.52 crore in spite of having to provide subsidy to the tune of Rs 1548.82 crore to PSU Oil Marketing Companies. With Government’s latest policy reform on prices of petroleum fuels, this subsidy burden is expected to ease in future. Further recent of APM gas price would generate substantial additional revenue which will be channelised to augment E&P efforts.
Improved financial performance has helped your company to increase its net worth to Rs 13,745 crore as against Rs 9331 crore the previous fiscal. You will be happy to learn that for the year 2009- 10. Your Board of Directors has recommended a final dividend of 160% over and above the interim dividend of 180% declared earlier. The total dividend declared for the year works out to 340% on paid up capital.
For the seventh successive year, your company’s audited annual accounts have nil comments from the CAG of India.
Exploration and production
Achievements have been excellent with almost 25% growth in drilling meterage 244% achievement of annual target in the area of in house 20 seismic acquisition and API of first ever 4D seismic in Dikom field.
CBM: I am happy to inform you that Company has ventured into the Coal Bed methane exploration. In the last bid round, your company won a CBM block along with M/s Arrow energy (now Dart Energy Ltd) who will act as the operator.
Shale gas: Shale gas represents another source of unconventional hydrocarbon ad is being explored in a number of countries. Your company has undertaken a shale gas resource assessment study in the North east. Simultaneously efforts are in hand to look for shale gas opportunities with other companies in other parts of the globe.