Benefit From Deregulation

Oil India has high cash reserves and a high returns ratio. Its prospects will get more attractive as the government deregulates oil pricing. Measured by total proven and portable oil and natural gas reserves and production, Oil India Ltd (OIL) is India’s second-largest oil and gas company. Its primary activities include exploration, development, production and transportation of crude oil and natural gas. In the last fiscal (FY10), OIL produced 3.57 mmt (million metric tonnes), which is equivalent to 25.8 million barrels of crude oil. It also produced 2,415 mmscm (million metric standard cubic metres) of natural gas. While the production of oil went up by 4.2 per cent, that of gas rose by 7 per cent compared to FY09. The company’s revenue mix in FY10 was as follows: crude oil and natural gas contributed 97 per cent of total revenue; transportation contributed 2 per cent; and the rest came from the production of LPG. Strengths Gamut of E&P Assets: OIL’s exploration and development areas include 32 blocks through 19 mining licences and 13 petroleum exploration licences. These are situated in Assam, Arunachal Pradesh, Uttar Pradesh and Uttaranchal. It also has production sharing contracts (PSC) in 30 blocks of Krishna Godavari, Krishna Cauvery and Rajasthan (places where oil has already been found). It also has participating interest in 17 exploration and development blocks overseas in Egypt, Gabon, Iran, and a few other countries. In all OIL has

This article was originally published on March 14, 2011.