Oil India Ltd

In a decisive move to fortify India’s natural gas ecosystem, Oil India Ltd. has signed a landmark agreement with GAIL (India) Ltd. valued at approximately Rs. 65,000 crore over 15 years. The pact ensures long-term offtake of natural gas produced by Oil India across its northeastern and Rajasthan fields, strengthening domestic supply security and supporting India’s broader goal of increasing gas in its energy mix to 15% by 2030.

Oil India Ltd (OIL), a state-owned enterprise, has successfully initiated natural gas production from the Bakhri Tibba block, a Discovered Small Field (DSF-III) located in the arid terrain of Rajasthan’s Jaisalmer district near the India-Pakistan border. The field has begun producing 67,200 standard cubic meters per day (SCMD), which is now being supplied to major downstream players including GAIL and Rajasthan Rajya Vidyut Utpadan Nigam Ltd.

In a significant step toward enhancing self-reliance in critical mineral resources, India’s fifth auction round has seen state-owned and private sector firms secure key mineral blocks across the country. State-run Coal India, Oil India, NLC India, and Hindustan Zinc Ltd. led the bidding for graphite, vanadium, potash, halite, phosphorite, and rare earth element (REE) assets. The auctions also marked the nation’s first successful potash block auction.

Oil India Ltd., the state-run energy explorer, reported a 21 percent year-on-year decline in its net profit for the March quarter of FY25, driven primarily by weaker realizations from crude oil and natural gas. Despite the quarterly setback, the company posted record-high oil and gas output for the fiscal year and a 10 percent increase in annual net earnings. Capital expenditure more than doubled, underscoring Oil India’s aggressive investment strategy.