Business Development Initiatives
The Business Development department of Oil India Limited (OIL) is engaged in OIL’s growth through business development activities focussing on a two-pronged growth strategy;
- through acquisition of Exploration & Production (E&P) assets outside India and
- through diversification into non-E & P energy value chain, such as, Renewable Energy, City Gas Distribution, Petrochemicals, pipelines and LNG business within India and outside.
Overseas business initiatives
OIL entered the international oil and gas business with its first international acquisition in Oman in 1998-99. OIL currently owns participating interest in 10 oil and gas assets having its footprint in 7countries viz. Russia, Venezuela, Nigeria, Gabon, Libya, Mozambique and Bangladesh.The Company has a diverse portfolio of exploratory, discovered and producing assets, and has consolidated its experience to take up operatorship in overseas assets of Libya, Gabon and Myanmar.
OIL has strengthened its capabilities and forged strong alliances with notable IOCs and NOCs to emerge as a world class player in the oil and gas sector. It has acquired several notable assets in countries of strategic importance to support India’s energy security, growth and to create a balanced oil and gas portfolio for the Company. A few noteworthy acquisitions of OIL include (a) stakes in a mutli trillion cubic feet (tcf) discovered gas asset in Mozambique which is being developed as a mega integrated greenfield LNG Project and (b) stakes in two producing assets- Vankorneft and TYNGD in Russia.
The investments have started paying back. As on 31.03.2022, oil & gas 2P reserves position of overseas producing and discovered assets stood at 50.64 MMTOE. During 2021-22, production from overseas assets corresponding to OIL’s participating interest in these assets stood at 2.20 MMTOE compared to 2.10 MMTOE during 2020-21. As on 31.03.2022, an amount equivalent to USD 663 million has been received at the SPV level as dividend corresponding to OIL’s stake in Vankorneft and TYNGD in Russia.
Domestic Business Development Initiatives
Apart from Overseas acquisition of oil and gas assets, OIL is also taken steps for diversification selectively into other areas of energy value chain. While E & P business shall continue to be Company’s core focus, selective diversification into midstream, downstream and renewable energy segments are planned in order to balance the existing portfolios. The proposed diversification are largely focus on the followings :
- Renewable Energy - Wind and Solar
- Green Hydrogen
- City Gas Distribution
OIL has always been at the forefront of embracing new technologies and concepts for opening up new vistas and put a stride forward towards sustainable energy security of the nation. As a part of its strategic intent OIL over the last few years has diversified into the Alternative (renewable) Energy domain, especially into the wind and solar segments. OIL has entered into Renewable Energy Domain since the FY: 2011-12 and has so far established Commercial nature renewable energy projects of 188 MW comprising of 174 MW Wind and 14 MW solar energy projects with a total investment of Rs.1,230 Crore. Total revenue generated from Renewable Energy projects till 2021-22 is Rs. 870 Crore.
Green Hydrogen is now being considered as the 'fuel of the future’. OIL commissioned the first pilot plant of the country of capacity 10 Kg per day for Green Hydrogen Production, which can be scaled up to 30 Kg per day, at Jorhat, Assam. OIL is progressing with a study on blending of Green Hydrogen (GH2) with Natural Gas (NG) with an objective to assess the impact of the blended gas on the existing facility. The study will be done in collaboration with IIT, Guwahati.
In the arena of City Gas Distribution (CGD) Business, OIL in consortium with other Indian players, has bagged authorisations for 7 Geographical Areas in various parts of the country. HPOIL Gas Private Limited (HOGPL)”, the JVC between OIL and HPCL (50%:50%) is laying infrastructure for CGD in Ambala-Kurukshetra Districts and Kolhapur District GA. The JVC is now operating 22 CNG stations in both the GAs. Purba Bharati Gas Private Limited (PBGPL), another JVC among Oil India Ltd, Assam Gas Company Ltd and GAIL Gas Ltd (26%:48%:26%), has started domestic pipe natural gas supply in Cachar, Hailakandi and & Karimganj Districts GA with 290 nos. domestic connections. Consortium of OIL (49%) and AGCL (51%) has successfully bid and obtained 3 New Geographical Areas (GAs) for city gas distribution - one GA in Assam and two GAs in Tripura. Letter of authorization of the GAs received during March, 2022. The process of creation of a Joint Venture Company (JVC) to look after these GAs is in progress.
OIL’s will continue to make dedicated and sincere efforts in promoting businesses to position the Company as the fastest growing energy company with a substantial global presence, contributing positively towards India’s energy security and to emerge as a notable Indian player in the international E&P business.
While E & P business shall continue to be Company’s core focus, selective diversification into midstream, downstream and renewable energy segments is planned in order to balance the existing portfolios. The proposed diversification will largely focus on the followings :
- Renewable Energy Wind and Solar
- City Gas Distribution
- Green Hydrogen
- Electric Storage systems