Oil companies collectively invested ₹1,28,000 crore during the fiscal year 2023-24, surpassing their initial capital expenditure target by one-fifth and exceeding the previous year’s spending by 12%, as per data from the oil ministry.
Among the oil firms, ONGC, IOCL, BPCL, HPCL, GAIL, and Oil India all outperformed their original annual capital expenditure goals for 2023-24. Notably, IOCL emerged as the leading spender among these companies, with an expenditure of ₹38,660 crore during the fiscal year.
This amount exceeded both its initial allocation of ₹30,395 crore and the previous year’s spending of ₹35,205 crore. IOCL’s investments were directed towards various projects including the construction of a new refinery in Tamil Nadu in partnership with Chennai Petroleum. IOCL also announced acquisition of a 75% stake in the Tamil Nadu refinery project.
Furthermore, IOCL channelled its investments into refining, petrochemicals, pipeline expansion, gas infrastructure, and biofuel production facilities. ONGC, on the other hand, invested ₹34,551 crore during the fiscal year, marking a 14% increase from the previous year’s expenditure of ₹29,209 crore and surpassing the original capital expenditure target of ₹30,125 crore for 2023-24.
As reported by The Economic Times, ONGC achieved a record number of 541 drilled wells during the year. HPCL’s investment for the fiscal year amounted to ₹13,842 crore, with a focus on the construction of a greenfield refinery-cum-petrochemical complex in Barmer, Rajasthan. Additionally, HPCL has been expanding its investments in natural gas, biofuels, and transportation infrastructure.
