Oil India Limited (OIL) is closely tracking developments in Venezuela and may increase its investment in the Carabobo oil project if production continues to improve, according to Ranjit Rath, Chairman and Managing Director. At the same time, the company has reaffirmed its focus on accelerating domestic growth through higher drilling activity and refinery expansion.
Carabobo Production Outlook Improves
Oil India holds a 3.5 per cent stake in the Carabobo field through a subsidiary, with an investment exposure of around USD 60 million. While there are currently no pending dividends from the Venezuelan asset, Rath said the company remains attentive to production trends. “Production prospects at the field now look better,” he noted. Consequently, OIL may consider additional investment to support higher output if the need arises.
Domestic Drilling Activity Gains Momentum
Oil India has significantly stepped up its domestic exploration and production activities. The company has completed more than 50 wells so far this year and is targeting around 80 wells, a sharp increase from the 30–35 wells drilled three years ago. OIL expects to exceed 70–75 wells in the current year and aims to drill around 100 wells next year. With an inventory of over 200 wells ready for drilling over the next three years, the company is positioning itself for sustained production growth.
Production Guidance Set to Rise
Building on last year’s record output of 6.71 million metric tonnes of oil and oil equivalent, OIL expects to raise its production guidance by 2–2.5 per cent. This increase reflects the combined impact of higher drilling intensity and improved project execution.
Numaligarh Refinery Expansion Advances
Rath also highlighted steady progress on the Numaligarh Refinery expansion project. The expanded refinery, with a capacity of 9 million tons per annum, has entered the commissioning phase. The crude distillation unit is already operational, while full commissioning is expected within six to nine months, followed by a stabilisation period. As reported by indianmasterminds.com, overall, Oil India continues to balance selective international exposure with an aggressive domestic growth strategy, focusing on production enhancement, infrastructure expansion and long-term energy security.
