Oil India Limited (OIL) is targeting ten million tons of oil equivalent (MMTOE) in oil and gas production by 2029 as it expands exploration across new onshore and offshore frontiers. The Maharatna public sector energy company plans to increase domestic oil and gas production while strengthening exploration across deepwater and ultra-deepwater blocks. OIL is also looking to expand its integrated energy portfolio and selectively enter clean energy businesses.
Oil India Steps Up Exploration
OIL Chairman and Managing Director Ranjit Rath said the company’s growth strategy will focus on increasing domestic hydrocarbon production, accelerating exploration, strengthening integrated energy offerings and selectively developing clean energy opportunities. The company currently operates largely in mature fields. However, it has increased drilling, workover activities and reservoir management to support production growth. During FY2025-26, OIL produced 3.450 million tonnes (MMT) of crude oil and 3.186 billion cubic metres (BCM) of natural gas. The company also achieved a terminal crude oil production rate of 10,566 tons per day, its highest level in 14 years.
Production Growth Continues in FY2026-27
OIL drilled 74 wells during FY2025-26, including 22 exploratory wells and 52 development wells. Meanwhile, its Reserve Replacement Ratio (RRR) increased to 1.02, indicating continued additions to its reserves. Production growth has continued into the current financial year. During the first quarter of FY2026-27, crude oil production rose 11% year-on-year to 0.950 MMT. Furthermore, OIL recorded an all-time high daily crude oil production of 10,921 tonnes, equivalent to around 84,109 barrels.
Focus on Deepwater and Ultra-Deepwater Exploration
OIL is expanding its offshore exploration portfolio across several promising basins. Its current acreage includes blocks in the Andaman, Krishna-Godavari, Mahanadi and Kerala-Konkan basins, along with ultra-deepwater assets. As India seeks to expand its domestic hydrocarbon resource base, OIL is also developing capabilities for frontier offshore exploration. The company’s deeper offshore focus is expected to play an important role in its long-term production strategy as it explores new sources of domestic oil and gas.
Building Capabilities for India’s Energy Security
OIL’s expanded exploration programme comes as India seeks to increase domestic hydrocarbon production and reduce dependence on imported energy. The proposed Samudra Manthan scheme could further support the development of offshore exploration capabilities and help accelerate exploration in India’s frontier basins. As reported by millenniumpost.in, through deeper offshore exploration, increased drilling and improved reservoir management, OIL is working towards its target of 10 MMTOE of oil and gas production by 2029 while also diversifying into emerging energy opportunities.
