Oil India Plans Rs 25,000 cr Investment for Net-Zero Goal by 2040, Announces CMD Ranjit Rath
Oil India Ltd., a state-owned company, plans to invest about Rs. 25,000 crore ($3.38 billion) to achieve net-zero greenhouse gas emissions by 2040. Ranjit Rath, chairman and CEO, made an announcement today.
The company recently reported record-high profits and production for FY 2022–2023, and the ambitious plan coincides with India’s national goal of achieving energy self-sufficiency.
investing in renewable energy
The funding will go toward projects to stop flaring as well as a variety of sustainable energy options, such as compressed biogas, solar, geothermal, and green hydrogen.
8,000 crore of the Rs 25,000 crore set aside will go toward the production of the biofuel 2G ethanol. “Our subsidiary NRL (Numaligargh Refinery) has already placed an order for replacing grey hydrogen with green hydrogen. We are targeting a 20-kilo tonne per year capacity,” Rath said.
The business has also established solar power plant joint ventures, teaming up with Assam for a 620-megawatt project and Himachal Pradesh for a 150-megawatt solar endeavor.
These actions are a part of Oil India’s larger commitment to boosting the nation’s potential for renewable energy.
production and exploration
Oil India wants to boost its crude oil output to 4 MMT and natural gas production to 5 BCM in accordance with Mission 4+, a government initiative to expand crude oil and natural gas production. In the oil-rich areas of Assam and Arunachal Pradesh, the business intends to drill about 60 wells this fiscal year. “We are now looking at enhancing our gas portfolio very, very aggressively,” the CMD noted, expressing confidence in the new gas price formula, especially for difficult fields that allow a price band plus 20%.
Recently, Oil India recorded its highest-ever production of gas at 3.18 billion cubic meters (BCM) and a 5.5% YoY increase in crude oil output at 3.18 million metric tons (MMT). The company reported a standalone profit after tax (PAT) of Rs 26,810 crore, up 75.20% year over year, and a consolidated PAT of Rs 79,854 crore, up 46.66% year over year.