 "Oil India Limited aims to drill 75 wells this year, expanding production as it navigates challenges in a volatile market.")
Oil India Limited (OIL) aims to drill over 75 wells this financial year as part of its ambitious drilling program, following a growth trend in the past years. The company reported a 6% net growth in crude oil and natural gas production despite a natural decline in existing sources. OIL targets an annual output of 4 million metric tonnes of crude oil, focusing on deeper and more complex wells that require advanced drilling techniques. Additionally, the expansion of Numaligarh Refinery is underway, aiming to increase its capacity from 3 MMTPA to 9 MMTPA by December 2025. These strategic initiatives position OIL to significantly enhance production and contribute to energy security in the region.
Oil India Limited (OIL), a state-owned exploration and production company, is gearing up to drill over 75 wells this financial year (FY25), according to Chairman and Managing Director Ranjit Rath. This ambitious plan follows a notable increase in drilling activity over the past three years, where the company drilled 38, 45, and 61 wells, reflecting a 35 percent annual growth.
Speaking at a recent press conference, Rath mentioned that OIL has achieved a 5-6 percent growth in crude oil and natural gas production over the last two years, despite a natural decline of 12 percent in existing production. Currently, the company aims to produce 4 million metric tonnes of crude oil annually. The vast sand reservoirs along the south bank of the Brahmaputra River offer a promising opportunity for exploration and production.
OIL is also utilizing advanced drilling techniques, including multilateral and radial drilling. The company emphasized the importance of accessing high-powered drilling rigs, especially as some wells are projected to reach depths of 6,500 meters, the deepest in northeastern India. Additionally, OIL is exploring permanent carbon sequestration options in its Rajasthan oil fields.
In conjunction with these efforts, the expansion of the Numaligarh Refinery continues, unaffected by ongoing unrest in Bangladesh. By December 2025, the refinery’s capacity will increase from 3 MMTPA to 9 MMTPA, supported by a new 1,635 km crude oil trunk line from the Paradip port in Odisha.
Rath confirmed that both the drilling program and refinery expansion are integrated projects aimed at achieving full production levels by FY27.
This ambitious growth plan positions Oil India Limited as a significant player in the energy sector, enhancing India’s oil production capabilities and supporting the region’s economic development.
Tags: Oil India, NRL, crude oil production, drilling program, Numaligarh Refinery, energy sector, Assam, carbon sequestration, oil exploration, Ranjit Rath.
-
What is OIL planning for FY25?
OIL plans to drill over 75 new oil wells in the fiscal year 2025. -
How will OIL achieve its drilling goals?
OIL aims to use more drilling rigs and newer technology to increase efficiency and production. -
Why is OIL focusing on newer technology?
New technology can help OIL drill faster and safer, leading to better oil recovery. -
How many rigs will OIL use for this project?
While the exact number of rigs hasn’t been stated, OIL is increasing its fleet to meet the drilling targets. - What benefits does this drilling plan bring?
The drilling of more wells can boost oil production, create jobs, and support local economies.
