SK Srivastava, CMD, OIL
OIL India Limited in its annual board meeting held on May 27 approved the Q4 & FY14 results.
The India's second biggest state explorer, reported a 26 percent decline in its Q4 as oil production fell and subsidy outgo rose sharply. The Navaratna company said in a statement that net profit in January-March fell to Rs 565.62 crore from Rs 764.54 crore in the same period a year ago.
Here are some key highlights...outlined in its board meeting:
Obtained International credit ratings - Moody’s “BAA2” (higher than sovereign rating) and Fitch Rating “BBB-“ (Stable) (equivalent to sovereign rating).
Invested Rs 6,412.84 crore in acquisition of 40 percent shares in Beas Rovuma Energy Mozambique Limited (BREML) (formerly Videocon Mozambique Rovuma 1 Limited) holding 10 percent participating interest in the Rovuma Area 1 Offshore Block in Mozambique on January 7, 2014.
Raised short term bridge Loan of $1.03 billion for financing Mazambique acquisition.
Raised first External Commercial Borrowing of $250 million for financing domestic capital expenditure.
Highest ever subsidy burden of Rs 8,737 crore, increase of 11 percent over Rs 7,892 crore in 2012-13.
During 2013-14 there has been six discoveries including one in overseas block in Gabon.
These NELP blocks include:
In Mizoram Block (NEPL-VI) pre-drilling activities are in progress, 5 locations have been released for drilling. Drilling is expected to commence in FY 14-15.
In KG Basin Block (NELP-VI) pre-drilling activities are in progress, 7 locations released for drilling. First well is currently under drilling.
In Gulf of Mannar (NELP-VIII) processing of acquired data completed. Two locations are identified for drilling.
In Gabon overseas block, where OIL is the operator, a discovery was made in the third well that was drilled. This is the first discovery of OIL in an overseas venture as an operator. The consortium of OIL and IOCL further planned to drill appraisal and exploratory wells in the block and carry out acquisition, processing and interpretation (API) of further 2D seismic data with closed grid in the block.
Under Bangladesh Offshore Bid Round 2012 the consortium of ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) were awarded two offshore shallow water blocks in Bangladesh (Block: SS04 having a total area of 7271 Km2 and Block:SS09 having a total area of 7022 Km2) with 50 percent Participating Interest in each block.
An OIL led consortium participated in Myanmar Offshore Bidding Round-2013 and were awarded two shallow-water exploration Blocks. OIL has 60 percent PI is the operator in both the blocks.
Oil India Limited, along with ONGC Videsh Limited, in July, 2013, had signed a definitive agreement with Videocon Mauritius Energy Limited to acquire 100 percent of shares in Videocon Mozambique Rovuma 1 Limited, the company holding a 10 percent participating interest in the Rovuma Area 1 Offshore Block in Mozambique.
OIL (40 percent) and OVL (60 percent) closed the deal on January 7, 2013. This investment provides an early entry for OIL into one of the world’s largest natural gas assets, a super giant gas field.On January 20, 2014, OIL successfully commissioned its first mega Solar Power Project of capacity of 5MW in Jaisalmer, Rajasthan and commercial generation from the plant started from January 23 onwards.