Oil India plans to invest Rs 25,000 cr to achieve net-zero targets

State-run Oil India Limited (OIL) plans to invest Rs 25,000 crore to achieve its net-zero emissions target, the oil and gas explorer’s Chairman and Managing Director Ranjit Rath said.

Rath said at a press conference that OIL commits to invest in green hydrogen, setting up of 2G ethanol plant, compressed biogas plants, carbon capture utilisation among others.

The explorer, which has recently been elevated to a Maharatna company status, plans to invest around Rs 8,000 crore in setting up of 2G ethanol plant.

Aligned with government’s plan of increasing share of natural gas in India’s energy mix to 15 percent, Rath said OIL plans to convert all its diesel engines to gas engines.

The company is also laying a gas pipeline of 80 kilometers from Arunachal Pradesh to Assam, which would bring gas to OIL’s headquarters in Duliajan, he added

OIL expects crude oil production to increase to 3.8 million metric tonnes (MMT) in financial year 2023-24 (FY24) and to reach over 4 MMT in FY25, said Rath. The company aims to increase its natural gas production to 5 BCM (billion cubic meters) by FY25.

The explorer had recorded crude oil production of 3.18 MMT and gas production of 3.18 BCM in FY23.

The company said it is committed towards energy security of the country through enhanced exploration and expedited production under Mission 4+.

Rath added that OIL plans to drill about 60 wells in Assam and Arunachal Pradesh in the current financial year to enhance production.