Oil India Limited (OIL) plans to increase capital expenditure by over 10 percent at Rs 7,500 crore on a standalone basis for the financial year 2025-26 (FY26), the company’s chairman and managing director Ranjit Rath told Moneycontrol.
The state-run oil and gas exploration company is expected to spend Rs 6,800 crore in the current fiscal (FY25), said Rath.
The higher spending in the coming financial year is to enhance the production capability of Oil India to meet India’s rising energy demand and to improve company’s storage facilities.
“This year, we are looking at a Capex of Rs 6,800 crore plus on standalone basis, and going forward, we will have around 10% more (spending). That's primarily for two things, as part of our production enhancement, we are revisiting the processes, and we have initiated production-to-the limit, wherein the PFD (process flow diagram) or process flow schematics are being revisited,” the company's CMD said.
"And a DPR (detailed project report) is underway right now to refurbish the existing infrastructure or the production facility of Oil India Limited to enhance the capacity of our tank farms. So, that would also unlock more fluid flow," he added.
Addressing the ambitious plans of ramping up company's production in the coming years, Rath said Oil India would spend Rs 20,000 crore over the next three years for exploration and production (EnP) efforts.
In the current financial year (FY24), the company's crude oil production stand at 2.614 million metric tonnes (MMT) in the first nine months of the year, compared to 2.511 MMT in the previous year.
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