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Updated On:26/08/2021

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Business Development

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The Business Development department of Oil India Limited (OIL) is engaged in OIL’s growth through business development activities focussing on a two-pronged growth strategy;


  • (i) through acquisition of Exploration & Production (E&P) assets outside India and
  • (ii) through diversification into non-E & P energy value chain, such as, Renewable Energy, City Gas Distribution, Petrochemicals, pipelines and LNG business within India and outside.


Overseas business initiatives

OIL entered the international oil and gas business with its first international acquisition in Oman in 1998-99. OIL currently owns participating interest in 11 oil and gas assets having its footprint in 8 countries viz. Russia, USA, Venezuela, Nigeria, Gabon, Libya, Mozambique and Bangladesh. The Company has a diverse portfolio of exploratory assets, producing assets, pipeline, unconventional shale oil play and has consolidated its experience to take up operatorship in overseas assets of Libya, Gabon and Myanmar.


OIL has strengthened its capabilities and forged strong alliances with notable IOCs and NOCs to emerge as a world class player in the oil and gas sector. It has acquired several notable assets in countries of strategic importance to support India’s energy security, growth and to create a balanced oil and gas portfolio for the Company. A few noteworthy acquisitions of OIL include a) stakes in unconventional shale oil and gas in Niobrara Shale, USA; b) stakes in a mutli trillion cubic feet (tcf) discovered gas asset in Mozambique which is being developed as a mega integrated greenfield LNG Project and (c) stakes in two producing assets- Vankorneft and TYNGD in Russia.



The investments have started paying back. As on 31.03.2021, oil & gas 2P reserves position of overseas producing and discovered assets stood at 54.3912 MMTOE. During 2020-21, production from overseas assets corresponding to OIL’s participating interest in these assets stood at 2.10 MMTOE. As on 31.03.2021, an amount equivalent to USD 519.44 million has been received at the SPV level as dividend corresponding to OIL’s stake in Vankorneft and TYNGD in Russia.


Domestic Diversification Initiatives

Apart from Overseas acquisition of oil and gas assets, the department is also handling OIL's diversifications selectively into other areas of energy value chain. OIL has foraed into Renewable Energy Domain since the FY: 2011-12. Till date OIL has successfully commissioned 174.1 MW of Wind energy projects in Rajasthan, MP & Gujarat, 14.0 MW of solar energy in Rajasthan and total Captive solar plants of 803 KW. OIL has has been generating revenue from these projects regularly while meeting its commitments towards green and clean energy. Efforts are on to further enhance the renewable energy portfolio.


In the area of City Gas Distribution (CGD) Business, OIL, in consortium with other Indian players, has bagged authorisations for 4 Geographical Areas in various parts of the country. HPOIL Gas Private Limited (HOGPL)”, the JVC between OIL and HPCL (50%:50%) is laying infrastructure for CGD in Ambala-Kurukshetra Districts and Kolhapur District GA. The JVC is now operating 14 CNG stations in both the GAs. Purba Bharati Gas Private Limited (PBGPL), another JVC among Oil India Ltd, Assam Gas Company Ltd and GAIL Gas Ltd (26%:48%:26%), is laying infrastructure for CGD network in Cachar, Hailakandi and & Karimganj Districts GA and Kamrup & Kamrup Metro GA.


OIL has also undertaken a biofuel potential assessment study of North East Region (NER) of India as a part of green energy initiative. OIL has also initiated the process for setting up an 1G ethanol plant in NER.


As part of its diversification strategy, OIL was already holding 26% paid up equity in NRL. The company further acquired additional 54.16 % stake in NRL on 26 March 2021, thereby enhancing its stake to 80.16%. OIL is now the promoter and has complete management control of NRL.


As a way forward, the Perspective Plan 2030 of OIL has set an ambitious growth plan to make the company an international E&P player with operations at scale in at least two geographical clusters outside India, higher production, reserves and cash flows while being known globally for its capabilities to extract value from mature assets. In particular, the 2030 growth aspirations of the Company has set up a target to reach Production of 15 MMTOE in 2030 more than 50 per cent of which would be coming from outside the current Main Producing Area (MPA), including two or three sizeable clusters (1.5-2 MMTOE each) outside India.


OIL’s will continue to make dedicated and sincere efforts in promoting businesses to position the Company as the fastest growing energy company with a substantial global presence, contributing positively towards India’s energy security and to emerge as a notable Indian player in the international E&P business.


While E & P business shall continue to be Company’s core focus, selective diversi?cation into midstream, downstream and renewable energy segments is planned in order to balance the existing portfolios. The proposed diversi?cation will largely focus on the followings;


  • Renewable Energy Wind and Solar
  • City Gas Distribution
  • Bio Fuel
  • Green Hydrogen
  • Electric Storage systems