Oil India Recovers Bulk of $1 Billion Russia Outlay
Oil India has recouped more than 91 percent of its 1 billion dollars investment in the Vankorneft and Taas Yuryakh development in Russia, it has received a sum of approximately 942 million dollars in dividends and is likely to get the rest of its money back in the next financial year its Chairman and managing director Ranjit Rath said.
Ranjit says, The company currently has some 330 million dollars worth of dividends trapped in its bank accounts in Russia and the company anticipates collecting the same in the coming fiscal year.
"Your company maintains a strong presence in overseas producing and development assets across Russia, Venezuela and Mozambique through joint ventures. These assets contribute significantly to your company's reserves and production portfolio, with cumulative production of 2.097 mmtoe (million metric tonnes of oil equivalent) during FY24-25 primarily from Russia. A highlight of the year was the robust dividend flow from Russian assets, amounting to $942 million representing over 91 percent of our original investment in Vankorneft and Taas Yuryakh, with full recovery expected in the coming year,"adds Ranjit
Oil India, ONGC Videsh and Bharat Petro Resources Ltd acquired 23.9 percent stake in JSC Vankorneft and 29.9 percent stake in LLC Taas-Yuryakh from Rosneft Oil Company, the national oil company of Russia. Rosneft operates Vankor and Tass-Yuryakh fields and are its-wholly owned subsidiaries.
Speaking on the Mozambique LNG project, he said that construction of the facility is expected to resume by the end of 2025.
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"In Mozambique, your company has invested in the world-scale LNG project, which will establish a 13.12 mmtpa low-carbon, integrated two-train LNG facility. With improved security conditions, the project is expected to restart in the second half of 2025 and is well-positioned to meet the growing demand of the Indian gas market," He said.
On the operational performance of the company, the cumulative production of oil and gas in FY25 reached a record level of 6.710 million metric tonne oil (mmto) equivalent.
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"Your company recorded its highest-ever oil and oil-equivalent gas production of 6.710 mmtoe since inception, along with the highest-ever natural gas production of 3,252 mmsc (million metric standard cubic meters). Crude oil production also maintained consistent year-on-year growth, rising from 3.01 mmt in FY21-22 to 3.458 mmt in FY24-25-an increase of nearly 15 percent over three years," he added.
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The cumulative capex estimated for this fiscal (FY26) is around Rs. 17,000 crore, he told the media post the AGM, compared to around Rs. 8,500 crore in the past fiscal. The company has set a target of Rs. 1.3 trillion worth of cumulative capital expenditure by the end of the decade.