Oil India Ltd (OIL), the state-owned upstream company, has announced that it plans to spend a cumulative ₹1.3 trillion by 2030 on a wide range of projects spanning exploration, production, refinery expansion, and green energy. The figure was shared by Chairman and Managing Director Ranjit Rath during the company’s 66th Annual General Meeting, and reflects the most ambitious spending programme in the company’s history.
The capex plan will be spread across upstream exploration, downstream infrastructure, and alternative energy initiatives. On the upstream side, Oil India is prioritising deep-water exploration and enhanced recovery projects to raise crude oil and natural gas production. Downstream, the Numaligarh Refinery expansion project in Assam is a key focus, scheduled for completion by December this year. Beyond hydrocarbons, the company has earmarked significant funds for green hydrogen, biofuels, and compressed biogas (CBG), underscoring its intent to gradually diversify into cleaner fuels.
Oil India has indicated that in the current fiscal year alone, it will invest about ₹17,000 crore. This is almost double the ₹8,500 crore it spent the previous year, signalling a sharp escalation in the pace of its investments. Over the longer term, the ₹1.3 trillion outlay is expected to be divided across three primary buckets: roughly half for upstream oil and gas exploration and production, about 30 percent for downstream and refinery projects, and the remainder for renewable and green energy initiatives.
Despite global geopolitical disruptions, particularly surrounding its overseas assets in Russia, Oil India maintains that its operations remain unaffected. The company has recovered over 91 percent of its original $1 billion investment in the Vankorneft and Taas Yuryakh projects through dividends. While about $330 million remains blocked in Russian banks, Oil India expects to retrieve the full amount by FY2026-27. Drilling and production activities in these fields continue without interruption.
Overseas ventures are playing an increasingly important role in the company’s portfolio. Oil India is also involved in the Mozambique LNG project, where construction is expected to resume by late 2025. Once operational, the facility will add to India’s long-term gas security. In FY2024-25, overseas assets in Russia, Venezuela and Mozambique contributed over two million metric tonnes of oil equivalent, bolstering total company output.
Operationally, Oil India recorded its highest ever combined oil and natural gas production in FY2024-25, reaching 6.71 million metric tonnes of oil equivalent. Crude oil output has steadily increased over the past three years, from around 3.01 million metric tonnes in FY2021-22 to 3.46 million metric tonnes in FY2024-25. Natural gas production also hit new highs, reinforcing the company’s ability to meet its growth targets.
A notable portion of the ₹1.3 trillion capex will be directed toward green energy. Industry estimates suggest that nearly ₹25,000–30,000 crore will go into hydrogen projects alone, as Oil India explores pilot plants in Assam and Rajasthan. The company is also working with technology partners on electrolyser manufacturing and hydrogen blending in pipelines. Another ₹15,000–20,000 crore is expected to be channelled into biofuels and compressed biogas, including projects under the government’s Sustainable Alternative Towards Affordable Transportation (SATAT) scheme. Additionally, around ₹10,000 crore has been earmarked for solar and wind projects, with the company planning to add up to 2 GW of renewable power capacity by 2030.
The scale of the capex plan reflects Oil India’s twin priorities: consolidating its upstream strength while laying the groundwork for a transition to cleaner fuels. The refinery expansion at Numaligarh and progress on LNG assets abroad are expected to provide medium-term stability, while investments in hydrogen, biofuels and CBG are designed to prepare the company for a lower-carbon future.
If successfully executed, the ₹1.3 trillion programme will significantly expand Oil India’s production base, diversify its energy portfolio, and strengthen India’s energy security in the coming decade.