Tag: OilIndia

Categories
Beyond

India eases royalty rules for oil and gas firms

Shares of ONGC and Oil India surged up to 9% after the Indian government reduced royalty rates on crude oil and natural gas production to encourage higher domestic output.

The policy aims to support upstream oil and gas companies by lowering their operational costs and improving profitability. Officials said the revised structure is designed to boost exploration, attract investment, and increase India’s energy production.

Under the new framework, royalty rates have been rationalised across onshore, offshore, and deepwater fields. Offshore and gas production rates have been reduced, while some categories now offer lower or phased royalty charges.

Market analysts say the move could significantly benefit state-run producers like ONGC and Oil India, improving cash flows and encouraging fresh investment in difficult exploration areas.

Following the announcement, both companies saw strong buying interest on the stock market, reflecting investor optimism about higher earnings potential.

The government’s decision is part of a broader push to reduce India’s dependence on imported crude oil and strengthen domestic energy security through increased local production.

Also Read: Toyota to build SUV plant in Maharashtra by 2029

Categories
Beyond

Oil India increases Thar production by 70%

India is increasing its domestic oil production as global supply concerns grow, with a sharp rise in output from Rajasthan’s Thar Desert.

State-run Oil India Ltd has boosted crude production from its fields in the region, recording around 1,200 barrels per day. This is a significant jump of nearly 70% compared to last year, showing steady progress in tapping local oil reserves.

The move comes at a time when global oil markets are under pressure due to tensions in the Middle East. Disruptions around key shipping routes like the Strait of Hormuz have raised fears of supply shortages and higher prices. In response, India is looking to rely more on its own resources to meet energy needs.

The increase in production has been made possible by the use of better technology. Oil India is using advanced methods to extract heavy crude oil, which is usually harder to produce. These techniques have helped improve output from older and challenging fields in the desert region.

The oil extracted from the Thar Desert is transported to Gujarat, where it is processed at refineries. While the total production is still small compared to India’s overall oil demand, the increase is seen as an important step.

India depends heavily on imported crude oil, especially from the Middle East. Because of this, any global disruption can directly affect the country’s energy supply and costs. Boosting local production helps reduce some of this risk, even if only partially.

Experts say this effort is part of a larger plan to strengthen India’s energy security. By increasing domestic output, the country can better handle global uncertainties.

Even though the current production levels are not enough to replace imports, the growth shows that India is making progress in using its own resources more effectively.

Also Read: Wipro to acquire Olam’s IT unit for $375 mn

 

 

 

 

 

 

 

Categories
1 Minute-Read

Oil India Q2 PAT falls 43% to ₹1,044 crore

Oil India reported a 43% drop in standalone net profit to ₹1,044 crore for Q2 FY26, down from ₹1,834 crore a year ago.

Revenue rose 4% to ₹5,457 crore, with crude oil revenue falling 12% while natural gas and pipeline income grew. Operating and net profit margins narrowed sharply.

Production remained steady at 1.652 MMTOE. Numaligarh Refinery increased throughput to 753 TMT, and India’s first 2G bioethanol plant became operational.

The board approved an interim dividend of ₹3.50 per share, payable by 14 December, with 21 November as the record date. Shares rose 0.73% to ₹172.30.