Chairman's

Statement

63rd

Annual General Meeting

WELCOME & INTRODUCTION

Dear Shareholders,

Welcome to the 63rd Annual General Meeting of your Company. It is a privilege and honour for me to address to the esteemed shareholders of Oil India Limited in my rst Annual General Meeting as the Chairman & Managing Director. I express my heartfelt gratitude to all the investors and shareholders for your unstinted support and continuing investment in Oil India Limited.

Your company completed 63 years of glorious service to the nation on 18th February 2022 and as we step into another year, I hope your support and goodwill towards your company shall continue to pour in. As the Nation celebrates Azadi Ka Amrit Mahotsav on completion of 75 Years of Independence, we reiterate our commitment towards stepping up our eorts for achieving energy security for the Nation.

Last few years have been quite turbulent for all of us as the COVID19 pandemic aected our lives in more than one way. However, large scale vaccination programme of the Government of India has helped in eectively combating the pandemic.

Like the previous two years, this year also the AGM is being held on virtual platform. While I would be glad to meet you in person, on a positive note, technology has enabled greater participation of our shar- eowners, cutting across geographical boundaries and time constraints.

The Notice of 63rd AGM, Director's Report and Audited Accounts have already been circulated and with your permission, I consider them as read.

The Integrated Annual Report of your Company for the Financial Year 2021-22 is available on your com- pany's Website. The report gives a transparent disclosure of our performance on qualitative, quantita- tive, nancial & non-nancial parameters. It contains in detail our achievements during the year 2021-22.

PHYSICAL PERFORMANCE

Despite the challenges faced by your company over the last few years, it gives me immense pleasure to share with you that your company has performed extremely well on operational front. The credit goes to the grit and determination of our Energy Warriors and the generous support from all stakeholders. Guided by its vision, your company in the Financial Year 2021-22, established the highest ever record production of Natural Gas since its inception by producing 3.045 BCM of Natural Gas as against 2.642 BCM in 2020-21. I am happy to share with you that during the year 2021-22, your Company crossed the 3 MMT mark at 3.010 MMT compared to 2.964 MMT in the previous year. Your Company also produced 33,240 Metric Tons of LPG during the year and transported 6.18 MMT of crude oil through its crude oil pipeline and 1.516 MMT of petroleum products through its product pipeline.

This physical performance reects the true spirit of your Company's energy warriors - creating value even in the face of adversity.

FINANCIAL PERFORMANCE

On the nancial front, the Financial Year 2021-22 has been a momentous year, with reasons to be proud about. Your Company recorded its highest ever total income at ₹ 16,428 Crores and highest ever Prot After Tax at ₹ 3,887.31 Crores, a growth of more than 123% over the previous year. The Earnings per Share (EPS) was also high at ₹ 35.85.

Crude oil price realisation witnessed improvement during the year and average realisation stood at USD

78.96 per barrel. Natural Gas average price was USD 2.35 per MMBTU. Correspondingly, our share price witnessed improvement from the level of ₹ 112 at the start of nancial year to the level of ₹ 260 at the close of the nancial year. Your Company has been consistent in paying high dividends and this year was no exception, with payout of ₹ 1,545.27 Crores, which is ₹ 14.25 per share. Your Company has also reduced its total debt burden during the year, from ₹ 15,718 Crores to ₹ 11,636 Crores, mainly on account of repayment of loans taken during acquisition of NRL.

EXPLORATION & DEVELOPMENT

In line with Government of India's thrust for exploration, your company, as on 31st March 2022, had acquired 25 blocks under the OALP mechanism with a total acreage of 48,796.32 Sq Kms. With the recent announcement of the results of sixth and seventh OALP rounds, your company has secured another 4 blocks, to increase its acreage under OALP to 53,859.19 sq. km. Considering our previous inventory of 4 NELP blocks and the recently awarded blocks under the DSF rounds II & III, we are at the cusp of an exciting growth curve in the coming years.

This growth trajectory of exploration acreage in Category -II and Category-III basins will allow your Company to expand its footprint to other high-potential regions of India, adding weight to tagline "Explor-

ing new horizons". Your Company has now footprints in Assam, Arunachal Pradesh, Mizoram, Tripura, Nagaland in the Northeast and Rajasthan, Odisha, Mahanadi Onshore, Andhra Pradesh, Andaman Oshore, Kerala-Konkan Oshore, and Krishna-Godavari Shallow water outside the Northeast. The Company has already started its exploration drilling campaign in the OALP blocks by spudding the rst well in Rajasthan, while your company has chalked out detailed plans to carry out its exploration campaigns in Assam Shelf & Assam Arakan Fold Belt, Rajasthan Basin, Mahanadi Onshore, Andaman and Kerala-Konkan Oshore areas.

On the exploration front, your Company during Financial Year 2021-22, carried out 2105.21 LKM of 2D and 1097.59 SqKMs of 3D seismic surveys. In order to add value for assessment of hydrocarbon prospects in logistically dicult inaccessible areas of Upper Assam Basin, the Company has also completed 22,922.48 LKM of Airborne Gravity Gradiometry & Gravity-Magnetic Survey Your Company, during the year, drilled 7 exploratory and 31 development wells that has boosted the production. The Company also spudded a well in NELP-IX block in Sadiya, Assam, which is going to be the deepest drilled well in the Northeast region with a depth of 6,451 metres.

The Assam Shelf has considerable Yet to Find (YTF) potential and being the leading E&P operator in the North-east, your Company has registered two hydrocarbon discoveries during the year in Assam, one oil and one gas, which has opened more areas for further development of Oligocene and Eocene plays. The Company has also maintained its consistent trend of keeping its Reserve Replacement Ratio above 1 under 2P category, at a healthy ratio of 1.11 for the Financial Year 2021-22.

Your Company had struck heavy oil in the elds of Rajasthan. Continued recovery of oil through EOR technique of Cyclic Steam Stimulation has yielded dividends in the form of the highest ever sale of 7,799.98 MT of heavy oil from Rajasthan Fields during the year.

TECHNOLOGY ABSORPTION

In order to intensify and support the exploration eorts, your Company, during the year, adopted new technologies, namely Airborne Gravity Gradiometry & Gravity Magnetic survey, Passive Seismic Tomography - an environment friendly and non-invasive exploration technique, and high-resolution reservoir characterisation software, etc. Your Company also developed in-house software, namely IORA - Insight to OIL Reserves Assessment, which is a Resource Portfolio Management platform that facilitates Compa- ny's oil and gas resource database in a well-structured basis and aims to aid in reserves analysis, nancial decision making, planning operations for eld management etc.

In Research & Development front, your company is carrying out studies in the elds of petroleum geolo- gy, oileld chemicals, drilling and workover uids, EOR, well stimulation, pollution techniques, petroleum biotechnology, etc. During the year, your company spent ₹ 100.96 Crores on various R&D activities. Your company has been pursuing a concerted R&D through an active industry academia collaboration.

DIGITAL INITIATIVE

Your Company embarked upon the journey of "Digital transformation" under the major areas of Intelligent Production, Smart Exploration Drilling, Safe & Productive Workforce, Supply Chain & Projects Excellence and Agile Enterprise. After commissioning of 'Drone Surveillance' and phase-I of 'CxO Dashboard' in the previous year, your Company commissioned the digital initiatives of 'Invoice to Pay Automation' and phase-I of 'HSSE Incident reporting & Tracking' during 2021-22 and completed commissioning of 'eDP Solution' and phase-II of 'HSSE Incident reporting & Tracking' in current year.

PIPELINE BUSINESS

Your Company's crude oil pipeline network, including the trunk line of 1,157 km from Naharkatiya to Barauni serves as the "Crude oil lifeline" of the North-eastern region, connecting reneries with respective crude oil sources. During the year, this "lifeline" transported a total of 6.18 MMT of crude oil from the oil elds in the Northeast Region including that of OIL and ONGCL as well as imported crude (under reverse pumping) from Barauni to Bongaigaon Renery. Your Company also operates a product pipeline from Numaligarh Renery to Siliguri. During the year, this Numaligarh-Siliguri product pipeline transported 1.516 MMT of petroleum products produced by Numaligarh Renery Limited. Total revenue generated from Pipeline transportation stood at ₹ 345.18 Crore during the year vis-à-vis ₹ 361.45 Crore of previous year, primarily due to lower product transportation through NSPL operation by 10.65%.

OVERSEAS BUSINESS

The overseas asset acquisitions of your Company in producing properties of Vankorneft and Taas Yuriakh in the prolic oilelds in Eastern Siberia of Russia continue to yield rich dividends. The wholly owned subsidiary of your Company, Oil India International Pte. Ltd. holds 33.5% share, both in Vankor India Pte. Ltd. And Taas India Pte. Ltd, which in turn holds 23.9% and 29.9% in JSC Vankorneft and TYNGD LLC in Russia. During the year 2021-22, dividend of USD 51.0 million and USD 92.6 million were received at Vankor India and Taas India level respectively corresponding to OIL's stake in these assets. The cumulative dividend received from these overseas acquisitions in Russia stands at USD 663 Million recovering close to 64% of investments made by OIL upto 2021-22.

Towards rationalisation of its overseas portfolio, your company has divested its stake in the Shale oil elds of USA and is re-evaluating other assets in light of its overall business plan.

CAPITAL INVESTMENT PROJECTS

I am glad to share that your Company achieved a total CAPEX of ₹ 4,367 Crore during the year which is 106% of the CAPEX target of the Company. The future of the Company depends on assets and facilities created today through projects. The Company has successfully completed 5 critical projects during the year, with a total investment of app. ₹ 910.36 Crores. At present we have several projects in hand that are above ₹ 100 crores each, in various stages of development.

NUMALIGARH REFINERY

Our group company Numaligarh Renery Limited is executing a major capacity expansion project from 3 MMTPA to 9 MMTPA. In tune with this capacity augmentation plan, it is also laying a pipeline from Paradip in Odisha to Numaligarh for import of additional crude, and a product pipeline to Bangladesh named "Friendship Pipeline" to enhance exports of petroleum products from the renery.

I believe that this massive capacity enhancement of NRL coupled with OIL's aggressive exploration plans shall contribute immensely to Company's growth and also in ensuring the energy security of the nation.

HYDROCARBON VISION 2030 FOR NE INDIA

Aligned with the national priorities, your Company is placing greater thrust on exploration activities, which is the core activity of an E&P company thereby attempting to create signicant value proposition for the future. Your Company has historically maintained production levels of around 3.0 MMT per annum during last decades. In line with the Government of India's Hydrocarbon Vision 2030 for NE India and thrust on reducing imports, your Company has embarked upon an aspirational target of Mission 4 plus, for signicant increase in production of oil and natural gas. Under this ambitious program, we have identied ve elds for accelerated development where intensive interventions and addition of production facilities over the next few years is expected to yield more than 4 MMT of Crude Oil and 5.0 BCM of Natural Gas for the company.

The Company is also looking at acquisition of conventional and non-conventional assets, as well as selective diversication into midstream, downstream and renewable energy segments as avenues for growth.

HUMAN RESOURCES

On Human Resource front, your Company believes that its human resources are the most valuable assets and pursues cordial HR Policies and Practices while remaining sensitive to the people's needs. During the year, the Company completed a comprehensive overhaul of its HR function to streamline operations. This has resulted in signicant increase in its ecacy as well as in the level of service provid- ed.

Your Company is a learning organisation and encourages innovation in every sphere of its operation. The year has seen many schemes and initiatives to nurture and promote innovation, like project HOPE (Help Our People Excel). The Company's employees have also excelled in various sports events under PSPB, State and National bodies.

Health, safety and wellbeing of our employees has been our priority, and we continue to pursue the same. As part of our social welfare schemes, we have organised several health camps to vaccinate our employees against COVID 19 pandemic, and I am happy to share that each of our energy warrior is fully vaccinated.

CORPORATE SOCIAL RESPONSIBILITY

Your company understands and values the deep-rooted relationship it has with the local community, various stakeholders and the environment at large. Your company has been taking up cluster of CSR initiatives for socio-economic development of communities and region around its area of operations and beyond. In the year 2021-22, your company spent ₹ 163.74 Crores on various initiatives under its Corporate Social Responsibility. CSR initiatives of your company spans thrust areas like healthcare, education, skill development, sustainable livelihoods, women empowerment, Swachh Bharat Abhiyan, Sustainable Environment etc. Our CSR projects have demonstrated signicant impacts on the local community and the society at large.

I have the pleasure to share that 50 out of 50 students enrolled for NEET (Medical) under OIL Super 30 cleared NEET while 142 students out of 150 enrolled for JEE & Engineering entrance cleared JEE Mains exam and 74 of them cleared JEE Advanced for admission into the prestigious IITs.

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Oil India Limited published this content on 24 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2022 07:54:05 UTC.