Oil India to bid for critical mineral blocks abroad: Chairman Ranjit Rath

New Delhi: The government-run Oil India Limited plans to bid for critical mineral reserves in Australia, Argentina, Chile and other countries as part of its strategy to diversify beyond hydrocarbons, Chairman and Managing Director Ranjit Rath said on Thursday.

Talking to DH on the sidelines of a company’s event, Rath said Oil India will bid for overseas critical mineral assets either in partnership with other Indian firms or companies in the respective countries where the blocks are located.

Oil India has signed memorandum of understanding (MoU) with several companies including Mineral Exploration and Consultancy Limited (MECL), Khanij Bidesh India Limited (KABIL), and IREL (India) Limited, a PSU under the Department of Atomic Energy.

Rath said Oil India would jointly “explore, develop and process critical minerals both domestically and abroad” in partnership with these companies.

In 2024-25, Oil India secured its maiden critical mineral block in Arunachal Pradesh, which is rich in graphite and vanadium. The company also participated in the bidding process of the Jorkian-Satipura-Khunja Amalgamated Potash and Halite block in Rajasthan.

On hydrocarbon projects, Rath said Oil India is significantly expanding its offshore exploration activities with a strong focus on deepwater and ultra-deepwater basins.

He expressed hope that Mozambique Liquefied Natural Gas (LNG) project, in which Oil India is a partner along with TotalEnergies, would restart operation by the end of this year.

Russian Assets yield $942 million

Addressing the 66th Annual General Meeting (AGM) of Oil India, Rath said the company maintains a strong presence in overseas producing and developing 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 tons of oil and oil equivalent) during FY 2024-25 primarily from Russia,” he said.

“A highlight of the year was the robust dividend flow from Russian assets, amounting to $942 million representing over 91% of our original investment in Vankorneft and Taas Yuryakh, with full recovery expected in the coming year,” Rath added.

On the financial front, Oil India reported a total income of Rs 23,987 crore (standalone) and Rs 37,830 crore (consolidated), with net profit of Rs 6,114 crore (standalone) and Rs 7,040 crore (consolidated), reflecting strong margins of 27.64% and 19.47%, respectively during the year ended March 2025.

Despite global volatility, OIL’s disciplined capital strategy and operational excellence reinforced its financial strength. The Company also sustained a robust capital investment programme of over Rs 18,000 crore on a consolidated basis while maintaining healthy dividend pay-outs to shareholders, Rath said.