DBT Bureau
Pune, 19 Sep 2026
Oil India and Petronet LNG announced new plans in the energy sector on September 17, covering offshore exploration and compressed biogas projects.
Oil India Limited (OIL) outlined its plans to increase domestic oil and natural gas production, expand offshore exploration and develop new energy businesses at its 67th Annual General Meeting held on September 17, 2026.
Chairman and Managing Director Ranjit Rath said the company will focus on higher domestic oil and gas production, exploration in deep and ultra-deepwater areas, expansion of its integrated energy operations and selected clean-energy projects. The company said the government’s recently approved Samudra Manthan and GOBARdhan schemes provide support for offshore exploration and bioenergy projects.
During FY2025-26, Oil India produced 3.450 million tonnes of crude oil and 3.186 billion cubic metres of natural gas. The company completed 74 wells during the year, including 22 exploratory wells and 52 development wells. Its reserve replacement ratio increased to 1.02 during the year.
Oil India said it is targeting around 10 million tonnes of oil equivalent (MMTOE) of oil and gas production by the end of the decade. In the first quarter of FY27, crude oil production increased 11% year-on-year to 0.950 million tonnes. The company also recorded its highest-ever daily crude oil production of 10,921 tonnes, or 84,109 barrels.
The company is also expanding its offshore exploration programme. Its offshore portfolio covers the Andaman, Krishna-Godavari, Mahanadi and Kerala-Konkan basins, including ultra-deepwater blocks. Oil India said it is preparing for future offshore drilling campaigns through seismic evaluation and technology partnerships.
In the Andaman basin, the company reported a natural gas occurrence at Sri Vijayapuram-2 and a gas discovery with continuous flaring at Sri Vijayapuram-3.
Oil India is also expanding its refining and pipeline operations. The expansion of Numaligarh Refinery from 3 MMTPA to 9 MMTPA progressed during the year, while the Numaligarh-Siliguri Product Pipeline capacity was increased from 1.72 MMTPA to 5.5 MMTPA.
In clean energy, Oil India is developing compressed biogas, waste-to-energy and renewable energy projects through OIL Green Energy Limited. The company said it has reduced Scope 1 and 2 emissions by about 18% from the FY24 baseline and gas flaring by 32%.
Separately, Petronet LNG approved a proposal to form a 50:50 joint venture with Gruner Renewable Energy Private Limited. The proposed company will establish 10 compressed biogas (CBG) plants across India. The total estimated capital outlay for the project is ₹1,200 crore.
Each CBG plant is planned to have a production capacity of 18 tonnes per day, giving the 10 plants a combined planned capacity of 180 tonnes per day.
The joint venture is a move by Petronet LNG into CBG, outside its main LNG business. The company said further details will be provided after the proposed joint venture is incorporated.
Both announcements come as energy companies continue to invest in oil and gas exploration while also developing alternative fuel businesses.
