Oil India plans Rs. 25,000cr investment in renewable energy
What's the story
State-run Oil India is planning to invest Rs. 25,000 crore in renewable energy to achieve its net-zero emissions goal by 2040, as per Chairman and Managing Director, Ranjit Rath.
The investment will cover green hydrogen, compressed biogas, solar energy, geothermal energy, and zero-flaring initiatives.
Additionally, the company aims to transition from diesel-fired engines to gas engines.
Details
Company thrives amid crude oil price fluctuations
Rath stated that Oil India is well-equipped to handle fluctuations in crude oil prices and views the recent rise as a "welcome" development.
Despite focusing on mature fields with production decline rates of 8-10%, the company reported a net growth of 5.5% in production last year and a gross growth of 15%.
What Next?
Ambitious targets for crude oil and gas production
Oil India has set ambitious targets for crude oil and natural gas production, aiming to achieve four million metric tons (MMT) of crude oil production and five billion cubic meters (BCM) of natural gas production by FY25.
In addition to traditional fossil fuels, the company is investing in renewable energy sources such as green hydrogen and compressed biogas.
Insights
Accelerating net-zero emissions goal to 2038
The company is committed to achieving net-zero emissions by 2038, two years ahead of its previous target.
Rath expressed confidence in the new gas price formula and revealed plans to "enhance its gas portfolio aggressively."
Oil India intends to drill around 60 wells in the main producing areas of Assam and Arunachal Pradesh this fiscal year.