Oil India Ltd

?ear Valued Shareholders,

Financial year 2G23-2A has been a historic year for all of us, marking a milestone as we ascended to the prestigious echelon of being the youngest Maharatna Central Public Sector Enterprise (CPSE) of the Government of India. The milestone infused your Company with a rejuvenated spirit, renewed vigour and deep focus to redesign a new vision for itself; 'be a leading and future ready integrated energy company committed to sustainable energy security of India through performance excellence.'it is with immense pride and profound privilege that I present to you the Annual Report of your Company for the financial year Z023-2A, during which we achieved phenomenal success on various physical and financial fronts. Continuing our excellent track record of performance, your Company earned a totalincome of ? 24.51^.28 crore (Standalone) and ? 37,646.48 crore (Consolidated). The Profit After Tax (PAT) of your Company stands at ? 5,551.85 crore (Standalone) and ? 6,980.45 crore (Consolidated) with a Net profit margin of 25,09% (Standalone) and 19.23% (Consolidated). I am proud to inform you that Numaligarh Refinery Limited(NRL), a materia! subsidiary of your Company, contributed significantly to OIL'S performance, re g i ste ri n g a P AT o f ? 2,160.11 cro re.

Continuing our efforts towards energy self-reliance, your Company made capex investments of ? 14,675.72 crores during the year, including ? 8,501.90 crores by Nurnaligarh Refinery Limited and? L307.35 crores as OIL'S proportionate share in the capex of its JVs&Associates,

Your Company has been one of the largest contributors to the Government in the form of duties, taxes, and dividends, contributing an amount of ? 11.418.19 crore during the year, of which ? 7,206.67 crore was paid to the Central Exchequer and ? 4,211.53crore to the State Exchequers.

Owing to the rich legacy of its knowledge, commitment, and professional diligence, your Company achieved oil & gas prod uctio n of 6.641 MMT0E0+0EG(oii&oi! gas equivalent)during FY 2023-24, which is the highest ever O+OEG production since inception. The Crude Oil production was 3.359 MMT, an increase of 5.76% over the last year, while natural gas production was 3,182 MMSCM, the highest ever achieved since inception. The increase in production is attributed to the adoption and use of I0R/E0R techniques to arrest decline from old fields, monetization and quick development of new discoveries, production optimization, induction of new technologies, recovery from missed opportunities, infill drilling, monetization of sick wells. Cyclic Steam Stimulation (in Rajasthan), and upgradation of surface facilities & infrastructure.

The availability of the Liquefied Petroleum Gas (LPG) Recovery Plant was 99.52%, and the plant efficiency in terms of butane recovery was 93.87% compared to the design figure of 93%. The plant processed an average of 1,83 MMSCMD(66.18 MMSCFDlgas with an average butane of 1.00% (v/v) in the feed gas. As part of a concerted strategy, your Company has closed down bottling operations of the LPG fill ing plant, and nowthe entire quantity of LPG produced is dispensed in bulk tankers tolGCL.

Our Crude Oil pipeline transported 6.74 MMT of crude oil during the year, including 3.25 MMT in the Digboi-Naharkatia- Bongaigaon sector, 1.03 MMT for 0NGC, and 2.42 MMT of imported crude oil for Bongaigeon Refinery in the Barauni- Bongaigaon sector. The Company also transported 1.154 MMT of petroteum products through the Numaligarh-Siliguri Product Pipeline with pipeline utilization of 67,05%. The Company delivered 2,901 MMT of crude (Assam+ imported) to Bongaigaon refinery during FY 2023-24 which is highest since inception. The total revenue earned from the transportation business in FY2023-24 was ? 533.65crore.

On the renewable energy front, the total installed capacity of your Company is 188.1 MW comprising 174.1 MW wind energy projects and 14.0 MW solar energy projects. Additionally, the Company operates solar plants with a capacity of 0,926 MW for captive utilization. A revenue of ? 112.30 crore was generated from theseassetsduring the year.

Numaligarh Refinery Limited, our material subsidiary, processed 2,510 TMT of crude oil during FY 2023-24, operating the refinery at 108% of the design capacity during the third and fourth quarters. The crude oil processed by the refinery includes 2458 TMT of domestic crude oil and 52 TMT of imported crude oil. Secondary processing units. Diesel Hydrotreater (DHDT) and Hydrocracker Unit (HCU), were operated at a maximum throughput of 116% and 105% consistently during the last two quarters. The Numaligarh Refinery Expansion Project (NREP) aims to enhance the crude processing capacity of NRL from 3 MMTPA to 9 MMTPA while enabling the Company to process a variety of high sulfur crudes.

The exploration acreages of your Company are spread across the staLes of Assam. Arunachal Pradesh, Mizoram. Tripura, Nagaland, Odisha, Andhra Pradesh & Rajasthan, and offshore areas in Andaman, Keraia-Konkan & KG shallow waters. These include 01 PEL and 25 PML areas, allotted under the nomination regime in the states of Assam, Arunachal Pradesh, and Rajasthan. Further, exploration activities are being carried out in 27 OALP blocks in Assam, Arunachal Pradesh, Tripura, Nagaland, Odisha, Rajasthan, and offshore areas in Andaman and Keraia- Konkan out of the 30 OALPBIocKsawarded under different OALP Did Rounds. The Company holds Participating Interest in 04 NELP Blocks with operatorship ;n 02 Blocks and as a nonoperator in the remaining 02 Blocks. Additionally, the Company is operating in 3 DSF blocks as an operator, one block each in Tripura and Krishna-Godavari Shallow Offshore under DSF-II, and one block in Rajasthan under DSF-III Bid round. The Company successfully acquired one block in Assam under OALP Bid Round VII. The total domestic operating acreages of your Company stand at 58,564.2 Sq, KM as of 31* March 2024.

In line with the vision of the Government of India, the Company is intensifying its exploration efforts to supplement its existing domestic reserves portfolio by consolidating its position as a leading operator in Northeast India, expansion in Rajasthan & Mahanadi Basin, and offshore in Andaman and Kerala Konkan Basin. Out of 29 OALP blocks with valid PEL, your Company has completed committed seismic acquisition in 24 OALP blocks while acquisition is under progress in 4 blocks. 378.72 LKM of 2D and 248.73 Sq. Km. of 3D seismic surveys were carried out during FY 2023-24. Gearing up to fulfil the drilling commitment in the Andaman offshore block, your Company has finalized contracts for the offshore drilling activities, which are expected to start in Andaman Of fshoref rom October¹2024,

Your Company drilled 17 exploratory and 44 development wellsduring FY 2023-24, totaling Si wells, which is an all-time high since inception. Through a concerted strategy of near-field exploration, your Company has made one oil discovery in Assam, which was also brought into production. A Reserve Replacement Ratio(RRR)of 0.97 under the 2P category was achieved by your Company during the year. Your Company has a strong oil S gas reserves base in domestic assets, including Joint Ventures. The Reserves accrued during FY 2024-25 is5.8527MMToE(2P).

Your Company holds producing assets across Russia, Venezuela & Mozambique viz. Vankorneft (Russia), Taas Yuryakh (Russia), Petro Carabobo (Venezuela) and Golfinho-Atum (Mozambique) through various JVs. The reserve position of these assets is 21.2216 O+OEG of !Pand43.9472 0+0EGof2P reserves.

Acknowledging the overwhelming trust and support of our valued shareholders in the Company, we issued Bonus Shares in the ratio of 1:2, allotting 54,22 crore equity shares of? 10/- each as fully paid-up Bonus Equity Shares to all eligible shareholders. The Issued, Subscribed and Paid-up Share Capital of the Company has increased to ? 1,626.61 crore post the Bonus Issue. Further, the Board has recommended a Final Dividend of ? 2.50 per share resulting in total 14.50 per share (face value ? 10) forFY 2023-24.

The financial prudence of your^ Company is reflected in the ratings ascribed by the reputed rating agencies with the Highest Long Term & Short Term ratings by CRISIL and CARE Ratings domestically. Meanwhile, the International ratings ascribed by Moody's Investor Service

{Baa3 (Stable)} and Fitch Rating (BBB- (Stable)] are at par with India's Sovereign rating.

Your Company believes in fostering initiatives, innovations, and aspirations of the employees and nurturing a healthy relationship between the Company and its workforce. During the year, the Company has token several measures to improve performance management and performance culture in the Company through policy interventions and improvement of systems and processes. Initiatives like Succession Planning Management for senior positions, developing a technical competency framework for all disciplines, and an online learning management system for its workforce are also being undertaken. Your Company promoted Diversity, Equity and Inclusion at the workplace driven by various enabling HR policies. Your Company encourage employees to participate and excel in sports. The Company actively support and promote sports under the umbrella of Petroleum Sports Promotion Board (PSPB), All India Public Sector Sports Promotion Board (AIPSSPB)and other bodies duly recognized by the Government of India.

Your Company takes pride in promoting the use ot the Official Language, Hindi, through various initiatives, including Hindi Workshops, training classes, and the celebration of Hindi Pakhwada. 1 am proud to share that Your Company has received numerous awards and recognitions at various levels for the promotion of the H indi language at the workplace.

Acknowledging its responsibility towards the growth and promotion of MSEs. Your Company made a total procurement of ? 1,431.35 crore from MSEs, with procurement through the Government e~Marketplace[GeM)standingat?l,970.99crore.

Your Company is robustly investing in various Research & Development initiatives aimed at developing innovative solutionstomitigate exploration risks, overcome the limitations of geophysical methods in challenging terrains, address declining production from mature fields, and enhance flow assurance for waxy crude, I am proud to present that during the year, your Company secured two patent grants and filed five new patents. Extensive collaboration with academia, research institutes, startups, PSJs and industry bodies is building a comprehensive knowledge base to drive the nation towards energy self-reliance and independence in the years ahead.

I Through our 'Startup Nurturing, Enabling and Handholding (SNEH)' program, your Company has nurtured a constellation of startups that push boundaries and redefine possibilities across diverse sectors, i ncluding o if 2 gas, battery recycling,hydrogen bus design, app basedfuel delivery, robotics, carbon capture, effluent treatment.

Through our 'Startup Nurturing, Enabling and Handholding ISNEHy program, your Company has nurtured a constef/at/on of startups that push boundaries and redefine possibilities across diverse sectors including oil & gas biotechnology, ' ' medical solutions, tourism and e-vehicles. A fund of ? 9.00 crore was infused by your Company tosupport the startup ecosystem of the country during FY 2023-24. During the year, your Company collaborated with the Indian Institute of Management Lucknow Enterprise Incubation Center (IIML EIC) and initiated the "Corporate VC Startup Engagement Program ICSEP)." Your Company also partnered with the Indian Institute of Technology, Delhi, Foundation for Innovation and Technology Transfer (FITT), for the 'DRIFT' program. These programs aim to support at least 20 startups from all domains, including the energy and Deep Tech sectors.

It is a matter of pride that Mini Mines, a startup working on a sustainable Lithium-ion battery recycling solution supported by your Company under SNEH, secured the 6ⁿ FLCTD Innovation Challenge (Industrial Resource Efficiency) Grant from UNIDO- BEE-GEF Initiative, Aegis Graham Bell Awards (Innovation in Waste Management), and was featured in Forbes India 30,2024. Another startup, Caliche Private Limited, was selected for the India Australia RISE Accelerator program joi ntly orga nised by Niti Aayog and CSIR0 Australia and was also recommended by the

Scientific Advisory Committee, CHT for project deployment wi th a financial grantfromOIDB.

Your Company is leading its commitment to be Net Zero by 2040 and to increase its portfolio of non-fossil fuel-based energy sources. Your Company is committed to deploying about 5 GW of renewable energy capacity by 2040, emphasizing wind, solar, and other sustainable energy sources. In this direction, your Company has executed a Joint Venture Agreement with Assam Power Generation Corporation Limited to develop green energy infrastructure in the northeastern part of the country. Major initiatives undertaken by your Company towards achieving its Net Zero targets include the reduction of gas flaring by commissioning pipelines such as Kumchai (Arunachal Pradesh) to Kusijon (Assam), Lakwogaon gas evacuation pipeline, Nadua- Dikom pipeline; significant progress in the Biofuel sector with the 50 KTPA2G Bio Ethanol plant based on bamboo feedstock at Numaligarh, Assam by Assam Bio Ethanol Private Limited, Through its subsidiary. NRL, your Company has embarked on a journey to produce 20 KTPA of Green Hydrogen. As part of this initiative, a 2.2 KTPA green hydrogen plant is currently being built and is expected to be J J commissioned byJune2Q25.

The City Gas Distribution (CGD)^ sector stands as a testament to your Company's dedication to fostering responsible energy practices and meeting the growing demand for cleaner, more sustainable fuels. In collaboration with esteemed partners, your Company has meticulously developed an extensive CGD network.

HPOIL, a joint venture between GIL and HPCL, proudly operates 25CNGstationsand services 15.465 PNG connections in Ambala- Kurukshetra, while managing 26 CNG stations and 25,211 PNG connections in Kolhapur. The Company's strategic foresight was further evidenced by securing CGD authorisation for the Nagaland State Geographical Area (GA) during the 12^,n CGD biddinground.

Purba BharatrGas Private Limited (PBGPL) has made significant strides in enhancing energy accessibility, initiating domestic piped natural gas supply, and completing three CNG stations in Cachar GA. Additionally, it has achieved 1,4DG PNG connections and established nine CNG stations (four of which are already operationaDintheKamrupGA.

I am pleased to share that the North East Gas Distribution Company Limited (NEGDCL), a joint venture between OIL and Assam Gas Company Limited, was incorporated this year with the mission to spearhead CGD projects across the north bank of Assam as well as the northern and southern Geographical Areas (GAs)of Tripura. Your Company aims to be a key player in India's alternative energy sector and support India's goal of reducing emissions by one billion tonnes by 2030 by establishing a dedicated green business subsidiary.

Over its journey of more than six decades, your Company has committed itself to the principle of people, planet, and profit by significantly contributing to the development of communities and regions in its area of operation and beyond. The Corporate Social Responsibility (CSR) initiatives of your Company align with the vision of achieving an inclusive and holistic society. Your Company has undertaken many successful CSR initiatives in key thrust areas such as education, healthcare & nutrition, environment, livelihood, sports, women empowerment, skill development, rural development, etc. The CSR program of your Company has been recognized on various platforms across the country. During the year, your Company spent ? 122-80 crore on various CSR activities, the details of which are also presented in this report.

I am proud to inform you that your Company pursues the highest standards of Corporate Governance with robust and transparent structures and processes in place. The corporate governance policies of your Company meet the stipulations of regulators,

I including the guidelines issued by the l Department of Public Enterprises, I Govt, of India.

Through its subsidiary, NRL, your Company bos embarked on a journey to produce 20 KTPA of Green Hydrogen. As part of this initiative, a 2.2 KTPA green hydrogen pfant is currently being built and is expected to be commissioned by June 2025, v/*

I On behalf of the Board of Directors, it is with profound appreciation that I extend our heartfelt thanks to both the Central and State Governments „ for their exceptional support and motivation. Their contributions have been instrumental in , ' Company to establish its distinguished pres ence in the industry. Furthermore, I extend our sincere gratitude to our esteemed investors and shareholders. Your unwavering confidence in your Company's vision and trajectory has been a cornerstone of our success. I assure you that with your enduring support and our collective endeavours, we will strengthen India's energy ecosystem for energy self-reliance and continue to make significant strides towards the nation's growth and prosperity.