Oil India Limited (OIL) has recovered over 91% of its $1 billion investment in Russia’s Vankorneft and Taas-Yuryakh projects, with dividend inflows of around $942 million to date. The company now expects to achieve full recovery in the coming financial year, Chairman and Managing Director (CMD) Ranjit Rath announced at the company’s 66th Annual General Meeting (AGM) on Thursday.
Strong Returns from Russian Assets
Oil India, alongside ONGC Videsh and Bharat Petro Resources Ltd, had acquired 23.9% stake in JSC Vankorneft and 29.9% stake in LLC Taas-Yuryakh from Rosneft Oil Company. Rosneft operates both fields through its wholly owned subsidiaries.
“Your company maintains a strong presence in overseas producing and development assets across Russia, Venezuela and Mozambique through joint ventures. These assets contribute significantly to reserves and production. A highlight of the year was the robust dividend flow from Russian assets, amounting to $942 million, representing over 91% of our original investment, with full recovery expected in the coming year,” Rath said.
However, around $330 million worth of dividends remain stuck in Russia, though Rath expressed confidence that the amount will be remitted in the next fiscal.
Mozambique LNG Project to Resume in 2025
On the global front, Rath confirmed that Oil India’s investment in the Mozambique LNG project is progressing, with construction expected to resume in the second half of 2025, following improved security conditions in the region.
“In Mozambique, your company has invested in a world-scale LNG project, which will establish a 13.12 million tonnes per annum (mmtpa) low-carbon, integrated two-train LNG facility. The project is well-positioned to meet the growing demand of the Indian gas market,” he noted.
Record Production Performance
Oil India also reported its highest-ever oil and gas production in FY25, with cumulative output reaching 6.710 million metric tonnes of oil equivalent (mmtoe). This included record natural gas production of 3,252 million standard cubic meters (mmscm) and crude oil production of 3.458 million metric tonnes (mmt), reflecting nearly 15% growth over three years.
“Our company has consistently improved output, rising from 3.01 mmt in FY21-22 to 3.458 mmt in FY24-25. This achievement marks the highest production levels since inception,” Rath highlighted.
Aggressive Capex Plans
Looking ahead, Oil India has set an ambitious capital expenditure (capex) target of ₹17,000 crore for FY26, nearly double the ₹8,500 crore spent in FY25. The company aims to achieve a cumulative capex of ₹1.3 trillion by 2030, in line with its long-term growth strategy.
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