Oil India (NSE:OIL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Oil India Q1 FY 'twenty seven Earnings Call. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Krishan Mundra from DAM Capital. Thank you, and over to you, sir. Hi. Thanks, Asarva. Good afternoon, everyone, and a warm welcome to the Q1 FY 'twenty seven earnings call of Oil India. And to discuss the results, we have the management with us, which is represented by Mr. Abhijit Majumdar, who is the Director of Finance Mr. Saloma Yombo, Director Exploration and Development Mr. Zalukiya Borghohane, Director Operations Mr. Bhaskar Jyoti Fukan, MD and RL Mr. Ajay Kumar Sahoo, ED Company Secretary Mr. Raghunath Mishra, ED Business Development and Mr.

1:05 Abhijit Das, CGM Finance and Macau. Now at this point, I will hand over the floor to the management for their opening remarks, post which we will open the floor for the Q and A. With that, over to you, sir. Thank you, Mr. Kishan. Good afternoon, ladies and gentlemen. I would like to thank DAM Capital for hosting today's Investor and Analyst Conference Call for Oil India Limited. I'm Abhijit Majumdar, Director of Finance of your company. I'm happy to inform the investor community that I'm joined by my colleagues on the Board, Mr. Saloma Yomdo, Director, Exploration and Development, Oil India Limited Mr. Traylakopuragohain, Director, Operations, Oil Mr. Vascar Jaki Fukar, MD, NRL Mr. Ajay Kumar Sahoo, ED, Company Secretary Oil Mr. Raghunath Mishra, ED Business Development and Mr. Abhijit Das, CGM F and A and CIRO.

2:17 On behalf of the management, I welcome you to our Q1 twenty six-twenty seven earnings call covering the period April 26 to 06/30/2026. The financial results were approved by the Board and duly published on 08/07/2026 based on statutory requirements. It gives me great pleasure to welcome our esteemed shareholders and members of the analyst community. I'm very pleased to inform you all that this quarter has been a great quarter as far as the company is concerned. The company has achieved stupendous milestones on several parameters, which all will be covered in the presentation that will follow.

3:11 Your continued support, engagement and valuable insights inspire us to pursue excellence in execution, uphold the highest standards of accountability and create enduring value through sustainable growth. During the first quarter of six-twenty twenty twenty seven, our performance reflects the strength of our operational foundation. We maintained steady progress across all core business activities, advanced our drilling and development programs and continued to uphold the disciplined approach to financial management. These efforts underscore our commitment to delivering consistent growth while creating enduring value for all stakeholders.

4:04 So I will now hand over to Chief Investor Relations Officer, Mr. Abhijit Das, who will provide an overview of the first quarter performance. Thank you. Thank you, dear sir. Good afternoon, ladies and gentlemen, who have joined us on this call. I take this opportunity to share Oil India's operational and financial highlights and the performance of our material subsidiary NRL. From operational point of view, we have achieved 1,707,000 oil and oil equivalent of production during this quarter. The crude oil production for the quarter was 0.95 MMT. It has increased by 11 plus percentage on year to year basis.

4:54 Our daily crude oil production has ramped up to 10,921 Mt per day on 06/27/2026, which was highest ever daily production of the company has ever recorded. The natural gas production on quarter to quarter has increased by 0.4%. From exploration and development funds, the progress has remained strong, in fact, much higher than what we have achieved in any of our previous years. Our company has drilled 17 new wells during the quarter, out of which seven are exploratory wells and 10 are development wells. From financial funds, the crude oil price realization was $98.73 per barrel vis a vis $26.2 per barrel as compared to the previous year.

5:53 The natural gas price stood at NMB7.19 MMBtu in this quarter as compared to N6.72 dollars in the previous quarter of the last financial year. The standalone operating revenue of Q1 FY twenty twenty seven is INR7958 crores, which is highest ever quarterly revenue earned by Oil India Limited since it got lifted in the financial year two thousand and nine-twenty ten. We have also achieved the highest ever EBITDA during this quarter, which is INR465 crores as the margin is 54 plus percent as compared to 34 plus percent in the previous quarter of the last year.

6:47 The profit before tax for this quarter is INR3742 crores, which is highest ever quarterly profit achieved by the company after its listing with the stock exchange. We have also achieved the highest ever tax in this quarter, which is INR2870 as compared to INR813 crores in the previous year. Our earnings per share stood at INR17.65 crores per share as compared to INR5 crores per share. Our earnings per share stood at 17.65 per quarter as compared to 5 per share in the previous quarter. The performance of our material subsidiary NRL. I take the opportunity to share with you the performance of New Maligo Refinery Limited.

7:36 The operating income of our material subsidiary was INR 9,146 crores, which was 45% higher vis a vis Q1 of FY 'twenty six. The capacity utilization of the refinery was 105% as compared to 105% and the distillate yield is 87% for the quarter. The gross refinery margin is $35.95 per barrel as compared to $5.02 per barrel in the previous year. The EBITDA was INR1843 crore as compared to INR786 crore as compared to the previous year.

8:24 The PAT the company has registered in the current quarter is INR1305 crore as compared to INR488 crore in the previous year. From consolidated point of view, I'd like to bring to your knowledge that the company has reported the operating revenue of INR12886 crore and registered a PAT of INR 4,026 crores, which is also highest after the company proceeds through the stock exchange. Our performance in the first quarter of FY 'twenty seven reflects the strength of our operational fundamentals and a disciplined approach to financial execution. As we chart the path ahead, we will continue to focus on delivering execution excellence, enhancing production capabilities and unlocking long term value across our portfolio.

9:17 With that, I would like to conclude my remarks. We now welcome your questions and look forward for an engaging discussion. Thank you. Thank you very much. We will now begin with the question and answer session. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Probal Singh from ICICI Securities.

10:04 Please go ahead. Thank you for the opportunity, sir. Very good afternoon, and congratulations on a good set of numbers. Firstly, just a clarification. When you mentioned about the production reaching 10,921 tonnes of oil per day on the June 27. Just wanted to understand what is the run rate right now for the second quarter as such? Can we expect it to sort of ramp up and maintain at this level? Or it will basically be just want to get an understanding. This is... Thank you for the question. I'm requesting Director of Operations to respond to the question. So this is Prajeet Kumar, Director of Operations.

10:50 So as you have seen that we are ramping up our production this quarter, one of the finest production we got. But as of now also, we are increasing our production because of we are doing well in all the three forms. You can see that one the first one is in the well intervention and workover activities. Earlier days, we didn't got such good workover results, and we have done many systemic improvements in terms of workover. Like we have now have a good practice in place, which is called AW, high level workover program committee, planning committee.

11:39 So this is going to have a planning board meeting, AWPMB. Now what we do is that myself, along with Director of Exploration Development also sits together and do it very, very in an integrated manner, the selection of the wells, everything. Also on the other hand, we have one particular aspect call that is done by Director of Exploration Development, but where I am also in MIT, that is called ED PMB, Acquisition and Development for Portfolio Management Board, similar to workover and production area we do for new wells. So where I am also an investment. So now the things are a little bit different. It is not done in earlier days. We are doing it in a very, very integrated manner along with exploration and development.

12:29 So you can see that we are doing very well in all the three fronts, including workover, well intervention and also well optimization and drilling. So present, we are on a path where you can we can see that we are closing going to work to achieve close to one MMC each quarter this year. Rest of the quarter, we are having yes, MMT. Now you are getting 0.950, no? 0.95 MMT, which we are going to achieve most probably by this quarter, We should achieve if everything remains equal, then given everything going good and nothing adverse happens in the field, we expect that we will be reaching one MMT every quarter from now onwards.

13:29 So let's see, we are keeping our fingers crossed. This is what I can tell you. And as of now, after that production, we have mentioned is 10,921 for the last quarter. We have increased into 11,017 on August 3. So we are on a I think we are on a path where we want to increase our production. That's what I can tell as of today. Anything else you could have, I'll reply you later. And maybe I'd like to ask for some development also if you want to. Okay. He doesn't want to. Okay. So are challenging ourselves, and we love to challenge ourselves in the days ahead as well.

14:26 Understood. The second question was with respect to gas production. Now I do understand that there are still some monetization challenges. If you could update us a little bit in terms of the progress of the monetization downstream pipelines that are under different stages of implementation? And when can we expect maybe a ramp up back to the 0.85, 0.86 BCM levels that rather 0.8, 0.83 BCM levels that we were doing earlier? That will be very helpful. Actually, there are many hiccups have happened because of the shutdown of the downstream industries. This is because of the BCP and the shutdown and at some wake up time, maybe it means this is a yearly shutdown they take.

15:17 Other thing is that seasonal variation will also come now because of from October 1, they will take a little bit of less than what we are doing as of now. So in all in, what is what we are actually expecting is that if this pipeline comes, then we will have the evacuation bottleneck run out of this whole story. So by next year end, we are expecting just all the facilities will be done. And if we talk about gas by 2028, we'll be having all the pipeline averaging ready and it will go to rest of India, whatever's guess we have, we have additional guess, we are planning to send our additional guess whatever 3.5 to four MMXGMD will be able to market from that area.

16:14 So there is we are planning we are thinking that it will be by around December 2027. Should happen. Also, DSP also, small thing is there. Around 200 meters of line actually is required to be laid inside NRL. Now know, BNPL has got a new mandate from the government. BNPL has given them as a common carrier. Now what will happen, an NRL if there is less impact in NRL then we can put it into the main line and put it into the IGGL. And when an IGGL can distribute it in the rest of the places they are doing like to NEDDCL and also for mobility gas in Lower Assam.

17:05 So this is going on. This should take over a months, two, three months, maybe maximum. Once it is done, then we will have more information of gas from present capacity also. Got it, sir. So what I understand is FY 'twenty In fact, in the past as well, we have transported gas beyond NLN. That has already happened in the past. Now this particular communication formalizing GMP and ABS common carrier has come. So that will only help us to what we have already done in the past. And as Dio has already mentioned that once IGGL comes into the, then there will be no stopping actually.

17:57 We'll be able to overcome the seasonal challenges that are there, the regular shutdowns that the existing customers that they take, all of those can be overcome once these two facilities come into effect. Only a 200 meter seen is still to be done within NRL campus and IGGL by end of year. The next financial, it will be over. So things will be pretty smooth for us as far as gas is concerned. Got it, sir. So if I understand correctly, FY 'twenty seven and maybe H1 FY 'twenty eight may see slightly flattish or slower improvement. And then a big jump can be expected maybe by the third or fourth quarter of FY 'twenty eight in terms of achieving our long term target of getting to five BCM on land... Twenty eight first quarter.

18:52 Got it. Got it. Got it. Last question, if I may. So nine. FY 'twenty nine first quarter. We'll have an additional $1,500,000 and A CMD by virtue of NRL coming up. This will be in that financial year. That is already So that augmentation already done because now once NRL also gets into operation from, suppose, next January, then definitely, there will be increase in, I guess, offtake on their side also. There will be an immediate spike in the offtake when NRL comes into deal and maybe NRL by end of Fukan, would you like to add anything here?

19:50 Yes, yes, yes. I have only a couple of things to add. As Director of OXX has already told that BNPL has become a common carrier. Currently, the pipeline, as you know, is one MMF city. As we will be able to connect with a 200 meter pipeline from Numolegger to IGGL, and we will be in a position to give them shutdown so that they... When their capacity from one MMSED to two MMSED to immediately, then thereafter, up to 2.5. So they were requesting for a shutdown because of the geopolitical thing because it was also... It would have resulted also in a shutdown of the refinery, and we needed diesel and petrol badly because of the geopolitical situation. We will not be allowed to give the shutdown to them. Now that the thing that is then that we can do away with the shutdown because we can operate with the gas from the ideal due to this 200 meter connectivity, which is going to come in two, three months' time, we will be in a position to give a very short shutdown to DNPLA to augment their capacity to two and eventually to 2.5.

21:09 That gives a head start of around one point one point five, which in it... Which if not consumed in NRL can also be given to the national grid. So the the the fact is that NRL is going to start consuming 1.5 additional gas perhaps in the last second or third quarter of next financial year. But before that also, this 1.5 MMSCD can find their way to national grid. That is the limited point that I wanted to make. Yes. Understood, sir. If I can just sum it up, I don't have any other questions. So if I look at 1.5 MMX only, that translates to maybe about 0.5 BCM coming through gradually over calendar year 2027 as NRL's commissioning is done and the 200 meter connectivity is done. And then when all the other pipelines are in place, another two and a half to three ms ms m d or two ms m d can come through, which is essentially another that one and a half b c. That is how we go from currently 2.93 BCM to somewhere around five BCM by FY 'twenty nine.

22:18 Is that a proper way to sum it up? Yes. I think that's the correct understanding. Yes. All right. Perfect. Thank you so much. I'll come back with all the Thank you. The next question comes from the line of Vivekananda from Ambit Capital. Please go ahead. Yes. Hello. Thank you for the opportunity. So Doctor. Ranjit, two questions. So the recent regulatory changes that have... Our CMD sir is not attending this conference call. See. I see. Okay. Apologies. The rest of the board is on Yes, yes. Mr. Abhijit, yes, my question to you is on the recent regulatory changes and budgetary support that has been given to the upstream sector.

23:09 How should one look at this in the context of your CapEx program for the next couple of years? Because my understanding is that you have drilled around 25 exploratory wells last year. Just to help us understand how your exploration program will look like in FY 2027 and 2028, both in terms of wells drilled as well as in terms of capital outlay considering the reimbursement that the government is giving? That is question one. The second question, I see that NRL has reported an exceptionally high GRM. And this, I believe, would include some inventory gains.

23:55 Could you help us understand the normalized CRM that NRL reported this quarter? Because we understand 1Q FY 'twenty six had refining losses and this quarter is likely to have had refining sorry, inventory gains. Thank you very much. I'm requesting UG sir to take this question. The first question was about the drilling plan for twenty seventwenty eight and how we are going to support the CapEx program for that, right? Yes. Like last year, we drilled 74 wells. And this year, we are targeting 100, which includes onshore as well as offshore.

24:44 So currently, we are on track to achieve that big ambition of drilling completing 100 wells. And going forward, we would obviously stretch like to stretch ourselves further and try to again write on a 10% at least increase in the number of wells to be drilled. Now whatever wells that we are drilling primarily in onshore is from our own resources. But you've seen that the current acreage holding that we have, about 55% of them are in offshore. And the chunk of them are in deep offshore and ultra deep offshore.

25:30 So with the new P and G rules, have been announced, there are a lot of opportunities for enhanced exploration. For example, if you feel that your block is extending beyond your exploration lease, then you can also place your rights for further extension of the or the lease area to bring it under your exploration campaign. Then there are other things, and most recently is the Samudra Manzan, which has been announced. The formal netiquities are yet to be announced, but it has already been announced that some amount of money will be reimbursed by the government for seismic activities.

26:24 And around INR $6.75 crores per well, which is the maximum ceiling will be provided for drilling deepwater and ultra deepwater wells. And also some 10,000 crores or something will be utilized for common infrastructure hub. And so with this, especially for deepwater and other deepwater, we have already worked out and chopped out a plan where we have identified how many wells will be drilling in the deepwater and other deepwater in the next couple of years, especially since we have already acquired the vintage two d and three d data and they are currently being processed and interpreted.

27:12 In the deep quarters and other deep quarters of Mahanagi and KG, we have already acquired, completed 4,200 line kilometers and 5,300 square kilometers of three d data within a year of the PL being awarded to us. So by January, we'll be finishing the seismic acquisition processing interpretation of the Mahanavi and KG basis, which is roughly about 40,000 square kilometers. As of now, we have already identified possible prospects to be drilled. And that is the reason why we have already rendered out the rig requirements. So the first rig is going to come in June, July 27 and the second rig is going to come by March 28.

28:02 And that will kick start our deepwater exploration campaign. And one well, we are also going to drill next year in Mahanadi, but that is also going to be sponsored by the government, INR800 crores will be sponsored as part of the stratigraphic well campaign. And then the other wells, we are going to take up through the Samudra Manthan route where they'll be supporting us with the funds. And most importantly, we are also trying to we are also derisking these prospects to be drilled because apart from our in house and external consultants, Total is also looking at this data in each and every detail and advising us.

28:49 And now Petrobras have also come on board. They will also be doing an independent interpretation of this data so that they will also come up with their own independent interpretation. So this is in broad what is the outlook that we have for us in the next coming years. I'll answer your question. Just small follow ups. So one is how much CapEx did you incur in 1Q? And if you can give a bit more details about the wells drilled, how many were exploratory last year? My understanding is around 24. How many exploratory wells are you planning to drill this year? And if you can give a breakup of onshore versus offshore, that will be great. So for the CapEx, if you have asked the question for how much we have actually spent for Q1 twenty twenty seven.

29:45 The total amount spend is around INR 3,050 crore, which for survey, we can it is INR $4.50 crore. For exploratory drilling, it is INR $12.30 crore. Development drilling, we have spent INR 100 For our capital equipment and our projects, we have already spent INR350 crores. And investment in our subsidiaries and joint ventures and overseas investment was around INR350 crores. So it sum up to around INR 3,050 crore for FY twenty twenty seven Q1. Our total budget estimate for the whole year is, as of now, it is INR 8,600. So it will go undergo some changes and revision during our next review.

30:36 And actual expenditure for the previous year was INR 13,026 crores. So FY 'twenty five, we drilled 22 exploratory and 35 development wells. FY 'twenty six, we drilled again twenty two and fifty two twenty two exploratory and 52 development wells. And FY 2027, we are targeting 42 exploratory and 57 development wells. Thank you. Can you answer my question on NRL now? Thanks a lot. So, Pukan sir? Yes. Yes, yes, I heard that question on the DRM.

31:21 I think the DRM reported was 35 That accounts for around INR 2 crore that we have gained in terms of inventory gain. If you back that out, it will be 33, four gs. The DRM increase is basically because of the difference between diesel and crude prices, MS and diesel and crude prices. So those spreads were extremely high. In fact, this is after backing out the discount that we had to give to OMC to keep the prices stable as they're understanding. So therefore, this is the DRM that we have. So generally, our DRM hovers around $7 to $8 that you may have observed in last annual reports and all. So now we are clocking in the first quarter around INR 35 crores. That includes INR 2 crore as inventory gain. If you break it out, it will be INR 33 crores. So did I answer your question?

32:20 Yes. Thank you very much. Thank you. The next question comes from the line of Somaia Vi from Aventus Park. Please go ahead. Yes. Hi, sir. Thanks for the opportunity. So my first question is on NRL expansion. Could you provide us an update in terms of the commissioning? So earlier, I believe DTO units were expected to kick started. So where are we and what is our expectations in terms of output for this year and also in FY 'twenty? I think I can answer this question. MD and R and D yes, said yes, yes. So as we had in the last interaction, we indicated that in the first quarter, we will be commissioning our schedule with you. We have mechanically completed that unit. We have subjected subjecting it to inspection by OILD followed by peso.

33:20 These are statutory inspections that are required to be carried out before we do a startup activity. Otherwise, we are ready for startup. The unit is ready. SR unit, which is required prior to commissioning of the unit is almost getting completed, maybe another couple of months' time, we should be able to start the DST along with SRU. So these three units will be commissioned by, say, October or November at this. And rest of the unit, we are still taking a target of commissioning by 03/31/2027. So having done that, our actual production in a graded manner will start from next financial year. Gradually, we will heat up to around 75% of the total capacity utilization by end of year twenty seven, twenty eight. So at Q4, I think we will hit around 75% of our related capacity of 9,000,000 tons. So that is what our plan is.

34:29 Understood, sir. And also on the related infrastructure there, in terms of the Paradeep to Maligarh pipeline, so there was few kilometers that was trending. So any update there? When is that expected to be? Yes. Actually, there have been very good progress over there also. And their streets of ROU barring only eight kilometer stands as of now. So we are in a good shape there. We are getting good traction, good support from the governments associated with ROU in... Because we are traveling to four states. So all of them are supporting that. By December of this, it is By December, we will commission the pipeline here. October, we are taking a target for mechanical completion.

35:15 Understood, sir. Sir, also in terms of Sorry to interrupt, sir. May I request you to please rejoin the queue? Okay. It's okay. Can I just ask one clarification? Hello? Yes. Yes. Go ahead. Yes. Yes. Thanks. So just on the CapEx part on NRL. So also, if you could just help with what is the net debt at NRL of the INR 35,000 crores to 40,000 crores of expansion CapEx? How much have we spent so far? And what is the plan for the next couple of years? We have invested around INR 30,000 crores so far. So it we should be completing the refinery project around INR 34,000 crores to 35,000 crores, and we should also be completing the PPU project by spending another INR 7,200 crores or INR 7,300 crores. So that is the outlook of the CapEx that we have.

36:14 The current net debt at NRL and what are the actual cash CapEx that we have spent, sir? We have a 30,000 figure that I spoke is a total spend that we have made. Out of that, around INR 26,000 will be around INR 19,000 will be the borrowings that we have done. So the rate component is INR 19,000 crores, yes. Yes. So this is at NRL level? Yes, yes, absolutely NRL level. Okay. And the console level, including upstream and international? Abid? From stand alone point of view for foreign investment, we are having 1,400,000 loan oil. So far oil is concerned, it's only for our Mozambique project.

37:11 And in consolidated table, another one bond we have from our foreign subsidiary in Singapore, which is $550,000,000 of bond, which is to be repaid in the next year, May 27. And from NRL point of view, as I already told you, it is INR 19,000 plus crores. So this is in a group level, if you see some of these three figures, this will be our debt, total debt in the group level, which is around INR 37,233 crores is our total debt. Got it, sir. Thank you. Thank you. Ladies and gentlemen, you are requested to restrict your questions to two question per participant. I repeat, you are requested to restrict your questions to two question per participant.

38:01 We have the next question from the line of Yogesh Patel from Dollar Capital. Congratulations for the good set of numbers. Question pertains to gas discovery in Vijayakum Andaman. What are the upcoming steps of the procedure plan for this field to help us gauge volume reserves and that can be produced commercially? If there is any new exploratory well planned for Dandaman, what would be the timeline for this completion? And when can we anticipate the results? This is my first question. Well, as you are aware, we have drilled so far three wells in Adamant.

38:47 And first well, we drilled and we went to the second well because the sand that we encountered was tight. And with the current testing system, we couldn't test the well. So we decided that we will come back prepared for testing the first So we went to the second well where the gas was reported. Then in the second well, but it was flowing very intermittently. But in the third well, which we drilled, the gas was flowing continuous. So that was a technical discovery, which we have also intimated to the BGH, which is a statutory authority. So in the first well, we are now going back. And even as we speak, we are preparing to test the sand there using hydrofrac for which a separate contract has been mobilized.

39:42 And the hydrofrac is a well stimulation mechanism, which can help you to test tight sands so the fluid or gas can come out easily. So this will take about a month in which Equatorium one for the testing to be complete. And then we will demobilize this current rig, semi submersible rig that we have because it has completed its contractual tenure. So the fourth well we are going to go in Andaman with a jack up rig and this we are going to be drilling by December this year. And the fourth well is further up north in the Andaman block at the water depth of about 90 meters. So this rig is actually currently drilling in our KG Offshore DSL block. So once we complete this well in KG Offshore, which in a few days we'll be testing in KG, then we will mobilize this rig to Andaman and drill the fourth well.

40:39 In the meantime, based on the discoveries in Vijayapuram 2 And 3, we have secured additional seismic three d seismic data because the discoveries which were made were based on two d data and two d data interpretation. So we thought we will have an opportunity to map the subsurface better using three d seismic. So in and around Vijayapuram 2, we took 300 square kilometers of three d and in and around Vijayapuram three also we took around 300 square kilometers of additional three d. So this 600 square kilometers of three d data is currently being processed by Schlumberger, which is going to be completed by October. So that by January, we have completed the interpretation and then after going through our normal assessment and QCs, especially leveraging on the partnership, technical services agreement that we have with Total and Petrobras.

41:37 So after having a detailed discussions with our technical service providers, based on the new three d data, we will take the next course of action to undertake the campaign in Andaman in and around Vijayapuram 2 And 3, for which most probably we'll be drilling appraisal wells and that will help us to delineate the reservoir further. And also with more conclusive testing coming up, we will be coming we'll be able to come up with some numbers regarding the size of the structure or the fluid in place, gas in place and possible production rates. Any possible timeline that you declare or share the results in terms of the gas reserves into that field in the next six months, nine months down the line after doing all these exercise?

42:30 Yes. So, the fourth well we are going to drill by December. So, in about three to three point five months, say by March, we will be able to have some assessment of the fourth well, which is again a pure exploratory venture. Then the appraisal wells that we are going to drill in Vijayapuram near Vijayapuram 2 And 3, that will depend on the interpretation that we complete by January. And by February, we should be able to take a call like how many additional wells we will be required to be drilled in Andaman. Sir, my second question related to 8% Y o Y decrease in the gas production. How long will the petrochemical and power plants continue to use the less gas? Because we have been seeing this issue of a shutdown or less gas consumption from the petrochemical side.

43:27 The question here is that could you throw some light on the challenges the BCPL is encountering consuming a late amount of a gas or anything which you can highlight on the late consumption from the power plants and any lower offtake? Actually, we supply suppose for... As for power power power consumption, we supply to. So,, what happens is that, I'd like to label for you for the how the power they are having. They are having high level power at the same time, and they are having the gas power project. Now with the increase in gas price, they are not actually able to match the price of hydro.

44:15 So in that case, what they do, they little bit of kind of try to consume less and they try to increase the hydroelectricity. So this is what they do. Number two, like we have said about the PET scan, so we are basically, BCPM service on kind of what you can call it a subsidy. So in our part of the players, actually, as far as the economy goes, maybe they are not that able to make a very great headway in terms of finance and in terms of economic scale. I think that is their issue.

45:02 But once we have this connectivity, then we'll definitely have it exported to Western part. And also if we go to the rest of the country. But another thing, there is some upside is there because government of Assam is also taking interest in increasing the domestic supply of gas, CGD. So we have we still have some upside, and we are in talks with our Assam gas company so that they increase their intake because there are a lot of areas for inroads. So that gas consumption can increase if government of Assam gas company increases their consumption.

45:47 Otherwise, this situation continues, so I cannot tell you that. But the only thing is that since Numerilgar is coming up, and we have like already told that we will be supplying a total of 2.5 to Numerilgor or maybe close to three to Numerilgor Refinery Limited once they start ramping up their production. So as you already told, it is coming up. So... But I'll... Ladies and gentlemen, the line for the management is disconnected. Please stay connected while we reconnect. We have the management line connected with us. Joined?

46:34 And you may proceed. So, sir, you're also joined in this call now? Yes, sir. Yes. I can Yes. Yes. Yes, sir. Okay. So the other thing is that we have a DFL, Ruliazza Fidar line, that will that is being done by Illinois Gas Limited. So that once that is connected, we have to guess immediately we can evolve it. That should not be an issue. One good thing about that line is that most of the places we have the ROU. We have our own ROU like they will cost for some in some parts except some 140 kilometer.

47:24 Rest of the places, we have the one of BCPR, the other one is, think, OIGC. And so there should not be any much issue in laying the pipeline. So this is already under and going to be constructed very soon. Sir, BCPL consumptions have improved after the maintenance shutdown is over? Or still the BCPL consumption levels for the gas are still lower in the current quarter Q2 also? The ship cable side. Visible is stable, right? Visible take VCPA and offtake has picked up and it's currently stable. So they take NAND around 1.25 to 1.35 they take. So and six point so then rest around 5.2 to five. Four is return to us.

48:21 And then four is a P and G. We look at BCPL, we are basically taking a very narrow view. While we are focusing on BFL, DMPL, these are all long term things, which will help us kind of transport the gas to other parts of the country, merely relying on BCPL or EPO and few other customers in the Northeast, we all know that, that will not help us evaluate the potential that we have. So BCPL, little up, down, this will not really change the scenario drastically. For us to really have a head start, big head start is DSL has to kind of happen.

49:10 The NPL has more or less happened, except for the 200 meters stretch within NRL that will happen in due course as MDNRL has already pointed out. So that is the larger picture. Thanks a lot, sir, and all the best. Thank you. The next question comes from the line of Virta Rajan Shivashankaran from Antique Limited. On the feeder line, has the tendering been done? And the construction has it started? Yes, sir. So on the feeder line, there is already a progress of around 20% of the project. And the PMC has already been engaged as per plan.

50:03 Secondly, a small clarification on this issue. Once the 200 meter is completed, irrespective of how Nimalaya ramps up, we are still in a position to put it in IGG. So the common carrier is already in place. So you're not dependent entirely on Nimalagar for that additional 100. Am I right? You're you're correct, actually. Once this 200 meter is there, so... And being a common carrier. So even if NRL doesn't consume, it can travel to IGCL and eventually to the gas leak. And and this you think, like, will be ready by... In the next two, three months? Yeah. Two, three months, it should be ready. Yeah. Great, sir. We have the next question from the line of Sabri Hazarika from MK Global Financial Services.

50:59 Yes. So two small questions. Firstly, you mentioned in NRL that you gave some discounts. Was this like the windfall tax related discount? How much was the quantum? And if not for the discounts, then what could have been the GRMs? See, the GRMs would have been much higher because we have been giving some discount to OMCs. And the the past quarter, it was around... We started off with a very high number of 13 rupees per liter for petrol and which came... Eventually came down to 3 rupees per liter by the end of this. And then before diesel, it was started started with 10 rupees per liter, and eventually, it was meal by the quarter end. So they keeps calibrating based on the international price of diesel. So these... Our DRM would have been much higher.

51:55 So that is what I could have... I I can confirm you, actually. Yeah. 30 rupees per liter to 3 rupees per liter in petrol and 10 rupees per liter one one three to three. One three to three and ten to me. Those those were the kind of discounts that we we were required to give to. So right now, so we are at we are at zero or right now, again, it has come back? No. No. Not... Right now, it doesn't again reappear, so we are giving now. But it gets calibrated month on month to reflect the delta between crude and product prices. Is it connected to the SAED, or it is, like, independent of this? It is it is exactly as per SAED. As per SAED, right. Okay, sir. And fair enough. And second question is on this oil production. So now if we are at 1,000,000 ton every quarter, so technically, we have hit this 4,000,000 ton target of the Admission four plus which we had. So is there any revision in guidance for oil production next year? Or are we looking to maintain it at this level for FY 2028, 2029 going ahead?

53:08 Yes, Mr. Savary. You see, we are ramping up the production by doing all whatever can be done. But to increase to the next level, we are also doing some other things like near field exploration. At the same time, we are doing like the work of our production enhancement optimization. These are some of the drives. And we are increasing with getting whatever good technologies we can, including hydrofrag, you can say radial drilling. So we are doing. So we have some thoughts in mind to go to 4.2%. If look at our FY 'twenty nine kind of target, we are targeting around up to around 4.2%.

54:00 Maybe it goes beyond that. But that will also depend a little bit of kind of our own landfill exploration. That is one important aspect, yes. Okay. So 4.2% from the main producing area. This doesn't include any deepwater, nothing of that? Mainly main producing areas. And also, we are ramping up production in Rajasthan. And just one last small question. Any impact of the recent floods on your operations? No. In our areas, there was no impact. We have, for instance, Schipzagar and also in Serradio, but these are in the western part of the eastern part of Schipzagar and Serradio. So our place like not much of class and but definitely, the nearby areas got some margin, all those things.

54:58 So no impact on our side. Got it, sir. Thank you so much and all the best. Thank you. Thank you. Thank you. The next question comes from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead. Thank you for the call, sir. So with all this pipelines that you're kind of thinking about completing and the 200 meters pipeline for NRL, what do you think will be your target F28 production for natural gas next year? And also, if you can just help us understand what percentage of the gas is coming as new oil gas pricing or you're not being able to get that yet? You see, I'll not talk about the new oil prices.

55:44 Whatever incremental production will happen will be all new oil price because the APM part will be over by this time because whatever new gas we'll be doing, we'll be extending our preparation. We'll be having more testing and already some areas we have already discovered. We have tested those areas and we know that we have the gas and we'll open up those. So this will be all new gas. There will be no kind of old gas kind of situation. So this will be all new gas. Number two is that you are talking about numbers in terms of total production in coming days. Once we get DFL connected, we are into five. There's a bottom line. We are five BCM from the very first day.

56:35 We have always maintained that ramping up the production by itself is not a challenge. Absence of the network is a challenge, which we are kind of trying to address. And once the network is laid, it is ready for evacuation, ramping up production will definitely happen. We have... I think that's very clear. I think I was just saying... And we know that this is the production potential of the materials. I think, yes, that's very clear. I was just thinking right now that the Nrn is getting completed and ramping up second half of next year, and you have this pipeline as well done. Maybe I think the ramp up for next year, if you have some numbers around that, that will be interesting to get for natural gas?

57:24 3.8. Yes. Next year, it will be 3.8. Three three now 3.8. On an MREL, we are shutting down somewhere. At least 30 wells, we are always shutting down. When we'll be opening all those wells? On an average, if there is a low production, we are starting up to 60 wells. So it is the situation is like this. So it becomes an issue. So these wells are already there. So that should be automatically pick up. Yes. That's fair. And my second question was more related to NRL. Was there any benefits on excise duty you were able to get this quarter?

58:10 Or it's very smaller number? Hey. You have seen that excise duty was calibrated to keep the retail prices down. So obviously, there will there will be a squeeze on the excise benefit that we gave. So so to that extent, yes, our excise duty benefit realization has come down. So it was not a big number, but it was a sizable number. Got it. So the reason I'm asking you, this is a bit a to interrupt. Sorry, I request you to please rejoin the queue for any follow-up questions. Thank you. The next question comes from the line of Nitin Tiwari from Philip Capital India Limited. Please go ahead.

58:57 Hi, sir. Good afternoon, and thanks for the opportunity. Actually, some clarification questions. So continuing on the line of questioning on the GRM bit, I mean, if you could just for our understanding and further understand that the the $35 GRM that we have reported, does that include the impact of both SAED and the excise benefit that you get or the excise benefit is not included in this. So... And subsequent to that, if excise benefit gets included, then what could be the GRN? The excise... When we report GRN, generally, it is devoid of excise benefit, and it only includes the inventory loss and gain. So that's what I clarified. And, also, it it it is of the discount that we are providing due to the.

59:46 So does it answer the question? Otherwise, you know what we... What is the excise duties of the tool and diesel. You can quickly calculate the impact of those products in those the TPPs into our DRM. So whatever DRM that is visible $35 is not considering the exercise duty benefit that we are getting. Yes. The reason why I asked is because SAED is also a special excise duty. I mean, so I was wondering if both impacts are netted off and then you report to the G and A. But thanks for the clarification. Secondly, on your operating costs. So you basically spoke about an increased pace of activity, but the contract cost has come up as compared to previous quarter and so also other expenses.

1:00:34 So what are the key reasons for that? And how should we look at these costs going ahead down the year? See, since we are in the expansion mode, some some plants are getting commissioned to those actually is accounted as a expenses of now. But as we will stabilize, it will be absorbed into our overall OpEx budget. And with the commensurate revenue coming, we will be having similar sort of and much more lower per barrel operating cost. Our per barrel operating cost over around $4.4.5 to $5 today, it will come down to a level of $3.5. That's what our expectation is because we will be rationalizing on the facilities, and our throughput will be high. So that therefore, the operating cost will come to around 3.5.

1:01:28 So thanks for answering that. This is respect to another, I suppose that you mentioned. I'm taking on I'm talking from the perspective of Oil India where contract costs and other expenses have come down on a sequential basis. So what are the key reasons for that? And how should we look at these costs going ahead in the year? No. The contract cost for the current quarter for Oil India stand alone is INR $6.15 crores Sorry, sir, your voice is not very clear.

1:02:15 Can you please come again? See the contract cost of around 146 crores, which has gone up during the current quarter as compared to the previous quarter, is major for our G and A cost in our offshore block. But the cost was at par only. It is only G and D cost for our offshore blocks. Rest are, you can say, are in line as compared to the previous year. Sure. I... It was not very clear, but, like, you know, from what I understood that on a Y o Y basis, you mentioned that some INR100 crores of extra cost has come otherwise everything else is in line. That's the right understanding? Yes.

1:03:02 It has several components. The one component, which has basically consumed much of the cost is GMG because we are into operations in the offshore. So there, there has been a high. Rest of the items are more or less similar. Because of the pricing equation. Yes. Got it. And lastly, sir, if I may, like just one more clarification question for Anyway, everybody is benefiting. Can give your to interrupt, sir. May I request you to please rejoin the queue for any follow-up questions? I would. I just wanted the production targets for this year and next year. I mean, that's all from my if that can be given. No. This year, you see, we are already we already told it quarter on quarter. We are close close to one MMT.

1:03:50 So you can say that it will be around minimum 3.9 will be our production this year. So you can... That's what I can tell as of now, but we may touch four or two. Got it, sir. Thank you. Now that we have surpassed 11,000 We are we are expecting 3.9. It's possible that we touch more VCR itself. Understood. Thanks. Thanks for answering my question. Thank you. The next question comes from the line of Amit Murarka from Axis Capital. Please go ahead. Hi. Thanks for the opportunity. So just on Andaman.

1:04:36 So if I remember right, you had taken a write down of the Vijayanagar, Vijayapuram two well, whereas the one and three, I think, are still in as of now in your assets. So I just wanted to get a clarity like now, is it fair to say that given that it's been like now two, three quarters since the well was drilled, it's no longer going to come up for, let's say, review or a write down of the expense done on those two wells? Well, Vijayakumaram Sri, actually, we just completed the testing sequence in July, yes.

1:05:23 So that didn't come up in the first quarter. And we will be undertaking an appraisal campaign in Vijayapuram Three also based on the new 300 square kilometers of three d seismic data that we have acquired. And so once we have the interpretation and prospect generation done by April, we will be able to take a final call on Vigeo Param 3. And Vijayapuram one, we had to hold on because we didn't have the proper testing facilities at that point of time because we didn't anticipate such tight formations in Vijayapuram one. So we have to keep Vijayapuram one on hold. And as we speak, our rig has been now mobilized to Vijayapuram one, where we'll be stimulating the well using Hydrofrac technology.

1:06:18 And this testing campaign in Vijayapuram will take almost about this month of August and post August post testing in September, we will be able to freeze on the fate of Visequorum one. Would you be able to share what has been the spend on Vizipuram 1 and Vizipuram 3? That will depend on the testing results. Vijayapuram 3, I've already told you that we'll be drilling an appraisal well in that area. And if based on the three d seismic campaign, we see that Vijayapuram 3 maybe was not in a proper structural position, then we can always examine the feasibility of utilizing this same well to sidetrack and go to a desired position, which we can go up to 1,000 or 2,000 meters laterally, horizontally.

1:07:17 And Vijayapuram 1 will take a call after the testing results, which will be concluded this month. No, I got that. I just wanted to know what are the Sorry to interrupt, sir. May I request you to please rejoin the No, no, no question which couldn't get answered properly. So I'm saying that what was the spend which was made on Vijaypuram 1 is what I was asking? Vijaypuram 1, our spending has been roughly 1,000 crore. INR 1,000 to INR 1,001. Yes, it will be INR 1,000 to 50. Okay. Got it. That's all from me. Thank you. Thank you very much. We have the last question from the line of Vinit from Nomura. Please go ahead. Thanks for the opportunity. Just one couple of questions, basically on GST and royalty. I think there was a basic filing.

1:08:12 So can you tell us what is the total amount due on this GST and royalty? How much was provision? How much was paid? And what could be the impact in the second quarter on the P and L as well as cash flow? And similarly, on the some land tax, I think the government has withdrawn the case. So and I believe Oil India has already not paid anything. So is there any impact on that also on your financial statements? Okay. So I'll take up the land question first. So in the recent that the representative, the senior counsel of the government of Assam, he gave an undertaking to the Honorable Court that this particular law will be withdrawn.

1:09:02 So it will be deliberated in the state legislature. And following the due process, the act will be repealed. So far, whatever we have shown in our financials, we have shown them as contingent liability. So it has not impacted our financials at all. And in the days ahead, as long as I mean, we'll have to wait till it is withdrawn by the state. Once it is withdrawn, we will also kind of remove it from our books. So that is the position on Assam land taxation. And now as regards the GST on royalty, we have all this while been providing for it. So it is again not going to impact our financials because every quarter, we were providing for it since this new thing was introduced in 2017, right, from 07/01/2017.

1:10:02 So without interest, it would be to the tune of INR 2,500 crore without interest. INR 1 over INR 2 crore is approximately two. Am I audible? Yes, Haritha. Without interest, it would be roughly about INR 2,500 crore. So our undertaking to the court was that the court has given us six weeks' time to settle this, and we are trying to kind of make this payment as quickly as possible. At this point in time, I can tell you this much. So sir, within the next six months, the interest component doesn't have to be Only the 2,524 crores.

1:10:52 You. No interest. We will only be paying the liability as it arises. And this will be put in the second quarter result? Sorry? This will come up in the second quarter financials, INR 2,500 crores? Yes. Second quarter financials, I mean financials as such is not going to be impacted because we have provided for it. So but then we will definitely make a disclosure saying that this much amount has been released on account of GST or royalty. Okay, sir. Thank you. Right. Thank you. We'll take that as the last question. And I would now like to hand the conference over to management for closing comments. Thank you and over to you.

1:11:47 Thank you very much for your participation in Oil India's Q1 twenty seven earnings call. A big thanks to Dan Capital for helping us to organize today's session smoothly. We trust that we have satisfactorily addressed your queries and provided meaningful insights into our quarterly performance and ongoing initiatives. Should we require any should you require any additional information or further clarification, please do not hesitate to contact our Investor Relations Cell. The relevant contact details are available on our website. We sincerely appreciate your time, participation and continued confidence in Oil India Limited.

1:12:32 Your engagement is highly valued and we look forward to maintaining an open and constructive dialogue with you in future. Thank you and have a great day ahead. Thank you. On behalf of DAM Capital Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.