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Oil India launches seismic campaign in Mahanadi

Capital Market 

Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Steel, inaugurated the seismic survey campaign of Oil India (OIL) at Kakatpur in Odisha in the Mahanadi Basin (Onland).

OIL won all the five blocks for hydrocarbon exploration under Open Acreage Licensing Policy (OALP)-II and III rounds. The blocks are spread in 11 districts of Odisha namely: Puri, Khurda, Cuttack, Jagatsingpur, Kendrapara, Dhenkanal, Jajpur, Bhadrak, Baleshore, Maurbhanj and Keonjhar.

The company plans to acquire, process and interpret 1,502 line kilometre (LKM) of 2D seismic data and 1,670 sq. km of 3D seismic data in the five blocks. The total envisaged expenditure on the entire exploration campaign in the five blocks in Mahanadi Basin are Rs 1,248 crore of which Rs 220 crore is for seismic survey.

The company has been actively participating in the OALP rounds in an endeavour to intensify exploration. It has been awarded a total of 25 blocks making it the second largest winner of exploration blocks under OALP. A total of 8,215 LKM 2D & 5,884 sq. km. 3D seismic survey and 73 exploratory wells are planned in these 25 blocks. The envisaged investment is to the tune of Rs 5,400 crore over the next 3 to 4 years, the company said in a statement after market hours yesterday, 20 November 2020.

The state-run oil major's consolidated net profit tumbled 42.3% to Rs 381.75 crore on 32.5% fall in net sales to Rs 2,175.87 crore in Q2 September 2020 over Q2 September 2019.

Shares of Oil India lost 0.92% to Rs 91.20 on Friday (20 November 2020). The stock has jumped 38.18% from its 52-week low of Rs 66 hit on 13 March 2020.

OIL is a state-owned Navratna under the administrative control of India's Ministry of Petroleum and Natural Gas. As of 30 September 2020, the Government of India held 56.66% stake in the company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Sat, November 21 2020. 11:59 IST
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