Oil India, GAIL extend 15-year gas supply deal from Rajasthan fields

Oil India Limited (OIL) and GAIL (India) Limited have signed an agreement to extend their existing Gas Sale and Purchase Agreement for another 15 years, beginning July 1, 2025. The deal involves the supply of up to 900,000 standard cubic metres per day (SCMD) of natural gas from OIL’s gas fields in Rajasthan, Oil India said in a BSE filing on Wednesday.

 

The agreement was signed between Ranjan Goswami, Executive Director (Business Development) at OIL, and Sumit Kishore, Executive Director (Gas Marketing) at GAIL in New Delhi.

 

“This agreement highlights the dedication of both Maharatna CPSEs in the production, transportation and distribution of gas available from domestic gas fields,” the companies said in a joint statement.

 

 

The supplied gas will be used by the state-run Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) for the production of power. According to Gail's website, it has a 16,421 km of gas pipeline network across India. 

 

GAIL and OIL Q4 results

 

In the fourth quarter of financial year 2025, GAIL (India) Limited reported a consolidated net profit of ₹2,491.76 crore, nearly flat from ₹2,468.71 crore recorded in the same quarter last year (Q4 FY24). Consolidated revenue from operations rose by 11.3 per cent to ₹36,551.15 crore in Q4 FY25, compared to ₹32,833.24 crore in the corresponding period of the previous year.

 

In contrast, Oil India Limited posted a consolidated net profit of ₹1,310.10 crore for Q4 FY25, representing a decline of nearly 39 per cent from ₹2,140.72 crore in Q4 FY24. Revenue from operations fell by around 6 per cent to ₹9,587.82 crore, down from ₹10,165.78 crore in the year-ago quarter.

 

On Wednesday, GAIL’s shares closed at ₹185.05 apiece, while Oil India’s shares ended at ₹445.30 each on the BSE.