On behalf of Board of Directors of Oil India Limited I thank all of you for yourcontinued support I am happy to present OIL'S Maiden Integrated Annual Report for theyear 2020-21 Your Company has completed 62 glorious years of its existence on 18thFebruary 2021 and has maintained excellenttrack record of its performance.
Certain major developments during the year have had positive impact on the current andfuture business scenario of your Company As part of its diversification strategy yourCompany acguired additional 54.16 % stake in Numaligarh Refinery Limited (NRL) on 26thMarch 2021 It was a historic day for all stakeholders of NRL and OIL two greatOrganizations based in NE. For OIL acquisition of majority shares of NRL was not only astrategic business decision but one of the defining moments of OIL'S corporate journey asan E&P Company making it a truly vertically integrated Company in the oil & gasvalue chain.
Your Company currently operates 04 (Four) NELP blocks covering an area of 3909 sg km2(two) in the states of Assam & 1 (one) each in Mizoram and Andhra Pradesh YourCompany has started preparatory work to start drilling campaign in NELP BlockAA-ONN-2010/2 and AA- ONN-2010/3 located in Assam
The Company has been awarded a total of 25 (twenty-five) blocks under Open AcreageLicensing Policy (OALP) Round covering a total area of 48796 sg km. These acreages arein the state of Assam Arunachal Pradesh Tripura Nagaland Odisha Rajasthan andoffshore areas in Andaman and Kerala-Konkan. The Company has also been awarded 2 (two)blocks one each in Tripura (4723 sg. Km) and KG Offshore (9390 sg. Km) underDiscovered Small Field Round-ll. This spreads our domestic E&P acreage significantlyand will help in future growth of the Company through successful exploration efforts.During 2020-21 your Company has acguired 131033 LKM of 2D and 19795 sg.km 3D seismicdata in OALP blocks. Your Company is also taking various initiatives to boostexploration-development activities and to step up production of Oil and Gas
Your Company's CSR interventions have been making difference to the lives of the peopleand local communities through various programme
and projects. During the year 2020-21 your Company spent Rs. 10525 Crore againststatutory reguirement of Rs 4912 Crore towards CSR activities.
Your Company also undertook various initiatives to sensitise the masses on the novelCorona virus and contain its spread. The Company's CSR Projects were also leveraged for itsuch as health check-up camps sewing & distribution of face masks etc. Distributionof covid care kits and sanitisers were undertaken to contain the Covid-19 pandemic besidessanitization of office premises and public places. Your Company contributed Rs 2500Crore towards the Prime Minister's Citizen Assistance and Relief in Emergency Situation(PMCARES) Fund to strengthen India's fight against Covid 19 in FY 202021 in addition tothe contribution of Rs 1300 Crore in the last financial year. Further the Company isalso setting up PSA oxygen plants providing oxygen compressors oxygen cylinders andoxygen concentrators besides augmenting healthcare infrastructure at various locations toeffectively counter the Covid-19 pandemic.
Your Company also witnessed certain external events during the year which were beyondthe control of the Management which had adverse impact on Company's performanceConseguent to the unfortunate Blowout at Baghjan well No 5 on 27th May 2020the Company had to take immediate steps for capping killing and abandonment of the wellwhich was successfully completed on 3rd December 2020 Your Company'smanagement acknowledges the tremendous support received from all stakeholders during thisperiod Covid-19 pandemic also had unprecedented impact on the demand of petroleum andpetroleum products due to global lock downs and sharp contraction in the economicactivities.
In spite of the adversities faced by the Company your Company reported soundfinancials with revenue of Rs 1056145 Crore and Profit after Tax of Rs 174159 Croreduring 2020-21 Your Company maintained track record of receiving "Nil Comments"on its accounts for 2020-21 from Comptroller & Auditor General of India for 19th consecutiveyear. Other significant events and highlights of 2020-21 are detailed in the IntegratedAnnual Report 2020-21
I would like to take this opportunity to reiterate your Company's commitment towardspursuing the highest standards of Corporate Governance We have always been proud of ourrobust and transparent processes and structures in place. Our Corporate Governancepractices meet the stipulations of Regulators including the Guidelines issued by theDepartment of Public Enterprises
We have been committed and shall remain so in managing the risk of the business and tothe future growth of Company to ensure maximum value creation for our stake-holders I amconfident that with your trust encouragement re-assurance and promised support we canensure higher levels of progress and prosperity for the Company
|(S.C. Mishra) |
|Chairman & Managing Director |