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Oil India Ltd.

BSE: 533106 Sector: Oil & Gas
NSE: OIL ISIN Code: INE274J01014
BSE 11:07 | 14 Oct 152.30 3.35
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NSE 10:59 | 14 Oct 152.10 3.10
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OPEN 149.20
PREVIOUS CLOSE 148.95
VOLUME 19660
52-Week high 212.00
52-Week low 139.65
P/E 4.90
Mkt Cap.(Rs cr) 16,516
Buy Price 152.25
Buy Qty 100.00
Sell Price 152.45
Sell Qty 217.00
OPEN 149.20
CLOSE 148.95
VOLUME 19660
52-Week high 212.00
52-Week low 139.65
P/E 4.90
Mkt Cap.(Rs cr) 16,516
Buy Price 152.25
Buy Qty 100.00
Sell Price 152.45
Sell Qty 217.00

Oil India Ltd. (OIL) - Director Report

Company director report

Dear Members

On behalf of the Board of Directors I hereby present the 60thAnnual Report on the performance of your Company containing Audited Financial Statementstogether with the Auditors' Report and the Comments of the Comptroller and AuditorGeneral of India for the year ended March 31 2019.

1. SIGNIFICANT HIGHLIGHTS

The financial and operational performance of the Company is as under:-

A. FINANCIAL HIGHLIGHTS

During the year OIL has earned total revenue of र 15170.00 croreas against र 12140.64 crore in the previous year 2017-18. The operating profitmargin of the Company for financial year 2018-19 was 25.54%.

The profit before tax (PBT) in the year 2018-19 was र 3916.22crore against PBT of र 3709.80 crore in the previous year. The profit after tax(PAT) was र 2590.14 crore in the financial year 2018-19 against र 2667.93crore in the previous year. PAT for the financial year 2018-19 has reduced by र 77.79crore (2.92%) as compared to 2017-18 due to provision of onetime deficit of र 1026.79crore in actuarial valuation against option given to employees to opt for contribution toEPS-95 pension scheme on actual salary basis instead of statutory salary. The averageINR/USD exchange rate was र 69.92 in the year 2018-19 against र 64.45 in theprevious year. The key financial figures for the financial year 2018-19 are summarizedbelow:

(र in crore)
Particulars Financial Year 2018-19 Financial Year 2017-18
Income from operations 13734.96 10656.47
Other Income 1435.04 1484.17
Earnings before depreciation interest tax and amortisation 6918.81 5395.49
Finance Cost 479.49 415.68
Depreciation Depletion and Amortisation 1496.31 1270.01
Exceptional items 1026.79 -
Profit before tax(PBT) 3916.22 3709.80
Profit after tax(PAT) 2590.14 2667.93
Appropriations
Interim Dividend 964.67 1059.25
Tax on Interim Dividend 198.22 215.35
Final Dividend of previous year 113.49 359.39
Tax on Final Dividend of previous year 23.33 73.16
Re-measurement of the net Defined Benefit Plans -88.46 -89.19
transferred from Other Comprehensive Income
Transfer to Debenture Redemption Reserve 418.17 430.78
Plan Expenditure 3180.81 3399.04

B. OPERATIONAL HIGHLIGHTS

(i) Crude Oil

During the year 2018-19 crude oil production was 3.323 MMT (inclusiveof OIL's share of 0.014 MMT from Kharsang JV and 0.017 MMT from Dirok JV) which ismarginally lower than the production in the previous year (3.394 MMT). The crude oil salewas 3.233 MMT as compared to 3.327 MMT in the previous year. The price realization inrespect of crude oil increased to USD 68.50/BBL in the year 2018-19 as against USD55.72/BBL in the year 2017-18 registering increase of USD 12.78/BBL. As a result revenuefrom crude oil has increased by 29.4% during the year even though sales decreasedmarginally.

Heavy Oil was discovered in Baghewala PML of Rajasthan in the year1991. Previous efforts of OIL for commercializing the discovery were not successful.Cyclic Steam Stimulation (CSS) was successfully implemented on a pilot scale in the wellBaghewala-8. The CSS technology has been successfully implemented for the first time inIndia.

(ii) Natural Gas

During the year 2018-19 natural gas production was 2865 MMSCM(inclusive of 143 MMSCM as OIL's share from Dirok JV) which is marginally lower thanthe production of the previous year (2905 MMSCM). The sale of natural gas was 2508 MMSCMagainst 2415 MMSCM in the previous year. Natural gas price realization increased to USD3.21 / MMBTU in the year 2018-19 as against USD 2.69 / MMBTU in the year 2017-18 resultingin increase of USD 0.52/MMBTU. As a result of increased price realization and highersales revenue from natural gas increased by 34.47% during the year.

(iii) Liquefied Petroleum Gas (LPG)

During the year 2018-19 LPG production was 33730 metric tons against34110 metric tons in the year 2017-18. The sale of LPG was 33694 metric tons against 33856metric tons in the previous financial year. LPG price realization to र 42005/MT inthe year 2018-19 as against र 35705/MT in the year 2017-18 leading to the increaseof र 6300/MT. As a result of this revenue from LPG has increased by 17.08% duringthe year although sales decreased marginally.

(iv) Pipeline Operations

During the year 2018-19 crude oil pipeline transported 6.53 MMT ofcrude oil as against 6.64 MMT in the previous year. The Naharkatia-Bongaigaon sectortransported 3.20 MMT of crude oil for the Company and 0.95 MMT of crude oil for ONGC Ltd.The Barauni-Bongaigaon sector transported 2.38 MMT of imported crude oil for BongaigaonRefinery. The Company also transported 1.78 MMT of petroleum products throughNumaligarh-Siliguri Product Pipeline.

The total revenue earned from transportation business was र 365.34crore in the financial year 2018-19 against र 365.58 crore in the year 2017-18.

(v) Renewable Energy

As on 31st March 2019 total installed capacity of theCompany in respect of renewable energy stands at 188.10 MW (excluding projects for captiveutilization) comprising of 174.10 MW of wind energy projects and 14 MW of solar energyprojects. In addition solar plants of 0.864 MW are being used for captive utilization ofelectrical energy.

Your Company generated revenue of र 154.62 crore from renewableenergy projects (wind as well as solar plants) during 2018-19. The electricity generatedfrom wind and solar plants during 2018-19 is summarized below:

Sl No. Description of Plant Location Unit Generated in Million Units
1 5 MW Solar Power Jaisalmer Rajasthan 9.00
2 9 MW Solar Power Jaisalmer Rajasthan 16.19
3 13.6 MW Wind Power Ludurva Rajasthan 20.39
4 54 MW Wind Power Dagri Rajasthan 60.21
5 38 MW Wind Power Chandigarh Madhya Pradesh 79.51
6 16 MW Wind Power Patan Gujarat 35.43
7 27.3 MW Wind Power Kotiya Gujarat 68.49
8 25.2 MW Wind Power Unchawas Madhya Pradesh 57.98
(Note: 1 Unit = 1 kilo-watt-hr)

C. EXPLORATION HIGHLIGHTS

i. Exploration Activities and Discoveries

Your Company had carried out 2D & 3D seismic survey to identify newprospects in the Petroleum Mining Lease (PML) areas and NELP Blocks. It had drilled 11(eleven) exploratory wells in the PML areas in Assam and Rajasthan and continuedexploratory efforts in the NELP Blocks RJ/ONN/2004/2 and KG-ONN-2004/1 by drilling 01(one) well and 03 (three) wells respectively including one High Pressure - HighTemperature (HPHT) well in the block in KG Basin.

During the year your Company made 2 (two) gas discoveries in the UpperAssam Basin and 1 (one) gas discovery in KG basin the first HPHT well. Your Company hasinitiated steps for quick appraisal development and production from these discoveries.During the year your Company has achieved Reserve Replacement Ratio (RRR) of 1.12.

ii. Acreage

Your Company's In-Country operations are spread over the areasunder onshore Petroleum Exploration License (PEL) and Petroleum Mining Lease (PML) in thestates of Assam Arunachal Pradesh Mizoram Andhra Pradesh & Puduchery and Rajasthan.

Your Company is operating in 03 (three) PEL and 22 (twenty two) PMLareas allotted under the nomination regime in the states of Assam Arunachal Pradesh andRajasthan. Your Company also holds Participating Interest (PI) in 07 (seven) NELP Blockswith the right of operatorship in 05 (five) Blocks and as Non-operator in the remaining 02(two) Blocks as on 31.03.2019. Your Company also holds 40% PI in the joint venture Blockof Kharsang PSC 44.086% PI in Pre-NELP block AAP-ON-94/1.

Your Company has been awarded 9(nine) blocks (5(five) in Assam and2(two) each in Arunachal Pradesh and Rajasthan) under Open Acreage Licensing Policy (OALP)Round-I. OIL has also been awarded 2 (two) Contract Areas one each in Tripura and KGOffshore under Discovered Small Field Round-II. This will be OIL's first ever forayinto the North Eastern state of Tripura and also into KG Offshore as operator.

Your Company is also the operator of the onshore Block Shakthi-II inGabon with 50% PI covering an area of 3761.25 sq. km.

iii. Oil and Gas Reserves a. Domestic

Your Company has strong oil and gas reserves base of domestic assetsincluding JVs. The particulars of oil and gas reserves as on 31.03.2019 are furnishedbelow:

Reserves 1P 2P 3P
Oil + Condensate 25.3118 76.1888 100.9427
Reserves (MMT)
Balance Recoverable 80.4976 130.2254 169.4833
Gas (BCM) *
O+OEG (MMTOE) 96.0070 189.6154 247.1306

*Based on projected volume of gas under various sales contracts 1P 2Pand 3P Gas Reserves are 17.5400 34.5600 and 81.0950 BCM respectively.

b. Overseas

As on 31st March 2019 oil & gas reserves position of 05(five) overseas Producing assets (Company's Proportionate Share) namely NiobraraShale Oil (USA) License-61 (Russia) Vankorneft (Russia) TaasYuryakh (Russia) andCarabobo (Venezuela) is as furnished below:

Particulars 1P 2P 3P
Oil + Condensate 16.3252 36.5093 57.6447
(MMT)
Gas Reserves (BCM) 4.7782 6.9279 8.3329
O+OEG (MMTOE) 21.0768 43.4092 65.9497

2. CAPITAL STRUCTURE

In compliance to the DIPAM Guidelines the Company issued bonus sharesin the ratio of 1:2 (one bonus share for two existing shares held) in March 2018.Accordingly 378301304 bonus shares were allotted to the shareholders on 3rdApril 2018. As a result the post bonus paid-up capital of the Company was ` 1134.90crore divided into 1134903911 shares of `10/- each.

Further 50498717 equity shares were bought back by the Company inMarch 2019 resulting in decrease in paid up share capital of the Company by 50498717shares. As a result post buy-back paid-up capital of the Company was र 1084.41 croredivided into 1084405194 shares of र 10/- each with 61.61% as holding of thePromoter (Government of India).

3. DIVIDEND

Your Company paid interim dividend @85% amounting to र 964.67crore for the year 2018-19. The Board of Directors are now pleased to recommend a finaldividend @17.50% on the paid up capital for the financial year 2018-19 subject to theapproval of the shareholders at the 60th Annual General Meeting.

4. CREDIT RATINGS

The Company's financial prudence is reflected in the strong creditrating ascribed by ratings agencies as given below:

Category Rating Agency Rating Remark
Long Term International Moody's Investor Service Baa2 (Stable) At par with India's Sovereign rating
Long Term Fitch Ratings 'BBB-' (Stable) At par with India's Sovereign rating
Long Term Domestic CARE Ratings AAA Highest Rating awarded by CARE
Short Term CARE Ratings A1+ Highest Rating awarded by CARE

5. DETAILS OF THE LOANS GUARANTEES OR INVESTMENTS/ DEPOSITS

The particulars of investment made loans extended guarantees andsecurities provided along with the purpose for which the loan or guarantee or security isproposed to be utilized by the recipient are provided in the standalone financialstatements. (Refer to Note No 6 7 15 & 41.16 to the standalone financialstatements).

6. RELATED PARTY TRANSACTIONS

All contracts / arrangements / transactions entered by the Companyduring the year with related parties were in ordinary course of business and at arm'slength basis. The policy on materiality of related party transactions and dealing withrelated party transactions as approved by the Board may be accessed on the Company'swebsite at www.oil-india.com Attention is also invited to Note 41.4 to the financialstatements and Form AOC-2 attached herewith.

7. HUMAN ASSETS

Human Resource Management is an integrated approach focusing onOrganization's faith to work with people to manage change and strive for continuedexcellence. OIL believes in building positive employee-employer relationship by nurturinginitiatives innovations and aspirations of the employees. It is ensured that the humanresource policies and practices are sensitive to employees' needs.

As on 31st March 2019 Company has 7097 employeesconsisting of 1649 executives and 5448 unionized employees. During the year OIL hastaken a number of measures to improve performance management and performance culture inthe Company through policy interventions and improvement of systems and processes. Some ofthe important measures includes enhancing transparency and objectivity of HR processesadoption of competency based HR tools HOPE (Help Our People Excel) a Reward andRecognition Scheme for reinforcing high performance behavior improving speed and efficacyof HR service delivery through IT based processes etc.

8. SPORTS

OIL believes that sports is an integral part of all round developmentof human personality and achieving excellence in sports has real bearing on nationalprestige and morale. Therefore employees are encouraged to participate and excel insports. OIL has actively supported and promoted sports under the umbrella of PetroleumSports Promotion Board (PSPB) All India Public Sector Sports Promotion Board (AIPSSPB)and other bodies duly recognized by the Government of India. OIL participated in varioussports events in Football Golf Chess Volleyball Table Tennis Cricket Squash etc.and brought laurels to the Company.

Some of the glimpses of Oil India Limited in sports are:

• The football team of the Company has won number of laurels bywinning XXXIX PSPB Inter-Unit Football tournament held in Kochi from 11th -15thMarch 2019

• Winner of 41st Naroram Barman Memorial Trophy PrizeMoney Football Tournament

• Winner of ATPA Shield Football Tournament

• Winning the 1st PSPB Inter-Unit Squash tournamentheld at Numaligarh from 3rd-6th January 2019 in Men's andVeteran's category

• OIL hosted XXXIX PSPB Inter-Unit Golf Tournament held at GreaterNoida from 5th -8th December 2018

• OIL hosted XXVI PSPB Inter-Unit Carrom Tournament held atKolkata from 28th February to 4th March 2019

9. IMPLEMENTATION OF GOVERNMENT DIRECTIVES FOR PRIORITY SECTIONS

The Company attempts to comply with the directives of the Government ofIndia for priority Sections of the society. The representation of various prioritySections in executive and unionized employees categories in the Company as on March 312019 is as under:

Category SC ST OBC Minority PWD Women
Executives 220 144 392 126 28 194
Unionized Employees 472 756 1909 316 90 224
Total 692 900 2301 442 118 418

10. IMPLEMENTATION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE(PREVENTION PROHIBITION AND REDRESSAL) ACT 2013

The Company is committed towards prevention of sexual harassment ofwomen at workplace and takes prompt action in the event of reporting of any suchincidents. The Company has in place mechanism for prevention of sexual harassment in linewith the requirements of the Sexual Harassment of Women at the Workplace (PreventionProhibition and Redressal) Act 2013. In this regard Internal Complaints Committees(ICCs) have been constituted at various offices of the Company to deal with sexualharassment complaints if any and to conduct enquiries. During the year one complaint wasreceived. Further to create awareness on the subject an IT enabled programme namely PoSH(Prevention of Sexual Harassment) was launched for all the executives.

11. CORPORATE GOVERNANCE

As stipulated under the SEBI (LODR) Regulations 2015 the ManagementDiscussion & Analysis Report Corporate Governance Report and the BusinessResponsibility Report have been furnished as a part of this Annual Report. Your Companyalso complies with the Corporate Governance Guidelines enunciated by the Department ofPublic Enterprises Government of India.

12. RTI ACT 2005

Your Company has implemented Right to Information Act 2005 in order toprovide information to citizens and to maintain accountability and transparency. TheCompany has hosted RTI manual on its website for providing access to all citizens of Indiaand has designated Central Public Information Officers (CPIOs) Assistant PublicInformation Officers (APIOs) and Appellate Authorities in all its spheres. During 2018-19Company has received 357 applications under the RTI Act 2005 and all the applicationswere disposed off within stipulated period.

13. IMPLEMENTATION OF OFFICIAL LANGUAGE (RAJBHASHA)

In pursuance of Official Language Policy/Act/Rules/Orders of the Govt.of India efforts are being made towards increasing the use of Rajbhasha in official work.Hindi workshops were conducted in all spheres to popularize Hindi among employees and toinspire them to work in Hindi/bilingually. Teaching & training programmes in computeroperation in Hindi were conducted together-with Hindi Prabodh Praveen & PragyaTraining programme at Field Headquarters Duliajan Hindi month/ Hindi Fortnight werecelebrated across all spheres of the Company. During the year Company also organizedAkhil Bhartiya Hasya Kavi Sangam 2018 at Kolkata. OIL has been awarding "OILShreemanta Shankardev Fellowship for Comparative Studies of Literature (Assamese andHindi)" to research fellows of the Guwahati University since 2003. This fellowship isgiven by OIL to a selected research fellow of the university every year for thecomparative studies of Literature. The amount for fellowship and other facilities are atpar with U.G.C. fellowship.

OIL bagged Second Petroleum Rajbhasha Shield for the year 2017-18 forbest implementation of Official Language in office jobs.

14. PUBLIC PROCUREMENT POLICY FOR MICRO & SMALL ENTERPRISES (MSEs)

As per Public Procurement Policy PSUs are required to assist inpromotion and development of Micro and Small Enterprises by setting annual targets forprocurements of goods & services from MSEs. OIL adheres to the Public ProcurementPolicy for MSEs. The budgeted and actual procurement of goods and services from MSEsduring the year 2018-19 are as under:

(##Rs## in crore)
Sl. No Particulars Year ended 31st March 2019
1 Budgeted procurement of goods and services from MSEs during the year 2018-19 275.00
2 Actual procurement in the FY 2018-19
a) Total value of goods and services procured from MSEs (including MSEs owned by SC/ST entrepreneurs). 595.69
b) Percentage of procurement of goods and services from MSE (including MSEs owned by SC/ ST entrepreneurs) out of total procurement 17.11 % on total procurement and 42.78% excluding the cost of high technology goods & services.

15. VIGILANCE

The Vigilance Wing is headed by Chief Vigilance Officer (CVO) whofunctions as a link between the Central Vigilance Commission (CVC) the Central Bureau ofInvestigation (CBI) and the Management and acts as an advisor to Head of the Organisationon Vigilance matters. Vigilance basically functions under three facets: (i) Preventive(ii) Punitive and (iii) Participative. Preventive Vigilance: This calls for constantreview of roles procedures and practices for refining and improving the system therebyreducing scope for corruption and also leading to better operational results. Tostrengthen the preventive facet of Vigilance framework during the year 2018-19 multiplesystem improvement measures were recommended on the basis of scrutiny of various Contracts& Purchases files inspections of installations both periodic and surprise intensiveexaminations of high value projects/works done internally as well as by Chief TechnicalExaminer (CTE) of CVC. Extensive use of technology through E-procurements E-paymentsBill tracking system etc. has further emerged as effective tools of preventive vigilance.To create awareness and to sensitize employees about the Company rules and regulationsseventeen in-house programs were conducted in various spheres of the Organization. Theprograms included "Keep in Touch" (KIT) Catch Them Young (CTY) and"Vigilance Sensitization Programs". Punitive Vigilance: Based on complaintsreceived by the Department from various sources including the CVC and the concernedMinistry investigations were done and taken to their logical conclusion. During the year2018-19 disciplinary actions were dealt against 04 OIL officials and the case against 01of these officials was disposed. Participative Vigilance: One major event in the directionof Participative Vigilance is "Vigilance Awareness Week" (VAW). As perCVC's directive VAW-2018 was observed from 29th October – 3rdNovember 2018 across the Company on the theme "Eradicate Corruption – Build aNew India". The week kick started with an Integrity Pledge on 29thOctober 2018 at all spheres. Myriad activities were conducted both within and outsidethe Company as an endeavour to elicit wider participation of Oil Indians and generalpublic at large towards eradicating corruption and building a "NEW INDIA". Someof these activities include training Seminar Workshops Quiz Debate Cycle Rally withchanting of anti-corruption slogans etc. together with several competitions in outsideschools and colleges. Vendors' Grievance Redressal Camp was organised at FHQDuliajan amongst the vendors enabling them to ventilate their problems to the concernedauthorities. A Special issue of Vigilance in-house journal "InTouch" was alsopublished on the occasion of VAW-2018.

In addition to above continuous efforts are on to root out corruptionby encouraging everyone to take the online "Integrity Pledge". The link foronline "Integrity Pledge" has been available in OIL's website and can beeasily accessed by the employees their families vendors/contractors/stakeholders etc.Another important step being practised is the signing of "Integrity Pact" incase of high value (above `50 Lakhs) Purchase/Contracts thereby ensuring greatertransparency and integrity between OIL and the contractor/supplier.

Other important Vigilance activities done during the year 2018-19include: i. Periodic review of Vigilance Works by Board of Directors of OIL structuredmeeting of CVO with CMD. ii. Scrutiny of Annual Property returns submitted by executives.iii. Providing Vigilance status to Personnel Dept. / ER Dept. / concerned Ministry. iv.Monthly/Quarterly/Annual Reporting to CVC and the concerned Ministry etc. v.Implementation of Vigilance Reporting and Monitoring System (VRMS) in SAP-ERP system forregular monitoring/ updation of vigilance activities.

Vigilance Mechanism/structure in OIL under the able guidance of ShriRajiv Kumar Gupta IFS as Chief Vigilance Officer is quite robust and capable of handlingany challenges.

16. RESEARCH AND DEVELOPMENT

The Research & Development team of the Company providestechno-economically feasible and practical solutions to frequently encountered oilfieldproblems. Over the years Company has developed expertise and competence in the coreoilfield operational and applied research in the areas of geochemistry oilfieldchemicals flow assurance oil field operations - well stimulation water shut offoilfield & pipeline corrosion IOR/EOR and petroleum microbiology. During the year2018-19 new oilfield chemicals specific to the produced crude oil and existing fieldconditions have been identified and developed which will be inducted for regular use aftercompleting field trials. A major breakthrough has been achieved in terms of developing a"Low Temperature Oil Soluble Demulsifier" (LT-OSD) which works effectively atlow temperature. The chemical is expected to improve water separation in actual fieldconditions and increase operational efficiency. Successful biological interventions usingin-house developed bioremediation technology were carried out at Loc. HNE in Makum. TheMoU project on "Development & Field Trial of lemon grass essential oil asBactericide" was successfully completed during the year and results of field trailsare encouraging for control of Sulphate Reducing Bacteria (SRB).

The research activities of the Company have resulted in severalachievements and breakthroughs in the year 2018-19 especially in terms of securingpatents. As on 31st March 2019 patent grants against two inventions have beensecured in India and other countries such as the USA Europe China Japan and Russia.During the year 2018-19 Company's R&D Department also secured the accreditationof the revised version of ISO/IEC 17025:2017 by migrating from the earlier ISO/IEC17025:2005.

17. START-UP INITIATIVES

OIL has earmarked a Start-up Development Corpus of Rs 50 crore forcreating an eco-system to develop entrepreneurs to provide possible solutions to thenumerous challenges faced by the oil and gas upstream sector. The fund is created tonurture and develop innovation and entrepreneurship in North-Eastern India with the focusareas of Exploration & Production of Oil & Gas. In this regard OIL had signed MoUwith IIT Guwahati on 7th December 2016 as an incubator to nurture and incubateStart-ups for OIL. OIL has also signed MoU with Gauhati University on 19thMarch 2019 as an incubation centre. During FY 2018-19 OIL has approved two proposals forStartups of Rs 322.41 lakhs. The details of the new start-ups are as given below:

i) Start-up by: M/s Caliche Private Limited.

Project Title: "Sand Reconsolidation by Injection of Anaerobes(SRIJAN)". Brief on project: The technology would help in providing good cementbonding during cementing operations in oil/gas wells and is also likely to help providingstrength in wells having unconsolidated sands.

ii) Start-up by: M/s Alvvin Engineering Private Limited.

Project Title: "Electricity Generation through Sterling Engineusing flared gas from Oil & Gas fields in remote areas". Brief on project: Theprime objective of the project is to develop a process to monetize the low pressurenatural gas which is available in small volume and being flared in isolated oilfields togenerate electricity.

18. SUBSIDIARIES/ COMPANIES IN WHICH COMPANY HAS SHAREHOLDING

A. Subsidiaries i. Oil India Sweden AB

Oil India Sweden AB is a wholly owned subsidiary of OIL. The saidCompany was incorporated on the 20th November 2009 as a private limitedCompany (AB). The activities of the Company are: to own shares in other companies performadministrative tasks and associated activities; to incorporate to participate in and tofinance companies or businesses etc.

ii. Oil India Cyprus Ltd.

Oil India Cyprus Ltd. was incorporated in Cyprus on 21StOctober 2011 as a private limited liability Company under the Cyprus Companies Law OILholds 76% of the share capital of the Company. The balance 24% is held by Oil India SwedenAB. The objective of the Company is to channelize investments into overseas E&Pprojects.

iii. Oil India (USA) Inc.

Oil India (USA) Inc. is a wholly owned subsidiary of OIL incorporatedon 26th September 2012 having its office at Houston USA. It holds 20% stakein Niobrara Shale Oil and Gas Asset in USA.

iv. Oil India International Limited (OIIL)

OIIL is a wholly owned subsidiary of OIL incorporated on 20thSeptember 2013. The registered office of OIIL is situated in New Delhi. Since none of itsobjects associated with formation could be achieved it was decided to wind up theCompany. In this regard approval of Niti Ayog/MoP&G has been obtained for its windingup on 20th May 2019 and winding up proceedings would be initiated shortly.

v. Oil India International B.V (OIIBV)

Oil India International B.V a wholly owned subsidiary of OIL wasincorporated in Netherlands on 2nd May 2014. The objective of the Company isto channelize investments into overseas E&P projects.

vi. Oil India International Pte. Ltd.(OIIPL)

Oil India International Pte. Ltd. is a wholly owned subsidiary of OIL.The Company was incorporated in Singapore on 6th May 2016 as a private Companylimited by shares. The activities of the Company are: to act as investment holding Companyand crude petroleum and natural gas production.

B. COMPANIES IN WHICH OIL HAS SHAREHOLDING:

i. Numaligarh Refinery Ltd (NRL)

NRL was incorporated in 1993. NRL is a Category -I Mini Ratna PSUhaving a 3 MMTPA Refinery at Numaligarh in Golaghat district of Assam. The Company is asubsidiary of Bharat Petroleum Corporation Limited. OIL is holding 26% of the paid upequity in NRL.

ii. Brahmaputra Cracker and Polymer Ltd (BCPL)

BCPL was incorporated on 8th January 2007 with theobjective of establishing a gas cracker project complex at Lepetkata Dibrugarh Assaminter alia to process natural gas naphtha or any petroleum product distribute andmarket petrochemical products in India and abroad. The registered office of BCPL islocated at Guwahati Assam. OIL holds 10% equity share capital in BCPL.

iii. Suntera Nigeria 205 Ltd.

OIL acquired 25% equity stake in Suntera Nigeria 205 Ltd. Nigeriapursuant to a Share Purchase Agreement (SPA) signed with Suntera Cyprus and Indian OilCorporation Limited (IOCL) on August 31 2006. Suntera Nigeria 205 Ltd. was incorporatedwith the main object to engage in the petroleum business including the prospectingexploration production and development of crude oil and natural gas. The registered officeof Suntera Nigeria is at Lagos.

iv. DNP Ltd.

DNP Ltd. was incorporated on 15th June 2007. The mainobject of DNP Ltd. is acquisition transportation and distribution of natural gas in allforms. The registered office of DNP Ltd. is situated at Guwahati Assam. OIL holds 23%equity share capital of DNP Ltd.

v. IndOil Netherlands B.V

Oil India Sweden AB owns 50% of the shares in Indoil Netherlands B.Vwhich in turn holds 7% equity shares in Petrocarabobo SA (joint venture Company) forProject Carabobo-1 Venezuela. The principal activity of the Company is making investmentin companies engaged in exploration production marketing trade transport andextraction of oil gas hydrocarbons and minerals.

vi. Beas Rovuma Energy Mozambique Ltd. (BREML)

OIL holds 40% share in BREML. BREML holds 10% PI in the Rovuma Area 1Offshore Block in Mozambique. The redomicilation registration process of BREML inMauritius has been completed.

vii. WorldAce Investments Ltd.

OIL (through OIIBV) holds 50% share in World Ace Investments Ltd aCompany incorporated in Cyprus. World Ace Investments Ltd. holds 100% share in LLCStimul-T Russia which is the license holder for License 61 Tomsk Region Russia.

viii. Vankor India Pte.Ltd.

OIL (through Oil India International Pte. Ltd) holds 33.5% share inVankor India Pte. Ltd. a Company incorporated in Singapore on 20th May 2016.The activities of the Company are: to act as investment holding Company and crude oilpetroleum and natural gas production. Vankor India Pte Ltd further holds 23.9% share inJSC Vankorneft Russia which holds two producing licenses in Eastern Siberia Russia.

ix. Taas India Pte. Ltd.

OIL (through Oil India International Pte. Ltd.) holds 33.5% share inTaas India Pte. Ltd. a Company incorporated in Singapore on 23rd May 2016.The activities of the Company are: to act as investment holding Company and CrudePetroleum and Natural Gas Production. Taas India Pte. Ltd. holds 29.9% shares in LLC"TYNGD" Russia which holds two producing licenses in Eastern Siberia Russia.

x. Assam Petro-Chemicals Limited

OIL signed Memorandum of Understanding (MoU) with APL and Govt. ofAssam for 49% equity participation in 500 TPD Methanol & 200 TPD Formaldehyde projectsof APL. The total estimated cost of the project is Rs. 1337 crore. Overall progress ofthe project is 60%.

xi. Indradhanush Gas Grid Limited

To improve gas supply connectivity to all the State capitals of eightNorth Eastern States namely Assam Arunachal Pradesh Meghalaya Manipur MizoramNagaland Tripura and Sikkim a JV Company named "Indradhanush Gas Grid Limited"(IGGL) has been incorporated on 10th August 2018 in association with five OilPSUs viz. OIL ONGC IOCL GAIL & NRL for construction of North-East Gas GridPipeline. Each of these PSU holds 20% of equity in the JV Company. The said Gas GridProject will connect all NE States to the National Gas Grid through Barauni-Guwahati GasPipeline being laid by GAIL. The business of the JV Company shall be to develop buildoperate and maintain the Natural Gas Pipeline Grid connecting Guwahati to the majorNorth-Eastern cities and major load centres City Gas Distribution networks etc. includingintegrating it with gas producing fields wherever feasible in North East India.

xii. HPOIL Gas Private Ltd.

A Joint Venture Company (JVC) in the name of "HPOIL Gas PrivateLimited" was incorporated on 30th Nov 2018 with equity participation inthe ratio of 50:50 from OIL & HPCL to develop CGD Network in Ambala-Kurukshetra andKolhapur Districts. Total Capex of the Project for 5 years is estimated as Rs 641 crorefor both the Geographical areas. The Company has its registered office at Mumbai andProject office at Ambala and Kolhapur. Project implementation work has already started.The commissioning of one CNG station at Ambala-Kurukshetra and Kolhapur is in final stage.

19. ANNUAL REPORT OF SUBSIDIARIES AND CONSOLIDATED FINANCIAL STATEMENTS

In accordance with Section 134 of the Companies Act 2013 and theapplicable Accounting Standards audited consolidated financial statements for the yearended 31st March 2019 of the Company and its subsidiaries forms part of thisAnnual Report. A report on the performance and financial position of the subsidiariesassociates and joint venture companies of OIL as per the prescribed form (Form AOC-1) ofthe Companies Act 2013 also forms part of this Annual Report.

The complete Annual Reports of subsidiaries of OIL are available on theCompany's website and physical copy is available on request to the shareholder.

20. STATUTORY REQUIREMENTS

Your Directors have made necessary disclosures as required undervarious provisions of the Companies Act 2013 and SEBI (LODR) Regulations 2015.Information on the Conservation of energy Technology absorption Foreign exchangeearnings & outgo etc. as required under Section 134 of the Companies Act 2013 and theRules made thereunder is given in the Annexure-I to this Report. The details of theemployees who drew remuneration exceeding the limits laid down in the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 are not annexed to theReport in view of the exemption given by Ministry of Corporate Affairs to GovernmentCompanies from applicability of Section 197 of the Act.

21. STATUTORY AUDITORS COST AUDITORS AND SECRETARIAL AUDITORS

M/s N. C. Banerjee & Co. and M/s B.N.Misra & Co. were appointedas Joint Statutory Auditors for the financial year 2018-19 by the Comptroller &Auditor General of India (C&AG). The statutory Auditors have audited the Accounts ofthe Company for FY 2018-19 and submitted the Report to the Company. The CAG has given NILcomments on annual accounts of the Company. The Cost Audit Report for the financial year2017 -18 given by M/s Mani & Co Cost Accountant was filed within the statutory timelimit. For the financial year 2018-19 M/s Dhananjay V. Joshi & Associates CostAccountants are the Cost Auditor of the Company. The report is being finalized and will befiled within the stipulated time frame. M/s Kumar Naresh Sinha & AssociatesPracticing Company Secretaries were appointed as the Secretarial Auditor of the Companyfor FY 2018-19. The Secretarial Audit Report confirming compliance to the applicableprovisions of the Companies Act 2013 SEBI (LODR) Regulations 2015 SEBI Guidelines andall other relevant rules and regulations relating to Capital Market is annexed asAnnexure-II to this Report. The Secretarial Auditor has commented upon thenon–compliance to the Regulation 17 of the SEBI (LODR) Regulation 2015. With respectto the qualification on the composition of the Board of Directors the Company hasrequested MoP&NG Govt. of India to appoint appropriate number of IndependentDirectors on the Board of the Company.

22. EXTRACTS OF ANNUAL RETURN

The extracts of the Annual Return are attached as Annexure-III to thisReport.

23. AWARDS AND RECOGNITIONS

During the year 2018-19 following recognitions and awards/ accoladeswere conferred upon the Company by different agencies: i. Golden Peacock OccupationalHealth & Safety Award for the year 2018 ii. Best Exhibitor Award at Geo India 2018Exhibition held from 6th to 8th September 2018 at India Expo MartGreater Noida. iii. Sixth Governance Now PSU Awards-2018 - for Strategic Investment iv."Golden Peacock Award for Corporate Social Responsibility" for the year 2018 v.Assam Best Employer Brand Award ceremony by Employers Branding Institute – India vi.‘The Pride of Assam Award' to Shri Pranjit Deka then Executive Director (HumanResource & Administration) and presently RCE for his exemplary contribution andexcellence in the field of Human Resource by Employers Branding Institute – Indiavii. ‘Best Education Project' for the CSR project "OIL Dikhya" for itsvarious Learning & Development Initiatives by Employers Branding Institute –India viii. Awards for Training Excellence and Diversity Impact by Employers BrandingInstitute – India ix. "Woman in Energy Sector" awarded to Mrs. RupshikhaSaikia Borah Director (Finance) by Associated Chamber of Commerce and Industries(ASSOCHAM) India. x. "Dream Companies to Work For Award" (Third best Company towork for in India) by 27th Edition of the World HRD Congress and Awards. xi.‘Best Customer Focus Award' in Petrotech 2019 held at India Expo Mart GreaterNoida.

24. POLICY ON DIRECTORS' APPOINTMENTS ETC./ PERFORMANCE EVALUATION

OIL being a Government Company the provisions of Section 134 (3) (e)and Section 134(3) (p) of the Companies Act 2013 shall not apply in view of the Gazettenotification dated. 05.06.2015 issued by the Government of India Ministry of CorporateAffairs.

Ministry of Corporate Affairs (MCA) vide General Circular dated 5thJune 2015 has exempted Government Companies from the provisions of Section 178 (2) whichrequires performance evaluation of every director by the Nomination & RemunerationCommittee. Similar exemption has been requested from SEBI under the SEBI (LODR)Regulations 2015 through appropriate forum.

25. CHANGES IN THE BOARD OF DIRECTORS

In terms of the letter No. C-31033/1/2016-CA (42979) dated 15thOctober 2018 of Ministry of Petroleum and Natural Gas Shri Amar Nath (DIN: 05130108)Joint Secretary MoP&NG was appointed as Government Nominee Director on the Board ofOil India Limited vice Shri Diwakar Nath Misra (DIN: 07464700) Joint SecretaryMoP&NG Government of India with immediate effect for a period of three years onco-terminus basis or until further orders whichever is earlier.

Mrs Rupshikha Saikia Borah (DIN: 06700634) Director (Finance) &CFO superannuated from the services of the Company on 28th February 2019(after close of office hours). SubsequentlyShri Harish Madhav Executive Director(Finance & Accounts) was appointed as Chief Financial Officer (CFO) of the Companyw.e.f 10.04.2019.

Further Shri A.K Sahoo was appointed as Company Secretary in place ofShri S.K.Senapati w.e.f 11.04.2019.

In terms of letter No. C-31033/1/2016-CA/FTS: 42979 dated 11th March2019 of Ministry of Petroleum and Natural Gas Shri B.N.Reddy (DIN: 08389048) OSD-ICMoP&NG was appointed as Government Nominee Director on the Board w.e.f 13th March2019 for a period of three years on co-terminus basis or until further orders whicheveris earlier vice Shri Sunjay Sudhir (DIN: 07396936) Joint Secretary (InternationalCooperation) MoP&NG who had ceased to be the Director on the Board of OIL w.e f11.03.2019 In terms of letter No. C-31033/1/2016-CA/FTS: 42979 dated 27th May2019 of Ministry of Petroleum and Natural Gas Shri Rohit Mathur (DIN: 08216731)Director MoP&NG was appointed as Government Nominee Director vice Shri B.N.ReddyOSD-IC MoP&NG on the Board w.e.f 27th May 2019 for a period of threeyears on co-terminus basis or until further orders whichever is earlier.

The Board had taken note of the valuable contributions made by Smt.R.S.Borah Shri D.N Misra Shri Sunjay Sudhir and Shri B.N Reddy during their tenure asdirector of OIL.

26. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134 (5) of the Companies Act2013 with respect to Directors' Responsibility Statement it is hereby confirmedthat: i. in the preparation of the annual accounts the applicable accounting standardshave been followed along with proper explanation relating to material departures; ii. thedirectors have selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company at the end of the financial year and of the profitand loss of the Company for that period; iii. the directors have taken proper andsufficient care for the maintenance of adequate accounting records in accordance with theprovisions of this Act for safeguarding the assets of the Company and for preventing anddetecting fraud and other irregularities; iv. the directors have prepared the annualaccounts on a going concern basis; v. the directors have laid down internal financialcontrols to be followed by the Company and that such internal financial controls areadequate and were operating effectively; and vi. the directors have devised proper systemsto ensure compliance with the provisions of all applicable laws and that such systems wereadequate and are operating effectively.

27. ACKNOWLEDGEMENT

Your Directors thank the customers vendors investors Auditorsbankers and employees of the Company for their continued support during the year. YourDirectors place special appreciation for the contribution made by the employees at alllevels. The consistent growth of the Company was made possible by their hard worksolidarity co-operation and support.

Your Directors acknowledge the guidance and support of the MoP&NGall other Ministries and Agencies in Central and State Governments and place their sincerethanks.

For and on behalf of the Board of Directors.
Sd/-
(Utpal Bora)
Chairman & Managing Director
Place: NOIDA
Date: 18.07.2019

ANNEXURE-I

PARTICULARS OF ENERGY CONSERVATION TECHNOLOGY

ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO UNDER SECTION 134 OFTHE COMPANIES ACT 2013 READ WITH COMPANIES (ACCOUNTS) RULES 2014

A. CONSERVATION OF ENERGY:

I . Steps taken or impact on conservation of Energy:

OIL has taken up extensive programs for conservation of energy indifferent forms. Various short term and long term measures towards conservation of energyadopted by OIL and the achievement made thereof during the year 2018-19 are given below.

1. During the FY: 2018-19 Energy Audits were carried out at 5(Five)OIL's vital Installations and strategic equipments at regular intervals to monitorthe energy consumption and suggestive corrective measures. The Executive summary of theanticipated savings per annum and investment are as follows:

Energy Saved
Sl. No Location (KWh) In Rs
a. Kathaloni GCS 113033 700000
b. 9MW Solar Plant RP 98656 295969
c. OIL House RP 1080 112800
d. Tengakhat OCS 86762 4462000
e. Jorajan OCS 126215.00 1010000
Total

2. Creating Awareness through programs like Imparting training tovehicle drivers/ operators/ technician on fuel efficient driving technique/ practiceOrganizing workshop on "Oil & Gas Conservation for employees students &house wives in OIL's operational areas Auto fuel efficiency check-up camps StreetPlay in Schools to create awareness for conserving electricity and using it judiciouslytowards sustainable Development Exhaust gas analysis of various stationary engines across10 nos. of OIL's installations.

3. During the year the Crude oil of both OIL & ONGC was treatedwith Flow Improver instead of thermal conditioning and thereby conserved a substantialamount of Natural Gas.

4. By boosting of LP flare gas to OIL's gas distribution networkby commissioning of BOO (Build-Own-Operate) compression services in fields conserved108.354 MMSCUM of Natural Gas.

5. By utilising stabilizer gas as housing fuel in Moran OIL Townshipconserved natural gas of 1.311 MMSCUM.

6. By proper maintenance and regular monitoring of Control valvesSafety relief valves etc. in installations to reduce leakage of natural gas LPG in LPGPlant. All filling equipment maintained properly and care has been taken to reducefilling/handling loss of LPG and gas.

7. Crude Oil Recovered processing of 3438.61 KL of oily sludge atSludge Treatment Plant near the plinth of Dikom Well 15 and a quantity of 665 KL Crude oilrecovered.

8. The Company took following steps for Conservation of Electricity:

a) Reduction in energy consumption by increasing idle time of JockeyPump through arresting the leakage.

b) Recovery Plant parameters have been regularly monitored andcontrolled with help of on line Distributed Control System (DCS) for optimum consumptionof energy viz: Natural gas and Electricity required for production of LPG and Condensate.

c) By replacing 70 Nos of 90 watt LEDs as replacement of 150 watt HPSVlight an amount of electricity savings achieved is 18396.00 kWh.

d) By replacing 50 Nos 120 watt LEDs as replacement of 250 watt HPSVlight an amount of electricity savings achieved is 28470.00 kWh.

e) 72 Nos. of conventional Florescent Tube lights replaced with energyefficient LED Tube Lights in Electrical Engineering Department Main Building and RigBuilding. Amount of electricity savings achieved is 3617.6 kWh.

f) Implementation of energy efficient LED tube fittings in newly wiredbungalows in place of T5 type fluorescent tube light fittings. Amount of electricitysavings achieved is 29144.00 kWh.

g) 2 nos. 26 watt CFL with 1 no. 22 watt LED have been replaced inRajasthan Project. Amount of Electricity savings achieved is 8640 kWh.

h) 1 no. 70 watt HPSV has been replaced by 1 no. 30 watt LED inRajasthan Project. Amount of Electricity savings achieved is 2160 kWh.

i) 1 no. 140 watt FTL has been replaced by 1 no. 18 watt LED inRajasthan Project. Amount of Electricity savings achieved is 1400 kWh.

j) By Recycling and Reusing of Filter Backwash Water at water Treatmentplant Tipling. Water conserved through this process is 900KL per day and amount ofElectricity savings achieved is 11707 kWh.

k) By harvesting the Roof Top Rain Water at Field Engg Office Complex.Water conserved through this system is about 1500 Litre per day and amount of Electricitysavings achieved is 180 kWh.

l) By Constructing airline at GCS-1 saving in Electricity achieved is30016 kWh.

9. The Company took following steps for Conservation of Diesel (HSD):

a) Using the main 110 AC power instead of the generators (inbuilt inthe truck which runs on HSD) for routine calibration and testing of tools in the workshopand lab.

b) By using the LOGIQ-B Lab system tools and panels are tested /repaired using mains power supply. Therefore minimal use of logging trucks / generators /alternators is done for the above purpose.

c) No extra-dedicated Diesel engine driven fire pump is used andadvantage taken from the Fire pump used for fire fighting at Central Tank Farm thus 200litres of HSD is saved.

d) By using high quality Lube oil (15W40 and 20W40) for smooth engineoperation 2210 litre of HSD has been saved.

e) By using OEM Recommended fuel filtration system 2250 litre of HSDhas been saved.

f) Through dedicated Preventive maintenance 2500 litre of HSD saved.

g) By improving the driving technique 2750 litre of HSD has beensaved.

h) By installing gas engine driven CODPs in Bowser Loading stationsreplacing DG sets and Diesel Engine Driven pump sets in Locations: NKF DGF CH MFJthereby saving of 6114 litres HSD.

i) By installing static boiler in place of Mobile Steam Generator (runon HSD) 1500 litre of HSD has been saved.

j) Reduction of HSD due to Installation of Solar Power light InWorkover Wells and a quantity of 18260 litres of HSD saved.

k) Reduction of HSD use for Lighting as the Workover Job done insideShalmari OCS at Well No.SLM#1 & SLM#20 and a quantity of 4556 litres of HSD saved

l) At Balimara QPS gas driven CODP installed and commissioned on07.07.2018 and eliminates the use of HSD for running bowser loading pumps and eliminatesroad transportation by bowser. Accordingly quantity of 4500 litres of HSD was saved.

II. Steps taken by the Company for utilizing alternate sources ofenergy:

OIL has taken up extensive programs for conservation of energy indifferent forms. Various short term and long term measures towards conservation of energyadopted by OIL and the achievement made thereof during the year 2018-19 are given below.

1. 500 KWp Solar plant at PS#3 Jorhat produced 105372 KWh during2018-19. The energy was used in PS#3 Jorhat.

2. 20 KWp Solar Power Plant at Repeater Stations at JagiroadDharampur Pratap Khata (Assam) and Kishenganj (West Bengal) produced 19169 kWh 17372KWh 8123 KWh and 16074 kWh of electricity respectively for industrial purpose.

3. 5 KW Solar Plant at B.G. Hills Guwahati produced 620 KWh ofelectricity for its captive use.

4. 100 kWp Solar Power Plant at TVC at Rajasthan project produced40522 kWh of electricity which was used for industrial purpose.

5. 15 KW roof top solar Power Plant was commissioned on 30.01.2019 atOIL House Jodhpur which produced 4050 KWh of energy.

6. 34 KW roof top solar Power Plant was commissioned on 22.01.2019 atFHQ Duliajan and produced 8301 KWh of energy.

7. 30 KWp Solar Power Plant at Corporate office NOIDA produced 27726kWh of electricity for use in the office complex.

8. Commissioning of Solar Plants of capacity 20 KWp each at Repeaterstations of Chepani (RS 11) (West Bengal) belgachi (RS 15) Khagaria (RS 17) in Bihar arein progress and the same are expected to be completed in the FY 2019-20.

9. Use of solar gensets in place of 30 KVA genset during night forillumination purpose at Work-over locations produced 3570 kWh of electricity which wasused for industrial purpose.

10. Use of Photo voltaic solar panel for power back up at remote radioinstallations has resulted in saving of about 645.00 kWh of equivalent electrical energyduring the period.

III. Capital expenditure on energy conservation equipments:

B. TECHNOLOGY ABSORPTION:

(i) Efforts made towards technology absorption

a) Flow Assurance using downhole Injection through Injection Mandrelsand Liquid Flow Improver In order to overcome the wax deposition problem in the productiontubing of wells producing crude oil with high pour point high wax and asphaltene contentInjection Mandrels have been installed for flow assurance using downhole injection ofLiquid Flow Improver. The adoption of Injection Mandrel and the using the optimized dosesof meticulously developed Liquid Flow Improver has resulted in bringing down the pourpoint of crude oils and have helped in reducing mechanical scrapping of the productiontubing for removal of deposits in the production tubing.

b) Initiative to develop "Low-Temp" Demulsifier (LT-OSD) Aneffort to develop low-temperature demulsifier (LT-OSD) products has been initiated withthe objective to develop suitable OSD formulations that would give adequate waterseparation even if the curing temperature inside the Emulsion Treater (ET) vessels fallsdown to 45C due to various operational exigencies. The development of low-temperaturedemulsifier (LT-OSD) product shall help in adequate water separation even if the curingtemperature inside the Emulsion Treater (ET) vessels falls down to 45C due to variousoperational exigencies thereby improving the overall crude demulsification processsignificantly.

c) Development & Field Trials of Lemon Grass Essential Oil asBactericide An eco-friendly green chemistry based assessment of Lemon grass essential oilas an alternative to chemical based bactericides for control of corrosion causing SulphateReducing Bacteria was carried out successfully in one of the installations of OIL as partof the MoU for the year 2018-19. During the course of field trials application ofLemongrass essential oil has shown to inhibit the growth and proliferation of SRB underthe prevalent oilfield conditions.

d) Streamline Simulator & Compositional Simulator: StreamlineSimulator & Compositional Simulator have been successfully commissioned by the G&RDepartment which would help in optimising the ongoing waterflood and reservoir modellingof gas condensate reservoir and thereby enhancing recovery factor

e) High End PDC bit & Motorized Rotary Steerable System: High EndPDC bit & Motorized Rotary Steerable System has been introduced for Mizoram Project.

f) Distance to Bed Boundary Imaging (DBBI) Tool: Horizontal wells havebeen drilled with RSS LWD Real Time Monitoring System and Reservoir Navigation System(RNS) by introduction of Distance to Bed Boundary Imaging (DBBI) Tool in the Drain HoleSection. Data transmission to base office from MLU including mobile application has beenintroduced.

g) Wet Blending in Cementing job: "Wet blending process ofcementation" has been started for all in-house cementing jobs. The process yieldeduniform homogeneous slurry and cement bonds were found to have improved appreciably in thewells

h) High pressure stirring Autoclave: "High pressure stirringAutoclave" has been commissioned at Corrosion laboratory which can simulate in-situwell condition to study corrosion rates of oil field tubular and flow line with specialemphasis on corrosion inhibitor analysis performance evaluation of coatings corrosionstudies using weight loss coupons and so on.

i) Cyclic Steam Stimulation (CSS) – EOR Method: OIL hassuccessfully implemented India's 1st Cyclic Steam Stimulation (CSS)project in the Pilot well BGW–8 to establish its commercial viability in augmentingthe heavy oil production from the field. The pilot project is currently under testing infew more wells including Horizontal well.

j) Tri phased and 3 3/8'' TAG perforating guns: Tri phasedand 3 3/8'' TAG perforating guns have been introduced by Well LoggingDepartment. This has helped in maximizing the effective perforation geometry of awellbore.

k) RF safe detonators: RF safe detonators have been introduced by WellLogging Department. It allows normal rig operations such as RF communications weldingand cathodic protection to continue uninterrupted during perforating.

l) Upgradation of Tejas SDH Optical Equipment: Tejas Optical systemshave been upgraded to STM64 platform with Tejas TJ1400 equipment with four times bandwidthenhancement by Pipelines Department.

(ii) The benefits derived from the above

a) Flow Assurance using downhole Injection through Injection Mandrelsand Liquid Flow Improver has helped in sustaining production and has reduced scrappingfrequency in the wells producing high pour point oil.

b) The development of low-temperature demulsifier (LT-OSD) productshall help in adequate water separation even if the curing temperature inside the EmulsionTreater (ET) vessels falls down to 45C due to various operational exigencies therebyimproving the overall crude demulsification process significantly.

c) The successful field trial of plant based essential oil as abactericide to control bacteria encountered in the formation water handling systems in theOil and Gas Industry is likely to pave the way for induction of safe and greenbactericides like Lemongrass oil as part of the regular armoury of Oil Field Chemicals tosuccessfully manage corrosive bacteria in oilfield installations.

d) Commissioning of Streamline Simulator & Compositional Simulatorwould help in optimizing the ongoing water-flood and reservoir modeling of gas condensatereservoir and thereby enhancing recovery factor.

e) Commissioning of High End PDC bit & Motorized Rotary SteerableSystem will help in maintaining verticality and to maximize power to the bit for improvingROP in the hard and abrasive formations.

f) Introduction of Distance to Bed Boundary Imaging (DBBI) has enabledconstant monitoring and quick decision making.

g) "Wet blending of cementation" process yielded uniformhomogeneous slurry and cement bonds were found to have improved appreciably in the wells.

h) "High pressure stirring Autoclave" helps in simulatingin-situ well condition to study corrosion rates of oil field tubular and flow line.

i) The successful implementation of CSS-EOR method will help inexploitation of heavy & highly viscous oil of Baghewala field.

j) The use of Tri phased guns overcomes the problems associated withmulti-phase guns of the past that failed to account for the fact that the gun rested onthe low side of the casing. TAG perforating guns provided better reliability longerperforation range and deeper depth of penetration. TAG Guns have resulted in savingvaluable rig time by reducing the number of trips.

k) Use of RF Detonators has helped in continuing normal rig operationssuch as RF communications welding and cathodic protection to continue uninterruptedduring perforating.

l) Upgradation of Tejas Optical systems makes the Communication systemfuture ready and able to handle enhanced and complex configurational requirements ofSCADA video surveillance and other communication needs.

(iii) Imported Technologies (Imported during in last three yearsreckoned from beginning of the financial year)

Sl. No Details of the technology imported (a) Year of import (b) Whether the technology been fully absorbed (c) If not fully absorbed areas where absorption has not taken place and the reasons thereof (d)
1 Matrix Acidization 2016 Yes Not Applicable
For enhancement of production from wells with formation damage matrix acidization job had been taken up. In the first phase only water disposal wells and water injection wells were selected for acidization which would indirectly help in maintaining crude oil production and reservoir management.
2 Radial Drilling 2016 Yes Not Applicable
For enhancement of crude oil production from old fields like Naharkatiya and Jorajan Radial Drilling has been planned so that the gain in crude oil could be achieved through testing of higher up sands
3 Chemical Water Shut-off Technology 2016 No Under progress
In order to arrest the increasing water cut in Naharkatia fields and to obtain sustainable production from some of the depleting wells chemical water shut off technology is being introduced.
4 Dozing of Liquid Flow Improver 2016 No Under progress
Flow improvers and viscosity reducers can decrease viscosity by up to 95% depending on the causes of the increased viscosity type of chemistry and production system. To mitigate the flow assurance problem in both horizontal & vertical regimes this technology was implemented. Supply and injection of LFI through Chemical dosing in well annulus/ Flow lines of 10 wells is in progress.
5 New Technology Logging Tools-Array Compensated Resistivity Tool (ACRT) and Circumferential Accoustic Scanning Tool (CAST-I) were introduced. 2016-17 Yes Not Applicable
6 HPHT Rheometer 2017 Yes Not Applicable
7 Compositional Simulator (Navigator) 2017 Yes. Not Applicable
8 Streamline Simulator (Front Sim) 2017 Yes Not Applicable
9 Cable-less Seismic data acquisition System 2017 Yes Not Applicable
10 CAST-I (Circumferential Accoustic Scanning Tool) 2018 Yes Not Applicable
11 ACRT (Array Compensated Resistivity Tool) 2018 Yes Not Applicable
12 HPHT Consistometer 2018 Yes Not Applicable
13 Tri phased and 3 3/8'' TAG perforating guns 2018-19 Yes Not Applicable
14 RF safe detonators 2018-19 Yes Not Applicable

(iv) Expenditure incurred on Research and Development

(##Rs## in crore)
R & D Expenditure 2018-19 2017-18
Capital Expenditure 6.18 7.87
Revenue Expenditure 80.01 56.45
Total 86.19 64.32

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

(##Rs## in crore)
R & D Expenditure 2018-19 2017-18
Foreign Exchange Earnings 59.81 52.84
Foreign Exchange Outgo - 903.05

FORM NO. AOC-2

Pursuant to clause (h) of sub-Section (3) of Section 134 of the Act andRule 8(2) of the Companies (Accounts) Rules 2014.

1. Details of contracts or arrangements or transactions not atarm's length basis.

Particular Details
Name (s) of the related party & nature of relationship NIL

2. Details of material contracts or arrangements or transactions atarm's length basis.

Particular Details
Name(s) of the related party & nature of relationship Numaligarh Refinery Limited: Associate
Nature of contracts/arrangements/transaction Sale of Crude Oil/Natural Gas Transport of Crude Oil/Refined Oil Lease of OFC Fibre Utility charges and Purchase of HSD
Duration of the contracts/ arrangements/transaction Ongoing
Salient terms of the contracts or arrangements or transactions including the value if any As per contractual Agreements र 7459.08 Crore
Date of approval by the board if any Not Applicable
Amount paid as advances if any NIL