GUWAHATI, June 2 � Oil India Board in its 413th board meeting held on May 30 approved the financial results of the company for the year 2010-11. Chairman and Managing Director NM Borah and other functional directors of the company addressed a press meet on May 31 to share the highlights of the company�s performance during the year and also its future growth plan, a press release said here.
During 2010-11, the company�s crude oil production was 3.627 mmt a marginal increase over the previous year�s production of 3.611 mmt. This is the highest ever crude oil production by the company in its history. This growth in production has been achieved in spite of a significant loss of around 0.130 mmt of crude oil production due to longer than originally planned shutdown of Numaligarh Refinery (during the first quarter of the year) a major customer of the company.
Maintaining the growth trend in its production, the company ended the year at a terminal production rate of 3.80 mtpa and the current production level is of the order of 3.90 mtpa. It has been possible to achieve this growth by induction of state-of-the-art and appropriate technologies in all its operations and accelerated exploration and drilling campaign.
Production of natural gas during the year was 2352 mmscm. Natural gas production of the company was constrained to a large extent by lower than committed off-take by the customers.
During the year, after commissioning of the Duliajan-Numaligarh gas pipeline, OIL has started supply of gas to NRL since March, 2011. The present rate of gas supply to NRL is around 0.84 mmscmd which will ultimately reach a level of 1 mmscmd in the near future. It is also planned to extend the Duliajan-Numaligarh pipeline to Guwahati for making natural gas available to this region and along the corridor. Market survey to ascertain demand for natural gas in Guwahati and in other towns enroute has been completed. OIL has also committed supply of 1.35 mmscmd of natural gas to BCPL, once the plant comes on stream at Lepetketa.
During the year the company has also established additional hydrocarbon reserves of around 8.43 mt of oil equivalent and as in the past has maintained a healthy reserve to production ratio in excess of 1.5. Six new hydrocarbon discoveries were made during the fiscal in its areas of operation in Assam. In order to maintain its focus on North East operations, the company has decided to commit 70 per cent of its annual budget for exploration and development activities in the North East. The company also plans to continue its focus on CSR activities for over all socio-economic development of the region.
On the financial front the company�s gross income has increased from a level of Rs8859 crore in 2009-10 to Rs9549 crore in 2010-11, an increase of 7.78 per cent The net profit for the company for the fiscal stands at Rs. 2888 crore, an increase of 10.62 per cent over the previous year.
This increase in net profit has been achieved in spite of having to share the under recovery burden of the oil marketing companies to the tune of Rs3293 crore, more than double the amount shared in the previous year. With such excellent financial performance, the company�s earning per share increased to Rs120.09 as compared to Rs113.78 during last year. The company�s contribution to the State exchequer in the form of royalty payment for the year was Rs 1147.20 crore. The board of directors have also recommended a total dividend of 375 per cent, the highest ever for approval of the shareholders.
During the year, in the IXth round bidding under New Exploration Licensing Policy, the company has provisionally bagged a total of 10 blocks in different parts of the country, the highest ever in a single round of bidding. The company�s activities overseas are progressing as per the plans drawn. While initial exploration activities have been completed in the blocks operated in Libya, in Gabon, OIL plans to drill its first well by early 2012. The Shakthi block in Gabon, where the company is presently undertaking preliminary exploration activities has hydrocarbon discoveries in adjacent areas.
The company is actively pursuing other overseas acquisition opportunities for producing/discovered blocks in a few geographical areas of focus. With all these initiatives in hand, OIL is confident of achieving its ambitious future growth plans, the release added.