Oil India Ltd in Talks with TotalEnergies for Offshore Hydrocarbon Exploration

New Delhi, Sep 16 (KNN) State-owned Oil India Ltd (OIL) is exploring new partnerships for hydrocarbon exploration off India’s coast, with discussions currently underway with French energy giant TotalEnergies.

According to a senior executive from OIL, the discussions revolve around whether TotalEnergies will join as a technical partner or take a participating interest (equity) in the upcoming open acreage licensing policy (OALP) bidding rounds.

These rounds are expected to feature offshore blocks that will be auctioned to interested bidders.

The executive indicated that the company is keen to bid aggressively and is actively framing a memorandum of understanding (MoU) with TotalEnergies.

This move aligns with OIL’s strategic goals as it seeks to enhance its exploration and production capabilities in the offshore sector.

In addition to TotalEnergies, OIL is in talks with several other international oil companies, including Thailand’s PTTEP, Malaysia’s Petronas, and Vietnam’s Petrovietnam. These discussions are part of OIL’s broader strategy to engage with global partners to explore and develop offshore blocks.

An MoU has already been signed with PTTEP, while Petronas has shown interest after reviewing OIL’s data. Negotiations with Petrovietnam are in the initial stages, with a non-disclosure agreement already in place with Petronas.

OIL is targeting significant production goals for the financial year 2025, aiming to produce 3.8 million tonnes of crude oil and 3.8 billion cubic metres of natural gas. The company has been achieving an annual production growth rate of 5-6 per cent in recent years.

To support this growth, OIL plans to drill over 75 wells this financial year, with notable activities in Libya, where it has already drilled five-and-a-half wells and expects to complete two more by the end of FY25.

The company is also preparing to resume operations in the block Area 95/96 in Libya, which had been suspended since 2014 due to civil unrest.

Additionally, OIL is negotiating terms with ONGC Videsh Ltd for drilling operations in Bangladesh, despite ongoing unrest in the region.

The company’s Chairman confirmed that this unrest has not affected the supply of diesel through the Indo-Bangla Friendship Pipeline or the expansion of the Numaligarh refinery.

Looking ahead, OIL plans to initiate drilling operations in the Andaman Islands by October and is preparing to float a tender next month for operations in an offshore block in Kerala.

This expansion and collaboration effort underscores OIL’s commitment to enhancing its global footprint and advancing its production capabilities in the energy sector.

(KNN Bureau)