In line with the dynamic business environment, IndianOil's business development initiatives continue to be driven by the emerging opportunities and guided by its corporate vision of becoming a diversified, transnational, integrated energy company. Its business strategy focuses primarily on expansion across the hydrocarbon value chain, both within and outside the country, while simultaneously revisiting its strategic plans and undertaking mid-course corrections, wherever necessary.
To enhance upstream integration, IndianOil has been pursuing exploration & production activities both within and outside the country in collaboration with consortium partners.
The Corporation's E&P portfolio consists of 15 active blocks which consists of 8 domestic (including 2 coal bed methane blocks) and 7 overseas blocks, with participating interest ranging from 3.50 percent to 50.00 percent. The overseas portfolio includes seven blocks spanning USA, Canada, Venezuela Libya, Gabon, Nigeria, and Yemen. The Corporation has three producing assets, viz., Niobrara Shale Project (USA), Pacific Northwest LNG Project (Canada) and Carabobo Project (Venezuela). During the year, the production from these assets increased to 3501.76 Mboe (Million barrels of oil equivalent) from 3299 Mboe in 2014-15, registering an 6 per cent rise. The proved and proved-developed reserves have increased from 2.18 Mtoe (Million tonnes of oil equivalent) as on 31st March, 2015 to 3.19 Mtoe as on 31st March, 2016, registering an increase of 46.3 per cent.
As on 31st March 2016, The cumulative total investment in the domestic assets stands at US$ 383.05 Million (equivalent to 1993.60 Crores), and cumulative total investment in the overseas assets stands at US$ 1,727.92 Million (equivalent to 10,029.80 Crores).
During the year the Corporation had made significant strides in its overseas acquisition drive. A consortium of the Corporation and Delonex Energy UK Limited secured the Palmeira Block, Mozambique by successfully bidding in the 5th Mozambique Licensing Round. Another major highlight is the efforts for acquisition of Rosneft's assets in Russia. The Corporation along with Oil India Limited (OIL), and Bharat PetroResources Limited (BPRL), signed definitive agreements to acquire participatory shares in LLC of Taas-Yuryah Neftegazobodobycha “TYNGD”, and CJSC Vankorneft from Rosneft Oil Company, the National Oil Company (NOC) of Russia. Vankorneft is Russia’s second largest field by production and accounts for 4% of Russian production. These acquisitions will enhance Corporation's share of production and its share of 2P reserves significantly in coming years.
At domestic front, first Gas production from block AAP-ON-94/1, Assam is expected by December 2016. In this block, IOC has participating interest of 29%, along with HOEC - 26.9% (Operator) & OIL - 44.1%.
The years ahead, therefore, hold great opportunities and challenges. Guided by its experience and inherent spirit, IndianOil shall overcome all the challenges as it has been consistently doing in the past, and scale up its operations to capitalise on all opportunities and realise its corporate vision.