Oil India in talks with global peers for joint exploration

Ranjit Rath, chairman and managing director of OIL, said in an interview that several government-owned national oil companies (NOCs) as well as private international oil companies (IOCs) have shown interest in jointly bidding for blocks in the upcoming 10th round of auction under Open Acreage Licensing Programme (OALP-X). 

Further, he said that OIL is looking at expanding its international footprint to ensure energy security, and is also exploring a foray into critical mineral exploration overseas, through partnerships. It has already bagged a domestic vanadium and graphite block and is vying for more critical mineral mines.

In February, the Maharatna company had signed a memorandum of understanding (MoU) with Petrobras, Brazil’s state-owned oil major, to collaborate in the exploration and production of hydrocarbon resources in India’s offshore regions. Rath said deliberations with Petrobras are underway.

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“We are extremely upbeat about our possible collaboration with Petrobras,” said Rath, adding that the IEW (India Energy Week 2025), a platform created by the ministry of petroleum and natural gas this February, helped the company reach out to both national and international oil companies for collaborations. The MoU with Petrobas was also signed at the IEW. 

“We have several engagements currently going on,” Rath said. “With some of them, we have got NDAs (non-disclosure agreements) signed and we are having data exchanges.”

Rath added that all other oil companies contacted during IEW–both international and national–are showing keen interest for participation with OIL not only in the OALP-IX blocks, “where we have already secured the blocks, but also possible joint-bidding in OALP-X”.

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The talks for joint bidding with global players come at a time when another state-run E&P major–ONGC–has tied up with UK-headquartered bp plc and Reliance Industries. The three companies jointly bagged a block in the Saurashtra Basin in OALP-IX. The blocks were awarded last month.

Apart from Petrobras and bp, other global majors in this space include Shell, Chevron, ExxonMobil and Petronas.

Under the recently ended OALP-IX, OIL bagged nine blocks, adding 51,000 sq. km to its exploration portfolio. Three of the blocks–one each in Cambay basin, Mahanadi basin and Assam Shelf basin–were won in partnership with ONGC.

According to Rath, OIL is also looking at more international exploration and production blocks and would look at partnering with local players for such projects. 

“We are in discussion with several IOCs and NOCs as part of our overseas investment and discussions are at various stages…these are all under NDA,” he said. “In some cases, due diligence is also initiated. So, we are looking at both exploration and producing assets on a holistic basis.” IOCs and NOCs refer to international oil companies and national oil companies, respectively.

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As of 31 March 2024, its overseas E&P comprises 10 assets spread over seven countries–Libya, Gabon, Nigeria, Venezuela, Mozambique, Bangladesh and Russia. The portfolio includes four producing assets spread across Russia & Venezuela. Two assets, one each in Mozambique and Nigeria are under development. Four assets in Libya, Gabon and Bangladesh are under exploration.

Rath also emphasized on the company’s plans for acquisition of critical mineral mines both in India and overseas.

“In recent times, we have secured one block of graphite and vanadium in Arunachal Pradesh, which has already been allocated to us. We have submitted bids for two potash blocks. And we are also looking at geographies, for overseas asset acquisitions in critical mineral space. And we are not looking at all the critical minerals per se. We are looking at a few select critical minerals where we see there is a commonality of understanding, both in terms of exploration possibilities or in and around our area of operation,” Rath said.

In August last year, the company signed an MoU with state-owned Khanij Bidesh India Ltd (KABIL) to collaborate for opportunities in critical mineral assets overseas.

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Speaking on OIL’s efforts to boost oil production, Rath said the company has already arrested the decline in production from mature fields.

“We have secured a growth of 3-5% in the last three years. And, like last year, this year also we have scripted the highest-ever production, both oil and natural gas cumulative,” he said. In the previous financial year (FY25), the company produced 6.71 million metric tonnes of oil and oil equivalent (MMTOE), compared to 6.54 MMTOE in FY24.

Rath added that drilling is underway in the shallow waters on either side of Andaman island and a total of four wells would be drilled in the Andaman & Nicobar offshore waters.