OIL and IGGL Strengthen North-East Energy Ties with New Agreements

Oil India Limited (OIL) and Indra Dhanus Gas Grid Limited (IGGL) have signed important agreements to connect OIL’s natural gas fields in upper Assam with the North-East Gas Grid’s Duliajan Feeder Line. Additionally, natural gas from OIL’s DSF block in Tripura will be transported through IGGL’s 86 km Agartala-Tulamura pipeline.

This agreement is a significant move toward improving the energy infrastructure in the Northeast region and supports OIL’s goal of promoting a gas-based economy in India. The signing took place on August 31, 2024, at OIL’s Duliajan headquarters. Dr. Ranjit Rath, OIL’s CMD, other senior OIL officials, and IGGL representatives attended the event. Shri Anfor Ali Haque from OIL and Dr. Ajit Kumar Thakur from IGGL signed the agreements.

Financial Highlights

Oil India Limited (OIL) reported an 18% increase in its net profit for the quarter ending March 31, 2024 (Q4FY24). The profit rose due to higher crude oil prices, with the company earning ₹2,332.94 crore compared to ₹1,979.74 crore in the same period last year.

The company’s board has proposed issuing bonus shares at a 1:2 ratio, meaning one new share for every two existing shares, pending shareholder approval. They have also approved a final dividend of ₹3.75 per equity share (pre-bonus), which will be ₹2.50 per share (post-bonus) for FY24. This is in addition to the interim dividends of ₹3.50 (pre-bonus) and ₹8.50 (pre-bonus) paid earlier in the year.

About Oil India Ltd

Oil India Ltd is a state-owned oil and gas company established in 1959 and based in Duliajan, Assam. It is the second-largest public sector company in India for hydrocarbon exploration and production. The company develops and produces crude oil and natural gas, transports crude oil, and produces LPG. Oil India Ltd operates in all 3 segments of the oil and gas industry: upstream (exploration, drilling, production, and transportation), midstream (refining, marketing, and trading), and downstream (storage, transportation, and distribution). Its key products include crude oil, natural gas, LPG, petrol, diesel, kerosene, and aviation turbine fuel.

On September 2, 2024, the share price of Oil India Ltd opened at ₹725.35, touching the day’s high of ₹ 734.70 as of 10:38 AM on the NSE.

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