Oil India expects Mozambique LNG project to restart in second half of 2025

New Delhi: Oil India Ltd has recovered $942 million, representing over 91 per cent of its original investment in Russia’s Vankorneft and Taas Yuryakh projects, and expects full recovery in the next financial year, chairman and managing director Ranjit Rath said on Thursday.Addressing shareholders at the company’s 66th annual general meeting, Rath said about $330 million worth of dividends remain stuck in OIL’s bank accounts in Russia. The company had invested about $1 billion in the two projects.“Your company maintains a strong presence in overseas producing and development assets across Russia, Venezuela and Mozambique through joint ventures. These assets contribute significantly to your company’s reserves and production portfolio, with cumulative production of 2.097 MMTOE during FY 2024-25 primarily from Russia. A highlight of the year was the robust dividend flow from Russian assets, amounting to $942 million representing over 91 per cent of our original investment in Vankorneft and Taas Yuryakh, with full recovery expected in the coming year,” Rath said.Oil India, ONGC Videsh and Bharat Petro Resources Ltd hold 23.9 per cent stake in JSC Vankorneft and 29.9 per cent in LLC Taas-Yuryakh, subsidiaries of Rosneft Oil Company.

On the Mozambique LNG project, Rath said construction is expected to resume by the second half of 2025. “In Mozambique, your company has invested in the world-scale LNG project, which will establish a 13.12 MMTPA low-carbon, integrated two train LNG facility. With improved security conditions, the project is expected to restart in second half of 2025 and is well-positioned to meet the growing demand of the Indian gas market,” he said.

Operationally, OIL reported record output in FY25. “Your company recorded its highest-ever oil and oil-equivalent gas production of 6.710 MMTOE since inception, along with the highest-ever natural gas production of 3,252 MMSCM. Crude oil production also maintained consistent year-on-year growth, rising from 3.01 MMT in FY 2021-22 to 3.458 MMT in FY 2024-25 – an increase of nearly 15 per cent over three years,” Rath said.The company is targeting 10 million metric tonnes of oil equivalent oil and gas production by 2030 with annual revenue of Rs 1 lakh crore and cumulative capex of Rs 1.3 trillion. It has also set a consolidated profit after tax target of Rs 10,000 crore by 2027.For FY26, OIL is aiming at 4 million tonnes of oil production and 5 billion cubic metre gas output. The company also plans to drill over 80 wells in the year and expand offshore exploration, including deep-water and ultra-deep-water areas.