OIL aims to drill 75-plus wells in FY25 using more rigs, newer tech: CMD

Oil India Limited (OIL) is planning to drill over 75 wells in the fiscal year 2024-25 (FY25), up from 59 wells drilled in the current fiscal, as it looks to ramp up production of oil and gas.

The company will be deploying more drilling rigs and using newer technologies to achieve its target, Chairman and Managing Director Sushil Chandra Mishra said.

OIL, which is the second-largest national oil and gas company in India, currently has 17 drilling rigs in operation and plans to add two more by March 2024.

The company is also looking to use newer technologies such as horizontal drilling and hydraulic fracturing to improve the efficiency of its drilling operations.

"We are targeting to drill over 75 wells in FY25. We are increasing the number of drilling rigs and using newer technologies to achieve this target," Mishra said.

The company's focus on drilling more wells is part of its plan to increase its production of oil and gas. OIL currently produces about 3.5 million tonnes of oil and gas per year and plans to increase this to 5 million tonnes by 2025.

To achieve this target, the company is also looking to acquire new oil and gas fields. In FY23, OIL acquired a 26% stake in the Mozambique Rovuma 1 offshore gas block.

The company is also looking to expand its operations in other countries. It recently set up a subsidiary in the United Arab Emirates and is looking to acquire oil and gas assets in the Middle East.

OIL's focus on drilling more wells and acquiring new oil and gas fields is part of its strategy to become a leading global energy player.