Oil India details growth strategy with production and infrastructure expansion plans

Oil India anticipates its crude oil production to remain steady at 3.5-3.6 mmt in FY25-26, following 3.46 mmt in FY24-25. The company forecasts gas offtake to scale up from 3.25 bcm (8.9 mmscmd) in FY25 to 3.8-3.9 bcm (10-11 mmscmd) in FY27 and further to 4.6-4.7 bcm (12.5-13 mmscmd) in FY28. This growth is primarily driven by increased offtake to NRL, tea gardens, and the operationalization of the IGGL feeder-line.

Significant pipeline infrastructure expansions are underway. The Duliajan-Numaligarh Gas Pipeline (DNPL) mechanical completion is expected by November 15, 2025, with commissioning by April 2026. The Paradip-Numaligarh Crude Pipeline (PNCPL) construction is 88% complete as of October 31, 2025, and is scheduled for commissioning in Q4FY26. The Numaligarh-Siliguri Product Pipeline (NSPL) completed its mechanical expansion on October 12, 2025.

NRL's refinery capacity is set to ramp up from 3 mmt to 9 mmt in a phased manner. The Crude Distillation Unit (CDU) and Vacuum Distillation Unit (VDU) are expected to be ready for commissioning by December 2025. The expanded refinery capacity of 6 mmt will operate at approximately 40% utilization for H2FY27 and 80% for the full FY28. A new greenfield Polypropylene plant, with a capacity of 360 ktpa and a planned CapEx of INR 7,231 cr, is expected to enhance NRL's GRM by $1 per barrel, with mechanical completion targeted for Q4FY2028 and commissioning in Q1FY2029.