NEW DELHI: State-owned Oil IndiaBSE 3.24 % Ltd, which reported drop in oil and gas production for the fiscal 2012-13, is hoping to gain from proposed gas price hike and increased production in next quarters. The company that recently announced acquisition of 4% stake in gas field inRovuma Area 1 in Mozambique is envisaging making some of its unviable blocks productive now.
The company is also exploring possibilities to participate in upcoming liquefied natural gas (LNG) re-gasification projects and in talks with Gujarat State PetroleumCorporation to acquire stake in its proposed 5 mmtpa LNG project at Mundra on west coast.
Oil India's net profit and revenues stood at Rs 3,589.34 crore and Rs 11456.32 crore, respectively, for the fiscal year 2012-13. It was marginally higher than net profit of Rs 3,446.92 crore and revenue of Rs 11,279.90 crore in the previous financial year.
"Oil and gas production went down on account of unfavourable law and order conditions in North Eastern states. However, we are hopeful to improve production in the coming quarters," said Oil India CMD SK Srivastava. Oil India produced 6.340 million tonnes of oil and oil equivalent in 2012-13 as against 6.517 million tonnes.
Commenting on the proposed natural gas price revision, Oil India director finance TK Ananth Kumar said, "Every one US dollar gas price hike will boost our top line by Rs 400 crore and bottom line by Rs 250 crore."