Q1 2027 Oil India Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to the Oil India Q1 FY27 earnings call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day. Welcome to Oil India Q1 FY2027 earnings call. As a reminder, all participant lines will be in listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kishan Mundra from DAM Capital. Thank you. Over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Kishan Mundra from DAM Capital. Thank you, and over to you, sir.

Speaker #2: Hi, and thanks, Utharba. Good afternoon, everyone, and a warm welcome to the Q1 FY27 earnings call of Oil India. To discuss the results, we have the management with us, represented by Mr. Abhijit Majumder, who is the Director of Finance.

Kishan Mundra: Hi, thanks, Atharva. Good afternoon, everyone, warm welcome to the Q1 FY2027 earnings call of Oil India. To discuss the results, we have the management with us which is represented by Abhijit Majumder, Director Finance, Mr. Saloma Yomdo, Director Exploration and Development, Mr. Trailukya Borgohain, Director Operations, Mr. Bhaskar Jyoti Phukan, MD NRL, Mr. Ajaya Kumar Sahoo, ED Company Secretary, Mr. Raghunath Mishra, ED Business Development, and Mr. Abhijit Das, CGM Finance and Accounts. At this point, I will hand over the floor to the management for their opening remarks, post which we will open the floor for the Q&A. With that, over to you, sir.

Speaker #2: Mr. Saloma Yomdo, Director of Exploration and Development; Mr. Talukia Borgohen, Director of Operations; Mr. Bhaskar Jyoti Fukan, MD, NRL; and Mr. Ajay Kumar Sahu, ED & Company Secretary.

Speaker #2: Mr. Raghunath Mishra, ED, Business Development, and Mr. Abhijit Das, CGM, Finance and Accounts. Now, at this point, I will hand over the floor to the management for the opening remarks.

Speaker #2: After this, we will open the floor for the Q&A session. With that, over to you, sir.

Speaker #3: Thank you, Mr. Kishan. Good afternoon, ladies and gentlemen. I would like to thank DAM Capital for hosting today's investor and analyst concall for Oil India Limited.

Abhijit Majumder: Thank you, Mr. Kishan. Good afternoon, ladies and gentlemen. I would like to thank DAM Capital for hosting today's investor and analyst conf call for Oil India Limited. I am Abhijit Majumder, Director Finance of your company. I am happy to inform the investor community that I am joined by my colleagues on the board, Mr. Saloma Yomdo, Director Exploration and Development, Oil India Limited, Mr. Trailukya Borgohain, Director Operations, Oil, Mr. Bhaskar Jyoti Phukan, MD NRL, Mr. Ajaya Kumar Sahoo, ED Company Secretary, Oil, Mr. Raghunath Mishra, ED Business Development, and Mr. Abhijit Das, CGM F&A and CIRO. On behalf of the management, I welcome you to our Q1 2026-2027 earnings call, covering the period 26 April 2026 to 30 June 2026. The financial results were approved by the board and duly published on 7 August 2026, based on statutory requirements.

Speaker #3: I am Abhijit Majumdar, Director of Finance of your company. I am happy to inform the investor community that I am joined by my colleagues on the board: Mr. Saloma Yomdo, Director of Exploration and Development, Oil India Limited; Mr. Trailakka Boragohi, Director of Operations, Oil; Mr. Bhaskar Jyoti Fukan, MD, NRL; Mr. Ajay Kumar Sahu, ED & Company Secretary, Oil; Mr. Raghunath Mishra, ED, Business Development; and Mr. Abhijit Das, CGM, F&A and CIRO.

Speaker #3: On behalf of the management, I welcome you to our Q1 2026–27 earnings call, covering the period from April 26 to June 30, 2026. The financial results were approved by the Board and duly published on August 7, 2026, based on statutory requirements.

Speaker #3: It gives me great pleasure to welcome our esteemed shareholders and members of the analyst community, and I am very pleased to inform you all that this quarter has been a great quarter as far as the company is concerned.

Abhijit Majumder: It gives me great pleasure to welcome our esteemed shareholders and members of the analyst community. I am very pleased to inform you all that this quarter has been a great quarter as far as the company is concerned. The company has achieved stupendous milestones on several parameters, which will be covered in the presentation that will follow. Your continued support, engagement, and valuable insights inspire us to pursue excellence in execution, uphold the highest standards of accountability, and create enduring value through sustainable growth. During the Q1 2026-2027, our performance reflects the strength of our operational foundation. We maintain steady progress across all core business activities, advanced our drilling and development programs, and continued to uphold the disciplined approach to financial management.

Speaker #3: The company has achieved stupendous milestones on several parameters, which will all be covered in the presentation that will follow. Your continued support, engagement, and valuable insights inspire us to pursue excellence in execution, uphold the highest standards of accountability, and create enduring value through sustainable growth.

Speaker #3: During the first quarter of 2026-27, our performance reflects the strength of our operational foundation. We maintain steady progress across all core business activities, advance our drilling and development programs, and continue to uphold a disciplined approach to financial management.

Speaker #3: These efforts underscore our commitment to delivering consistent growth while creating enduring value for all stakeholders. I will now hand over to Chief Investor Relations Officer, Mr. Abhijit Das, who will provide an overview of the first quarter performance.

Abhijit Majumder: These efforts underscore our commitment to delivering consistent growth while creating enduring value for all stakeholders. I will now hand over to Chief Investor Relations Officer, Mr. Abhijit Das, who will provide an overview of the Q1 performance. Thank you.

Speaker #3: Thank you.

Speaker #4: Thank you, dear. Good afternoon, ladies and gentlemen who have joined us on this call. I take this opportunity to share Oil India's operational and financial highlights, as well as the performance of our material subsidiary, NRL.

Abhijit Das: Thank you. Good afternoon, ladies and gentlemen, who have joined us on this call. I take this opportunity to share Oil India's operational and financial highlights, and the performance of our material subsidiary, NRL. From operational point of view, we have achieved 1.707 billion oil and oil equivalent of production during this quarter. The crude oil production for the quarter was 0.95 MMT, which has increased by 11%+ on year-to-year basis. Our daily crude oil production has ramped up to 10,921 MT per day on 27 June 2026, which was highest ever daily production of the company has ever recorded. The natural gas production on quarter-to-quarter has increased by 0.4%. From exploration and development fronts, the progress has remained strong, in fact much higher than what we have achieved in any of our previous years.

Speaker #4: From an operational point of view, we have achieved 1.707 million oil and oil-equivalent production during this quarter. The crude oil production for the quarter was 0.95 MMT, which has increased by 11-plus percent on a year-to-year basis.

Speaker #4: Our daily crude oil production has ramped up to 10,921 MT per day, on 27th June 2026, which was the highest ever daily production the company has ever recorded.

Speaker #4: Natural gas production, on a quarter-to-quarter basis, has increased by 0.4 percent. From exploration and development funds, the progress has remained strong—in fact, much higher than what we have achieved in any of our previous years.

Speaker #4: Our company has drilled 17 new wells during the quarter, out of which 7 are exploratory wells and 10 are development wells. From financial funds, the crude oil price realization was $98.37 per barrel, which is $26.20 per barrel higher as compared to the previous year.

Abhijit Das: Our company has drilled 17 new wells during the quarter, out of which seven are exploratory wells and 10 are development wells. From financial front, the crude oil price realization was $98.73 per barrel, which is $26.2 per barrel as compared to the previous year. The natural gas price stood at 7.19 MMBtu in this quarter as compared to $6.72 in the previous quarter of the last financial year. The standalone operating revenue of Q1 FY27 is INR 7,958 crore, which is highest ever quarterly revenue earned by Oil India Limited since it got listed in the financial year 2009/2010. We have also achieved the highest ever EBITDA during this quarter, which is INR 4,605 crore, as the margin is 54%+ as compared to 34%+ in the previous quarter of the last year.

Speaker #4: The natural gas price stood at $7.19 per MMBtu in this quarter, as compared to $6.72 in the previous quarter of the last financial year.

Speaker #4: The standalone operating revenue for Q1 FY27 is ₹7,958 crore, which is the highest ever quarterly revenue earned by Oil India Limited since it got listed in the financial year 2009-2010.

Speaker #4: We have also achieved the highest ever EBITDA during this quarter, which is ₹4,605 crore, as the margin is 54-plus percent, as compared to 34-plus percent in the previous quarter of last year.

Speaker #4: The profit before tax for this quarter is ₹3,742 crore, which is the highest ever quarterly profit achieved by the company after its listing in the stock exchange.

Abhijit Das: The profit before tax for this quarter is INR 3,742 crore, which is highest ever quarterly profit achieved by the company after its listing with the stock exchange. We have also achieved the highest ever PAT in this quarter, which is INR 2,870 crore as compared to INR 813 crore in the previous year. Our earning per share stood at INR 17.65 per share as compared to INR 5 per share. Our earning per share stood at INR 17.65 per quarter as compared to INR 5 per share in the previous quarter. The performance of our material subsidiary, NRL. I take the opportunity to share with you the performance of Numaligarh Refinery Limited. The operating income of our material subsidiary was INR 9,146 crore, which was 45% higher with Q1 of FY26. The capacity utilization of the refinery was 105%, and the distillate yield is 87% for the quarter.

Speaker #4: We have also achieved the highest ever PAC in this year, which is 2,000 in this quarter, and 2,870 crore as compared to 813 crore in the previous year.

Speaker #4: Our earnings per share stood at ₹17.65 per share as compared to ₹5 per share; our earnings per share stood at ₹17.65 per quarter as compared to ₹5 per share in the previous quarter.

Speaker #4: The performance of our material subsidiary, NRL. I take the opportunity to share with you the performance of Numaligarh Refinery Limited. The operating income of our material subsidiary was ₹9,146 crore, which was 45 percent higher versus Q1 of FY26.

Speaker #4: The capacity utilization of the refinery was 105 percent as compared to 105 percent, and the distillate yield is 87 percent for the quarter. The gross refinery margin is $35.95 per barrel as compared to $5.02 per barrel in the previous year.

Abhijit Das: The Gross Refining Margin is $35.95 per barrel as compared to $5.02 per barrel in the previous year. The EBITDA was INR 1,843 crore as compared to INR 786 crore as compared to the previous year. The PAT the company has registered in the current quarter is INR 1,305 crore as compared to INR 488 crore in the previous year. From consolidated point of view, I'd like to bring to your knowledge that the company has reported the operating revenue of INR 12,886 crore and registered a PAT of INR 4,026 crore, which is also highest after the company got listed with the stock exchange. Our performance in Q1 of FY27 reflects the strength of our operational fundamentals and a disciplined approach to financial execution. As we chart the path ahead, we will continue to focus on delivering execution excellence, enhancing production capabilities, and unlocking long-term value across our portfolio.

Speaker #4: The EBITDA was ₹1,843 crore as compared to ₹786 crore in the previous year. The PAT the company has registered in the current quarter is ₹1,305 crore as compared to ₹488 crore in the previous year.

Speaker #4: From a consolidated point of view, I would like to bring to your knowledge that the company has reported operating revenue of ₹12,886 crore and registered a PAT of ₹4,026 crore, which is also the highest since the company got listed on the stock exchange.

Speaker #4: Our performance in the first quarter of FY27 reflects the strength of our operational fundamentals and a disciplined approach to financial execution. As we chart the path ahead, we will continue to focus on delivering execution excellence, enhancing production capabilities, and unlocking long-term value across our portfolio.

Speaker #4: With that, I would like to conclude my remarks. We now welcome your questions and look forward to an engaging discussion. Thank you.

Abhijit Das: With that, I would like to conclude my remarks. We now welcome your questions and look forward for an engaging discussion. Thank you.

Speaker #2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may start by pressing one on their touch-tone telephone.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Probal Sen from ICICI Securities. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue, you may start at two. Participants are requested to use handsets while asking a question.

Speaker #2: Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Probal Sain from ICICI Securities.

Speaker #2: Please go ahead.

Speaker #3: Thank you for the opportunity, sir. Very good afternoon, and congratulations on a good set of numbers. Honestly, just a clarification: when you mentioned about the production reaching 10,921 tons of oil per day on the 27th of June, I just wanted to understand, what is the run rate right now for the second quarter as such?

Probal Sen: Thank you for the opportunity, sir. Very good afternoon and congratulations on a good set of numbers. Firstly, just a clarification, when you mentioned about the production reaching 10,921 tons of oil per day on 27 June. Just wanted to understand what is the run rate right now for Q2 as such? Can we expect it to ramp up and maintain at this level? Just want to get some understanding of.

Speaker #3: I mean, can we expect it to sort of ramp up and maintain at this level, or, you know, is it basically reached? I just want to get some understanding.

Speaker #4: Thank you for the question. I'm requesting the Director of Operations to respond to the question.

Abhijit Majumder: Thank you for the question. I am requesting Director Operations to respond to the question.

Speaker #3: Okay, sir.

Tarun Kumar Mahato: Okay, sir. This is Tarun Kumar Mahato, Director Operations. As you have seen that we are ramping up our production. This quarter, one of the finest production we got. As of now also, we are increasing our production, because we are doing well in all the three forms. You can see that the first one is the well intervention and workover activities. Earlier days, we didn't get such good workover results, and we have done many systemic improvements in terms of workover. Like, we now have a good practicing place, which is called HLWP, High-Level Workover Program Committee, planning committee. This is called Planning Board Meeting, HLWP-PMB. Now, what we do is that myself, along with Director Exploration Development also sits together and do it very integrated manner, for selection of the wells, everything.

Trailukya Borgohain: Okay, sir. This is Tarun Kumar Mahato, Director Operations. As you have seen that we are ramping up our production. This quarter, one of the finest production we got. As of now also, we are increasing our production, because we are doing well in all the three forms. You can see that the first one is the well intervention and workover activities. Earlier days, we didn't get such good workover results, and we have done many systemic improvements in terms of workover. Like, we now have a good practicing place, which is called HLWP, High-Level Workover Program Committee, planning committee. This is called Planning Board Meeting, HLWP-PMB. Now, what we do is that myself, along with Director Exploration Development also sits together and do it very integrated manner, for selection of the wells, everything.

Speaker #4: So this is Director Operations. So, as you have seen, we are ramping up our production this quarter, one of the finest productions we have got.

Speaker #4: But as of now also, we are increasing our production because we are doing well in all the three forms. You can see that, one, the first one is well intervention and workover activities.

Speaker #4: In earlier days, we didn't get such good workover results, and we have done many systemic improvements in terms of workover. For example, we now have a good practice in place, which is called the SW High Level Workover Program Committee Planning Committee.

Speaker #4: So, this is called the Planning Board Meeting, SWPMB. Now, what we do is that myself, along with the Director of Exploration & Development, also sit together and do it in a very, very integrated manner.

Speaker #4: The selection of the wells, everything. Also, on the other hand, we have one particular aspect that is done by Director Exploration Development, but where I am also invited. That is called EDPMB.

Tarun Kumar Mahato: Also, on the other hand, we have one particular aspect that is done by Director Exploration Development, but where I am also invited, that is called ED-PMB, Explorational Development Portfolio Management Board. Similar to workover and production area, we do for new wells. Where I am also an invite. Now the things are little bit different. It is not done in earlier days. We are doing it in a very integrated manner along with exploration and development. You can see that we are doing very well in all the three forms, including workover, well intervention, and also well optimization, and drilling.

Trailukya Borgohain: Also, on the other hand, we have one particular aspect that is done by Director Exploration Development, but where I am also invited, that is called ED-PMB, Explorational Development Portfolio Management Board. Similar to workover and production area, we do for new wells. Where I am also an invite. Now the things are little bit different. It is not done in earlier days. We are doing it in a very integrated manner along with exploration and development. You can see that we are doing very well in all the three forms, including workover, well intervention, and also well optimization, and drilling.

Speaker #4: Exploration and Development portfolio management board—similar to Workover and Production area, we do for new wells—so, where I am also invited. So now, the things are a little bit different.

Speaker #4: It was not done in earlier days. We are doing it in a very, very integrated manner along with Exploration and Development. So, you can see that we are doing very well in all three forms.

Speaker #4: Including workover, well intervention, and also well optimization. And drilling. So at present, we are on a path where you can we can see that we are closing going to going to achieve close to 1 MMC each quarter.

Tarun Kumar Mahato: At present, we are on a path where we can see that we are going to achieve close to 1 MMT each quarter this year.

Trailukya Borgohain: At present, we are on a path where we can see that we are going to achieve close to 1 MMT each quarter this year.

Speaker #4: This year, for the rest of the quarter, we are running there—yes, one, 1 MMC. Now you are getting 0.950, no? 0.95 MMC.

Probal Sen: Sorry.

Tarun Kumar Mahato: We are having, yes, 1 MMT. Now you are getting 0.950, 0.95 MMT. Which we are going to achieve, most probably by this quarter. We should achieve if everything remains stable, ceteris paribus. Given everything going good and nothing adverse happens in the field, we expect that we will be reaching 1 MMT every quarter from now onwards. Let's see. We are keeping our fingers crossed. This is what I can tell you. As of now, after that production, we have mentioned is at 10,921 for last quarter. We have increased it to 11,017 on 3 August.

Trailukya Borgohain: We are having, yes, 1 MMT. Now you are getting 0.950, 0.95 MMT. Which we are going to achieve, most probably by this quarter. We should achieve if everything remains stable, ceteris paribus. Given everything going good and nothing adverse happens in the field, we expect that we will be reaching 1 MMT every quarter from now onwards. Let's see. We are keeping our fingers crossed. This is what I can tell you. As of now, after that production, we have mentioned is at 10,921 for last quarter. We have increased it to 11,017 on 3 August.

Speaker #4: Which we are going to achieve, most probably by this quarter. We should achieve everything that remains. Saturday is Parivas. Then, given everything is going well and nothing adverse happens in the field, we expect that we will be reaching 1 MMC every quarter from now onwards.

Speaker #4: So let's see we are keeping our fingers crossed. This is what I can tell you. And as of now, after that, production you you we have mentioned is 10,921, no?

Speaker #4: For the last quarter, we have increased to 11,017 on the 3rd of August.

Speaker #3: Okay.

Probal Sen: Okay.

Speaker #4: So we are on a I think we are on a path where we want to increase our production. That's what I can tell as of as of today.

Tarun Kumar Mahato: I think we are on a path where we want to increase our production. That's what I can tell as of today. Anything else, if you have, I'll reply you later. Maybe the Director Exploration Development also, if you want to. Okay. He doesn't want to.

Trailukya Borgohain: I think we are on a path where we want to increase our production. That's what I can tell as of today. Anything else, if you have, I'll reply you later. Maybe the Director Exploration Development also, if you want to. Okay. He doesn't want to.

Speaker #4: Anything else you have, I'll reply to you later. And maybe Director (Exploration Development), also, if you want to… Okay, he doesn't want to.

Probal Sen: Got it.

Speaker #4: Okay.

Tarun Kumar Mahato: Okay.

Trailukya Borgohain: Okay.

Speaker #3: Got it, sir. That is, yeah.

Probal Sen: Got it, sir.

Abhijit Majumder: Basically we are on a growth path.

Tarun Kumar Mahato: Yeah.

Trailukya Borgohain: Yeah.

Speaker #4: We are surprised, surprising our own records. We are challenging ourselves, and we love to challenge ourselves in the days ahead as well.

Abhijit Majumder: We are successful-

Probal Sen: Fine, sir. Go ahead.

Abhijit Majumder: In setting our own records. We are challenging ourselves. We love to challenge ourselves in the days ahead as well.

Speaker #3: Mm-hmm. Understood. Thank you, sir. The second question was with respect to gas production. Now, I do understand that there are still some monetization challenges.

Probal Sen: Mm-hmm. Understood. Thank you, sir. The second question was with respect to gas production. Now, I do understand that there are still some monetization challenges. If you can update us a little bit in terms of the progress of the monetization downstream pipelines that are under different stages of implementation. When can we expect maybe a ramp up back to the 0.85, 0.86 BCM levels? Rather 0.8, 0.83 BCM levels that we were doing earlier. That'll be very helpful.

Speaker #3: If you can update us a little bit in terms of the progress of the monetization downstream pipelines that are under different stages of implementation.

Speaker #3: And when can we expect maybe a ramp up back to the 0.85, 0.86 BCM levels? You know, that that you know, or rather 0.8, 0.83 BCM levels.

Speaker #3: That's what we were doing earlier. That'll be very helpful.

Tarun Kumar Mahato: Actually, there are many hiccups that happened because of the shutdown of the downstream industries. This is because BCPL took shutdown and at some point of time, maybe, it means this is a yearly shutdown they take. The other thing is that seasonal variation will also come now because from October onward, when the tea garden, they will take little bit of less than what we are doing as of now. All-in, what we are expecting is that if this pipeline comes, then we'll have the evacuation bottleneck gone out of this whole story. By next year-end, we are expecting that all the facilities will be done. If we talk about gas, by 2028, we'll be having all the pipeline, everything ready, and it will go to rest of India.

Trailukya Borgohain: Actually, there are many hiccups that happened because of the shutdown of the downstream industries. This is because BCPL took shutdown and at some point of time, maybe, it means this is a yearly shutdown they take. The other thing is that seasonal variation will also come now because from October onward, when the tea garden, they will take little bit of less than what we are doing as of now. All-in, what we are expecting is that if this pipeline comes, then we'll have the evacuation bottleneck gone out of this whole story. By next year-end, we are expecting that all the facilities will be done. If we talk about gas, by 2028, we'll be having all the pipeline, everything ready, and it will go to rest of India.

Speaker #4: Actually, there were many hiccups that happened because of the shutdown of the downstream industries. This is because BCBL took a shutdown.

Speaker #4: And at some point of time, maybe it means this is a yearly shutdown they take. The other thing is that seasonal variation will also come now, because from October onwards, every tea garden will take a little bit less.

Speaker #4: Then what we are doing as a as of now. So in on an average, what we are expecting is that if this pipeline comes, then we will have the evacuation bottleneck gone out of this whole story.

Speaker #4: So by next year-end, we are expecting that all the facilities will be done. And if we talk about gas, by 2028 we’ll have all the pipelines and everything ready, and it will go to the rest of India.

Speaker #4: Whatever gas we have, we have additional gas. We are planning to send our additional gas—whatever 3.5 to 4 MMScmd—we will be able to evacuate from that area.

Tarun Kumar Mahato: Whatever gas we have, we have additional gas, we are planning to send our additional gas, whatever 3.5 to 4 MMSCMD we will be able to evacuate from that area. We are planning, we are thinking that it will be by around December 2027, it should happen.

Trailukya Borgohain: Whatever gas we have, we have additional gas, we are planning to send our additional gas, whatever 3.5 to 4 MMSCMD we will be able to evacuate from that area. We are planning, we are thinking that it will be by around December 2027, it should happen.

Speaker #4: So, that is what we are planning. We are thinking that it will be by around December 2027, it should happen. Yeah. Also, DSBL—also, one small thing is there: around 200 meters of line actually is required to be laid inside NRL.

Bhaskar Jyoti Phukan: 2027.

Probal Sen: 2027.

Tarun Kumar Mahato: Yeah. Also DNPL, one small thing is there. Around 200 meters of lines actually is required to be laid inside NRL. DNPL has got a new mandate from the government. PNGRB has given them a common carrier. What will happen, when NRL, if there is less intake in NRL, then we can put it into the main line and put it into the IGGL. When an IGGL can distribute it in the rest of the places they are doing, like to ENERTIA and also Purba Bharati Gas in lower Assam. This is going on. This will take two or three months, maybe, maximum. Once it is done, then we will have more evacuation of gas from the present capacity also.

Trailukya Borgohain: Yeah. Also DNPL, one small thing is there. Around 200 meters of lines actually is required to be laid inside NRL. DNPL has got a new mandate from the government. PNGRB has given them a common carrier. What will happen, when NRL, if there is less intake in NRL, then we can put it into the main line and put it into the IGGL. When an IGGL can distribute it in the rest of the places they are doing, like to ENERTIA and also Purba Bharati Gas in lower Assam. This is going on. This will take two or three months, maybe, maximum. Once it is done, then we will have more evacuation of gas from the present capacity also.

Speaker #4: Now, you know, DSBL has got a new mandate from the government—PNGRB has given them—a common carrier. Now, what will happen when NRL, if there is less intake in NRL, then we can put it into the main line and put it into the IGCL.

Speaker #3: And when IGGL can distribute it in the rest of the places, they are doing that—like to NEGDCL and also Purba Bharati Gas.

Speaker #3: In Lower Assam.

Speaker #4: So this is going on. This will take a few months—two, three months maybe, maximum. Once it is done, then we will have more evacuation of gas from the present capacity also.

Speaker #3: Got it, sir. So, what I understand is FY20.

Probal Sen: Got it, sir. What I understand is FY20-

Abhijit Majumder: Would like to add something to it.

Probal Sen: Go ahead.

Speaker #4: In fact, in the past as well, we have transported gas beyond NRL; that has already happened in the past. Now, this particular communication formalizing DNPL as a common carrier has come.

Probal Sen: In fact, in the past as well, we have transported gas beyond NRL. That has already happened in the past. This particular communication formalizing DNPL as common carrier has come. That will only help us do what we have already done in the past. As DO has already mentioned that once IGGL comes into being, then there will be no stopping actually. We will be able to overcome the seasonal challenges that are there, the regular shutdowns that the existing customers that they take. All of those can be overcome once these two facilities come into effect. Only a 200-meter thing is still to be done within NRL campus and IGGL by end of the next financial, it will be over. Things will be pretty smooth for us as far as gas is concerned.

Abhijit Majumder: In fact, in the past as well, we have transported gas beyond NRL. That has already happened in the past. This particular communication formalizing DNPL as common carrier has come. That will only help us do what we have already done in the past. As DO has already mentioned that once IGGL comes into being, then there will be no stopping actually. We will be able to overcome the seasonal challenges that are there, the regular shutdowns that the existing customers that they take. All of those can be overcome once these two facilities come into effect. Only a 200-meter thing is still to be done within NRL campus and IGGL by end of the next financial, it will be over. Things will be pretty smooth for us as far as gas is concerned.

Speaker #4: So, that will only help us do what we have already done in the past. And as DO has already mentioned, once IGGL comes into being, there will be no stopping, actually.

Speaker #4: We'll be able to overcome the seasonal challenges that are there, the regular shutdowns that the the existing customers that that that they take. All of those can be overcome once these two facilities come into effect.

Speaker #4: Only a 200-meter thing is still to be done within the NRL campus. And IGGL, by the end of the next financial year, it will be over.

Speaker #4: So things will be pretty smooth for us as far as gas is concerned.

Speaker #3: Got it, sir. So, if I understand correctly, FY27 and maybe H1 FY28 may see a slightly flattish or slower improvement, and then a big jump can be expected, maybe by the third or fourth quarter of FY28, in terms of achieving our long-term target of getting to 5 BCM on an annualized basis.

Probal Sen: Got it, sir. If I understand correctly, FY27 and maybe H1 FY28 may see slightly flattish or slower improvement, then a big jump can be expected maybe by the third or fourth quarter of FY28 in terms of achieving our long-term target of getting to 5 BCM on an annualized-

Tarun Kumar Mahato: 28 Q1.

Trailukya Borgohain: 28 Q1.

Speaker #4: 20th first quarter.

Speaker #3: Got it. Got it.

Probal Sen: Got it.

Speaker #4: For example, happened in the first quarter of the 20th.

Probal Sen: For example, 28 Q1.

Trailukya Borgohain: For example, 28 Q1.

Speaker #3: Right. Last question, if I may, sir — but on NRL.

Probal Sen: Right. Last question, if I may, sir. NRL.

Speaker #4: So, I said 28, 29. So, 29.

Tarun Kumar Mahato: I said 2028, 2029 were mainly.

Trailukya Borgohain: I said 2028, 2029 were mainly.

Abhijit Majumder: Why 2029?

Tarun Kumar Mahato: 2029. Yes.

Trailukya Borgohain: 2029. Yes.

Speaker #3: FY29 first quarter. Got it.

Probal Sen: FY2029 Q1. Got it.

Tarun Kumar Mahato: Q1. Yes.

Trailukya Borgohain: Q1. Yes.

Probal Sen: Gas Grid has an additional 1.5 MMSCMD by virtue of NRL coming up.

Abhijit Majumder: Gas Grid has an additional 1.5 MMSCMD by virtue of NRL coming up.

Speaker #4: An additional 1.5 MMSCMD by virtue of NRL coming up. This will be in this financial year.

Probal Sen: Yes.

Trailukya Borgohain: Yes.

Probal Sen: Yes.

Probal Sen: This will be.

Abhijit Majumder: This will be.

Tarun Kumar Mahato: This will be.

Trailukya Borgohain: This will be.

Probal Sen: in this financial year.

Abhijit Majumder: in this financial year.

Speaker #3: That is already.

Probal Sen: That is already.

Trailukya Borgohain: That is already.

Speaker #4: So that augmentation is already done. Because now, once NRL also gets into operation from, suppose, next January, then definitely there will be an increase in gas offtake on their side also.

Abhijit Majumder: that's.

Tarun Kumar Mahato: That augmentation already done because now once NRL also gets into operation from, suppose, next January, then definitely there will be increase in gas offtake on their side also.

Trailukya Borgohain: That augmentation already done because now once NRL also gets into operation from, suppose, next January, then definitely there will be increase in gas offtake on their side also.

Speaker #4: There will be an immediate spike in the offtake. When NRL comes into being, and maybe NRL by end of—who can serve—would you like to add anything here?

Abhijit Majumder: There will be an immediate spike in the offtake when NRL comes into being. Phukan Sir, would you like to add anything here?

Tarun Kumar Mahato: Phukan Sir.

Trailukya Borgohain: Phukan Sir.

Bhaskar Jyoti Phukan: Yes. I have only a couple of things to add.

Speaker #3: I have only a couple of things to add. And as Director Ops has already mentioned, DNPL has become a common carrier.

Abhijit Majumder: Please, Sir.

Bhaskar Jyoti Phukan: As Director Ops has already told that DNPL has become a common carrier. That currently the pipeline, as you know, is 1 MMSCMD, and we will be able to connect with a 200-meter pipeline from Numaligarh to IGGL, and we will be in a position to give them shutdown so that they augment their capacity from 1 MMSCMD to 2 MMSCMD immediately, then thereafter up to 2.5. They were requesting for a shutdown because of the geopolitical thing, because it would have resulted also in a shutdown of the Numaligarh Refinery, and we needed diesel and petrol badly because of the geopolitical situation. We were not being allowed to give the shutdown to them.

Speaker #3: Currently, the pipeline, as you know, is 1 MMSCMD. As we will be able to connect with a 200-meter pipeline from Numaligarh to IGGL, we will be in a position to give them shutdown so that they can augment their capacity from 1 MMSCMD to 2 MMSCMD immediately, and thereafter up to 2.5 MMSCMD.

Speaker #3: So, they were requesting for a shutdown because of the geopolitical situation, as it would have also resulted in a shutdown of the Numaligarh refinery. We needed diesel and petrol badly because of the geopolitical situation.

Speaker #3: We will not be allowed to give the shutdown to them. Now that things have eased, we can do away with the shutdown because we can operate with the gas from the IGGL due to this 200-meter connectivity, which is going to come in two to three months' time.

Bhaskar Jyoti Phukan: Now that the things have eased and we can do away with the shutdown because we can operate with the gas from the IGGL due to this 200-meter connectivity, which is going to come in 2, 3 months time. We will be in a position to give a very short shutdown to DNPL to augment their capacity to 2 and eventually to 2.5. That gives a headstart of around 1.5, which if not consumed in NRL, can also be given to the national grid. The fact is that NRL is going to start consuming 1.5 additional gas, perhaps in Q2 or Q3 of next financial year. Before that also, this 1.5 MMSCMD can find their way to national grid. That is the limited point that I wanted to make. Yes. Understood, sir. If I can just sum it up, I don't have any other questions.

Speaker #3: We will be in a position to give a very short shutdown to DNPL to augment their capacity to 2 and eventually to 2.5. That gives a head start of around 1 to 1.5, which, if given to the national grid.

Speaker #3: So, the fact is that NRL is going to start consuming 1.5 additional gas, perhaps in the last second or third quarter of the next financial year.

Speaker #3: But before that also, this 1.5 MMSCD can find its way to the national grid. That is the limited point that I wanted to make. Yes.

Probal Sen: Yes. Understood, sir. If I can just sum it up, I don't have any other questions. If I look at 1.5 MMSCMD, that translates to maybe about 0.5 BCM coming through gradually over calendar year 2027, as NRL's commissioning is done and the 200-meter connectivity is done. Then when all the other pipelines are in place, another 2.5 to 3 MMSCMD or 2 MMSCMD can come through, which is essentially another that 1.5 BCM. That is how we go from currently 2.93 BCM to somewhere around 5 BCM by FY29. Is that the proper way to sum it up?

Speaker #3: Understood, sir. If I can just sum it up, I don't have any other questions. So if I look at 1.5 MMS CMD, that translates to maybe about 0.5 BCM coming through gradually over calendar year 2027, as NRL's commissioning is done and the 200-meter connectivity is completed.

Bhaskar Jyoti Phukan: If I look at 1.5 MMSCMD, that translates to maybe about 0.5 BCM coming through gradually over calendar year 2027, as NRL's commissioning is done and the 200-meter connectivity is done. Then when all the other pipelines are in place, another 2.5 to 3 MMSCMD or 2 MMSCMD can come through, which is essentially another that 1.5 BCM. That is how we go from currently 2.93 BCM to somewhere around 5 BCM by FY29. Is that the proper way to sum it up?

Speaker #3: And then when all the other pipelines are in place, another 2 and a half to 3 MMS CMD or 2 MMS CMD can come through, which is essentially another that 1 and a half BCM.

Speaker #3: That is how we go from the current 2.93 BCM to somewhere around 5 BCM by FY29. Is that a proper way to sum it up?

Speaker #4: Yes, I think that's the correct understanding. Yes.

Saloma Yomdo: Yes.

Bhaskar Jyoti Phukan: Yes.

Abhijit Majumder: I think that's the correct understanding.

Probal Sen: Yes.

Bhaskar Jyoti Phukan: Yes.

Speaker #3: All right. Perfect, sir. Thank you so much. I'll come back if I have more questions. And all the best.

Probal Sen: Got it. Perfect. Thank you so much. I'll come back if I have more questions. All the best.

Speaker #1: Thank you. The next question comes from the line of Vivekanand from Ambit Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Vivekananda from Ambit Capital. Please go ahead.

Speaker #2: Yeah. Hello. Thank you for the opportunity. So, Dr. Ranjit, two questions. The recent regulatory changes that have—

[Analyst] (Ambit Capital): Yeah. Hello. Thank you for the opportunity. Dr. Ranjit, two questions. The recent regulatory changes that have

Vivekanand Subbaraman: Yeah. Hello. Thank you for the opportunity. Dr. Ranjit, two questions. The recent regulatory changes that have

Abhijit Majumder: Excuse me. Our CMD sir is not attending this con call.

Speaker #4: Our CMD, sir, is not attending this con call.

Speaker #2: I see. I see. Okay. Apologies.

[Analyst] (Ambit Capital): I see. Okay. Apologies.

Vivekanand Subbaraman: I see. Okay. Apologies.

Speaker #4: But the rest of the board is on.

Abhijit Majumder: Rest of the board is on here.

[Analyst] (Ambit Capital): Yes, Mr. Abhijit, yes. My question to you is on the recent regulatory changes and budgetary support that has been given to the upstream sector. How should one look at this, in the context of your CapEx program for the next couple of years? My understanding is that you have drilled around 25 exploratory wells last year. Just to help us understand how your exploration program will look like in FY2027 and 2028, both in terms of wells drilled as well as in terms of capital outlay, considering the reimbursement that the government is giving. That is question one. The second question, I see that NRL has reported an exceptionally high GRM, and this, I believe, would include some inventory gains. Could you help us understand the normalized GRM that NRL reported this quarter?

Vivekanand Subbaraman: Yes, Mr. Abhijit, yes. My question to you is on the recent regulatory changes and budgetary support that has been given to the upstream sector. How should one look at this, in the context of your CapEx program for the next couple of years? My understanding is that you have drilled around 25 exploratory wells last year. Just to help us understand how your exploration program will look like in FY2027 and 2028, both in terms of wells drilled as well as in terms of capital outlay, considering the reimbursement that the government is giving. That is question one. The second question, I see that NRL has reported an exceptionally high GRM, and this, I believe, would include some inventory gains. Could you help us understand the normalized GRM that NRL reported this quarter?

Speaker #2: So, yes. Yes, Mr. Abhijit, yes. My question to you is on the recent regulatory changes and budgetary support that has been given to the upstream sector.

Speaker #2: How should one look at this in the context of your Capex program for the next couple of years? Because my understanding is that you have drilled around 25.

Speaker #2: Exploratory wells last year. Just to help us understand how your exploration program will look like in FY27 and FY28, both in terms of wells drilled as well as in terms of capital outlay, considering the reimbursement that the government is giving.

Speaker #2: That is question one. The second question: I see that NRL has reported an exceptionally high GRM, and this, I believe, would include some inventory gains.

Speaker #2: Could you help us understand the normalized GRM that NRL reported this quarter? Because we understand Q1 FY26 had refining losses, and this quarter is likely to have had refining—sorry—inventory gains.

[Analyst] (Ambit Capital): We understand Q1 FY2026 had refining losses, and this quarter is likely to have had inventory gains. Thank you very much.

Vivekanand Subbaraman: We understand Q1 FY2026 had refining losses, and this quarter is likely to have had inventory gains. Thank you very much.

Speaker #2: Thank you very much.

Abhijit Majumder: Yes, sir. Could you take this question?

Speaker #4: Okay. I'll request DG, sir, to take this question.

Saloma Yomdo: Okay.

Abhijit Majumder: I am requesting Udai sir to take this question.

Speaker #3: The first question was about the drilling plan for '27 and '28, and how we are going to support the Capex request for that, right?

Saloma Yomdo: The first question was about the drilling plan for 2027, 2028, and how we are going to support the CapEx program for that, right?

Speaker #2: Yes.

[Analyst] (Ambit Capital): Yes.

Vivekanand Subbaraman: Yes.

Speaker #3: Like last year, we drilled 74 wells. This year, we are targeting 100, which includes both onshore and offshore wells. Currently, we are on track to achieve that big ambition of drilling and completing 100 wells.

Saloma Yomdo: Like last year, we drilled 74 wells, and this year we are targeting 100, which includes onshore as well as offshore. Currently, we are on track to achieve that big ambition of drilling, completing 100 wells. Going forward, we would obviously like to stretch ourselves further and try to again ride on a 10% at least increase in the number of wells to be drilled. Whatever wells that we are drilling, primarily in onshore, is from our own resources. But you have seen that the current acreage holding that we have, about 55% of them are in offshore, and a chunk of them are in deep offshore and ultra-deep offshore. With the new PNG rules which have been announced, there are a lot of opportunities for enhanced exploration.

Speaker #3: And going forward, we would obviously stretch ourselves further and try to again ride on at least a 10% increase in the number of wells to be drilled.

Speaker #3: Now, whatever wells that we are drilling primarily in onshore is from our own resources. But you've seen that the current acreage holding that we have about 55% of them are in offshore.

Speaker #3: And the chunk of them are in deep offshore and ultra-deep offshore. So, with the new PNG rules which have been announced, there are a lot of opportunities for enhanced exploration.

Speaker #3: For example, if you feel that your block is extending beyond your your exploration lease, then you can also you can also place your rights for further extension of the for the lease area.

Saloma Yomdo: For example, if you feel that your block is extending beyond your exploration lease, then you can also place your rights for further extension of the lease area to bring it under your exploration campaign. There are other things, and most recently is the Samudra Manthan, which has been announced. The formal nitty-gritties are yet to be announced, but it has already been announced that some amount of money will be reimbursed by the government for seismic activities, and around INR 675 crores per well, which is the maximum ceiling, will be provided for drilling deepwater and ultra-deep water wells. Also some INR 10,000 crores or something will be utilized for common infrastructure hub.

Speaker #3: To bring it under your exploration campaign. Then there are other things, and most recently is the Samudra Manthan, which has been announced.

Speaker #3: The former niche equities are yet to be announced, but it has already been announced that some amount of money will be reimbursed by the government for seismic activities.

Speaker #3: And around ₹675 crore per well, which is the maximum ceiling, will be provided for drilling deep water and ultra-deep water wells. And also, some ₹10,000 crore or something will be utilized for the common infrastructure hub.

Speaker #3: And so, with this—especially for deep water and ultra-deep water—we have already worked out and chalked out a plan, where we have identified how many wells we will be drilling in the deep water and ultra-deep water in the next couple of years.

Saloma Yomdo: With this, especially for deep water and ultra-deep water, we have already worked out and chalked out a plan where we have identified how many wells we will be drilling in the deep water and ultra-deep water in the next couple of years. Especially since we have already acquired the vintage 2D and 3D data, and they are currently being processed and interpreted. In the deep waters and ultra-deep waters of Mahanadi and KG, we have already acquired, completed 4,209 kilometers and 5,300 square kilometers of 3D data within a year of the PL being awarded to us. By January, we will be finishing the seismic acquisition processing interpretation of the Mahanadi and KG basins, which is roughly about 40,000 square kilometers. As of now, we have already identified possible prospects to be drilled, and that is the reason why we have already tendered out the rig requirements.

Speaker #3: Especially since we have already acquired the vintage 2D and 3D data, and they are currently being processed and interpreted in the deep waters and ultra-deep waters of Mahanadi and KG. We have already completed acquisition of 4,200 line kilometers and 5,300 square kilometers of 3D data within a year of the PL being awarded to us.

Speaker #3: So by January, we'll be finishing the seismic acquisition, processing, and interpretation of the Mahanadi and KG basins, which is roughly about 40,000 square kilometers.

Speaker #3: As of now, we have already identified possible prospects to be drilled, and that is the reason why we have already tendered out the rig requirements.

Speaker #3: So the first rig is going to come in June–July '27, and the second rig is going to come by March '28. And that will kick-start our deep water exploration campaign.

Saloma Yomdo: The first rig is going to come in June, July 2027, and the second rig is going to come by March 2028. That will kickstart our deepwater exploration campaign. One well we are also going to drill next year in Mahanadi, but that is also going to be sponsored by the government, INR 800 crores will be sponsored, as part of the stratigraphic well campaign. The other wells we are going to take up through the Samudra Manthan route where they will be supporting us with the funds. Most importantly, we are also de-risking these prospects to be drilled, because apart from our in-house and external consultants, TotalEnergies is also looking at this data in each and every detail, and advising us. Petrobras have also come on board.

Speaker #3: And one well, we are also going to drill next year in Mahanadi, but that is also going to be sponsored by the government. ₹800 crores will be sponsored as part of the stratigraphic well campaign.

Speaker #3: And then the other wells we are going to take up through the Samudra Manzan route, where they’ll be supporting us with the funds.

Speaker #3: And most importantly, we are also trying to we are also de-risking this prospects to be drilled because apart from our in-house and external consultants, Total is also looking at this data in each and every detail.

Speaker #3: And advising us. And now Petrobras have also come on board; they will also be doing an independent interpretation of this data, so that they will also come up with their own independent interpretation.

Saloma Yomdo: They will also be doing an independent interpretation of this data, so that they will also come up with their own independent interpretation. This, in broad, is what is the outlay that we have for us in the next coming years. Dr. Rajeev, question?

Speaker #3: So this, in broad terms, is the outlay that we have for ourselves in the coming years. That's what I'll say. Questions?

[Analyst] (Ambit Capital): Yes. Just small follow-ups. One is, how much CapEx did you incur in Q1? If you can give a bit more details about the wells drilled, how many were exploratory last year? My understanding is around 24. How many exploratory wells are you planning to drill this year? If you can give a breakup of onshore versus offshore, that will be great. Thank you.

Vivekanand Subbaraman: Yes. Just small follow-ups. One is, how much CapEx did you incur in Q1? If you can give a bit more details about the wells drilled, how many were exploratory last year? My understanding is around 24. How many exploratory wells are you planning to drill this year? If you can give a breakup of onshore versus offshore, that will be great. Thank you.

Speaker #2: Yes, just a couple of small follow-ups. First, how much Capex did you incur in Q1? And if you could give a bit more detail about the wells drilled—how many were exploratory last year?

Speaker #2: My understanding is around 24. How many exploratory wells are you planning to drill this year? And if you can give a breakup of onshore versus offshore, that will be great.

Speaker #2: Thank you.

Abhijit Das: Okay. For the CapEx, you have asked the question for how much we have actually spent for Q1 FY2027. The total amount spent is around INR 3,050 crore. For survey, it is INR 450 crore. For exploratory drilling, it is INR 1,230 crore. For development drilling, we have spent INR 700 crore. For our capital equipment and our projects, we have already spent INR 350 crore, and investment in our subsidiaries and joint ventures and overseas investment was around INR 350 crore. It sums up to around INR 3,050 crore for Q1 FY2027. Our total budget estimate for the whole year as of now, it is INR 8,600 crore. It will undergo some changes and revision during our next review. Actual expenditure for the previous year was INR 13,026 crore.

Speaker #3: I just saw that for the Capex CPI, we have asked the question about how much we have actually spent for Q1 '27. The total amount spent is around ₹3,050 crore.

Speaker #3: For survey, we can say it is ₹450 crore. For exploratory drilling, it is ₹1,230 crore. For development drilling, we have spent ₹600 crore. For our capital equipment and our projects, we have already spent ₹350 crore.

Speaker #3: And investment in our subsidiaries and joint ventures and overseas investment was around ₹350 crore. So it sums up to around ₹3,050 crore for FY 27 Q1.

Speaker #3: Our total budget estimate for the whole year, as of now, is 8,600. So it may, it will undergo some changes and revisions during our next review.

Speaker #3: And actual expenditure for the previous year was ₹13,026 crores.

Speaker #2: So, in FY25, we drilled 22 exploratory wells and 35 development wells. In FY26, we again drilled 22 exploratory wells and 52 development wells.

Saloma Yomdo: FY2025, we drilled 22 exploratory and 35 development wells. FY2026, we drilled again 22 exploratory and 52 development wells. FY2027, we are targeting 42 exploratory and 57 development wells.

Speaker #2: And for FY27, we are targeting 42 exploratory and 57 development wells. All right. Thank you. Can you answer my question on NRL now? Thanks a lot.

[Analyst] (Ambit Capital): Right. Thank you. Can you answer my question on NRL now? Thanks a lot.

Vivekanand Subbaraman: Right. Thank you. Can you answer my question on NRL now? Thanks a lot.

Speaker #3: Yes. So yes. To confirm?

Abhijit Das: Yes. Phukan sir?

Speaker #2: Yes, yeah, I heard that question on the DRM. I think DRM reported was 35. That accounts for around ₹2 crore that we have gained in terms of inventory gain.

Bhaskar Jyoti Phukan: Yes. Yeah, I heard that question on the GRM. I think the GRM reported was 35. That accounts for around two crore that we have gained in terms of inventory gain. If you back that out, it will be 33 for GRM. This GRM increase is basically because of the difference between diesel and crude prices, MS and diesel and crude prices. Those spreads were extremely high. In fact, this is after backing out the discount that we had to give to OMCs to keep the prices stable as an understanding. Therefore, this is the GRM that we had. Generally, our GRM hovers around INR 7 to 8 that you may have observed in last annual reports and all. Now we are clocking in the Q1 around 35. That includes two crore as inventory gain. If you back it out, it will be 33.

Speaker #2: So, if you back that out, it will be 33 for DRM. The DRM increase is basically because of the difference between diesel and crude prices.

Speaker #2: MS and diesel and crude prices—so those prices were extremely high. In fact, this is after backing out the discount that we had to give to OMCs to keep the prices stable, as per our understanding.

Speaker #2: So, therefore, this is the DRM that we had. Generally, our DRM hovers around $7 to $8, as you may have observed in the last annual reports and all.

Speaker #2: So now we are clocking in the first quarter around 35. That includes 2 crore as inventory gain. If you back it out, it will be 33.

Speaker #2: So, did I answer your question? Yes. Thank you very much. Thank you. The next question comes from the line of Somaya V. from Avender Spark.

Bhaskar Jyoti Phukan: Did I answer your question?

[Analyst] (Ambit Capital): Yes. Thank you very much.

Vivekanand Subbaraman: Yes. Thank you very much.

Bhaskar Jyoti Phukan: Yeah.

Operator: Thank you. The next question comes from the line of Somaya V from Avendus Spark. Please go ahead.

Speaker #2: Please go ahead.

Speaker #3: Yeah. Hi, sir. Thanks for the opportunity. So, my first question is on NRL expansion. Could you provide us an update in terms of the commissioning?

Somaya V: Yeah. Hi, sir. Thanks for the opportunity. My first question is on NRL expansion. Could you provide us an update, in terms of the commissioning? Earlier, I believe DTU units were expected to get started. Where are we, and what is our expectations in terms of output, for this year and also in FY2028?

Somaiah Valliyappan: Yeah. Hi, sir. Thanks for the opportunity. My first question is on NRL expansion. Could you provide us an update, in terms of the commissioning? Earlier, I believe DTU units were expected to get started. Where are we, and what is our expectations in terms of output, for this year and also in FY2028?

Speaker #3: So, earlier I believe DTU units were expected—what are our expectations in terms of output for this year and also in FY28?

Speaker #2: I think I can answer that question. MD, NRL, yeah. Yeah. So, as we had said in the last introduction, we indicated that in the first quarter we will be commissioning our CDU VDU.

Bhaskar Jyoti Phukan: I think I can answer that question. MD NRL.

Abhijit Das: Please go ahead.

Bhaskar Jyoti Phukan: Yeah. In the last interaction, we indicated that in the first quarter, we will be commissioning our CDU/VDU. We have mechanically completed that unit. We are subjecting it to inspection by OISD, followed by PESO. These are statutory inspections that are required to be carried out before we do a startup activity. Otherwise, we are ready for startup. DHDT unit is ready. SRU unit, which is required prior to commissioning of DHDT unit, is almost getting completed. Maybe another couple of months time, we should be able to start the DHDT along with SRU. These three units will be commissioned by, say, October or November at best, and rest of the unit, we are still taking a target of commissioning by 31 March 2027. Having done that, our actual production in a graded manner will start from next financial year.

Speaker #2: We have mechanically completed that unit. We have subjected it to inspection by OISD, followed by PESO. These are statutory inspections that are required to be carried out before we do a startup activity.

Speaker #2: Otherwise, we are ready for startup. The DSDT unit is ready. The SRU unit, which is required prior to commissioning of the DSDT unit, is almost completed.

Speaker #2: Maybe another couple of months' time. We should be able to start the DSDT along with SRU. So, these three units will be commissioned by, say, October or November at best.

Speaker #2: And for the rest of the unit, we are still targeting commissioning by 31st March 2027. So, having done that, our actual production in a graded manner will start from next financial year. Gradually, we will heat up to around 75% of the total capacity utilization by end of year 2027-28.

Bhaskar Jyoti Phukan: Gradually, we will hit up to around 75% of the total capacity utilization by end of year 2027, 2028. At Q4, I think we will hit around 75% of our rated capacity of 9 million tonnes. That is what our plan is.

Speaker #2: So, in Q4, I think we will hit around 75% of our rated capacity of 9 million tons. So that is what our plan is.

Somaya V: Understood, sir. Also on the related infrastructure there, in terms of the Paradip to Numaligarh pipeline. There was a few kilometers that was pending. Any update there? When is that expected to be done?

Somaiah Valliyappan: Understood, sir. Also on the related infrastructure there, in terms of the Paradip to Numaligarh pipeline. There was a few kilometers that was pending. Any update there? When is that expected to be done?

Speaker #2: Also, on the related infrastructure there, in terms of the Faradee to Numaligarh pipeline, there were a few kilometers that were pending. So, any update there?

Speaker #2: When is that expected to be done?

Bhaskar Jyoti Phukan: Yes. Actually, there have been very good progress over there also. Entire stretch of RoU, barring only 8 kilometer stands acquired as of now. We are in a good shape there. We are getting good traction, good support from the governments, associated with RoU, because we are traveling through four states, so all of them are supporting us.

Speaker #3: Yes. Actually, there has been very good progress over there also. Entire stretches of ROU, barring only 8 kilometers, stand acquired as of now.

Speaker #3: So, we are in good shape there. We are getting good traction, good support from the government associated with ROU because we are traveling through four states.

Speaker #3: So, all of them are supporting us.

Somaya V: By December of this

Somaiah Valliyappan: By December of this

Speaker #2: By December of this year, it is.

Speaker #3: By December, we will commission the pipeline here. In October, we are targeting mechanical completion.

Bhaskar Jyoti Phukan: By December, we will commission the pipeline year. October, we are taking a target for mechanical completion.

Speaker #2: Understood, sir. There also, in terms of...

Somaya V: Understood, sir. Sir, also in terms of-

Somaiah Valliyappan: Understood, sir. Sir, also in terms of-

Speaker #4: Sorry to interrupt, sir. May I request you to please rejoin the queue?

Operator: Sorry to interrupt, sir. May I request you to please rejoin the queue?

Speaker #2: Okay. It's okay. Can I just ask one clarification? Hello?

Somaya V: Okay. It's okay. Can I just ask one clarification? Hello?

Somaiah Valliyappan: Okay. It's okay. Can I just ask one clarification? Hello?

Speaker #4: Yes, sir. You may go ahead.

Operator: Yes, you can go ahead.

Speaker #2: Yeah, yeah, thanks. So just on the Capex part for NRL, could you also help with what is the net debt at NRL, out of the ₹35,000 to ₹40,000 crores of expansion Capex?

Somaya V: Yeah. Thanks. Just on the CapEx part on NRL. Also, if you could just help with what is the net debt at NRL? Of those INR 35 to 40,000 crores of expansion CapEx, how much have we spent so far, and what is the plan for the next couple of years?

Somaiah Valliyappan: Yeah. Thanks. Just on the CapEx part on NRL. Also, if you could just help with what is the net debt at NRL? Of those INR 35 to 40,000 crores of expansion CapEx, how much have we spent so far, and what is the plan for the next couple of years?

Speaker #2: How much have we spent so far, and what is the plan for the next couple of years?

Speaker #3: We have invested around ₹30,000 crore so far. So, we should be completely completing the refinery project at around ₹34,000 to ₹35,000 crore.

Bhaskar Jyoti Phukan: We have invested around INR 30,000 crore so far. We should be completing the refinery project around INR 34,000 to INR 35,000 crore. We should also be completing the PPU project by spending another INR 7,200 or INR 7,300 crore. That is the outlook of that CapEx that we have.

Speaker #3: And we should also be completing the PPU project by spending another ₹7,200 or ₹7,300 crore. So that is the outlook of Capex that we have.

Speaker #2: What is the current net debt at NRL, and what is the actual cash capex that we have spent so far?

Somaya V: The current net debt at NRL and what is the actual cash CapEx that we have spent so far?

Somaiah Valliyappan: The current net debt at NRL and what is the actual cash CapEx that we have spent so far?

Bhaskar Jyoti Phukan: The INR 30,000 figure that I spoke is a total spend that we have made. Out of that, around INR 19 crore will be the borrowings that we have done.

Speaker #3: The ₹30,000 crore figure that I spoke about is the total spend that we have made. Out of that, around ₹26,000 crore will be—the borrowings that we have done are around ₹19,000 crore.

Speaker #2: Okay.

Operator: Okay.

Somaiah Valliyappan: Okay.

Speaker #3: So, the debt component is ₹19,000 crore.

Abhijit Das: The debt component is INR 19,000 crore?

Speaker #2: Yes.

Operator: Yes.

Speaker #3: Yeah.

Bhaskar Jyoti Phukan: Yeah.

Speaker #2: So this is at NRL level, sir. Yes, sir. Absolutely, NRL level. Okay. And the console level, including upstream and international?

Somaya V: This is at NRL level?

Somaiah Valliyappan: This is at NRL level?

Bhaskar Jyoti Phukan: Yes. Absolutely NRL level.

Somaya V: Okay. The consolidated level, including upstream and international.

Somaiah Valliyappan: Okay. The consolidated level, including upstream and international.

Speaker #3: Sorry?

Operator: Sorry, Abhin.

Speaker #2: I mean, at the console, from a standalone point of view, for foreign investment, we are having a $1.4 billion loan. As far as oil, super oil is concerned, it is only for our Mozambique project.

Somaya V: The consolidated debts.

Somaiah Valliyappan: The consolidated debts.

Abhijit Das: From standalone point of view, for foreign investment, we are having a $1.4 billion loan. From oil as far as oil is concerned, it is only for our Mozambique project. In consolidated table, another one bond we have from our foreign subsidiary in Singapore, which is $550 million of bond, which is to be repaid in the next year, 27 May. From NRL point of view, as I already told, it is INR 19,000 plus crores. This is in a group level. If you see sum of these three figures, this will be our debt. Total debt in the group level, which is around INR 37,233 crores is our total debt.

Speaker #2: And at the consolidated level, another bond we have is from our foreign subsidiary in Singapore, which is a $550 million bond. This is to be repaid next year, on 27th May.

Speaker #2: And from NRL's point of view, as I already told you, it is 19,000-plus crores. So, this is at the group level. If you see some of these three figures, this will be our debt.

Speaker #2: Total debt at the group level, which is around ₹37,233 crore, is our total debt. Got it, sir. Thank you. Thank you.

Somaya V: Got it, sir. Thank you.

Somaiah Valliyappan: Got it, sir. Thank you.

Speaker #4: Thank you. Ladies and gentlemen, you are requested to restrict your questions to two per participant. I repeat, you are requested to restrict your questions to two per participant.

Operator: Thank you. Ladies and gentlemen, you are requested to restrict your questions to two questions per participant. I repeat, you are requested to restrict your questions to two questions per participant. We have the next question from the line of Yogesh Patil from Dolat Capital. Please go ahead.

Speaker #4: We have the next question from the line of Yogesh Patil from Daulat Capital. Please go ahead.

Speaker #2: Thanks for taking my question, sir, and congratulations on the good set of numbers. My question pertains to the gas discovery in Vijayapuram Andaman. What are the upcoming steps or the procedural plan for this field to help us gauge the volume of reserves and whether they can be produced commercially?

Yogesh Patil: Thanks for taking my question, sir, and congratulations for the good set of numbers. Question pertains to gas discovery in Vijayapuram, Andaman. What are the upcoming steps or the procedure plan for this field to help us gauge volume reserves and that can be produced commercially? If there is any new exploratory well plan for Andaman, what would be the timeline for this completion, and when can we anticipate the results? This is my first question.

Speaker #2: If there is any new exploratory well plan for the Andaman, what would be the timeline for its completion? And when can we anticipate the results?

Speaker #2: This is my first question.

Speaker #3: Well, as you are aware, we have drilled so far three wells in Andaman. The first well we drilled, and then we went to the second well because the sand that we encountered was tight and with the current testing system, we couldn't test the well.

Bhaskar Jyoti Phukan: Well, as you are aware, we have drilled so far three wells in Andaman. First well we drilled and we went to the second well because the sand that we encountered was tight, and with the current testing system, we couldn't test the well. We decided that we will come back prepared for testing the first well. We went to the second well, where the gas was reported. In the second well, it was flowing very intermittently. In the third well, which we drilled, the gas was flowing continuous. That was a technical discovery, which we have also intimated to the DGH, which is the statutory authority. In the first well, we are now going back, and even as we speak, we are preparing to test the sand there using hydrofrac, for which a separate contract has been mobilized.

Saloma Yomdo: Well, as you are aware, we have drilled so far three wells in Andaman. First well we drilled and we went to the second well because the sand that we encountered was tight, and with the current testing system, we couldn't test the well. We decided that we will come back prepared for testing the first well. We went to the second well, where the gas was reported. In the second well, it was flowing very intermittently. In the third well, which we drilled, the gas was flowing continuous. That was a technical discovery, which we have also intimated to the DGH, which is the statutory authority. In the first well, we are now going back, and even as we speak, we are preparing to test the sand there using hydrofrac, for which a separate contract has been mobilized.

Speaker #3: So we decided that we would come back prepared for testing the first well. So we went to the second well where the gas was reported.

Speaker #3: Then, in the second well, it was flowing very intermittently. But in the third well, which we drilled, the gas was flowing continuously.

Speaker #3: So that was a technical discovery, which we have also intimated to the DGH, which is a statutory authority. So, in the first well, we are now going back, and even as we speak, we are preparing to test the sand there using hydrofrack, for which a separate contract has been mobilized.

Speaker #3: And the hydrofrack is a well stimulation mechanism, which can help you to test tight sand, so the fluid or gas can come out easily.

Bhaskar Jyoti Phukan: The hydrofrac is a well stimulation mechanism which can help you to test tight sands, so the fluid or gas can come out easily. This will take about a month in Vijayapuram-1 for the testing to be complete. We will demobilize this current rig, semi-submersible rig that we have, because it has completed its contractual tenure. The fourth well, we are going to go in Andaman with a jackup rig. This we are going to be drilling by December 2024. The fourth well is further up north in the Andaman block, at a water depth of about 90 meters. This rig is actually currently drilling in our KG offshore DSL block.

Saloma Yomdo: The hydrofrac is a well stimulation mechanism which can help you to test tight sands, so the fluid or gas can come out easily. This will take about a month in Vijayapuram-1 for the testing to be complete. We will demobilize this current rig, semi-submersible rig that we have, because it has completed its contractual tenure. The fourth well, we are going to go in Andaman with a jackup rig. This we are going to be drilling by December 2024. The fourth well is further up north in the Andaman block, at a water depth of about 90 meters. This rig is actually currently drilling in our KG offshore DSL block.

Speaker #3: So this will take about a month in Vijayapuram, one for the testing to be complete. And then we will demobilize this current semi-submersible rig that we have.

Speaker #3: Because it has completed its contractual tenure. So the fourth well, we are going to go in Andaman with a jack-up rig. And this we are going to be drilling by December this year.

Speaker #3: And the fourth well is further up north in the Andaman block at a water depth of about 90 meters. So, this rig is actually currently drilling in our KG offshore DSF block.

Speaker #3: So, once we complete this well in KG offshore—which, in a few days, we will be testing in KG—then we will mobilize this rig to Andaman and drill the fourth well.

Bhaskar Jyoti Phukan: Once we complete this well in KG offshore, which in a few days we will be testing in KG, we will mobilize this rig to Andaman and drill the fourth well.

Saloma Yomdo: Once we complete this well in KG offshore, which in a few days we will be testing in KG, we will mobilize this rig to Andaman and drill the fourth well.

Speaker #3: In the meantime, based on the discoveries in Vijayapuram-2 and -3, we have secured additional 3D seismic data, because the discoveries which were made were based on 2D data and 2D data interpretation.

Saloma Yomdo: In the meantime, based on the discoveries in Vijayapuram-2 and 3, we have secured additional 3D seismic data because the discoveries we made were based on 2D data and 2D data interpretation. We thought we will have an opportunity to map the subsurface better using 3D seismic. In and around Vijayapuram-2, we took 300 square kilometers of 3D, and in and around Vijayapuram-3, also, we took around 300 square kilometers of additional 3D. This 600 square kilometers of 3D data is currently being processed by SLB, which is going to be completed by October, so that by January we have completed the interpretation and then after going through our normal assessment and QC, especially leveraging on the partnership technical services agreement that we have with TotalEnergies and Petrobras.

Speaker #3: So we thought we would have an opportunity to map the subsurface better using 3D seismic. So, in and around Vijayapuram-2, we took 300 square kilometers of 3D.

Speaker #3: And in and around Vijayapuram 3, also, we took around 300 square kilometers of additional 3D. So this 600 square kilometers of 3D data is currently being processed by Shilambaje, which is going to be completed by October.

Speaker #3: So that by January we have completed the interpretation, and then after going through our normal assessment and QC, especially leveraging the partnership technical services agreement that we have with Total and Petrobras.

Speaker #3: So, after having detailed discussions with our technical service providers based on the new 3D data, we will take the next course of action to undertake the campaign in Andaman.

Saloma Yomdo: After having detailed discussions with our technical service providers, based on the new 3D data, we will take the next course of action to undertake the campaign in Andaman in and around Vijayapuram-2 and 3, for which most probably we'll be drilling appraisal wells, and that will help us to delineate the reservoir further. Also with more conclusive testing coming up, we will be able to come up with some numbers regarding the size of the structure or the fluid in place, gas in place, and possible production rates.

Speaker #3: In and around Vijayapuram two and three for which most probably we'll be drilling upriser wells and that will help us to delineate the reservoir further and also with more conclusive testing coming out we will be coming we'll be able to come up with some numbers regarding the size of the structure or the fluid in place gas in place and and and possible production rates.

Speaker #2: Any possible timeline that you declared or shared the results in terms of the gas reserves into that field in next six months nine months down the line after doing all these exercises?

Yogesh Patil: Any possible timeline that you declared or shared the results in terms of the gas reserves into that field in the next 6 months, 9 months down the line after doing all these exercises?

Speaker #3: Yeah. So, the fourth well we are going to drill by December. So, in about three to three and a half months—say by March—we will be able to have some assessment of the fourth well, which is again a pure exploratory venture.

Saloma Yomdo: Yeah. The fourth well we are going to drill by December, so in about 3 to 3 and a half months, say by March, we'll be able to have some assessment of the fourth well, which is again, a pure exploratory venture. Then the appraisal wells that we are going to drill near Vijayapuram-2 and 3, that will depend on the interpretation that we complete by January. By February, we should be able to take a call, like how many additional wells will be required to be drilled in Andaman.

Speaker #3: Then the upriser wells that we are going to drill in Vijayapuram, near Vijayapuram 2 and 3, that will depend on the interpretation that we complete by January.

Speaker #3: And by February, we should be able to take a call on how many additional wells we will be required to drill in Andaman.

Speaker #2: But my second question related to the 8% year-over-year decrease in gas production. How long will the petrochemical and power plants continue to use the lesser gas?

Yogesh Patil: Sir, my second question related to 8% YoY decrease in gas production. How long will the petrochemical and power plants continue to use less gas? We have been seeing this issue of a shutdown or less gas consumption from the petrochemical side. The question here is that could you throw some light on the challenges that Brahmaputra Cracker and Polymer Limited is encountering, consuming less amount of gas or anything which you can highlight on the less consumption from the side of power plants and any lower offtake.

Speaker #2: Because we have been seeing this issue of a shutdown or less gas consumption from the petrochemical side. The question here is that could you throw some light on the challenges the BCPL is encountering consuming a less amount of a gas or any anything which you can highlight on the less consumption from the side of power plants and any lower offtake?

Saloma Yomdo: Actually, we supply suppose for power consumption, we supply to NEEPCO. NEEPCO, what happens is that NEEPCO, I would like to explain to you how the power things they have. They are having hydro power at the same time, and they are having the gas power project. With an increase in gas price, they are not actually able to match the price of hydro. In that case, what they do, they little bit of kind of try to consume less, and they try to increase the hydroelectricity. This is what they do. Number two, like you have said about the pet chem. Basically, Brahmaputra Cracker and Polymer Limited survives on kind of what you can call a subsidy.

Trailukya Borgohain: Actually, we supply suppose for power consumption, we supply to NEEPCO. NEEPCO, what happens is that NEEPCO, I would like to explain to you how the power things they have. They are having hydro power at the same time, and they are having the gas power project. With an increase in gas price, they are not actually able to match the price of hydro. In that case, what they do, they little bit of kind of try to consume less, and they try to increase the hydroelectricity. This is what they do. Number two, like you have said about the pet chem. Basically, Brahmaputra Cracker and Polymer Limited survives on kind of what you can call a subsidy.

Speaker #3: Actually, we supply—suppose as for power, power, power consumption—we supply two networks. Two networks. What happens is that network, I would like to label for you before, how the power is there, the level.

Speaker #3: There has been hydropower at the same time, and they are having the gas-based power project. Now, with an increase in gas price, they are not actually able to match the price of hydro.

Speaker #3: So in that case, what they do is they try to consume a little bit less and they try to increase the hydro, the hydroelectricity.

Speaker #3: So this is this is what they do. Number two like you have said about the pet cam so we have basically BCPL survives on kind of what you can call is a subsidy.

Speaker #3: So in our part of the players actually as far as the economic growth maybe they are not they are not that able to make very great headway in terms of finance and in terms of economic scale.

Saloma Yomdo: In our part of the players actually, as far as the economy goes, maybe they are not that able to make very great headway in terms of finance and in terms of economy of scale. I think that is their issue. Once we have this connectivity, then we'll definitely have it exported to western part and also if required, to the rest of the country. Another thing, there is some upside there, because Government of Assam is also taking interest in increasing the domestic supply of gas, CGD. We still have some upside, and we are in talks with our Assam Gas Company so that they increase their intake. There are a lot of areas for inroads. That gas consumption can increase if Government of Assam Gas Company increases their consumption. Otherwise, this situation continues. I cannot tell you that.

Trailukya Borgohain: In our part of the players actually, as far as the economy goes, maybe they are not that able to make very great headway in terms of finance and in terms of economy of scale. I think that is their issue. Once we have this connectivity, then we'll definitely have it exported to western part and also if required, to the rest of the country. Another thing, there is some upside there, because Government of Assam is also taking interest in increasing the domestic supply of gas, CGD. We still have some upside, and we are in talks with our Assam Gas Company so that they increase their intake. There are a lot of areas for inroads. That gas consumption can increase if Government of Assam Gas Company increases their consumption. Otherwise, this situation continues. I cannot tell you that.

Speaker #3: I think that is their issue, but once we have this connectivity, then we'll definitely have it exported to the western part, and also, if required, to the rest of the country. But another thing, there is some upside there, because the government of Assam is also taking interest in increasing the domestic supply of gas CGD.

Speaker #3: So we still have some upside, and we are in talks with our Assam Gas Company so that they increase their intake, because there are a lot of areas for inroads.

Speaker #3: So that gas consumption can increase if the Government of Assam or Assam Gas Company increases their consumption. Otherwise, this situation continues, so I cannot tell you that.

Speaker #3: The only thing is that, since Nomoligor is coming up, and we have already said that we will be supplying a total of 2.5 to Nomoligor, or maybe close to 3 to Nomoligor Refinery Limited, once they start ramping up their production.

Saloma Yomdo: The only thing is that since Numaligarh is coming up and we have already told that we will be supplying a total of 2.5 to Numaligarh or maybe close to three to Numaligarh Refinery Limited, once they start ramping up their production. As you already told, it is coming up.

Trailukya Borgohain: The only thing is that since Numaligarh is coming up and we have already told that we will be supplying a total of 2.5 to Numaligarh or maybe close to three to Numaligarh Refinery Limited, once they start ramping up their production. As you already told, it is coming up.

Speaker #3: So, as you already told, it is coming up. So, by...

Speaker #1: Ladies and gentlemen, the line for the management was disconnected. Please stay connected while we reconnect. We now have the management's line connected with us. You may proceed.

Operator: Ladies and gentlemen, the line for the management is disconnected. Please stay connected while we reconnect.

Operator: Ladies and gentlemen, the line for the management is disconnected. Please stay connected while we reconnect. We have the management line connected with us.

Operator: We have the management line connected with us.

Abhijit Majumder: Sir, you have joined?

Operator: You may proceed.

Speaker #3: So, sir, have you also joined this call now?

Abhijit Majumder: Phukan sir, you have also joined in this call now?

Speaker #2: Yes sir. Yes sir.

Bhaskar Jyoti Phukan: Yes, sir. Yes.

Speaker #3: Yes yes yes. Okay. So so seller seller complete my so the other other thing is that we have a DFL 2000 feeder line that that will get that is being done by IJTL.

Tarun Kumar Mahato: Yes.

Abhijit Majumder: Okay.

Tarun Kumar Mahato: Shall I complete my

Trailukya Borgohain: Shall I complete my

Abhijit Majumder: Yes.

Tarun Kumar Mahato: The other thing is that we have a DUFL, Dual Use Feeder Line, that is being done by IGGL, Indradhanush Gas Grid Limited. Once that is connected, we have the gas immediately we can evacuate. That should not be an issue. One good thing about that line is that most of the places we have the RoU. We have our own RoU, like, they will pass through in some parts, except some 30km, 40km, rest of the places we have the RoU. One of BCPL, the other one is, I think, ONGC. There should not be any much issue in laying the pipeline. This is already going to be constructed very soon.

Trailukya Borgohain: The other thing is that we have a DUFL, Dual Use Feeder Line, that is being done by IGGL, Indradhanush Gas Grid Limited. Once that is connected, we have the gas immediately we can evacuate. That should not be an issue. One good thing about that line is that most of the places we have the RoU. We have our own RoU, like, they will pass through in some parts, except some 30km, 40km, rest of the places we have the RoU. One of BCPL, the other one is, I think, ONGC. There should not be any much issue in laying the pipeline. This is already going to be constructed very soon.

Speaker #3: Indoor donors get limited, so that once that is connected, we have to guess immediately we can evacuate. That should not be an issue.

Speaker #3: One good thing about that line is that most of the places we have the ROU. We have the we have our own ROU like they will pass through some in some parts except some 30 40 kilometer rest of the places we have the ROU one one of BCPL the other one is I think ONGC and so so that should not be any much issue in laying the pipeline.

Speaker #3: This is already going to be constructed very soon.

Speaker #2: Sir, has BCPL consumption improved after the maintenance shutdown is over, or are the BCPL consumption levels for gas still lower in the current quarter, Q2, as well?

Yogesh Patil: Sir, BCPL consumptions have improved after the maintenance shutdown is over, or still the BCPL consumption levels for the gas are still lower in the current quarter Q2 also?

Speaker #3: Obviously, BCPL is stable. BCPL takes from BCPL, it has picked up and it's currently stable. So they take net around 1.25 to 1.35, they take.

Tarun Kumar Mahato: BCPL is stable.

Trailukya Borgohain: BCPL is stable. BCPL takes.

Abhijit Majumder: BCPL takes.

Yogesh Patil: BCPL uptake is more or less it has picked up and it's currently stable.

Abhijit Majumder: BCPL uptake is more or less it has picked up and it's currently stable.

Tarun Kumar Mahato: They take net around 1.25 to 1.35, they take. Rest, around 5.25 they take.

Trailukya Borgohain: They take net around 1.25 to 1.35, they take. Rest, around 5.25 they take.

Speaker #3: So, and 6. So then, the rest, around 5.2, 2.5 they take is returned back. Four is returned to us, and that four is a PNGF spec, I guess.

Abhijit Majumder: 5 is returned back.

Tarun Kumar Mahato: Four is returned to us. That four is a PNGRB pipe gas.

Trailukya Borgohain: Four is returned to us. That four is a PNGRB pipe gas.

Speaker #3: If we look at BCPL, we are basically taking a very narrow view. Why are we focusing on DFL and DNPL? These are all long-term things which will help us kind of transport the gas to other parts of the country.

Abhijit Majumder: If we look at BCPL.

Tarun Kumar Mahato: Yes

Trailukya Borgohain: Yes

Abhijit Majumder: We are basically taking a very narrow view. We are focusing on BFL, DNPL, these are all long-term things which will help us kind of transport the gas to other parts of the country. Merely relying on BCPL or NEEPCO and few other customers in the Northeast, we all know that will not help us evacuate the potential that we have. BCPL, little up, down, this will not really change the scenario drastically. For us to really have a big head start, this DSL has to kind of happen. DNPL has more or less happened except for the 200-meter stretch within Numaligarh Refinery Limited. That will happen in due course as MD NRL has already pointed out. That is the larger picture.

Speaker #3: Nearly relying on BCPL or NIPCO and a few other customers in the Northeast, we all know that that will not help us evacuate.

Speaker #3: The potential that we have—so BCPL, little up, little down—this will not really change the scenario drastically. For us to really have a head start, a big head start, DFL has to kind of happen. DNPL has more or less happened except for the 200-meter stretch within NRL; that will happen in due course, as MD NRL has already pointed out.

Speaker #3: So, that is the larger picture.

Speaker #2: Thanks, thanks a lot, sir, and all the best.

Yogesh Patil: Thanks a lot, sir, and all the best.

Speaker #1: Thank you. The next question comes from the line of Varatharajan Sivasankaran from Antique Limited. Please go ahead.

Operator: Thank you. The next question comes from the line of Varatharajan Sivasankaran from Antique Limited. Please go ahead.

Speaker #4: Thank you for the opportunity. On the feeder line, as you know, the tendering has been done and construction has started.

Varatharajan Sivasankaran: Thank you for the opportunity. On the feeder line, has the tendering been done or, and construction, has it started?

Speaker #3: Yes, sir. So on the feeder line, there is already progress of around 20% of the project, and the PNC has already been engaged. Work is progressing.

Abhijit Majumder: Yes, sir. On the feeder line, there is already a progress of around 20% of the project, and the PMC has already been engaged for this progress.

Bhaskar Jyoti Phukan: Yes, sir. On the feeder line, there is already a progress of around 20% of the project, and the PMC has already been engaged for this progress. As per plan.

Speaker #3: That's our plan.

Tarun Kumar Mahato: As per plan.

Varatharajan Sivasankaran: Cool. Secondly, there is a small clarification on this issue. Once the 200 meter is completed, irrespective of how Numaligarh ramps up, you are still in a position to put it in IGGL, isn't it? The common carrier is already in place, you are not dependent entirely on Numaligarh for that additional 100 or so meter. Am I right?

Speaker #4: Secondly, looking for a small clarification on this issue. Once the 200 meters is completed, irrespective of how Nimoligor ramps up, you're still in a position to put it in IGGL, isn't it?

Speaker #4: So, the common carrier is already in place, so you're not dependent entirely on Nimoligor for the traditional one and a half hour. Am I right?

Speaker #3: You are correct, actually. Once this 200-meter section is there, and DNPL is a common carrier, so even if NRL doesn't consume, it can travel to IGGL and eventually to the national gas grid.

Tarun Kumar Mahato: You are correct, actually. Once this 200 meter is there, DNPL being a common carrier, even if NRL doesn't consume, it can travel to IGGL and eventually to the national gas grid.

Bhaskar Jyoti Phukan: You are correct, actually. Once this 200 meter is there, DNPL being a common carrier, even if NRL doesn't consume, it can travel to IGGL and eventually to the national gas grid.

Speaker #4: And this, you think, will be ready in the next two to three months, is what you said?

Varatharajan Sivasankaran: This you think will be ready in the next two, three months, is what you're saying?

Speaker #3: Yeah, two to three months—it should be ready, yes.

Tarun Kumar Mahato: Yeah, two, three months it should be ready. Yeah.

Bhaskar Jyoti Phukan: Yeah, two, three months it should be ready. Yeah.

Speaker #4: Fair enough, sir. Thanks a lot.

Varatharajan Sivasankaran: Very well, sir. Thanks a lot.

Speaker #1: Thank you. We have the next question from the line of Sabri Hazarika from MK Global Financial Services. Please go ahead.

Operator: Thank you. We have the next question from the line of Sabri Hazarika from Emkay Global Financial Services. Please go ahead.

Speaker #2: Yeah sir, two small questions. Firstly, you mentioned in NRL that you gave some discounts. Was this like the windfall tax related discount? How much was the quantum, and if not for the discounts, then what could have been the GRMs?

Sabri Hazarika: Yeah. Two small questions. Firstly, you mentioned in NRL that you gave some discounts. Was this like the windfall tax related discount? How much was the quantum? If not for the discounts, then what could have been the GRMs?

Bhaskar Jyoti Phukan: The GRMs would have been much higher because we have been giving some discount to OMCs. The Q1, we started off with a very high number of INR 13 per liter for petrol, which eventually came down to INR 3 per liter by the end of it. For diesel, it started with INR 10 per liter and eventually it was nil by the quarter-end. They keep calibrating based on the international price of diesel. Our GRM would have been much higher. That is what I can confirm with you. Yes.

Speaker #3: Yeah GRMs would have been much higher because we have been giving some discount to OMCs and the first quarter it was around we started off with a very high number of 13 rupees per liter for petrol and which came eventually came down to 3 rupees per liter by the end of this and then before diesel it was 30 it started with 10 rupees per liter and eventually it was meal by the quarter end.

Speaker #3: So they keep calibrating based on the international price of diesel. So our DRM would have been much higher, so that is what I could have— I can confirm to you actually, yes.

Speaker #2: 30 rupees per liter to 3 rupees per liter in petrol, and 10 rupees per liter to 13—13 to 3, and 10 to nil. Those were the kind of discounts that we were required to give to OMCs, yes.

Sabri Hazarika: INR 30 per liter to INR 3 per liter in petrol and INR 10 per liter to-

Bhaskar Jyoti Phukan: INR 13 to INR 3.

Sabri Hazarika: Okay.

Bhaskar Jyoti Phukan: INR 13 to INR 3 and 10 to nil. Those were the kind of discounts that we were required to give to OMCs. Yes.

Speaker #2: So right now also, we are at zero, or right now again it has come back.

Sabri Hazarika: Right now also we are at zero, or right now again it has come back?

Speaker #3: No, no, right now it has reappeared again, so we are giving it now. But it gets calibrated month on month to reflect the delta between crude and product prices.

Bhaskar Jyoti Phukan: No. Right now it has again reappeared. We are giving now some value. It gets calibrated month on month to reflect the delta between crude and product prices. Yes.

Speaker #2: Is it connected to the SAD, or is it independent of the SAD?

Sabri Hazarika: Is it connected to the SAED, or it is independent of the SAED?

Speaker #3: It is exactly as per SAD.

Bhaskar Jyoti Phukan: It is exactly as per SAED.

Speaker #2: As per the SAD, right. Okay, sir. And fair enough, thank you. And second question is on this oil production. So now, if we are at 1 million tons every quarter, so technically we have hit this 4 million tons target of that 'Mission 4 Plus' which we had.

Sabri Hazarika: As per SAED. Right. Okay, sir. Fair enough. Thank you. Second question is on this oil production. Now if we are at 1 million tonne every quarter, technically we have hit this 4 million tonne target of that Mission 4 Plus which we had. Is there any revision in guidance for oil production next year, or are we looking to maintain it at this level for FY28, 2029 or going ahead?

Speaker #2: So, is there any revision in guidance for oil production next year, or are we looking to maintain it at this level for FY28, FY29, or going ahead?

Bhaskar Jyoti Phukan: Yes, Mr. Sabri. You see, we are ramping up the production by doing whatever can be done. To increase to the next level, we are also doing some other things like near-field exploration. At the same time, we are doing the workover production enhancement optimization. These are some of the drives. We are increasing with getting good technologies we can, including hydrofracturing, you can say, radial drilling. We are doing. We have some thoughts in mind to go to 4.2. If you look at our FY2029 kind of target, we are targeting up to around 4.2. Maybe it goes beyond that. That will also depend on little bit of our own near-field exploration. That is one important aspect. Yes.

Speaker #3: yes Mr. Sabri you see we are ramping up the production by doing all all what whatever can be done. But to increase to the next level we are also we are also doing some other things like near field exploration at the same time we are doing doing like the work of our production enhancement optimization these are some of the drives and we are increasing with the getting whatever get good technologies we can including hydro you can say radial drilling so we are doing so we have we have some some thoughts in mind to go to 4.2 if you if you if you look at our if you look at our FY 29 kind of target we are targeting around up to around 4.2 maybe it goes beyond beyond that but that will also depend on little bit of kind of our own near field exploration that is one important aspect yes.

Speaker #2: Okay, so 4.2 from the main producing area. This doesn't include any deep water, nothing of that sort.

Sabri Hazarika: Okay. 4.2 from the main producing area. This doesn't include any deep or nothing of that.

Speaker #3: Mainly main producing areas, and also we are ramping up production in Rawalpindi.

Bhaskar Jyoti Phukan: Mainly main producing areas. Also we are ramping up production in Rajasthan.

Speaker #2: Okay, and just one last small question—any impact of the recent floods on your operations?

Sabri Hazarika: Okay. Just one last small question. Any impact of the recent floods on your operations?

Speaker #3: No, in our areas there was no impact. We have operations in Chitragar and also in Sarajevo, but these are in the western part of the eastern—eastern part of Chitragar and Sarajevo.

Bhaskar Jyoti Phukan: No. In our areas, there was no impact. We have operations in Sivasagar and also in Charaideo, but these are in the eastern part of Sivasagar and Charaideo. Our place, not much of flood. Definitely the nearby areas got submerged and all those things. Yes. No impact on our side.

Speaker #3: So our place did not have much flooding, but definitely the nearby areas got submerged and all those things, yes. No impact on our side.

Speaker #2: Got it, sir. Thank you so much, and all the best.

Sabri Hazarika: Got it, sir. Thank you so much. All the best.

Speaker #3: Thank you. Thank you.

Bhaskar Jyoti Phukan: Thank you.

Speaker #1: Thank you. The next question comes from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead.

Operator: Thank you. The next question comes from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead.

Speaker #2: Yeah. Thank you for the call, sir. So with all these pipelines that you are kind of thinking about completing, and the 200-meter pipeline for NRL—what do you think will be your target FY28 production for natural gas next year?

Mayank Maheshwari: Thank you for the call, sir. With all this pipelines that you're kind of thinking about completing and the 200-meter pipeline for NRL, what do you think will be your target F28 production for natural gas next year? Also if you can just help us understand what percentage of the gas is coming as new well gas pricing, or you're not being able to get that yet?

Speaker #2: And also, if you can just help us understand what percentage of the gas is coming as new well gas pricing, or are you not able to get that yet?

Speaker #3: You see, I will not talk about the new well price. Whatever incremental production will happen will be all at the new well price, because the APM part will be over by this time. Whatever new gas we will be doing, we'll be extending our perforations, will be having more testing, and already some areas we have already discovered. We have tested those areas and we know that we have the gas, and we'll open up those.

Bhaskar Jyoti Phukan: You see, I will not talk about the new well price. Whatever incremental production will happen will be all new well price. The APM part will be over by this time, whatever new gas we'll be doing, we'll be extending our perforation. We'll be having more testing, already some areas we have already discovered, we have tested those areas, we know that we have the gas, we'll open up those. This will be all new well. There will be no old gas kind of situation. This will be all new well. Number two is that, you were talking about numbers in terms of total production in Kafulgudi. Once we get DSL connected, we are into five. There is a bottom line. We are 5 BCM from the very first day.

Speaker #3: So, this will be all new gas. There will be no kind of old gas situation. So, this will be all new gas.

Speaker #3: Number two is that you are talking about numbers in terms of total production in the coming days. Once we get DFL connected, we are into five.

Speaker #3: That is the bottom line. We are at 5 BCM from the very first day.

Speaker #2: We have always maintained that ramping up the production by itself is not a challenge. Absence of the network is a challenge, which we are kind of trying to address.

Abhijit Majumder: We have always maintained that ramping up the production by itself is not a challenge. Absence of the network is a challenge, which we are kind of trying to address. Once the network is laid, it is ready for evacuation, ramping up production will definitely happen

Speaker #2: And once the network is laid and ready for evacuation, ramping up production will definitely happen.

Speaker #3: Because that's very clear. I think I was just saying, and we know that this is the production potential of these areas.

Mayank Maheshwari: Yeah. No, that's very clear. I think I was just saying.

Bhaskar Jyoti Phukan: We know that this is the production potential of these areas.

Speaker #2: I think, yeah, that's very clear. I was just thinking that now that the NRL is getting completed and ramping up in the second half of next year, and you have this pipeline as well done.

Mayank Maheshwari: I think, yeah, that's very clear. I was just thinking that now that the NRL is getting completed and ramping up H2 of next year, and you have this pipeline as well done. Maybe, I think the ramp up for next year, if you have some numbers around that will be interesting to get for natural gas.

Speaker #2: Maybe I think the ramp-up for next year—if you have some numbers around that, that would be interesting to get for natural gas.

Speaker #3: 3.8. Yeah. Next year will be 3.8. 3.8. 3.8 BCM. So now. On an average we we are we are shutting down some some wells at least 30 wells we are always shutting down.

Bhaskar Jyoti Phukan: Yeah. Next year will be 3.8 BCF. now

Mayank Maheshwari: 3.8 BCF. Got it.

Bhaskar Jyoti Phukan: On an average, we are shutting down some wells. At least 30 wells we are always shutting down. When we'll be opening all those wells, on an average, if there is low product, low consumption, we are shutting up to 60 wells. The situation is like that. It becomes an issue. These wells are already there.

Speaker #3: When will we be opening all those wells? On average, if there is low, low, low consumption, we start after 60 wells. So, this is the situation—it's like that.

Speaker #3: So, it becomes an issue. These wells are already there.

Speaker #2: Production will automatically pick up. Yeah, that's fair. And my second question was more related to NRL. Was there any benefit on excise duty you were able to get this quarter, or is it a very small number?

Abhijit Das: Production will automatically pick up.

Mayank Maheshwari: Yeah. That's fair. My second question was more related to NRL. Was there any benefits on excise duty you were able to get this quarter, or it's very small a number?

Speaker #3: Hey, you have seen that excise duty was calibrated to keep the retail prices down. So, obviously there will be a squeeze on the excise benefit that we get.

Bhaskar Jyoti Phukan: You have seen that excise duty was calibrated to keep the retail prices down. Obviously, there will be a squeeze on the excise benefit that we get. To that extent, yes, our excise duty benefit realization has come down. It was not a big number, but it was a sizable number.

Speaker #3: So, to that extent, yes, our excise duty benefit realization has come down. It was not a big number, but it was a sizable number.

Speaker #2: Got it. So the reason I'm asking you this is because— Sorry to interrupt, sir. May I request you to please rejoin the queue for any follow-up questions?

Mayank Maheshwari: Got it. The reason I'm asking you this is because.

Abhijit Das: Sorry to interrupt, sir. May I request you to please rejoin the queue for any follow-up questions?

Operator: Sorry to interrupt, sir. May I request you to please rejoin the queue for any follow-up questions?

Speaker #2: Thank you. The next question comes from the line of Nitin Tiwari from Philip Capital India Limited. Please go ahead.

Operator: Sure.

Mayank Maheshwari: Sure.

Operator: Thank you. The next question comes from the line of Nitin Tiwari from PhillipCapital (India) Pvt Ltd. Please go ahead.

Speaker #3: Hi sir, good afternoon, and thanks for the opportunity. Actually, just a clarificatory question. So, continuing on the line of questioning regarding the GRM bit, I mean, if you could, just for our understanding, help us understand: the $35 GRM that we have reported—does that include the impact of both SAED and the excise benefit that you get, or is the excise benefit not included in this?

Nitin Tiwari: Hi there. Good afternoon, and thanks for the opportunity. Actually, some clarificatory questions. Continuing on the line of questioning on the GRM bit, if you could just, for our understanding, help us understand that the $35 GRM that we have reported, does that include the impact of both SAED and the excise benefit that you get? Or the excise benefit is not included in this? Subsequent to that, if excise benefit gets included, then what could be the GRM?

Nitin Tiwari ): Hi there. Good afternoon, and thanks for the opportunity. Actually, some clarificatory questions. Continuing on the line of questioning on the GRM bit, if you could just, for our understanding, help us understand that the $35 GRM that we have reported, does that include the impact of both SAED and the excise benefit that you get? Or the excise benefit is not included in this? Subsequent to that, if excise benefit gets included, then what could be the GRM?

Speaker #3: So, and subsequent to that, if the excise benefit gets included, then what could be the GRM?

Speaker #2: The excise—when we report GRM, generally it is devoid of excise benefit, and it only includes the inventory loss and gain. So that's what I clarified.

Bhaskar Jyoti Phukan: The excise, when we report GRM, generally it is devoid of excise benefit, and it only includes the inventory loss and gain. That's what I clarified. Also, it is netted off the discount that we are providing due to the SAED. Does it answer the question? Otherwise, you know what is the excise duties of petrol and diesel. You can quickly calculate the impact of those products and those benefits into our GRM. Whatever GRM that is visible, $35, is not considering the excise duty benefit that we are getting.

Speaker #2: And also, it is netted off the discount that we are providing due to the SAED. So, does it answer the question? Otherwise, you know what the excise duties of petrol and diesel are.

Speaker #2: You can quickly calculate the impact of those products and those benefits into our GRM. So, whatever GRM that is visible—$35—is not considering the excise duty benefit that we are getting.

Speaker #3: Yeah, so the reason I ask is because SAED is also a special excise duty. I mean, so I was wondering if, like, you know, both impacts are netted off and then you’ve reported the GRM.

Nitin Tiwari: Yeah. The reason why I ask is because SAED is also a special excise duty item. I was wondering if both impacts are netted off and then you report to the GRM. Thanks for the clarification. Secondly, on your operating costs. You basically spoke about an increased pace of activity, but the contract costs have come off, as compared to previous quarter and also other expenses. What are the key reasons for that, and how should we look at these costs going ahead down the year?

Nitin Tiwari ): Yeah. The reason why I ask is because SAED is also a special excise duty item. I was wondering if both impacts are netted off and then you report to the GRM. Thanks for the clarification. Secondly, on your operating costs. You basically spoke about an increased pace of activity, but the contract costs have come off, as compared to previous quarter and also other expenses. What are the key reasons for that, and how should we look at these costs going ahead down the year?

Speaker #3: But thanks for the clarification. Secondly on like you know your operating cost. So you you basically spoke about an increased pace of activity but the contract costs have come off as compared to previous quarter and so also other expenses.

Speaker #3: So, what are the key reasons for that, and how should we look at these costs going ahead down the year?

Speaker #2: See, since we are in the expansion phase, some plants are getting commissioned. So those are actually accounted for as an expense as of now.

Bhaskar Jyoti Phukan: Since we are in the expansion mode, some plants are getting commissioned. Those actually is accounted as an expense as of now. As we stabilize, it will be absorbed into our overall OpEx budget. With commensurate revenue coming, we will be having similar sort of and much more lower per barrel operating cost. Our per barrel operating cost hovers around INR 4.5 to INR 5 today. It will come down to a level of INR 3.5. That's what our expectation is, because we will be rationalizing on the facilities, and our throughput will be high. Therefore, the operating cost will come to around INR 3.5.

Speaker #2: But as we stabilize, it will be absorbed into the overall OPEX budget. And with commencement rate revenue coming, we will be having a similar sort of, and much lower, per-barrel operating cost.

Speaker #2: Our per barrel operating cost hovers around four 4.5 to 5 dollar today. It will come down to a level of 3.5 dollar. That's what our expectation is because we will be rationalizing on the facilities and our throughput will be high.

Speaker #2: So, therefore, the operating cost will come to around 3.5.

Speaker #3: So thanks for answering that. This is with respect to NRL, I suppose, that you mentioned. I'm talking from the perspective of Oil India, where contract cost and other expenses—

Nitin Tiwari: Thanks for answering that. This is with respect to NRL, I suppose, that you mentioned. I'm talking from the perspective of Oil India, where contract costs and other expenses have come down on a sequential basis. What are the key reasons for that, and how should we look at these costs going ahead in the year?

Nitin Tiwari ): Thanks for answering that. This is with respect to NRL, I suppose, that you mentioned. I'm talking from the perspective of Oil India, where contract costs and other expenses have come down on a sequential basis. What are the key reasons for that, and how should we look at these costs going ahead in the year?

Speaker #3: They have come down on a sequential basis. So, what are the key reasons for that, and how should we look at these costs going ahead in the year?

Speaker #2: No, the contract cost for the current quarter for Oil India standalone is ₹616 crore as compared to ₹470 crore. That's what you are trying to understand from us?

Abhijit Das: No. The contract cost for the current quarter for Oil India standalone is INR 613 crores as compared to INR 470. Is that what you are trying to understand from us?

Speaker #3: Yeah, that is correct. The contract costs are lower sequentially, and other expenses are also lower.

Nitin Tiwari: Yeah, that is correct. The contract costs are lower sequentially, and other expenses are also lower.

Nitin Tiwari ): Yeah, that is correct. The contract costs are lower sequentially, and other expenses are also lower.

Speaker #2: Yeah, the contract cost margin has gone up around 140 because of what we are carrying.

Abhijit Das: Yes. The contract cost margin has gone up around INR 146 crore which we are carrying.

Speaker #3: Sorry sir, your voice is not very clear. Can you please come again?

Nitin Tiwari: Sorry, sir, your voice is not very clear. Can you please come again?

Nitin Tiwari ): Sorry, sir, your voice is not very clear. Can you please come again?

Speaker #2: See, the contract cost of around ₹146 crore, which has gone up during the current quarter as compared to the previous quarter, is mainly for our GNG cost in our offshore blocks.

Abhijit Das: The contract cost of around INR 146 crore, which has gone up during the current quarter as compared to the previous quarter, is major for our PNG cost in our offshore blocks. The cost was at par only. The contract has gone up only INR 50. It is only PNG costs for our offshore blocks. The rest are, you can say, all in line as compared to the previous year.

Speaker #2: All of the cost was so far only for the contract, which has gone up by 50. It is only GNG cost for our offshore blocks. The rest are, you can say, all in line as compared to the previous year.

Nitin Tiwari: Sure, sir. It was not very clear, but from what I understood that on a YOY basis, you mentioned that some INR 100 crore of extra cost has come. Otherwise, everything else is in line. That's the right understanding?

Nitin Tiwari ): Sure, sir. It was not very clear, but from what I understood that on a YOY basis, you mentioned that some INR 100 crore of extra cost has come. Otherwise, everything else is in line. That's the right understanding?

Speaker #3: Sure sir. I it was not very clear but like you know from what I understood that on a YOI basis you mentioned that some 100 crores of extra cost has come.

Speaker #3: Otherwise, everything else is in line. That's the right understanding?

Speaker #2: Yes, because several components—we, the one component which has basically consumed much of the cost is GNG, because we are into operations in the offshore.

Abhijit Majumder: Yeah, it has several components. The one component which has basically consumed much of the cost is G&G, because we are into operations in the offshore. There, there has been a hike. Rest of the items are more or less similar.

Speaker #2: So, there has been a hike. The rest of the items are more or less similar because of the sizing equation.

Tarun Kumar Mahato: Because of the seismic acquisition.

Trailukya Borgohain: Because of the seismic acquisition.

Speaker #3: Yeah yes. Got it. And lastly sir if I may like you know just one more clarificatory question. If for everybody is benefit if you can give your.

Abhijit Majumder: Yes.

Nitin Tiwari: Got it, sir. Lastly, sir, if I may, just one more clarification question. For everybody's benefit, if you can give your

Nitin Tiwari ): Got it, sir. Lastly, sir, if I may, just one more clarification question. For everybody's benefit, if you can give your

Speaker #2: Sorry to interrupt, sir. May I request you to please rejoin the queue for any follow-up questions?

Operator: Sorry to interrupt, sir. May I request you to please rejoin the queue for any follow-up questions?

Speaker #3: I would— I just wanted the production targets for this year and next year. I mean, that's all from my end. If that can be given.

Nitin Tiwari: I just wanted the production targets for this year and next year. That's all from my end, if that can be given.

Nitin Tiwari ): I just wanted the production targets for this year and next year. That's all from my end, if that can be given.

Speaker #2: So, this year, you see, we are already told that quarter on quarter, we are almost close to 1 MMT. So you can say that it will be around minimum 3.9 MMT will be our production this year.

Tarun Kumar Mahato: This year, you see, we already told that quarter-on-quarter, we are almost close to 1 MMT. You can say that it will be around minimum 3.9 will be our production this year. That's what I can tell as of now. We may touch four also.

Trailukya Borgohain: This year, you see, we already told that quarter-on-quarter, we are almost close to 1 MMT. You can say that it will be around minimum 3.9 will be our production this year. That's what I can tell as of now. We may touch four also.

Speaker #2: So you can, that's what I can tell as of now. But we may touch 4 also.

Speaker #3: Got it sir. Thank you.

Nitin Tiwari: Got it, sir. Thank you.

Nitin Tiwari ): Got it, sir. Thank you.

Speaker #2: Now that we have surpassed 11,000.

Abhijit Majumder: Now that we have surpassed 11,000.

Speaker #3: We are expecting 3.9.

Tarun Kumar Mahato: We are expecting 3.9

Trailukya Borgohain: We are expecting 3.9

Speaker #2: It's quite possible that we touch 4 this year itself.

Abhijit Majumder: It's possible that we touch 4 this year itself.

Speaker #3: Understood. Thank you. Thank you for answering my question.

Nitin Tiwari: Understood. Thanks for answering my question.

Nitin Tiwari ): Understood. Thanks for answering my question.

Speaker #1: Thank you. The next question comes from the line of Amit Murarka from Axis Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Amit Murarka from Axis Capital. Please go ahead.

Speaker #3: Hi, thanks for the opportunity. So, just on Andaman. If I remember right, you had taken a write-down of the Vijayanagar Vijayapuram-2 well, whereas the 1 and 3, I think, are still in as of now in your assets.

Amit Murarka: Hi. Thanks for the opportunity. Just on Andaman. If I remember right, you had taken a write-down of the Vijaynagar-Vijayapuram 2 well, whereas the 1 and 3, I think, are still as of now in your assets. Just wanted to get a clarity, now is it fair to say that given that it's been now two, three quarters since the well was drilled, it's no longer going to come up for, let's say, a review or a write-down of the expense done on those 2 wells?

Speaker #3: So we just wanted to get a clarity like now is it fair to say that given that it's been like now 2 3 quarters since the well was drilled it's it's no longer going to come up for let's say a review or a write down of the expense done on those two wells?

Speaker #2: Well Vijayapuram 3 actually we just completed the testing sequence in July. Yeah. So that that didn't come up in the first quarter. And we will be we will be undertaking an explore appraisal appraisal campaign in Vijayapuram 3 also.

Tarun Kumar Mahato: Well, Vijayapuram 3, actually, we just completed the testing sequence in July. That didn't come up in the Q1. We will be undertaking an appraisal campaign in Vijayapuram 3 also based on the new 300 square kilometers of 3D seismic data that we have acquired. Once we have the interpretation and the prospect generation done by April, we will be able to take a final call on Vijayapuram 3. Vijayapuram 1 we had to hold on because we didn't have the proper testing facilities at that point of time, because we didn't anticipate such tight formations in Vijayapuram 1. We had to keep Vijayapuram 1 on hold and even as we speak, our rig has been now mobilized to Vijayapuram 1, where we'll be stimulating the well using hydro frac technology.

Trailukya Borgohain: Well, Vijayapuram 3, actually, we just completed the testing sequence in July. That didn't come up in the Q1. We will be undertaking an appraisal campaign in Vijayapuram 3 also based on the new 300 square kilometers of 3D seismic data that we have acquired. Once we have the interpretation and the prospect generation done by April, we will be able to take a final call on Vijayapuram 3. Vijayapuram 1 we had to hold on because we didn't have the proper testing facilities at that point of time, because we didn't anticipate such tight formations in Vijayapuram 1. We had to keep Vijayapuram 1 on hold and even as we speak, our rig has been now mobilized to Vijayapuram 1, where we'll be stimulating the well using hydro frac technology.

Speaker #2: Based on the new 300 square kilometers of 3D seismic data that we have acquired, and so once we have the interpretation and prospect generation done by April, we will be able to take a final call on Vijayapuram 3.

Speaker #2: And Vijayapuram-1, we had to hold on because we didn't have the proper testing facilities at that point of time, because we didn't anticipate such tight formations in Vijayapuram-1.

Speaker #2: So we had to keep Vijayapuram 1 on hold, and even as we speak, our rig has now been mobilized to Vijayapuram 1, where we'll be stimulating the well using hydro-frac technology. This testing campaign in Vijayapuram will take almost the whole month of August, and post-August, post-testing, in September we will be able to freeze on the fate of Vijayapuram 1.

Tarun Kumar Mahato: This testing campaign in Vijayapuram will take almost about this month of August and post-August, post-testing in September, we will be able to freeze on the fate of Vijayapuram 1.

Trailukya Borgohain: This testing campaign in Vijayapuram will take almost about this month of August and post-August, post-testing in September, we will be able to freeze on the fate of Vijayapuram 1.

Speaker #3: So, would you be able to share what has been the spend on Vijayapuram 1 and Vijayapuram 3?

Amit Murarka: Would you be able to share what has been the spend on Vijayapuram 1 and Vijayapuram 3?

Speaker #2: That will depend on the testing results. Vijayapuram 3, I have already told you that we will be drilling an appraisal well in that area.

Tarun Kumar Mahato: That will depend on the testing results. Vijayapuram 3, I've already told you that we'll be drilling an appraisal well in that area. If based on the 3D seismic campaign, we see that Vijayapuram 3 maybe was not in a proper structural position, then we can always examine the feasibility of utilizing this same well to sidetrack and go to a desired position, which we can go up to 1,000 or 2,000 m laterally, horizontally. Vijayapuram 1, we'll take a call after the testing results, which will be concluded this month.

Trailukya Borgohain: That will depend on the testing results. Vijayapuram 3, I've already told you that we'll be drilling an appraisal well in that area. If based on the 3D seismic campaign, we see that Vijayapuram 3 maybe was not in a proper structural position, then we can always examine the feasibility of utilizing this same well to sidetrack and go to a desired position, which we can go up to 1,000 or 2,000 m laterally, horizontally. Vijayapuram 1, we'll take a call after the testing results, which will be concluded this month.

Speaker #2: And if based on the 3D seismic campaign we see that Vijayapuram 1 or 3 maybe was not in a proper structural position then we can always examine the feasibility of utilizing this this same well to site track and go to a desired position which is which which we can go up to 1,000 or 2,000 meters laterally horizontally.

Speaker #2: And Vijayapuram 1 will take a call after the testing results, which will be concluded this month.

Speaker #3: So, no, I got that. I just wanted to know what are the spends.

Amit Murarka: No, I got that. I just wanted to know what were the spend

Speaker #1: Sorry to interrupt, sir. May I request you to please rejoin?

Operator: Sorry to interrupt, sir. May I request you to please rejoin the queue?

Speaker #3: No, it's a question which couldn't get answered properly. So, I'm saying that what was the spend which was made on Vijayapuram 1 is what I was asking.

Amit Murarka: No, it's a question which couldn't get answered properly. I'm saying that, what was the spend which was made on Vijayapuram 1? Is what I was asking.

Speaker #2: Vijayapuram 1, our spending has been roughly ₹1,000 crores—₹1,000 to ₹1,100, around ₹1,000. Yeah, it will be ₹1,000 to ₹1,050 crores.

Abhijit Majumder: Vijayapuram-1 spending has been roughly INR 1,000 crores.

Tarun Kumar Mahato: INR 1,000 to 1,050 crores. Yeah, it will be INR 1,000 to 1,050 crores.

Trailukya Borgohain: INR 1,000 to 1,050 crores. Yeah, it will be INR 1,000 to 1,050 crores.

Speaker #3: Okay, got it. That's all from me. Thank you.

Amit Murarka: Okay, got it. That's all from me. Thank you.

Speaker #1: Thank you very much. We have the last question from the line of Bineet from Nomura. Please go ahead.

Operator: Thank you very much. We have the last question from the line of Vinit from Nomura. Please go ahead.

Speaker #3: Thanks for the opportunity. Just a couple of questions, basically on GST and royalty. I think there was a GST filing, so can you tell us what is the total amount due on this GST and royalty?

[Company Representative] (Nomura): Thanks for the opportunity. Just one couple of questions basically on GSP and royalty. I think there was a DAC filing. Can you tell us what is the total amount due on this GSP and royalty? How much was provisioned, how much was paid, and what could be the impact in Q2 on the P&L as well as cash flow? Similarly, on the Assam land tax, I think the Government of Assam has withdrawn the case. I believe Oil India has already not paid anything. Is there any impact from that also on your financial statements?

[Analyst] (Nomura): Thanks for the opportunity. Just one couple of questions basically on GSP and royalty. I think there was a DAC filing. Can you tell us what is the total amount due on this GSP and royalty? How much was provisioned, how much was paid, and what could be the impact in Q2 on the P&L as well as cash flow? Similarly, on the Assam land tax, I think the Government of Assam has withdrawn the case. I believe Oil India has already not paid anything. Is there any impact from that also on your financial statements?

Speaker #3: How much was provisioned? How much was paid? And what could be the impact in the second quarter on the P&L as well as cash flow?

Speaker #3: And similarly, on the Assam land tax, I think the government has withdrawn the case. So—and I believe Oil India has already not paid anything.

Speaker #3: So, is there any impact from that also on your financial statements?

Speaker #2: Okay. So I'll take up the land question first. So, recently, the representative, the senior counsel of the government of Assam, gave an undertaking to the learned, to the honorable court, that this particular law will be withdrawn.

Abhijit Majumder: Okay. I'll take up the land question first. In the recent, the representative, the senior counsel of the Government of Assam, he gave an undertaking to the honorable court that this particular law will be withdrawn. It will be deliberated in the state legislature, and following the due process, the act will be repealed. So far, whatever we have shown in our financial, we have shown them as contingent liability. It has not impacted our financials at all. In the days ahead, we'll have to wait till it is withdrawn by the state. Once it is withdrawn, we will also kind of remove it from our books. That is the position on Assam land taxation. Now, as regards the GST on royalty, we have all this while been providing for it.

Speaker #2: So it will be deliberated in the state legislature, and following the due process, the Act will be repealed. So far, whatever we have shown in our financials, we have shown them as contingent liability.

Speaker #2: So, it has not impacted our financials at all. And, in the days ahead, as long as—I mean, we'll have to wait till it is withdrawn by the state. Once it is withdrawn, we will also kind of remove it from our books.

Speaker #2: So that is the position on Assam land taxation. And now, as regards the GST on royalty, we have all this while been providing for it.

Speaker #2: So, it is again not going to impact our financials, because every quarter we were providing for it since this new thing was introduced in 2017, right from 1st of July, 2017.

Abhijit Majumder: It is again not going to impact our financials, because every quarter we were providing for it since this new thing was introduced in 2017. Right? From 1 July 2017. Without interest, it would be to the tune of INR 2,500 crore. Without interest.

Speaker #2: So without interest it would be to the tune of 2 and a half thousand crore. e. Without interest.

Speaker #4: Just have one over 2 crore, which is approximately 2.

Operator: two plus one over two INR crore is approximately two.

Speaker #2: Am I audible?

Abhijit Majumder: Am I audible?

Speaker #3: Yes sir.

[Company Representative] (Nomura): Yes, sir.

[Analyst] (Nomura): Yes, sir.

Speaker #2: So without interest it would be roughly about 2 and a half thousand crore. So so our our undertaking to the court was that the the court has given us 6 weeks time to settle this.

Abhijit Majumder: Without interest, it would be roughly about INR 2,500 crore. Our undertaking to the court was that, the court has given us 6 weeks time to settle this, and we are trying to kind of make this payment as quickly as possible. At this point in time, I can tell you this much.

Speaker #2: And we are trying to kind of make this payment as quickly as possible. At this point in time, I can tell you this much.

Speaker #3: So, sir, within the next six months the interest component doesn't have to be paid. Only the ₹2,500 principal comes.

[Company Representative] (Nomura): Sir, within the next 6 months, the interest component doesn't have to be paid. Only the INR 2,500 principal comes in.

[Analyst] (Nomura): Sir, within the next 6 months, the interest component doesn't have to be paid. Only the INR 2,500 principal comes in.

Speaker #2: Absolutely. With effectively no interest, we will only be paying the liability as it arises. Whatever.

Abhijit Majumder: Absolutely.

[Company Representative] (Nomura): Okay, thanks.

[Analyst] (Nomura): Okay, thanks.

Abhijit Majumder: Prospectively, no interest. We will only be paying the liability as it arises.

Speaker #3: And this will be put in the second quarter result.

[Company Representative] (Nomura): This will be booked in the Q2 result?

[Analyst] (Nomura): This will be booked in the Q2 result?

Speaker #2: Sorry?

Abhijit Majumder: Sorry?

Speaker #3: This will come up in the second quarter financials—the ₹2,500 crores.

[Company Representative] (Nomura): This will come up in the Q2 financials, the INR 2,500 crores.

[Analyst] (Nomura): This will come up in the Q2 financials, the INR 2,500 crores.

Speaker #2: Yes. Second quarter financials— I mean, the financials as such are not going to be impacted. We will be providing for it. But then we will definitely make a disclosure saying that this much amount has been released.

Abhijit Majumder: Yes. Q2 financials. Financials as such is not going to be impacted.

[Company Representative] (Nomura): The cash flow.

[Analyst] (Nomura): The cash flow.

Abhijit Majumder: We have already provided for it. We will definitely make a disclosure saying that this much amount has been released on account of GST on royalty.

Speaker #2: On account of GST on royalty.

Speaker #3: Okay sir. Thank you.

[Company Representative] (Nomura): Okay, sir. Thank you.

[Analyst] (Nomura): Okay, sir. Thank you.

Speaker #2: Right.

Abhijit Majumder: Right.

Speaker #1: Thank you. We'll take that as the last question, and I would now like to hand the conference over to management for closing comments. Thank you, and over to you.

Operator: Thank you. We will take that as the last question. I would now like to hand the conference over to management for closing comments. Thank you, and over to you.

Speaker #2: Thank you very much for your participation in Oil India's Q1 2027 earnings call. A big thanks to DAM Capital for helping us organize today's session smoothly.

Abhijit Majumder: Thank you very much for your participation in Oil India's Q1 2027 earnings call. A big thanks to DAM Capital for helping us to organize today's session smoothly. We trust that we have satisfactorily addressed your queries and provided meaningful insights into our quarterly performance and ongoing initiatives. Should you require any additional information or further clarification, please do not hesitate to contact our investors' relation cell. The relevant contact details are available on our website. We sincerely appreciate your time, participation and continued confidence in Oil India Limited. Your engagement is highly valued, and we look forward to maintaining an open and constructive dialogue with you in future. Thank you, and have a great day ahead.

Speaker #2: We trust that we have satisfactorily addressed your queries and provided meaningful insights into our quarterly performance and ongoing initiatives. Should you require any additional information or further clarification, please do not hesitate to contact our Investor Relations cell.

Speaker #2: The relevant contact details are available on our website. We sincerely appreciate your time, participation, and continued confidence in Oil India Limited. Your engagement is highly valued, and we look forward to maintaining an open and constructive dialogue with you in the future.

Speaker #2: Thank you, and have a great day ahead.

Speaker #1: Thank you. On behalf of DAM Capital Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you. On behalf of DAM Capital Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Abhijit Majumder: Thank you.

[Company Representative] (Nomura): Thank you.

Abhijit Das: Thank you.

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Q1 2027 Oil India Ltd Earnings Call

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