Oil India says Mozambique LNG project to restart in H2 2025; new frontier opens in Assam
New Delhi: Oil India Ltd (OIL) on Thursday said the company’s overseas liquefied natural gas (LNG) investment in Mozambique is expected to restart in the second half of 2025, as security conditions in the African nation improve. The 13.12 million tonnes per annum (MMTPA) two-train LNG facility, in which OIL holds a stake, is seen as a key project to meet India’s growing natural gas demand.
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“The project is expected to restart in the second half of 2025 and is well-positioned to meet the growing demand of the Indian gas market,” CMD Ranjit Rath told shareholders at the company’s Annual General Meeting on Thursday.
Oil India, along with ONGC Videsh, holds a 10 percent participating interest in Area 1 of the Mozambique Rovuma Offshore Block, where the 13.12 MMTPA Mozambique LNG project is being developed. The project had been stalled due to security concerns in the Cabo Delgado province. For Oil India, the project is strategically significant because it not only diversifies the company’s overseas portfolio but also strengthens India’s access to long-term LNG supplies.
Strong returns from Russia assets
Commenting on Russia, the CMD also said its overseas portfolio continues to benefit from producing assets in Russia. The company’s joint ventures in Vankorneft and Taas Yuryakh yielded robust dividends of USD 942 million in FY25, representing over 91 percent of its original investment. Full recovery of the invested capital is expected in the coming year, the CMD noted.
Rig fleet expansion on the cards
Looking ahead, Oil India said it will expand its fleet of rigs to meet rising drilling requirements. The company spudded 70 wells in FY25 and completed 57, supported by 21 rigs. To speed up exploration and development across basins, the CMD said additional rigs will be inducted in coming years.
Discovery in new frontier
The company reported a significant breakthrough in Assam by establishing the presence of hydrocarbons in the North Bank of the Brahmaputra for the first time through exploratory well Kobochapori-1. This opens up a new exploration vista in the region and provides impetus to Oil India’s ongoing North Bank campaign.
Multilateral drilling in Barekuri field
Oil India is preparing to implement multilateral drilling in the Barekuri field in Assam within the next two months. The advanced technology will allow multiple branches from a single wellbore, reducing land footprint, improving reservoir access, and enhancing output while lowering costs.
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Expanding exploration footprint
Alongside new discoveries, the company continues to add reserves through exploration across 26 OALP blocks covering more than 52,000 sq km. It added 5.87 million tonnes of oil equivalent of 2P reserves in FY25, with new oil and gas finds in the Mechaki field in Assam.
