State-owned Oil India Ltd (OIL) has announced plans to invest Rs 25,000 crore in clean energy initiatives to achieve its goal of net zero carbon emissions by 2040, according to Chairman Ranjit Rath. The strategy includes reducing gas flaring, commercializing stranded gas, and expanding renewable energy capacity through solar projects, green hydrogen plants, and biogas and ethanol facilities.
This net zero initiative aligns with OIL’s broader aim to increase crude oil and natural gas production to 9 million tonnes of oil and oil-equivalent gas by 2025-26, up from 6.5 million tonnes produced in the fiscal year ending March 31, 2024. Additionally, OIL plans to build an 80-kilometer pipeline to transport natural gas from Arunachal Pradesh to Assam, replacing polluting liquid fuels in transportation and industrial sectors.
As part of the clean energy shift, OIL has confirmed plans for 640 MW of solar projects in Assam and 150 MW in Himachal Pradesh. This effort mirrors investments made by other state-owned companies to support India’s national target of achieving net zero emissions by 2070. Indian Oil Corporation (IOC) aims for net zero by 2046, while ONGC plans to invest Rs 2 lakh crore to meet its 2038 target. Bharat Petroleum (BPCL), GAIL, and Hindustan Petroleum (HPCL) also target net zero by 2040 and 2046, respectively.
OIL is increasing exploration and drilling activities to boost crude oil production to over 4 million tonnes and natural gas output to 5 billion cubic meters. This year, the company plans to drill over 75 wells, up from 61 last year, reversing a 12% production decline in mature fields. Rath also highlighted the ongoing expansion of the Numaligarh refinery in Assam, aiming to increase capacity from 3 million tonnes per year to 9 million tonnes by December 2025, with an estimated investment of Rs 28,000 crore.
