Indian upstream exploration and production company OIL India Limited has reaped dividends worth $942 million from its two joint ventures (JVs) in Russia, Chairman Ranjit Rath told the 66th Annual General Meeting (AGM) in New Delhi on Thursday.
"Your company (OIL India) maintains a strong presence in overseas production and development assets across Russia, Venezuela and Mozambique through joint ventures," Rath said, according to a copy of his speech available with Sputnik India.
The Indian oil businessman said that these assets contribute significantly to the company's reserves and production portfolio, with cumulative production of 2.097 MMTOE (Million Tonnes of Oil Equivalent) through FY2024-25, primarily from Russia.
"A highlight of the year was the robust dividend flow from Russian assets, amounting to $942 million representing over 91% of our original investment in Vankorneft and Taas Yuryakh, with full recovery expected in the coming year," Rath disclosed.
He noted that OIL India has also invested in a "world-scale LNG project" in Mozambique, which will establish a 13.12 MMPTA (million metric tonne per annum) low-carbon, integrated two-train LNG facility.
"With improved security conditions, 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," Rath stated.
Addressing a post-AGM press conference later, Rath said that the Indian PSU foresaw any impact or "problem" due to piling up of western sanctions.
He said that OIL India's dividends were flowing as per the business processes.
"So, as far as the production from our Russian assets is concerned, as far as our exploration efforts in the country are concerned, we don't foresee any issues because we are currently securing the seismic activities. And the drilling activities will happen one year down the line. Therefore, we don't foresee any impact as far as Oil India Corporation is concerned," explained Rath.