State-run Oil India Ltd (OIL) has posted a 56 per cent increase in net profit to Rs 7.03 billion for the first quarter of the financial year 2018-19, compared to Rs 4.5 billion during the same period last year, owing to better crude realisation.
The company's total income for the April-June quarter of the current financial year also increased 42 per cent from Rs 24.85 billion during the first quarter of 2017-18 to Rs 35.17 billion. The rise in net profit was mainly owing to better crude realisation, which increased by $23.59 a barrel to $72 a barrel during the first quarter of the current financial year, as against $48.41 a barrel. On the other hand, average natural gas price realisation during the first quarter was $3.06 per million metric British thermal unit (mmBtu) as compared to $2.48 per mmBtu during the first quarter of 2017-18.
Crude oil production for the quarter under review remained static at last year's level of 0.844 million tonnes (MT). However, natural gas production declined by 3.87 per cent to 696 million metric standard cubic meter (MMSCM) as compared to 724 MMSCM during the first quarter of 2017-18 due to short upliftment by certain consumers.
During the recently concluded ninth round of city gas distribution (CGD) bidding conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB), a consortium of Oil India, Assam Gas Company and GAIL Gas was allotted two geographical areas — covering Cachar, Hailakandi and Karimganj Districts and Kamrup and Kamrup Metropolitan Districts — in the state of Assam.
The company has also formed a joint venture, named Indradhanush Gas Grid, partnering with Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation, GAIL and Numaligarh Refinery, with equal equity contribution, to construct Gas Grid infrastructure covering 1,450 kilometres of pipeline to connect eight North-Eastern States from Guwahati.