MIRA INFORM REPORT

Report Date :

07.08.2010

IDENTIFICATION DETAILS

Name :	OIL INDIA LIMITED
Registered Office :	Allahabad Bank duliajan, District- Duliajan, Assam- 786602
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	18.02.1959
Com. Reg. No.:	55-1148
CIN No.: [Company Identification No.]	U11101AS1959GOI001148
TAN No.: [Tax Deduction & Collection Account No.]	DELO00502F
Legal Form :	A Public Limited Liability Company having Limited Liability of Members. Subject is Government of India Undertaking
Line of Business :	Exploration and Production of Crude Oil and Natural Gas, extraction and bottling of LPG and transportation of crude oil.

RATING & COMMENTS

MIRA’s Rating :

Aa (77)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 460000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established government of India company. The company has been consistently showing excellent financial performance over the year. The shares of the company has been listed on t he stock exchange a month back, fundamentals are strong and healthy. Trade relations are reported as fair. Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

 INFORMATION DECLINED BY

Name :	Mr. D.Tarapdas
Designation :	Accounts Officer
Date :	05.08.2010
Name :	Mr. R.S.Borah
Designation :	GM - Treasury
Date :	05.08.2010

LOCATIONS

Registered Office :	P. O. Duliajan, District Dibrugarh, Assam 786 602, India
Tel No.:	91-374-2800427
Fax No.:	91-374-2800522
E-Mail :	oilindia@oil.delhi.nic.in / oilindia@oil.asm.nic.in /
Website :	http://www.oilindia.nic.in / http://www.oilindia.in
Administrative Office :	Sr Geotechnical Advisor's Office No. 1, Community Centre, New Friends Colony, New Delhi - 110 065, India
Tel. No.:	91-11-26911567/26839465
Fax No.:	91-11-26889461
Head Office :	Allahabad Bank Building, 17, Parliament Street, New Delhi - 110 001, India
Tel. No.:	91-11-23360841/23340844/23360678
Fax No.:	91-11-23340962
E-Mail :	oilindia@oil.delhi.nic.in oilindia@oil.asm.nic.in
Website :	http://www.oilindia.nic.in
Telex :	31-62024
Corporate Office :	Plot No.19, Near Film City, Sector-16A, Noida District- G.B Nagar, Noida- 201301, Uttar Pradesh, India
Tel No.:	91-120-2488333-47
Fax No.:	91-120-2488310
Project Offices :	v P. O. Duliajan, Dist, Dibrugarh - 786 601, Assam Key Person: Mr. P. G. Goswami (Group General Manager) Fax No. 91-374-2800522 Telex: 288-249DULOIN Grams: OILINDIA, DULIAJAN v Bay Exploration Project IDCO Towers Janpath, Bhubaneswar - 751 007, Orissa Key Person: Mr. S. S. Z. Haque (Incharge BEP) Tel. No. 91-674-2542815/2543314/2542026/2543314 Fax No. 91-674-506926 Telex: 675-6247/6309 OBEP IN Grams: OILINDIA, BHUBANESWAR Email: oilbep2sancharnet.in v Pipeline Head Quarters, P.O. Noonmati - 781 020, Guwahati, Assam Key Person: Mr. M. Bhandari (Dy. General Manager) Tel. No. 91-361-640685/540 688 Fax No. 91-361-540686 Telex: 236-2323 OLGH IN Gram: OILINDIA, GUWAHATI v Rajasthan Project 12, Old Residency Road, Jodhpur - 342 001, Rajasthan Tel. No. 91-291-2433642/2431930/2430871/2431683 Fax No. 91-291-431689 Email: grmp@sify.com v Saurashtra Exploration Project Sahajanand House, Bhakti Nagar Circle, Rajkot - 380 002, Gujarat Key Person: Mr. P. Kataky (Dy. General Manager) Tel. No. 91-281-2368023/2363022/2363031 Fax No. 91-281-2363022 Telex: 169-266 KAKA IN v Ganga Valley Project A-5, Sector-19, Noida (Uttar Pradesh) Key Person: Mr. M. M. Hazarika (Incharge GVP) Tel No. 91-11-91-2524784/2526561 Fax No. 91-11-91-2528649 Email: oilgvp@zeenext.com v Brahmputra Valley Exploration Project Rangpur, R. G. Baruah Road, Guwahati - 781 005, Assam Key Person: Mr. A. N. Saikia (Dy. General Manager) Tel. No. 91-361-567689/564904/563339/562352 Fax No. 91-361-565380 Email: oilbvep@gw1.dot.net.in v Kolkata Branch, 4, India Exchange Place, Kolkata - 700 001, West Bengal Key Person: Mr. B. K. Borah (Chief Manager- Calcutta Branch) Tel No. 91-33-22307518/22301657/22301658 Gram: OILCAL, CALCUTTA E mail: oilcalmn@cal2.vsnl.net.in

DIRECTORS

As on 31.03.2009

Name :	Mr. M R Pasrija
Designation :	Chairman and Managing Director
Name :	Mr. S K Patra
Designation :	Director (E and D)
Name :	Mr. N M Borah
Designation :	Director (Operations)
Name :	Mr. J K Talukdar
Designation :	Director (HR and BD)
Name :	Mr. T K Ananth Kumar
Designation :	Director (Finance)
Name :	Mr. A K Jain
Designation :	Director (Government Nominee)
Name :	Mrs. Aditi S Ray
Designation :	Director (Government Nominee)
Name :	Mr. B N Talukdar
Designation :	Director
Name :	Mr. Ashok Anand
Designation :	Director
Name :	S K Srivastav
Designation :	Director
Name :	Mr. D N Narasimha Raju
Designation :	Director
Name :	Ms. Archana S Mathur
Designation :	Director
Name :	Mr. G H Amin
Designation :	Director
Name :	Mr. Sushil Khanna
Designation :	Director
Name :	Mr. Arun Kumar Gupta
Designation :	Director
Name :	Mr. Alexander K Luke
Designation :	Director
Name :	Mr. Vinod K Misra
Designation :	Director
Name :	Mr. Pawan K Sharma
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S K Senapati
Designation :	Company Secretary
Name :	Mr. S. R Krishnan
Designation :	Company Secretary

SHAREHOLDING PATTERN

As On 31.03.2009 

Names of Shareholders	No. of Shares	Percentage of Holding
President of India	210000000	98.13
Resident Individual	3947510	1.84
Bodies Corporate	56890	0.03
Total	214004400	100.00

BUSINESS DETAILS

Line of Business :	Exploration and Production of Crude Oil and Natural Gas, extraction and bottling of LPG and transportation of crude oil.
Products :	Products Description	ITC Code
	Crude Oil	27-09
	Natural Gas	2711-21
	Liquefied Petroleum Gas	27-11

PRODUCTION STATUS

Particulars	Unit	Actual Production
Crude Oil (Assan and Andhra Pradesh )	Kilo Litres	3484515
JVC (India)	Kilo Litres	28182
Natural Gas	Million Standard C. Mtr.	2118
LPG	Metric Tonnes	43718
Condensate	Kilo Litres	35143
Electricity	Million Kilowatt Hours	100.47

GENERAL INFORMATION

No. of Employees :	Around 1933 (In-House – 1065, In-County – 717, Overseas – 151) Women Empowerment : Around 8476
Bankers :	State bank of India Allahabad Bank United Bank of India Vijaya Bank United Commercial Bank Punjab National Bank Corporation Bank Indian Overseas Bank ICICI Bank Limited Canara Bank Union Bank of India Standard Chartered Bank HDFC Bank Axis Bank Syndicate Bank
Facilities :	Secured Loan	31.03.2009 (Rs. In Millions)
	Cash Credit/Working Capital Demand Loan with State Bank of India, Kolkata (Secured by hypothecation of all current assets including goods-in-transit wherever situated, excluding assets under Joint Venture, ranking pari passu with hypothecation created in favour of State Bank of India, Kolkata for Cash Credit, Working Capital Demand Loan and LC/Bank Guarantee with limit of Rs.4500.000 millions) (Previous Year Rs.2700 million)	27.025
	Total	27.025

Banking Relations :	Good
Auditors 1:
Name :	P K Mitra and Company Chartered Accountants
Address :	18, R N Mukherjee Road, Kolkata 700 001, West Bengal, India
Auditors 2:
Name :	A K Sabat and Company Chartered Accountants
Address :	A-348, Sahid Nagar, Bhubaneswar 751 007, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50,00,00,000	Equity Shares	Rs.10/- each	Rs.5000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21,40,04,400	Equity Shares	Rs.10/- each	Rs.2140.044 millions

Note : The above includes 184669600 (Previous year 184669600) Shares of Rs.10/- each issued as fully paid up

bonus shares by capitalisation of Share Premium & General Reserve

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		2140.044	2140.044	2140.044
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		91170.151	77189.660	66350.671
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		93310.195	79329.704	68490.715
LOAN FUNDS
1] Secured Loans		27.025	1048.852	7090.076
2] Unsecured Loans		537.500	700.000	1050.000
TOTAL BORROWING		564.525	1748.852	8140.076
DEFERRED TAX LIABILITIES		8998.246	8655.170	8033.318
Well Abandonment Sinking Fund		14.566	11.406	10.723
TOTAL		102887.532	89745.132	84674.832
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11337.754	7028.584	6367.704
Capital work-in-progress		3185.878	6445.533	5301.182
INVESTMENT		4886.606	4886.606	4075.451
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5009.954	4508.946	4080.239
	Sundry Debtors	4047.338	6109.953	4086.776
	Cash & Bank Balances	60700.084	42808.248	32756.964
	Other Current Assets	3524.726	2283.687	1571.960
	Loans & Advances	10271.427	6054.809	12610.726
Total Current Assets		83553.529	61765.643	55106.665
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	14636.651	11016.001	7818.071
	Provisions	16276.979	6524.572	2501.781
Total Current Liabilities		30913.630	17540.573	10319.852
Net Current Assets		52639.899	44225.070	44786.813
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
PRODUCING PROPERTIES		25214.523	22678.256	20257.721
PRE-PRODUCING PROPERTIES		5622.872	4481.083	3885.961
TOTAL		102887.532	89745.132	84674.832

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
Sales Turnover		72414.491	60819.480	52850.890
Other Income		9371.749	6770.006	7226.879
Total Income		81786.240	67589.486	60077.769
Profit/(Loss) Before Tax		33869.703	27134.021	24826.271
Provision for Taxation		12252.863	9244.709	8426.408
Profit/(Loss) After Tax		21616.840	17889.312	16399.863
Earnings in Foreign Currency :
	Export Earnings	0.574	0.465	0.035
Imports :
	Stores & Spares	893.576	790.737	711.435
	Capital Goods	761.195	542.715	462.831
Total Imports		1654.771	1333.452	1174.266
Expenditures :
	Provision against debts, advances & other provisions/write-offs	3711.977	1334.073
	Depletion	2087.639	2174.800
	Depreciation	1680.786	918.598
	Increase/(Decrease) in Finished Goods	407.465	0.000
	Increase/(Decrease) in stock	130.014	0.000
	Production, Transportation and Other Expenditure	39612.493	35648.888
	Interest and Debts Charges	87.441	343.642
	Exchange Loss/ (Gain)- Net	(61.508)	39.213
	Other Adjustments	213.927	570.648
	Prior Period Items	46.303	11.318
Total Expenditure		47916.537	40455.465	35251.498
Earning Per shares		101.01	83.59	NA

QUARTERLY RESULTS

PARTICULARS	30.06.2009 1^st Quarter	30.09.2009 2^nd Quarter	31.12.2009 3^rd Quarter	31.03.2010 4^th Quarter	30.06.2010 5^thQuarter
Gross Sales	19318.300	21002.500	20413.300	18321.400	15234.200
Other Operating Income	427.800	428.200	431.100	385.400	507.300
Other Income	1635.300	2353.500	1796.900	2083.500	2423.600
Total Income	21381.400	23784.200	22641.300	20790.300	18165.100
Total Expenditure	9510.400	11013.800	9783.800	11663.800	8846.600
PBIDT	11871.000	12770.400	12857.500	9126.500	9318.500
Interest	09.000	09.700	08.100	09.700	06.400
PBDT	11862.000	12760.700	12849.400	9116.800	9312.100
Depreciation	1217.500	1430.900	1754.300	3235.300	1978.900
Tax	3247.600	3303.600	3663.300	1510.500	2322.100
Deferred Tax	0.000	800.600	259.00	61.100	0.000
Reported PAT	7396.900	7225.600	7172.800	4309.900	5011.100
Extra-Ordinary Items	0.000	0.000	0.000	0.000	0.000
Adjusted Profit After Extra Ordinary Item	7396.900	7225.600	7172.800	4309.900	5011.100

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	26.43	26.47	27.29
Net Profit Margin (PBT/Sales)	(%)	46.77	44.61	41.32
Return on Total Assets (PBT/Total Assets}	(%)	35.69	39.44	35.04
Return on Investment (ROI) (PBT/Networth)		0.36	0.34	0.36
Debt Equity Ratio (Total Liability/Networth)		0.33	0.22	0.65
Current Ratio (Current Asset/Current Liability)		2.70	0.35	5.34

LOCAL AGENCY FURTHER INFORMATION

History

Subject is the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production. The company is engaged in the business of Exploration, Development and Production of Crude Oil and Natural Gas, Transportation of Crude oil and Production of LPG. They own and operate a range of facilities and services required for the above business in the existing and new concessions in an environment-friendly and financially-efficient manner. The company holds interests in various oil and gas projects located in India, Libya, Gabon, Iran, Nigeria, and Sudan. In addition, the company offers various technical services related to pipeline construction; specialized services, such as hot tapping, stoppling, and pipe cutting and shearing off services; and various operation and maintenance services. They also own and operate crude oil pumping stations and repeater stations. Oil India Limited was incorporated as a private limited company on February 18, 1989 as Oil India Private Limited. The company was incorporated with the main objective of exploration and production of crude oil. The name of the company was changed from Oil India Private Limited to subject with effect from May 4, 1961. In July 1961, the company was transformed into an equal partnership joint venture company between Burmah Oil Limited and President of India. Also, they commissioned a gas-based power plant at Duliajan in Assam. In the year 1962, the company the construction of 401 km pipeline from Duliajan to Guwahati. In the next year, they completed the construction of 756 km pipeline from Guwahati to Barauni. In the year 1972, the company discovered commercially producible crude oil Jorajan field and Kharsang fields. In the year 1981, the equity shares of the company held by Burmah Oil Company Limited were transferred to the President of India in which, the company became a wholly owned Government company. In the year 1982, the company commissioned LPG plant based on turbo expander technology at Duliajan in Assam. In the year 1988, the company discovered commercially exploitable gas reserves in Tanot in Rajasthan and in the year next year, they discovered exploitable gas reserves in Dandewala, Rajasthan. In the year 1990, the company discovered commercially productible crude oil in ecocene formation in Dikon and in the next year, they discovered commercially productible crude oil in ecocene formation in Kathaloni. In the year 1992, the company entered into an agreement with Hydrocarbon Research Incorporated, for initiating coal oil co-processing studies. In the year 1995, they entered into Production Sharing Contract with various companies, to revive the declining Kharsang producing field. In the year 1997, the company was awarded the Mini Ratna-I status. In the year 2000, the company acquired 12.35% equity stake in Numaligarh Refinery Limited. In the year 2002, they entered into a consortium with ONGC Videsh Limited and Indian Oil Corporation Limited to execute a service contract with the National Iranian Oil Company for the Farsi Block, Iran. In the year 2004, the company was upgraded to schedule 'A' category. They entered into an MoU with Indian Oil Corporation Ltd for pursuing overseas exploration and production opportunities. Also, they acquired 10% participating interest in a pipeline outside India by entering into an agreement with ONGC Videsh Limited for construction of 741 km long pipeline in Sudan. In the year 2005, the company into an MoU with Indian Oil Tanking Limited for jointly taking up pipeline and related projects in India and overseas. Also, they entered into an MoU with ITERA Oil and Gas Company, Russia to jointly pursue exploration and production opportunities in India and overseas, including in Libya. The company was awarded Area 86 (Sirte basin) and Block 102/47 in Libya, along with Indian Oil Corporation Ltd during the year. In the year 2006, the company executed a farm-in agreement with Indian Oil Corporation Limited and Marvis Pte Limited, Singapore by acquiring a participating interest in Block Shakthi, Garbob. Also, they acquired 25% equity stake in Suntera Nigeria 205 Limited. The company was awarded eight blocks in NELP-VI. Also, they were awarded block 82 and 83 in Yemen. In October 2006, the company entered into a joint venture agreement with Gail, Numaligarh Refinery Limited and the Government of Assam and incorporated Brahmaputra Cracker and Polymer Limited to establish a gas-based cracker project at Lepetkata, Assam in which, the company holds 10% equity stake. In the year 2007, the company entered into an MoU with British Gas for pursuing exploration and production opportunities. Also, they entered into an MoU with HPCL, GAIL, Total France, SA and Mittal Energy Investment for promoting a refinery-cum-petrochemical complex at Vishakhapatnam. They increased their equity shares in Numaligarh Refinery Limited from 12.35% to 26%. During the year, the company received NLD license in order to expand their business in telecommunication sector. Also, they entered into an MoU with HPCL to jointly pursue oil and gas opportunities in the downstream and upstream segment in India as well as overseas. In the year 2008, the company entered into two farm-in agreement with Reliance Exploration and Production DMCC for a 12.55% equity share in block K, Timor Leste. Also, they acquired 23% stake in DNP Ltd. They entered into an MoU with Indian Oil Corporation Limited for co-operation in purchase and sale of natural gas, joint development of city gas projects and development of gas pipeline infrastructure. During the year, the company constructed and commissioned the Numaligarh Siliguti product pipeline. They entered into an MoU with Indian Oil Corporation Limited for co-operation in purchase and sale of natural gas, joint development of city gas projects (in India and overseas) and development of gas pipeline infrastructure. Also, they entered into an MoU with GSPCL to evaluate the Lavan gas field in Iran. Also, the company was awarded four blocks in NELP VII. In the year 2009, the company entered into a MoU with Advanced Well Technologies Pty Limited to form a joint venture for identifying acquisition opportunities for upstream petroleum assets in Australia and elsewhere. Also, they entered into MoU with BPCL and DNP Limited for mutual cooperation in gas related business in India & overseas and for leasing of the company's right of way through the Duliajan Numaligarh Pipeline respectively. During the year, the company received parliamentary approval from the Government of Yemen for block 82 and 83 to carry out exploration activities. As of March 31, 2009, the company had crude oil reserves of 36.4325 MMKL, and natural gas reserves of 34.5530 MMKL-OE. The company was awarded 'Best overall performance in upstream sector' by Petroleum Conservation Research Association. Also, they received Certificate of merit for being one of the 'PSU with Highest Book Value' from Dalal Street Investment Journal. The company is coming up with an IPO of 26,449,982 equity shares having a face value of Rs.10 each. The company plans to invest Rs.45 billion over the next two years on exploration-related activities. They plan to acquire old companies and intensify offering oilfield services to third parties.

PERFORMANCE NUGGETS

a) Highest ever profit of Rs. 2161.68 crores during 2008-09

b) Highest ever crude oil production. About 12% more than the 2007 08 production.

c) Highest ever crude oil sale. About 12% more than the 2007-08 sale.

d) Highest ever daily gas production rate of 6.43 MMSCMD in the North East.

e) Enhancement of daily production potential to 0.93 MMSCMD in Rajasthan (highest ever production potential).

f) Achieved highest ever horizontal displacement of 846m with S-bend trajectory (NHK #575).

g) Made 4 commercial hydrocarbon discoveries in Assam. Mechaki-2 discovery is the deepest on-land commercial hydrocarbon discovery in India (5556 m) so far and the well is already contributing to production of oil & gas.

h) Highest ever 3D seismic survey: 3495 SQKM, about 305% higher than 2007-08 (Earlier highest: 1145 SQKM in 2007-08).

i) Completed acquisition and processing of first ever 4D seismic survey in OIL over Dikom field.

j) The GIS application centre is now fully operational for planning and execution of seismic survey operations.

k) Completed and commissioned 660 km long Numaligarh - Silliguri Product Pipeline.

l) Bagged 4 nos. blocks in NELP-VII round of bidding, 1 block as operator and 3 blocks with Pls.

m) Acquisition (farming in) of overseas blocks in East Timor Leste (offshore block) and Egypt (two offshore blocks).

n) Four of our AC-SCR drilling rigs S-2, S-3, S-4 and S-7 were accredited with ISO 9001-2000 certification.

o) Creation of a Technology Park in the vicinity of OIL's discovery well NHK#1. The Park was inaugurated and declared as OIL Heritage Site by Honourable Chief Minister of Assam.

p) Five nos. of 600 HP new Workover rigs were procured and commissioned during the year. These have replaced five old workover rigs.

q) Trained 732 numbers contract workers in the field of S.H.E for the first time in OIL.

r) As part of our continuous effort to comply with the requirements and

guidelines of IE Rules, OISD and DGMS, the earthing systems were revamped

in 5 substations and 7 industrial installations.

s) Carried out mechanical repair/overhauling jobs of over 40 heavy and critical field equipment (drawworks, rig pumps, engines etc.) with in-house infrastructure. Similarly electrical repairjobs were carried out for a variety of about 750 electrical machines with in-house expertise.

t) Power availability from the captive Power Station at Duliajan was 99.96%.

u) The total station power consumption in the captive Duliajan Power Station was 1.04% of the total power generation, against industrial standard of 1-1.5%.

v) 2 nos of new ACPCRs for ACSCR Drilling rigs were commissioned.

w) Services in the form of equipment on rental, R and D and chemical laboratory services, well completion service etc. were rendered to other E and P operators and generated revenues of over Rs.220.000 millions.

x) Won the prestigious Greentech Environmental Excellence Gold Award -2007 for its efforts in green movement and environmental protection in its oil fields.

y) Received national level award for best performance amongst upstream sector oil companies for the activities/ programs carried out by Oil India Limited during OGCF 2008.

z) OIL's 190-bed hospital (Oil India Hospital) at its field headquarter obtained Integrated Management System Certification (IS09001:2000, ISO 14001:2004 and ISO 18001:2007) during the year. Oil India Hospital is the first public sector hospital in the north-east to be ISO accredited.

aa) Six Independent Directors inducted into OIL Board as part of Good Corporate Governance.

ab) Introduced 'e-sampatti' for online submission of property returns.

ac) Introduced Revised Employees' Suggestions Scheme.

ad) OIL's Football Team is first ever team from North-East to have qualified for Federation Cup Football Tournament.

ae) Won prestigious PSPB and AIPSSB Golf Tournaments.

af) Shri Subhajit Saha, Table Tennis Player was awarded Arjuna Award and the Company awarded him with a cash prize of Rs.0.300 millions

ag) OIL's Women Table Tennis Team was the winner in PSPB.

PHYSICAL PERFORMANCE

a) The crude oil production (3.47 MMT) during the year was the highest ever by the Company so far. The increase of about 12% in oil production vis-a-vis the previous year (2007-08) is the most significant physical achievement of the year. In terms of natural gas, the production potential was enhanced, but the actual gas production and sale was less than the previous year due to markets inability to uplift committed quantities of gas.

b) The recent discovery of commercial hydrocarbon in Mechaki west structure at a depth of 5550 m, in upper Assam basin is the deepest onshore commercial discovery of the nation. The discovery well Mechaki 2, drilled to a depth 5600 m+ has opened up a new vista for exploration in the Upper Assam basin. The well was drilled and completed with complete in-house efforts and is currently producing both crude oil and natural gas.

c) The Company was able to set new of performance in respect of the following amidst adverse environmental condition in some of its major operational areas during the year.

• Highest ever crude oil production about 12% more than the 2007-08 production.

• Highest ever crude oil sale. About 12% more than the 2007-08 sale

• Highest ever daily gas production rate of 6.43 MMSCM in the North East.

• Highest ever 3D seismic acquisition of 3495 SQKM (1,145 SQKM in 2007-08)

• Highest ever terminal rate of crude oil production 3.51 MTPA [3.43 MTPA in 2007-08].

• Highest ever CTU operation of 163 (previous highest 129 in 2007-08).

• Highest ever daily average gas processing of 79.52 MMSCF in LPG plant since its inception.

• Highest ever average daily production of condensate in last 12 years (73.07 Tonnes/day).

d) The Company is making continuous effort in various fronts for exploration activities and business expansion. A few activities of strategic importance pursued during the year are as under:

• There have been four new commercial hydrocarbon discoveries during the year, all in UpperAssam.

• As compared to 100 drilling locations available in April, 2008, 144 locations have been approved for drilling as on April, 2009, indicating a comfortable position of the Company in respect of forward drilling locations.

• Drilling of horizontal wells helped in augmenting production buildup in Makum area.

• Percentage of suspended water in delivered crude to Refineries could be restricted to 0.42% by weighted average with significant improvement compared to previous year (0.46% in 2007-08).

• 721 GLKM of 2D Seismic survey was completed in Gabon. Another 279 GLKM of 2D survey is being completed in 2009-10.

• 3D acquisition of 700 SQKM in Libya was completed during the year. Two wells are planned to be drilled during 2009-10.

• The Company was rated, 'Very Good' in MOU for the year 2007-08 and expected to be rated Excellent', in 2008-09.

• Introduction of solar power system for Jorajan Magazine House for area lighting.

• Introduction of solar water heating system in residential bungalows.

PERFORMANCE

• The Company earned higher profit after tax despite sharing a higher subsidy burden on crude oil and LPG and paying higher amount of statutory levies compared to previous year. The total subsidy share was Rs.30232.800 millions in 2008-09, compared to Rs.23050.900 millions in 2007-08, which works out to 31.16% increase.

• The Shareholders' Fund as on 31.03.2009 was Rs.93310.200 millions against long term loan amount of Rs.564.500 millions giving a Debt Equity Rates of 1:173.04 against 1:113.33 in the previous year.

• Earning per Share (EPS) had increased to Rs.101.01 in 2008-09 compared to Rs.83.59 in 2007-08.

PHYSICAL PERFORMANCE

a) The crude oil production (3.47 MMT) during the year was the highest ever by the Company so far. The increase of about 12% in oil production vis-a-vis the previous year (2007-08) is the most significant physical achievement of the year. In terms of natural gas, the production potential was enhanced, but the actual gas production and sale was less than the previous year due to markets inability to uplift committed quantities of gas.

b ) The recent discovery of commercial hydrocarbon in Mechaki west structure at a depth of 5550 m, in upper Assam basin is the deepest onshore commercial discovery of the nation. The discovery well Mechaki 2, drilled to a depth 5600 m+ has opened up a new vista for exploration in the Upper Assam basin. The well was drilled and completed with complete in-house efforts and is currently producing both crude oil and natural gas.

c ) The Company was able to set new records of performance in respect of the following amidst adverse environmental condition in some of its major operational areas during the year.

• Highest ever crude oil production about 12% more than the 2007-08 production.

• Highest ever crude oil sale. About 12% more than the 2007-08 sale.

• Highest ever daily gas production rate of 6.43 MMSCM in the North East.

• Highest ever 3D seismic acquisition of 3495 SQKM (1,145 SQKM in 2007-08)

• Highest ever terminal rate of crude oil production 3.51 MTPA [3.43 MTPA in 2007-08].

• Highest ever CTU operation of 163 (previous highest 129 in 2007-08).

• Highest ever daily average gas processing of 79.52 MMSCF in LPG plant since its inception.

• Highest ever average daily production of condensate in last 12 years (73.07 Tonnes/day).

d) The Company is making continuous effort in various fronts for exploration activities and business expansion. A few activities of strategic importance pursued during the year are as under:

• There have been four new commercial hydrocarbon discoveries during the year, all in UpperAssam.

• As compared to 100 drilling locations available in April, 2008, 144 locations have been approved for drilling as on April, 2009, indicating a comfortable position of the Company in respect of forward drilling locations.

• Drilling of horizontal wells helped in augmenting production buildup in Makum area.

• Percentage of suspended water in delivered crude to Refineries could be restricted to 0.42% by weighted average with significant improvement compared to previous year (0.46% in 2007-08).

• 721 GLKM of 2D Seismic survey was completed in Gabon. Another 279 GLKM of 2D survey is being completed in 2009-10.

• 3D acquisition of 700 SQKM in Libya was completed during the year. Two wells are planned to be drilled during 2009-10.

• The Company was rated, 'Very Good' in MOU for the year 2007-08 and expected to be rated Excellent', in 2008-09.

• Introduction of solar power system for Jorajan Magazine House for area lighting.

• Introduction of solar water heating system in residential bungalows.

BUSINESS DEVELOPMENT

Business Development and Third Party Project

During the year, the Company generated revenue to the tune of Rs.6.100 millions and US $ 23,340 by providing laboratory, rental or expert consultative services to a number of parties. The department is continuously scouting for E and P business both in-country and overseas. Flow of large number of enquiries and tenders from national and international companies for providing E and P services shows an optimistic scenario and scope for business expansion through this project wing. In order to expand its strategic areas of E and P Service Business activities and to establish as a leading E and P Service provider, new initiatives have been undertaken to explore the possibility of Joint Venture / Strategic Alliance arrangement with internationally reputed Company(ies) and the preliminary progress in this regard has been satisfactory. In consideration of the enormous potential in E and P Service Business sector both in India as well as abroad, a review on the subject of acquiring additional resources solely for the purpose of service business activities has been undertaken.

Telecom Project

Till date 3108 pair route kilo meter of dark fibre of pipeline department has been commercialized by leasing the same to different telecom operators in the State of Assam and West Bengal. This has earned revenue of Rs.107.031 millions.

The Company has also leased out telecom bandwidth of 2 Mb capacity and is in the process of leasing out an additional 2 Mb bandwidth. The expected revenue from the leasing of bandwidth would be around Rs.0.970 millions per annum. The Company has received number of enquires and expression of interest from different telecom service providers for availing bandwidth under the NLD agreement.

NRL-Silliguri Product Transportation Pipeline

The pipeline was successfully put into commercial operation with effect from June, 2009.

POLICY INITIATIVES FOR FUTURE

Exploring In-Country traditional basins

In view of the mandatory relinquishment policy of government in respect of pre-NELP nominated PELs, the Company is prioritizing activities in such areas for conversion of PELs into PMLs wherever discovery and commercial producibility have been established.

• Systematic implementation of recommendations of various geo-scientific consultative studies of the recent past for exploration of stratigraphic traps, re-development and revitalization of matured declining fields, intensive reservoir revitalization initiatives etc.

• Efforts will be to cover seismically logistically difficult areas including Brahmaputra River Bed, rugged hilly terrain in river confluence and various difficult hilly areas in the NE.

• Efforts will be enhanced to reduce the number of sick wells by bringing them back to production.

Acquiring Exploration Blocks through NELP

OIL has so far acquired 24 NELP blocks with operatorship in twelve (12) blocks with Participating Interest ranging from 10% to 90% with other consortium partners. Various exploration activities are underway in respect of all these blocks. The Company will look for prospective opportunities in future too.

Acquisition of Equity abroad

OIL's E and P initiatives overseas at present extend to seven countries including Libya, Gabon, Iran, Nigeria, Yemen, Timor Leste and Egypt. Exploration along with acquisition of producing property overseas is considered a major thrust area. A number of such potential opportunities are currently being examined. In order to firm up a policy and to prepare a check list for screening potential overseas E and P opportunities, a study is nearing completion with the help of an internationally reputed consultancy firm.

Crude oil production:

OIL has been maintaining an increasing trend in indigenous crude oil production during the year 2008-09. The Company has initiated a number of measures in its main producing fields in Assam and Arunachal Pradesh to increase production, which are listed below:

• A number of geo-scientific studies like Integrated Basin modeling studies, Revitalization of old fields, Jorajan re-development, Thrust belt prospects, Stratigraphic trap prospects, Non-Associated Gas Field development, Pilot study for carrying out Seismic Reservoir characterization of Eocene Reservoirs, Post Drill Analysis of exploratory wells, Audit and certification of oil and gas reserves etc. were carried out in the recent past with the help of internationally reputed consultants and their recommendations like infill drilling, workover and enhancement in water injection are being implemented.

• Various IOR/EOR measures like enhancing water injection, MEOR technique by using micro-organisms, optimization through artificial lift methods by use of Electric Submersible Pumps (ESP), Jet-pumps etc. for bringing into production shut in wells have been implemented/intensified.

• Drilling of Horizontal and J-bend wells.

• Charter hiring of six drilling rigs to compensate the shortfall of four in-house rigs retired in the recent past and also to intensify drilling operation including that in NELP areas of the NE.

• In order to produce heavy oil and bitumen from the Baghewalla field in Jaisalmer district of Rajasthan, OIL had entered into technical collaboration with M/s PDVSA of Venezuela and drilled the first pilot well, the testing of which remained inconclusive. Actions are now in hand to set up alternative arrangements for experimental cold production of heavy oil.

Natural Gas Production

OIL is presently producing around 6.0 MMSCMD of natural gas from its Upper Assam and AP fields to meet its internal requirement and market commitment of 5.472 MMSCMD. OIL has committed to supply 1.0 MMSCMD natural gas to Numaligarh Refinery by 2009-10 and 1.35 MMSCMD natural gas (feedstock+fuel) to Brahmaputra Cracker and Polymer Ltd. from 2011-2012.

a) OIL plans to enhance its production potential from the present level to 10.0 MMSCMD in the north-east mainly from non-associated gas source to meet the future requirement of natural gas, compensation for calorific value to consumers in post cracker scenario and cushion gas required for operational flexibility. In order to meet the demand, your Company has initiated various time bound actions for development of Non-Associated Gas fields and distribution network infrastructure.

• Drilling of development gas wells (drilled 12 NAG well since 2002-03)

• Conversion of wells to gas wells through workover.

• Debottlenecking pipeline network system and augmentation of compressor capacity for optimum utilization of available gas thereby reducing technical flaring to minimum.

• Construction of a Central Gas Gathering Station (CGGS) and Field Gas Gathering Stations (FGGS) for N.A. gas well production.

• Development of gas network infrastructure for supply of natural gas to BCPL.

• Construction of a 6' dia x 70 KM gas pipeline from Kumchai to Dumduma to evacuate the flared gas at Kumchai.

• Construction of gas pipelines from Baghjan and Chabua to CGGS for collection of N.A. gas.

b) Similarly, gas production requirement in Rajasthan has gone up to 0.90 MMSCMD against the current withdrawal level of approximately 0.654 MMSCMD after the recent gas sale agreement with RRVUNL. To meet this enhanced gas demand, 8 development wells were drilled during the last two years in Dandewalla field.

Business Development Initiatives

a) A comprehensive road map was prepared for engaging in prospective business opportunities. A few projects are in the pipeline for providing E and P services to 3rd parties

• Purchasing of one no. 1000 HP mobile drilling rig and 1500 HP drilling rig

• Formation of joint ventures with reputed international companies

b) For monetizing stranded gas and reducing flare, the Company has initiated actions for installation of miniLNG plant.

c) A 198 Km gas pipeline from Duliajan to Numaligarh Refinery is under construction by a JV Company DNP Limited where OIL has a stake of 23%. The pipeline is being laid in the OIL's right-of-way (ROW) of crude oil trunk pipeline.

d) In continuation of its efforts to set up a commercial coal liquefaction plant and after completing the various process tests, OIL will now carry out a Pre-Feasibility Study for setting up of a medium size commercial coal-to-liquid plant which will be integrated with an existing refinery and located near coal mine mouth. Contract has been awarded to the process licensors to provide the process inputs of a 10,000 bpd CTL plant which will be utilised in the study. Health, Safety and Environment Initiatives

MANAGEMENT DISCUSSION AND ANALYSIS

Forward Looking Statements

These discussions are 'forward looking' within the meaning of the applicable laws and regulations. Actual performance may deviate from the explicit or implicit expectations.

Company

The Company is the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production. It is primarily engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India. It also processes the produced natural gas to extract LPG.

Over the years, the Company has successfully established itself as a major player in the International Crude Oil and Natural Gas Sector. Presently, the Company has presence in Egypt, Gabon, Iran, Libya, Nigeria, Yemen and Timor Leste for the exploration of crude oil and natural gas.

The Company primarily conducts its activities with respect to its domestic producing blocks and exploration activities in their nomination blocks independently. Exploration activities, both in India and overseas are also being carried out through joint venture arrangements and PSCs with other oil companies.

As of March 31, 2009, the Company's estimated independent proved plus probable crude oil reserves were approximately 577.47 million barrels which included condensate reserves for 2.07 million barrels and proved plus probable natural gas reserves were approximately 63.41 billion cubic meters which also included gas reserves used for internal fuel consumption for 9.05 bcm. In addition to the Company's independent reserves, it has a participating interest of 8.19 million barrels of proved plus probable and possible reserves in the Kharsang fields in the AssamArakan basin in the state of Arunachal Pradesh.

For Financial Year 2008-09, the Company's gross production amounted to approximately 24.95 million barrels of oil which included natural gas condensate of 0.15 million barrels and approximately 2.27 billion cubic meters of natural gas, representing an average daily production of approximately 68,357 barrels of oil and 6.22 billion cubic meters of natural gas which is approximately 10.41% and 6.91% of India's total production of crude oil and natural gas, respectively.

Industry Overview

The Indian Oil and Gas Industry traces its beginnings to the initial discoveries of crude oil in October 1889 in Digboi, Assam in the far northeast of the Country by the Assam Railway and Trading Company. The industry since then has seen exceptional growth in exploration, development and production activity.

The significant growth of India's economy overthe past decade has led to increases in domestic energy consumption. However, the increase in demand for petroleum products in India has lagged behind the growth in GDP. During the 5 years period ended March 31, 2009, the consumption of petroleum products has grown significantly from 107,751 thousand metric tons for the year 2003-04 to 133,400 thousand metric tons (provisional) for the year 2008-09, representing a CAGR of consumption of petroleum products of approximately 4.36% but has not matched the progression of the GDP over the same period.

Consumption of domestic natural gas during the past decade has grown in absolute terms, from approximately 29.5 billion cubic meters for the year ended December 31, 2003 to approximately 41.4 billion cubic meters for the year ended December 31, 2008, representing a CAGR of approximately 7.%. Despite this high rate of growth, natural gas consumption as a percentage of total domestic energy consumption has remained relatively flat over this period, increasing from 8.41% for the year ended December 31, 2003 to 8.59% for the year ended December 31, 2008, and remains well below the world average of 24.14% for the year ended December 31, 2008. This is mainly due to supply constraints caused by low growth in domestic production.

Growth in energy consumption has tended to lag behind GDP growth over the past half decade due to several factors, including increased oil prices and price volatility and perhaps most significantly, due to the fact that the expansion in the Indian economy has been disproportionately concentrated in the services sector rather than in more energy-intensive sectors such as heavy industry and agriculture.

Crude oil demand is projected to increase to about 1,393 million barrels per year by 2012. Rising global crude oil prices have triggered increased domestic exploration and production activity. Gas demand is expected to reach 330 million standard cubic meters per day by 2012, which represents a CAGR of 10% for the period between 2005 and 2012. Increased use of gas for power generation, petrochemicals, fertilisers and city gas distribution is expected to drive demand growth in the Country.

In addition to demand for energy, the Oil and Gas Industry is significantly affected by demand for a variety of refined and processed products derived from crude oil and natural gas, which are used in a variety of industrial, consumer and agricultural applications. Examples of non-fuel end products include lubricants, fertilizer, plastics and other petrochemicals.

While domestic consumption of petroleum products increased at a CAGR of approximately 4.36% during the 5-year period ended March 31, 2009, indigenous production of petroleum products in India has not been able to grow at the same level. Though the domestic utilisation of natural gas has been limited by supply and distribution factors, it increased at a CAGR of approximately 6.99% during this period due to additional infrastructure. Domestic reserves of crude oil have declined over the 5 years period ended March 31, 2008 from 5431.53 million barrels to 5314.25 million barrels. Domestic gas reserves however, have increased at a CAGR of 7.03% over the same period, from 751 billion cubic meters to 1055 billion cubic meters.

Even, though the per capita energy consumption in India is quite low as compared to the world average, still there is a mismatch between demand and supply of both natural gas and crude oil in India with the demand for both sources of energy outweighing the domestic production and this has made India a net importer of petroleum products and natural gas.

This has necessitated opening up of highly regulated and capital intensive domestic exploration and development activities to attract more players and investments. The steps initiated to increase the areas and investments for exploration and development activities have started yielding positive results. In the last 8 years, India's national oil companies, private and joint venture companies have made 183 significant hydrocarbon discoveries of which 60 are in NELP Blocks.

Although exploration activities have increased with the entry of new participants, to a significant degree a number of large basin areas remain unexplored and in years to come there are possibilities of large discoveries of both crude oil and natural gas.

Strategy and Future Outlook

In orderto achieve sustained growth in long term while maintaining satisfactory profitability, your Company's strategy is three pronged:

• Increase exploration and production in the existing areas.

• Enhance acreage for exploration through competitive bidding or farming-in both in India as well as overseas.

• Acquisition of producing properties overseas including mergers.

The focus of the Company will continue to be E&P, where the Company strongly believes that there exists enormous opportunity, as there is large potential yet to be tapped. To grow in upstream business one has to increase the acreage in addition to augmenting exploration efforts in the existing areas. Further, for accelerated growth of an upstream Company, the organic growth has to be combined with growth through acquisition of new

reserves, which is a global trend.

In India due to rapid urbanization and massive development of infrastructure, the demand for natural gas is on a rise for the last couple of years and it holds a lot of promise. To derive maximum benefit from the increasing demand, the Company intends to put substantial investments for commercial exploitation of its available gas reserves.

The Company is also negotiating with International Companies having thrust belt and/or other relevant experience for strategic alliance in order to leverage mutual strengths.

To sustain and further improve the growth, your Company has been working on the strategy of vertical integration to have a diversified business portfolio through selective presence in the oil and gas value chain covering amongst others refining, gas monetization through cracker/power generation, ventures forgas pipelines and city gas networks and extension of existing business of pipeline services and E and P services as a service provider.

Strategy and Future Outlook

In orderto achieve sustained growth in long term while maintaining satisfactory profitability, your Company's strategy is three pronged:

• Increase exploration and production in the existing areas.

• Enhance acreage for exploration through competitive bidding or farming-in both in India as well as overseas.

• Acquisition of producing properties overseas including mergers.

The focus of the Company will continue to be E&P, where the Company strongly believes that there exists enormous opportunity, as there is large potential yet to be tapped. To grow in upstream business one has to increase the acreage in addition to augmenting exploration efforts in the existing areas. Further, for accelerated growth of an upstream Company, the organic growth has to be combined with growth through acquisition of new

reserves, which is a global trend.

In India due to rapid urbanization and massive development of infrastructure, the demand for natural gas is on a rise for the last couple of years and it holds a lot of promise. To derive maximum benefit from the increasing demand, the Company intends to put substantial investments for commercial exploitation of its available gas reserves.

The Company is also negotiating with International Companies having thrust belt and/or other relevant experience for strategic alliance in order to leverage mutual strengths.

To sustain and further improve the growth, the Company has been working on the strategy of vertical integration to have a diversified business portfolio through selective presence in the oil and gas value chain covering amongst others refining, gas monetization through cracker/power generation, ventures forgas pipelines and city gas networks and extension of existing business of pipeline services and E and P services as a service provider.

Fixed Assets:

* Freehold Land

* Leasehold Land

* Building (including Roads and Bridges)

* Railway Sidings

* Plant and Machinery

* Furniture and Fittings

* Motor Vehicles

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2009

Particulars	31.03.2010
Income
a) Net Sales / Income from Operations	18321.400
b) Other Operating Income	385.400
Total Operating Income	18706.800
Expenditure
(a) (Increase)/decrease in Stock in Trade	76.000
(b) Consumption of Raw Materials*	264.900
(c) Purchase of traded goods	0.000
(d) Employees Cost	2038.000
(e) Depreciation**	3235.300
(f) Other Expenditure	3683.100
Total Expenditure	14899.100
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	3807.700
Other Income	2083.500
Profit/(Loss) before Interest and Exceptional items	5891.200
Interest	09.700
Profit / (Loss) after interest before Exceptional items	5881.500
Exceptional Items	0.000
Profit / (Loss) From Ordinary activities before Tax	5881.500
Provision for Taxation
- Current	1510.500
- Differed	61.100
- Fringe benifit Tax	0.000
Net Profit/(Loss) From Ordinary activities after Tax	4309.900
Extraordinary Items	0.000
Net Profit/(Loss) for the period	4309.900
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	2404.500
Reserves (Excluding Revaluation Reserves)	0.000
Public Share Holding
Before Extraordinary Items
-Basic***	179.200
-Diluted***	179.200
Average of Public Share Holding
- Number of Shares	51854822
- Percentage of shareholding	21.57
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	NA
- Percentage of shares(as a % of the total share capital of the company)	NA
b) Non-encumbered
- Number of Shares	188599560
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100
- Percentage of Share (as a % of the total share capital of the company)	78.43

* Consumptions of Raw Materials includes consumption of stores and spares.

** includes depreciation, depletion and write – offs.

*** On monthly weighted average equity shares outstanding

AS PER WEB DETAILS

Profile

The story of Subject traces and symbolises the development and growth of the Indian petroleum industry. From the discovery of crude oil in the far east of India at Digboi, Assam in 1889 to its present status as a fully integrated upstream petroleum company, SUBJECT has come far, crossing many milestones.

On February 18, 1959, Oil India Private Limited was incorporated to expand and develop the newly discovered oil fields of Naharkatiya and Moran in the Indian North East. In 1961, it became a joint venture company between the Indian Government and Burmah Oil Company Limited, UK.

In 1981, Subject became a wholly-owned Government of India enterprise. Today, SUBJECT is a premier Indian National Oil Company engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. OIL also provides various E&P related services and holds 26% equity in Numaligarh Refinery Limited.

The authorised and paid up capital of the company as on March 31, 2007 are Rs. 5000 million and Rs. 2140 million respectively, with 98.13 per cent holding by the Government of India and 1.87 per cent by others. The net worth of the company as on March 31, 2007 is Rs. 68490.700 million.

Subject has over 1 lakh sq km of PEL/ML areas for its exploration and production activities, most of it in the Indian North East, which accounts for its entire crude oil production and majority of gas production. Rajasthan is the other producing area of SUBJECT, contributing 10 per cent of its total gas production.

Additionally, Subject exploration activities are spread over onshore areas of Ganga Valley and Mahanadi. SUBJECT also has participating interest in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc. as well as various overseas projects in Libya, Gabon, Iran, Nigeria and Sudan.

In a recent CRISIL-India Today survey, SUBJECT was adjudged as one of the five best major PSUs and one of three best energy sector PSUs in the country.

Business

Subject systematic and scientific approach to exploration has been rewarded with a high success ratio of 65% of exploratory wells drilled. SUBJECT also possesses 2D and 3D seismic data acquisition capabilities, with excellent support services ranging from satellite navigation systems to remote blasting units.

Subject owns a vast array of advanced computing systems and experienced personnel to process and interpret geo-scientific data through integrated exploration applications such as Remote Sensing, Structural and Stratigraphic Interpretation, Seismic Attribute Analysis, Source Rock Evaluation, Biostratigraphy, Petrophysics, Sequence Stratigraphy, Basin Analysis, Techno-economic Evaluation, etc.

Formation evaluation through an integrated approach of geological, geophysical, geo-chemical and reservoir engineering studies has allowed SUBJECT to develop and exploit deep (3500-4700 m) thin sand prospects. Today, these reservoirs contribute over 50% of SUBJECT’s production. It is envisaged that the current introduction of extensive 3D seismic will assist in reservoir management in both new as well as ageing fields, heralding a new chapter in reservoir engineering studies.

Subject has so far acquired, processed and interpreted over 70,000 line km of 2D and 5,000 sq km of 3D seismic data in a variety of terrains, including hills, deserts, rivers, marshes, etc.

Reservoir Management

Subject has pioneered the implementation of the concepts of modern reservoir management in the Indian Subject industry. Numerical reservoir simulation, introduced by SUBJECT in India for the first time in the early seventies, has remained its forte since inception. Simulation has been used as an important tool for management planning, production forecasting and decision making. Based on numerical simulation studies, gas and water injection, and water and polymer flooding projects have been successfully implemented in SUBJECT’s fields, yielding recoveries averaging over 20% in excess of the recoverable solely by primary depletion.

Subject has also developed special expertise in reservoir management of ageing fields. Today, SUBJECT has state-of-the-art numerical reservoir simulators with dedicated workstations and a valuable knowledge-base to handle cost-effective reservoir evaluation, development and management in all demanding environments.

An integrated database management system designed and developed in-house has been extremely efficient in processing / analysing reservoir monitoring data. Apart from routine activities for reservoir surveillance, many other operations such as transient well tests, nodal analysis, collection of crude / condensate / gas samples for PVT analysis, analysis of side-wall and conventional cores, etc. are carried out as an integral part of reservoir management.

Press Releases

Oil India re-launches its corporate website

New Delhi, January 22, 2008

Oil India Limited (OIL), a premier National oil company, has re-launched its corporate website http://www.oil-india.com in a function held at the Corporate Office in Noida on Tuesday.

Mr. MR Pasrija, Chairman and Managing Director, OIL relaunched the website, available both in Hindi and English, in the presence of Mr. NM Borah, director (Operations), Mr. JK Talukdar, director (HR & BD), Mr. TK Ananth Kumar, director (Finance) and other senior officials of the company.

Speaking on the occasion, Mr. MR Pasrija, CMD, OIL said: The website traces the history and evolution of the company and showcases OILs corporate image to the world. Moreover, the technology upgradation will help the user to surf the website at a faster pace. After a makeover, they now need to stress on daily and continuous upgradation of the data and other valuable information, he added.

The OIL corporate website has been developed using the dot.net technology. The bilingual site supports Unicode characters and has been developed in an optimised way so that a single code base can be used for both the languages.

The website features OILs corporate profile, vision & mission, corporate spread, alliances, heritage, business, financial reports, OIL in News, R&D, RTI Act and other important information related to the company.

About Oil India Limited

Subject is engaged in the business of Exploration, Production and Transportation of Crude Oil and Natural Gas. Oil India Limited is a "Schedule A" company under the Ministry of Petroleum and Natural Gas, Government of India.

The authorised and paid up capital of the company as on 31st March 2006 are Rs.2500 millions and Rs. 2140 millions respectively with 98.13% holding by the Government of India and 1.87% by the employees and others. The net worth of the company as on 31st March 2006 is 58483.000 millions.

In a recent CRISIL-India Today survey, OIL was adjudged as one of the five best major PSUs and one of three best energy sector PSUs in the country.

OIL has been a consistent and superior performer in various core business areas over the years. Its feats have been recognised in India as well as internationally by world-renowned institutions and agencies. Some of the major awards and accreditations earned by OIL are listed below.

Awards and Accolades

* Rated No. 1 Public Sector Company, 2006 by the Department of Public Enterprises, Government of India based on performance

* "Excellent" performance rating by Government of India for past 4 years

* Performance Excellence Award, 2005-06 by the Indian Institution of Industrial Engineering (IIIE)

* Counted among the 5 Best Public Sector Undertakings and the 3 Best in the Energy Category by the India Today-CRISIL Survey in 2005

* Best Project Award for Corporate Social Responsibility, 2005 by TERI, among 130 participating companies

* Corporate Social Responsibility Award, 2003-04, by TERI for good corporate citizenship and sustainable initiatives among comapnies with turnover above Rs 500 crore

* Green Tech Award for Environment Management, 2002

* Golden Peacock Award for Corporate Social Responsibility, 2002

* Special Commendation Award for Human Resource Management, 2001-2002 by National Petroleum Management Programme - for OIL’s continuously evolving technology and business environment and the Company’s initiatives to enhance safety in operations and quality of work life via good practices

* Excellent Performing Public Sector Enterprise Award, 1998-99

* "Excellent" performance rating by Government of India for 1997-98, 1998-99 and 1999-2000

* Longest Accident Free Period - 1997-98, 1998-99

* Excellent Performing Public Sector Enterprise Award, 1998-99

* Excellence in Riverbed Survey Award, 1998-99

* Best Oil and Gas Processing Unit Award, 1997-98

* nternational Green Land Society National Award, 1997-98 for best energy conservation and implementation

* Corporate Performance Award 1985 from Harvard Business School Association of India and Economic Times

* Ranked 1 fir Profitability in terms of paid-up capital, net assets and sales from 1981-82 to 1983-84 by the Indian Institute of Public Opinion, among 100 largest corporate enterprises in India

Accreditations

* ISO-9000:2000 Certification (Quality Management System) : LPG Plant

* ISO-9001:2000 Certification : Gas Based Power Plant

* ISO-9000:2000 (Quality Management System) : Trunk Pipeline

* ISO:9001:2000 : OIL Hospital at Duliajan

* ISO-14001 (Environment Management) : Trunk Pipeline

* OHSAS 18001 (Occupational Health and Safety Assessment Series) : Trunk Pipeline

* ISO/IEC 17025 : 2005 accreditation by NABL, Government of India for OIL’s R and D Department, the first among E and P company laboratories to get this accreditation

Press Release

Oil India Board in its 406th Board Meeting held on 27th July, 2010, approved the FY11, Q1, financialresults

New Delhi, July 27, 2010India Board in its 406th Board Meeting held on 27th July, 2010, approved the FY11,

Oil India Board in its 406th Board Meeting held on 27th July, 2010, approved the FY11, Q1, financial results. Details of FY11, Q1, results are as follows:

I. Q1 Performance

Details

Unit

Q1 2009-10

Q1 2010-11

% variance

A. Financial

Turnover	Rs. Crores	1931.88	1523.42	(21.14)
Net Profit	Rs. Crores	739.69	501.11	(32.25)
Earnings per share	Rs.	34.56	20.84	(39.70)

B. Subsidy

GrossCrude oil Price	US$/barrel	57.49	78.10	35.85
Subsidy/Discount	US$/barrel	1.84	28.42	1444.57
Net Price	US$/barrel	55.65	49.68	(10.73)

Subsidy Discounts	Rs.Crore	57.61	729.66	729.66 1166.55
GrossCrude oil Price	Rs/Barrel	2804.62	3562.80	27.03
Subsidy/Discount	Rs/Barrel	89.51	1296.30	1348.22
Net Price	Rs/Barrel	2715.11	2266.50	(16.52)

C. Production

Crude oil	MMT	0.882	0.798	(9.52)
Natural Gas	BCM	0.605	0.553	(8.60)
Oil + Oil equivalent	MMTOE	1.487	1.351	(9.15)

II. Physical Performance

1. The crude oil production for the first quarter ending June, 2010, is 0.798 MMT, compared to 0.882 MMT during the same period last year. The direct and indirect consequential crude oil production losses during the quarter due to NRL shut-down was 0.130 MMT and the crude oil production would have been 0.928 MMT - 5% higher, if production loss of 0.130 MMT due to NRL shut-down was not there. Numaligarh Refinery Limited (NRL) was shut-down from 16th March, 2010, beyond the scheduled 60 days for major upgradation works to comply with Euro III and Euro IV norms. NRL came back to full stream on 26th June, 2010, thereby resulting in a delay of about 42 days.
2. Since NRL has come back on stream, the production of OIL has been ramped up to pre- shut down level of over 9910 Tonnes/day. Efforts are on to increase the production further to make up for the losses incurred.
3. In spite of logistic constraints the Company far exceeded its 2D and 3D seismic survey targets in the first quarter of 2010-11.

III. Important Highlights

• OIL made two hydrocarbon discoveries in Assam during the first quarter. The first was at location Jengoni-2, where discovery of oil has opened up new area for oil production. The second discovery was in Makum 33 where the well produced gas. This has also opened up new area mainly for gas production. Both the above discoveries are being further tested for development.
• OIL has bagged a total of 9 blocks in the NELP-VIII, the highest ever in a single round of bidding, out of 14 blocks for which it had bid. OIL has entered into offshore operation in Cauvery Basin as operator and also established its presence in Andaman Deepwater as joint operator along with ONGC.
• OIL has also won a CBM block in the last round of CBM bidding. The agreement for the block will be signed shortly.
• In Libya, OIL has started its exploratory drilling campaign and has successfully completed drilling of its second well. Testing of this well is in progress.
• In Gabon, where OIL is the operator, the work in it's Block is progressing as per schedule.
• In Venezuela, where the consortium of OIL, IOCL, OVL, Petronas and Repsol has signed the agreement for the Carabobo Block, the work is progressing on schedule. Agreement for the block was signed on 12th May, 2010.
• OIL became a "Navratna" Company in April 2010. Perseverance and unstinted commitment of its employees and staunch support of Ministry of Petroleum & Natural Gas, resulted in OIL attain this coveted status.
• APM Gas price revision announced by the MOP&NG in May 2010 to $4.20/mBTu will have a positive affect on the company's bottom-line.
• The price revision of auto fuels and cooking fuels announced on 25th June is expected to add to the bottom line of the company by way of lower subsidies.

IV. Awards

• OIL has been selected to receive the "Special Commendation" for the Golden Peacock Environment Management Award 2010. The Award is recognition of the symbol of excellence in Environment Management, and a sign of a successful competitive organisation. The Award will be presented in London at the Global Summit on Sustainability on 30th July, 2010 at London.

V.Corporate Social Responsibility

As a leading Corporate Citizen, OIL's exemplary social welfare and community development initiatives focusing on the key areas of education, healthcare and the overall development of basic infrastructure have touched many a lives in and around its operational areas. OIL is now poised to consolidate its position as one of the leading energy companies of India.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.02
UK Pound	1	Rs.73.20
Euro	1	Rs.60.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		77

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.