MIRA INFORM REPORT

Report Date :

11.10.2011

IDENTIFICATION DETAILS

Name :	OIL INDIA LIMITED
Registered Office :	Duliajan, District – Dibrugarh - 786602, Assam – 786602
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.02.1959
Com. Reg. No.:	55-001148
Capital Investment / Paid-up Capital :	Rs. 2404.500 Millions
CIN No.: [Company Identification No.]	L11101AS1959GOI001148
TAN No.: [Tax Deduction & Collection Account No.]	DELO00502F
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Exploration and Production of Crude Oil and Natural Gas, extraction and bottling of LPG and transportation of crude oil.
No. of Employees :	8634 (Approximately)

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 624000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well established government of India Comapany. The Company has been consistently showing excellent financial performance over the years. Fundamentals are strong and healthy. Trade relations are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for any 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	P.O Duliajan, District – Dibrugarh - 786602, Assam, India
Tel. No.:	91-374-2800427
Fax No.:	91-374-2800522
E-Mail :	oilindia@oil.delhi.nic.in oilindia@oil.asm.nic.in srkrishnan@oilindia.in
Website :	www.oilindia.nic.in
Corporate Office :	Plot No.19, 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 :	Bay Exploration Project Oil India Limited IDCO Tower, Janpath , Bhubaneswar – 751002 Phone : 91-674-2542815/2543314/2542026/2543314 Fax: 91-674-2506926 E Mail : oilbep@sancharnet.in Rajasthan Project Oil India Limited 12 Old Residency Road, Jodhpur – 342011 Phone : 91-291-2433642/2431 Fax : 91-291-2431689 E Mail : gmrp@sify.com North East Frontier Project Oil India Limited Duliajan – 786602 Phone: 91-374-2801798/2800405 Fax: 91-374-2801799 E Mail – net@oilindia.in KG Basin Project Oil India Limited D.No 11-4-7 Nookalamma Temple Street, Ramarao Pet, Kakinada – 533004, Andhra Pradesh Phone : 91-884-2302176 Fax : 91-884-2352383 Email : oilkgbproject@gmail.com
Branch 1:	Calcutta Branch 4, India Exchange Place, Kolkatta – 700001 Phone : 91-33-22307518/22301657/22301658 Fax: 91-33-22302596 Email : oilcalmn@cal2.vsnl.net.in
Eastern Producting Area:	Oil India Limited Digboi – 786171, Assam Phone :91-3751-264732 Fax : 91-3751-269451
Oil Office :	At Libya Oil India Limited Hay Al Andalus – Ali Shehtri Street, P O Box 6242, Tripoli, Libya, GSPLAJ Phone :91-218-21 4778022 Fax: 91-218- 21 4773629 At Gabon Oil India Limited Sabliere, Libreville, Gabon Phone : 91-241-442992 Fax : 91-241-442991
Moran Oil Field :	Oil India Limited Moran – 785669 District – Sivasagar (Assam) Phone : 91-3754-224031/224031 Fax: 91-3754-224034 Email : oilmoran@oilindia.in

DIRECTORS

As on 31.03.2011

Functional Director

Name :	Mr. N.M Borah
Designation :	Chairman and Managing Director
Qualification :	Post Graduate Dipoma in Petroleum Prospecting and Reservoir Evaluation , Bachelor’s Degree in Petroleum Engineering
Experience :	35 Years
Date of Appointment :	06.05.2004
Name :	Mr T.K Ananth Kumar
Designation :	Finance
Qualification :	B Commerce, Osmania University
Experience :	22 Years
Date of Appointment :	18.01.2007
Name :	Mr. B. N Talukdar
Designation :	E and D
Qualification :	Bachelor’s Degree in Technology , Indian School of Mines University
Experience :	32 Years
Date of Appointment :	01.12.2007
Name :	Mr. Nirpen. Kumar Bharali
Designation :	HR and Bd
Name :	Mr. S. Rath
Designation :	Operations
Qualification :	Bachelor’s Degree in Commerce and Bachelor’s degree in Law, Bangalore University
Experience :	33 Years
Name :	Mr. D.N Narisimha Raju
Designation :	Government Nominee Director
Qualification :	Master Degree of Science , University of Agricultural Science, Bangalore and Post Graduate Degree in Master of Business laws , National Law School of India University
Date of Appointment :	01.08.2008
Name :	Mrs. Archana S Mathur
Designation :	Government Nominee Director
Qualification :	PHD International Trade, Jawaharlal Nehru University, M Economics , University of Delhi
Name :	Mr. Ghanshyambhai .Hiralal Amin
Designation :	Independent Director
Qualification :	B Science , Gujarat University
Experience :	35 Years
Name :	Mr. Vinod K. Misra
Designation :	Independent Director
Qualification :	M Philosophy , Indian Institute of Public Administration, Bachelor’s – University of Delhi, Physics, University of Delhi
Name :	Mr. Alexander K. Luke
Designation :	Independent Director
Qualification :	B Civil Engineering , Indian Institute of Technology, Mumbai
Experience :	35 Years
Name :	Mr. Sushil Khanna
Designation :	Independent Director
Address :	Bachelor’s Degree In Science, Post Graduate Diploma In Management, PHD , Indian Institute of Management , Calcutta
Experience :	38 Years
Name :	CA Pawan K. Sharma
Designation :	Independent Director
Qualification :	Bachelor’s Degree in Commerce and Law, Guwahati University

KEY EXECUTIVES

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

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government /State Government	188,599,560	78.43
Sub Total	188,590,560	78.43
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	188,599,560	78.43
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10,150,217	4.22
Financial Institutions / Banks	2,529,738	1.05
Foreign Institutional Investors	5,467,700	2.27
Sub Total	18,147,655	7.55
(2) Non-Institutions
Bodies Corporate	26,525,406	11.03
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4,686,896	2.86
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	49,309	0.02
Any Others (Specify)
Trusts	1,442	-
C M Pool A/c	90,446	0.04
Director and their Relatives and Friends	153,080	0.06
Sub Total	31,506,799	14.02
Total Public shareholding (B)	49,654,454	21.57
Total (A)+(B)	238,254,014	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
Total (A)+(B)+(C)	238,254,014	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 :

Product Description	Item Code No
Crude Oil	27 – 09
Natural Gas	2711 - 21
Liquefied Petroleum Gas	27-11

PRODUCTION STATUS (31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Crude Oil - Assam - Arunachal Pradesh - JVC (India)	Gross- Metric Tonnes Net* – Metric Tonnes Gross- Metric Tonnes Net – Metric Tonnes Gross- Metric Tonnes Net – Metric Tonnes	NA NA NA	NA NA NA	3537887.923 3523368.647 23299.159 23299.159 37118.097 37118.097
Condensate - Assam - Rajasthan	Gross- Metric Tonnes Net – Metric Tonnes Gross- Metric Tonnes Net – Metric Tonnes	NA NA	NA NA	25152.000 25152.000 86.045 86.045
Natural Gas - Assam - Arunachal Pradesh - Rajasthan	Grs Millions Standard C.Mtrs Net** Millions Standard C.Mtrs Grs Millions Standard C.Mtrs Net** Millions Standard C.Mtrs Grs Millions Standard C.Mtrs Net** Millions Standard C.Mtrs	NA NA NA	NA NA NA	2189 2086 21 3 157 156
Liquefied Petroleum Gas	Gross Metric Tonnes Net – Metric Tonnes	50,000	50,000	45010 45004
Electricity	Gross Million Kilowatt Hours Net Million Kilowatt Hours	41.5	41.5	93 89

Notes:

(*) Includes internal consumption of crude oil 8042.135 metric tonnes (Previous year 8249.426 metric tonnes)

(**) Includes internal consumption of natural gas 337 million standard cubic meter (Previous year 339 million standard cubic meter)

GENERAL INFORMATION

No. of Employees :

8634 (Approximately)

Bankers :

• Allahabad Bank
• Axis Bank
• Canara Bank
• Corporation Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank
• Punjab National Bank
• State Bank of India
• Standard Chartered Bank
• Syndicate Bank
• United Bank of India
• United Commercial Bank
• Union Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Cash Credit/Working Capital Demand Loan: State Bank of India, Kolkata (Secured by hypothecation of all current assets including goods-in-transit wherever situated, excluding assets under Joint Venture, for cash credit working capital demand loan and L/C bank guarantee with hypothecation created in favour of the bank subject to a limit of Rs. 10000.000 Millions (Previous Year Rs. 5000.000 Millions)	15.800	0.000
Loan from Bank : (Secured by pledge of term deposit Receipt)	10039.600	0.000
Total	10055.400	0.000
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Long Term: From oil industry development Board (Repayble with in one year Rs. 125.000 Millions , Previous Year Rs. 162.500 Millions)	212.500	375.000
Total	212.500	375.000

Banking Relations :
Statutory Auditors 1 :
Name :	Chatterjee and Company Chartered Accountant
Address :	153, 3^rd Floor, Rash Behari Avenue, West Bengal – 700029, Kolkata , India
Statutory Auditors 2 :
Name :	SRB and Associates Chartered Accountant
Address :	5^th Floor, IDCO Towers, Janpath, Orissa – 751022, Bhubaneshwar , India
Cost Auditors :
Name :	Manil and Comapany
Address :	Ashoka, 111, Southern Avenue, West Bengal – 700029, Kolkata, India
Secretarial Auditors :
Name :	Chandrasekaran Associates
Address :	11-F, Pocket – IV, Mayur Vihar, Phase – l, New Delhi – 110091, India
Associates/Subsidiaries :	IOTL – Oil Consortium

CAPITAL STRUCTURE

As on 31.03.2011

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
24,04,54,382	Equity Shares	Rs.10/- each	Rs. 2404.544 Millions

NOTE: The above includes 18,46,69,600 (Previous Year 18,46,69,600) Equity Shares of Rs. 10 each issued at fully paid up bonus shares by capitalization of Securities Premium and General Reserve)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2404.500	2404.500	2140.044
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		153614.200	135233.400	91170.151
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		156018.700	137637.900	93310.195
LOAN FUNDS
1] Secured Loans		10055.400	0.000	27.025
2] Unsecured Loans		212.500	375.000	537.500
TOTAL BORROWING		10267.900	375.000	564.525
DEFERRED TAX LIABILITIES		11490.500	10209.000	8998.246
LIABILITY FOR WELL ABANDONMENT COST		1644.800	18.900	14.566
TOTAL		17942.190	148240.800	102887.532
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9897.000	10752.200	11337.754
Capital work-in-progress		4483.600	3286.600	3185.878
Producing Properties		32585.900	29436.900	25214.523
Pre Producing Properties		8756.900	5984.400	5622.872
INVESTMENT		8904.100	8594.400	4886.606
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5003.600	4533.800	5009.954
	Sundry Debtors	2494.700	6596.700	4047.338
	Cash & Bank Balances	117692.800	85429.100	60700.084
	Other Current Assets	4747.700	3066.100	3524.726
	Loans & Advances	18071.000	23069.300	10271.427
	Interest accrued on Investments	0.700	0.400	0.000
Total Current Assets		148010.500	122695.400	83553.529
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4981.200	2459.100	14636.651
	Other Current Liabilities	16014.700	15586.200	0.000
	Provisions	12220.200	14647.600	16276.979
Total Current Liabilities		33216.100	32692.900	30913.630
Net Current Assets		114794.400	90002.500	52639.899
MISCELLANEOUS EXPENSES		0.000	183.800	0.000
TOTAL		17942.190	148240.800	102887.532

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	81132.200	77485.600	71397.191
		Income From Transportation	1901.600	1569.900	1017.300
		Other Income	11851.000	9371.300	9371.749
		Other Adjustments	607.300	170.500	(407.465)
		TOTAL (A)	95492.100	88597.300	81378.775
Less	EXPENSES
		Increase / Decrease In Stocks	(76.400)	105.700	130.014
		Production, Transportation and Other Expenditure	41399.000	40729.000	39612.493
		Provision against debts, advances and other write offs	4696.000	2827.200	3711.977
		Depletion	3014.600	2628.100	2087.639
		Exchange Loss/ Gain Net	14.000	(47.700)	(61.508)
		Other Adjustments	1448.300	1126.200	213.927
		Prior Period Items	41.400	58.700	46.303
		TOTAL (B)	50454.100	47427.200	45740.845
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		45038.000	41170.000	35637.930
Less	FINANCIAL EXPENSES (D)		139.200	36.500	87.441
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		44898.800	41133.600	35550.489
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1766.800	2182.700	1680.786
	PROFIT BEFORE TAX (E-F) (G)		43132.000	38950.900	33869.703
Less	TAX (H)		14254.700	12845.700	12252.863
	PROFIT AFTER TAX (G-H) (I)		28877.300	26105.200	21616.84
	Earning in Foreign Currency		15.600	18.700	0.574
	Value of Imports on C.I.F Basis
	Capital Goods		662.100	746.500	761.195
	Stores and Spares Parts		717.200	897.400	893.576
Less	APPROPRIATIONS
		Interim Dividend	4328.200	4328.200	3210.066
		Tax on Interim Dividend	718.900	735.600	545.551
		Final Dividend	4688.800	3847.300	3317.006
		Tax on Proposed	760.600	639.000	563.726
		Transfer To General Reserve	18380.800	16555.200	13980.491
	Earnings Per Share (Rs.)		1200.900	1137.800	101.010

QUARTERLY RESULTS

PARTICULARS	June, 2011
	1^st Quarter
Gross Sales	23660.80
Other Operating Income	0.000
Other Income	3026.400
Total Income	26687.200
Total Expenditure	11249.200
PBIDT	15438.000
Interest	88.000
PBDT	15350.000
Depreciation	2784.300
Tax	4069.600
Fringe Benefit Tax	0.000
Deferred Tax	0.000
Reported Profit After Tax	8496.100

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	30.24	29.46	26.56
Net Profit Margin (PBT/Sales)	(%)	53.16	50.27	47.44
Return on Total Assets (PBT/Total Assets}	(%)	27.31	29.19	35.69
Return on Investment (ROI) (PBT/Networth)		0.28	0.28	0.34
Debt Equity Ratio (Total Liability/Networth)		0.28	0.24	0.33
Current Ratio (Current Asset/Current Liability)		4.46	3.75	2.70

LOCAL AGENCY FURTHER INFORMATION

SIGNIFICANT HIGHLIGHTS:

Navratna Status

Their Company is now a Navratna PSE since first quarter of the 2010. The grant of Navratna status is in recognition of the tireless efforts and contribution of all the Oil Indians towards helping the nation in attaining energy security and it is envisaged to bring competitive advantage by supporting its drive to eventually become a global giant.

Excellent MoU Rating

Their Company has been rated "Excellent” in the MOU with GoI for the year 2009-10 and is expected to be rated at the same level during 2010-11.

Production and Sale

Their Company has set another record of achieving the highest ever production of crude oil and condensate at 3.609 MMT. The production of natural gas and LPG was 2352.71 MMSCM and 45010 Tonnes respectively. We transported 5.95 MMT of Crude oil and 1.069 MMT of products through our pipelines. This helped to achieve the highest sales turnover of `Rs. 81132.200 millions during the year and set a new record of 10.62 % increase in Profit after tax at ` Rs. 28877.300 Millions compared to the previous year, despite bearing a burden of subsidy to the tune of ` Rs. 32930.800 Millions to PSU Oil Marketing Companies on the price of Crude Oil and LPG as per the administrative order of the Ministry of Petroleum and Natural gas.

MANAGEMENT DISCUSSION AND ANALYSIS

THE NATIONAL ECONOMY

Their nation has weathered the recent economic recession quite well as the economic recovery was primarily powered by domestic demand. Our real GDP growth rate at 10.4% in 2010 remained among the strongest in the world, which is expected to be 8.2% in 2011. With timely mitigation of recession risks the economy has shown resilience, however high oil prices will pose the biggest risk to both growth and inflation. Persistent high inflation will also pose a risk to sustaining high growth

INDUSTRY SCENARIO

Despite the ongoing recession worldwide, which was compounded by high risk premiums placed on crude oil due to the political uncertainty in the Arab regions, energy consumption rose by 5.6% during 2010 worldwide due to high energy intensity. Though this growth was spearheaded by emerging economies, it was also incidenced in developed nations and was the highest ever in the last four decades. The onerous task at hand is to increase the efforts to reduce the energy intensity and cater for a sustainable energy mix towards which the progressive economies have strategize for greener, cleaner and alternate fuels. Due to the growth in these areas as well as high prices of crude oil, the growth in consumption of fossil fuels was the lowest.

During 2010, in the hydrocarbons sector, global oil consumption grew by 3.1% against production growth of 2.2% only and global natural gas consumption grew by 7.1% against a production growth of 7.3%. Domestic production of crude oil was 1% of global production and grew by 9.8% against a consumption growth of 2.9%, which was 3.9% of global consumption. India imported around 81% of its crude oil requirements. Domestic natural gas production, which was 1.6% of the global production, increased by 29.7%. Domestic consumption of natural gas was 1.9% of the global consumption and domestic consumption increased by 21.5%.

During 2011 demand for crude oil is expected to grow globally by 1.6 %( 1.4mmbbl/d) provided the prices are sustainable and do not dent the growth or corrective steps are taken to increase energy efficiency and most importantly reduce energy intensity. Domestically the fuel demand is expected to grow by 3.8% in fiscal 2012.

In fiscal 2011, the company made a humble contribution of 9.65% of the nation's production of crude oil and 4.50% of the nation's production of natural gas.

OPPORTUNITIES AND THREATS:

The ongoing economic recession threw open opportunities for inorganic growth through M and A activities at competitive prices, however due to our relatively small size as also due to many countries supporting such opportunities through Sovereign funds it is a challenge to compete for producing properties overseas. They are assessing many properties globally for our inorganic growth and are hopeful of bringing them to a successful acquisition. IOCL continues as their partner in these ventures.

Shale/Non-conventional gas has emerged as another area of interest and in their Nominated Blocks They are in the process of concluding the studies through a reputed consultant. They have also tied up with GAIL and Arrow Energy for these ventures both indigenously and overseas and are actively pursuing acquisition of producing properties in this regard.

With the expansion of the gas markets in India, City Gas Grids/Distribution is a dominant area of future growth.

Due to our core competence in almost all areas of upstream operations, as also due to a paucity of quality services availability indigenously, as also because world-vide oil field services demand is envisaged to outpace capacity additions, they have re-strategize for entering the services sector and are examining collaborations/ acquisitions of service companies.

The probability of success in our exploration ventures would require incremental resources for investment in development and since the company is presently lowly geared these would be met at the appropriate time from other sources of funding, if necessary.

CORPORATE GOVERNANCE

They have always been proud of our robust and transparent processes and structures in place through which their objectives are set; and effective planning, monitoring and delegation of powers is in place for facilitating the means for attaining the same. These progressive systems ensure proper accountability, independence and effective and timely disclosures/reporting. The effectiveness is evident from the fact that the Company has consistently had clean audit reports as also by the fact that every individual employee is committed to his best endeavors in taking forward the vision of your company as a member of a huge family.

As a mark towards achieving excellence the following noteworthy achievements are worth mentioning:-

• Their Drilling Department was accredited with IWCF certification;

• Their Employee Relations Department obtained ISO 9001:2008 certification.;

• Their General Workshop has been accredited with ISO 9001:2008 certification;

• Their Chemical Laboratory was upgraded from ISO 9001:2000 to ISO 9001:2008;

• Their 4MGD Water Treatment Plant has been accredited with ISO 9001:2008 certification;

• They have set up a state-of-the-art 'Visualization Centre'(VC) at Duliajan through a turnkey project implemented by Schlumberger. The ‘Visualization is aimed at collaboration, integration and interpretation of G and G data through immersive visualization technology and is expected to aid OIL in managing exploration risk, reservoir characterization and field development.

• Productivity improvement and new technology absorption was achieved by the following:-

• Telecommunication network has been augmented by new state of the art systems;

• Gas flare has been reduced from 7.5% in fiscal 2010 to fiscal 7.2% in 2011;

• The Performance Management System based on the Balance Score Card approach has been revised in line with DPE Guidelines and the same has been made online across the company;

• HR Audit has been conducted for evaluating the HR scenario and environment in the organization to assess the prevailing HR climate with specific thrust on Job Satisfaction and Morale of Executive employees in the organization and the objective of attaining an important feedback for organizational effectiveness and improvement of organizational climate; and To fulfill their vision of enabling the company to become a Learning Organization through continual organizational transformation and learning, 35 change management programmers were conducted across the organization. This was in addition to 206 external and internal regular training programmers addressing 4162 attendees.

• The following projects are on the anvil for implementation:-

• For quality control, and storage capacity augmentation, a new Intermediate Tank Farm at Tengakhat

• For capacity augmentation State-of-art OCS at Barekuri and Bhogpara

• For providing a significant edge in seismic data processing a High Performance Cluster Computing - Linux Cluster set-up of 8000. millions

• Up-gradation of E and P Databank Infrastructure from existing R2003 to the new paradigm of R5000

• Procurement of state-of-art HP Superdome system for ERP data centre

• Up gradation of the SCADA system to SMS based GSM Data communication system

• Enhancement of Internet bandwidth at Duliajan to 24 MBPS and shift to a terrestrial link with Internet Load Balancer

• Procurement of two 2000 HP VFD Drilling Rigs (one equipped with Top Drive and other with provision of installing Top Drive) and one 750 HP mobile Drilling rig

• Central Gas Gathering Station at Madhuban and gas supply network for BCPL

• Field Gas Gathering Stations at Chabua and Baghjan and grid connectivity

• Replacement of one 20.28 MW Gas Turbine Power Plant for captive consumption

• Water Injection Station in Greater Tengakhat

• Reconnaissance survey of pipeline route existing and new pipeline in Upper Assam Fields; and LNG Plant/Storage and Transportation facilities.

CRUDE OIL PRODUCTION

During this year they drilled twenty-one development wells which together with seventy seven work-over operations augmented the production potential .Despite the constraints of lower drilling achievements than planned and curtailment of production due to Numiligarh refinery shut down as discussed in hereof, and environmental constraints, their consistent efforts on production optimization both in block and individual wells facilitated in arresting the decline rates of their green and brown fields and helped us in achieving a healthy terminal rate of 3.80MMTpa as at 31-03-2011 which was a 4.68% growth over 3.63 MMtpa as at 31-03-2010.

The increasing trend in indigenous crude oil production was also maintained due to a number of progressive measures taken to increase productivity in their main producing fields in Assam and Arunachal Pradesh as follows:-

Well Stimulation and servicing

Myriad of activities like production testing of drilling and work over wells and cleaning or well activation and enlivening wax removal, fish recovery, acidization, backwashing etc. were routinely carried out. In fiscal 2011, 567 No of wells stimulation jobs were carried out, out of which 192 jobs were equivalent to high cost work-over.

Complex crude rheology coupled with other contributing factors result in paraffinization in the production tubing, which restricts the flow area for production of crude oil, and results in loss of production. In order to avoid this loss in production, de-waxing of the tubular both mechanical scrapping and hot oil circulation are carried out round the year. In fiscal 2011 a total of 22204 No of both heavy and light scrapping operations were completed in oil producing wells. Additionally 366 No of other complex well maintenance jobs were carried out using heavy scrapping winches, CTUs and Hot oil circulation units.

Flow assurance

Wire line Services and Hot Oil Circulation

Sustaining flow of oil both in horizontal and vertical regimes requires vigilant monitoring of all the parameters along with rigorous implementation of corrective actions. During the winter season, steam heating and indirect heating measures are adopted as a matter of routine to sustain flow assurance and minimize production loss. In fiscal 2011, 1418 steam heating jobs were carried out using nine mobile steam generators. Nine Indirect heaters were installed at various field locations. Periodic pigging operations of different COD lines were also carried out from time to time. These measures successfully sustained flow assurance and minimized production loss.

Control panel with online monitoring of critical parameters of Oil Collecting Stations are being progressively introduced in the fields .Mass flow meter based metering for condensate production has also been adopted in the fields. Newly procured Echo meters are extensively used to carry out fluid level survey of wells along with application of the same for load calculation of Sucker rod Pump wells.

IOR/EOR/Artificial lifting

Pressure maintenance schemes have been in operation since 1965 and have been augmented over the past five decades. Artificial lifting through gas-lift, sucker rod pumps, etc. is a continuous process. Presently, 146 wells are on gas lift and seven wells are on sucker rod pumps. In fiscal 2011, they carried out optimization of gas lift wells after thorough analysis of dynamics of various well parameters by using state of the art software like Well Flow etc. 60 wells cater for water injection with capacity for 10500 klpd injection. Two wells cater for gas injection.

NATURAL GAS PRODUCTION

Their present production potential is around 7.93 MMSCUMD of which 7.00 MMSCUMD is from N.E Region and 0.93 MMSCUMD is from Rajasthan. They are producing at an average rate of around 6.7 MMSCMD from their fields in Assam and Arunachal Pradesh to meet the market commitment of around 5.7 MMSCMD and their internal requirements. Gas supply to Numaligarh Refinery Limited (NRL) commenced from 28.02.11 after commissioning of the newly laid pipeline. Against a commitment of 1.0 MMSCMD, NRL is currently uplifting about 0.88 MMSCMD. During the year they drilled three new wells and carried out seven works over jobs on shut-in wells and added potential build-up by 1.281 MMSCUMD. OIL has further commitment of 1.35 MMSCMD to Brahmaputra Cracker and Polymer Ltd. (BCPL).BCPL was earlier scheduled to come on-stream by April 2012, which has now been re-scheduled to October 2013. Actions are underway for development of gas production potential and infrastructure development for gas collection and distribution network involving considerable investment. Actions are being taken to enhance production potential from the present level to around 10.0 MMSCMD in the North-east mainly from additional drilling, work over and adoption of new completion technology to meet the future requirement and to compensate for calorific value to consumers in post gas-cracker scenario and the cushion gas required for operational flexibility.

PIPELINE OPERATIONS

All three segments of the pipeline operations ensured uninterrupted throughput achieving throughput of 99.5% of off take in, fiscal 2011 against 99.19% in fiscal 2010. The crude off take at 6.064MMT was 5.6% lower in fiscal 2011 from 6.423MMT in fiscal 2011. Intelligent pigging Survey of 16" main pipeline from PS-1(Naharkatia)to PS 5 (Noonmati) was completed in fiscal 2011 to ensure integrity management of the pipeline. Flow Improver chemicals and Pour point depressants were extensively used during the year to improve the pump ability of crude oil. The throughput of wet crude was lower due to lower off take as reflected below:-

MMT

	Off Take From Fields		Delivery
	2009-2010	2010-2011	2009-2010	2010-2011
Oil + JVC	3.692	3.683	3.672	3.659
ONGCL	1.208	1.138	1.205	1.134
RAVVA	1.523	1.243	1.527	1.237
PRODUCT	0.875	1.069	0.836	1.068
TOTAL	7.298	7.133	7.238	7.098

DISCOVERY OF OIL AND NATURAL GAS

The following six new oil and gas discoveries were made during the year in the Nominated Blocks in the Upper Assam basin, where they drilled nine exploratory wells (two wells were dry), OIL achieved the 'Excellent' MOU target for 8.42 MMTOE of O+OEG accretion to recoverable reserves resulting in a Reserve Replacement ratio of 1:1.42

JENGONI-2 (Loc- HVO)

This well located to the south of Makurn in North-Hapjan field, was drilled to a depth of 2932 meters to probe the hydrocarbon prospects within Tipam and Barail Formations. The well has encountered three gas bearing sands within the primary target of Tipam formation and one oil bearing sand (tested) in Barail formation. This discovery has opened up a new area for producing hydrocarbon within Hugrijan ML area.

MAKUM-33 (LOC. HUI)

This well, located in the West Makum Structure, was drilled to probe the hydrocarbon prospects within the Paleocene-Eocene and Barail Formations, to the depth of 4218 meters within Basement. The well encountered three possible hydrocarbon bearing sand within Barails, five possible oil bearing sand within Lakadong + Therria Formation and one gas bearing sand (tested) within Langpar Formation. This discovery has opened up a new area for gas production within Hugrijan ML area.

MADHAKALI-1 (LOC. MFB)

This well, located in the Madhakali Structure, was drilled to probe the hydrocarbon prospects within the Barail and Eocene- Paleocene Formations, to the depth of 4214 meters within Basement. The well encountered one oil bearing sand (tested) within Lakadong+Therria forrnation. The discovery of commercial oil in this well has opened up new area for oil production within Moran ML area.

BALIMARA-1 (Loc. DGF)

This well, located in the Balimara structure, was drilled to probe the hydrocarbon prospects within Tipam, Barail and Kopili Formations in the southern part of Upper Assam Basin, at the proximity of the Belt of Schuppen to the depth of 4985 metres within Kopilis.The well encountered four possible hydrocarbons bearing sand ranges within Kopili Formation, two possible hydrocarbon bearing and one hydrocarbon possibly oil bearing sand ranges within Barail formation. This was a significant discovery of oil within Kopili reservoir (tested) for the first time in the Company's fields in Assam, which has opened up a new play for exploration and exploitation.

MAHAKALI-1 (Loc. HSX)

This well, located in the Mahakali structure, was drilled to probe hydrocarbon prospects within Paleocene-Lower Eocene Formations to the depth of 4258 metres within Basement. The well encountered a number of hydrocarbon possible oil bearing sand ranges within Lakadong + Therria Formation(tested). The discovery of oil in this well has opened up new area for oil production within Hugrijan ML area.

NHK-292 (Loc. HCS)

This well was taken-up for workover with the objective of investigating the hydrocarbon prospects within Girujans. The 2123 - metres Girujan Sand was tested and it produced gas. This discovery of gas by work over operation has opened up a new play within the Girujan reservoir and a new area for gas production within Hugrijan ML area.

PROJECTS

INDEGENOUS PROJECTS (NOMINATED AREAS)

The status of PELs and PMLs is as follows:-

RAJASTHAN BASIN

Jaisalmer PML area

Gas fields of Tanot, Dandewala and Baggi-Tibba are lying within this PML. The gas produced in this area is supplied to RRVUNL through GAIL (India) Limited's pipeline for generation of electricity. The existing gas supply agreement to the customer is 0.7 MMSCUMD, however, the customer has demanded additional quantity of 0.2 MMSCMD of gas. New gas supply agreement is being worked out to supply additional gas from the Rajasthan Field.

Baghewala PML area

The Heavy Oil field of Baghewala is located in this PML area. The Company had entered into a technological tie up with M/s. Petroleos de Venezuela SA (PDVSA) of Venezuela for exploitation of this prospect. As discussed by PDVSA and under their supervision, and experimentation was carried out with steam injection to produce the heavy oil but it had to be suspended due to operational problems. Experimental cold production carried out with work over efforts resulted in recovery of heavy oil @ 30 BPD in well BGW-4 during August-October, 2009 and 23 BPD in well BGW-1 during February, 2010 with the assistance of Sucker Rod Pumping. Based on the encouraging result, further experimentation are being planned by engaging experts / consultants.

Ningru ML: (Area: 540.668 SqKm)

The Mining Lease expired in November, 2003. MOP and NG accorded approval for re-grant of PML for another 20 years. However, Ministry of Environment and Forest directed State Government of Arunachal Pradesh (SGoAP) to obtain a fresh proposal from us in accordance with the provisions of Forest Conservation Act, 1980 by paying Net Present Value (NPV) for diversion of the forest area covering the entire PML area for mining operation, which has been contested by OIL. It is being pursued vigorously to sort out the matter so that further operations could be taken out in the PML earliest.

Ningru Extension ML: (Area: 75 Sq Km)

They applied for ML conversion of Ningru Extension PEL in June 2003. MoP and NG recommended for PML for another 20 years. Further activities will be taken up after obtaining approval from SGoAP, which is pending for reasons as aforesaid.

Jairampur PEL (Area-18 sq km)

The PEL validity expired on 04.09.2010. As per MWP, location JRC drilled to evaluate supra thrust prospectively of the area but no commercial hydrocarbons could be established.

Jairampur Extn PEL : (Area - 23.25 sq km)

The PEL validity is up to 14.02.2013. Released well location JRB will be taken up for drilling after obtaining Forest clearance from SGoAP.

Namsai PEL: (Area - 370 sq km)

The PEL validity was till 24^th Aril 2010. Drilling of one MWP well has been completed but no commercial hydrocarbon could be established.

Namchik PEL: (Area : 195 sq km)

The PEL validity was till 30^th April, 2010. The released location could not be taken up for drilling as Forest Clearance is yet to be granted by SGoAP. They have applied for extension of PEL, on grounds of statutory delay.

Deomali PEL: (Area - 113.50 sq km)

The PEL is valid up to 03.04.2012. We are planning to acquire fresh seismic data for generation of drilling prospects.

Brahmaputra River Bed

They had applied for grant of a separate PEL for an area of 2754 Sq Km on 09.08.2007 .They have plans to carry out 1,700 GLKM of 2D seismic survey in parts of river Brahmaputra in Upper Assam as a part of our hydrocarbon exploration activities. A few NGOs and Public Organizations had expressed their concern for the survey apprehending ecological imbalance in river Brahmaputra, particularly threat to river dolphins present in the river. MoEF formed a Multidisciplinary Advisory Group (MDAG) consisting of experts on the subject to study the various aspects and also to guide OIL. MDAG along with the expertise from Canada (M/s Jasco) is planning to undertake Impact Assessment Studies in two phases, which has however been deferred pending grant of the PEL.

Nomination PELs under special dispensation

Under special dispensation, extension of time was obtained to complete the work programs in certain PELs having higher probabilities of hydrocarbon discovery. The status of the same is furnished below:-

NELP BLOCKS / PRE NELP BLOCKS

The Company, up to the end of NELP VIII bidding round, is holding Participating Interest (PI) in a total of 30 NELP (11 as operator, 1 Joint Operator and 18 non-operator) & 2 Pre NELP blocks as detailed below:-

NELP BLOCKS WITH OPERATORSHIP

UPPER-ASSAM BASIN (Area 1816 Sq. km.)

AA-ONN-2002/3 (Karbi Anglong, NELP-lV)PI-30%: In this block, mandatory relinquishment of 365 sq. km. area (25% of total 1460 Sq. km initially offered area) have been done during April, 2010 before entering in Phase-II. A total of 241 GLKM. 2D seismic data has been acquired till 31.03.2011. Action has been initiated for hiring integrated drilling services.

AA-ONN-2003/3 (Sadiya, NELP-V) PI-85%:

In this block, in-house processing of 217sq.km of acquired 3D seismic data with preliminary interpretation is completed. Further re-processing has also been carried out through consultants. Due to extremity of the logistical requirements, 36 months extension was sought from MOP and NG which is not granted.

AA-ONN-2004/1 ( Amguri, NELP-VI) PI-85%:

In this block, civil work for drilling of second exploratory well is in progress.

AA-ONN-2004/2 (Dibrugarh, NELP-VI) PI-100%

In this block, on the basis of interpretation of 2D & 3D seismic data as well as geological assessment, two exploratory drilling locations namely, Loc-A (DRA) and Loc.-C (DRB) have been released. Civil work is in progress at the first location DRA while the other location falls under the forest area for which forest and environment clearance is awaited.

AA-ONN-2009/4 (Teok, NELP-VIII) PI-50%:

In this block, grant of PEL is awaited from the State Government of Assam.

ASSAM-ARAKAN BASIN (Area 3213 Sq. km.)

MZ-ONN-2004/1 (Mizoram NELP-VI) with PI-85%

This block is located in a logistically difficult area; as a part of the committed MWP, 2D seismic data acquisition is under progress and a total of 1308 GLKM of 2D seismic data has been acquired till 31.03.2011. Based on the various studies carried out in-house as well as by independent domain experts (both Indian & Foreign) and Indian Educational Institutes, a total of eight exploratory locations have been proposed. EOI has been floated for integrated drilling services.

RAJASTHAN BASIN (Area 5044 Sq. km.)

RJ-ONN-2004/2 (Charanwala, NELP-VI) PI-75%

In this block, a total of six locations have been released for exploratory drilling. The drilling of the first exploratory well (Phulasar#1) has been completed recently but could not establish commercial hydrocarbons.

RJ-ONN-2004/3 (Deviwali NELP-VI) PI-60%

In this block, as a part of the MWP commitment, two exploratory wells viz. Rachan#1 and Madasar#1 have been drilled during the year. While in the first well i.e, Rachan#1, further testing in Upper Carbonate/Bilara formations is planned, the second well Madasar#1 was dry and abandoned.

RJ-ONN-2005/2 (Kalibhar, NELP-VII) PI-60%

In this block, preparation for acquisition of 3D seismic data is under progress.

KRISHNA-GODAVARI BASIN (Area 549 Sq. km.)

KG-ONN-2004/1 (NELP-VI) with PI-90%:

This block falls partly in Andhra Pradesh (511 Aq KM - including 176.34 Sq KM forest land) and partly in Puducherry (38 Sq KM). PEL for Andhra Pradesh part, was obtained on 16.02 2008, but clearance for forest part is yet to be received. PEL for Puducherry part of this block was obtained in June, 2010. Based on the all available

interpretation results/studies/review carried out on the reprocessed 2D seismic data along with other geo-scientific information, four locations were identified. A total of 166 sq km 3D seismic data (In the first phase) out of 235 Sq KM planned in this block has been acquired till 31.03.2011. Pre-monsoon, API of a total of 141 sq.km. of 3D seismic data has been completed and identification and proposal of few more exploratory locations are in progress.

CAUVERY BASIN (Area 1621 Sq. km.)

CY-OSN-2009/2 (NELP-VIII) with PI-50%:

In this block in the Mannar sub-basin of Cauvery basin, the PSC was executed on 30.6.2010 and the exploration activities are in an early stage. In-house interpretation of legacy seismic and well data is in progress. 3D seismic acquisition in the block started on 18.03.2011 and a total of 124 sq.km seismic data has been acquired till 31.03.2011.

NELP BLOCKS UNDER JOINT OPERATORSHIP

ANDAMAN BASIN (Area 3992 Sq. km.)

AN-DWN-2009/3.(NELPVIII) with PI-40%: In this block in deep water Andaman offshore, the PSC was executed on 30.6.2010 and exploration activities are in early stages.2D seismic is planned during 2011-12.

NON-OPERATED NELP BLOCKS

UPPER- ASSAM BASIN (Area 1617Sq. km.)

· In AA-ONN-2001/3 (South Nambor NELP-lII) with PI-15%

They have applied for Phase I restructuring due to stoppage of programmes because of demarcation dispute between two States.

· In AA-ONN-2002/4 (Nagaland, NELP-lV) with PI-10%

They have applied for Phase I restructuring due to stoppage of programmes because of Forest Department instructions.

· In AA-ONN-2005/1 (Nambar, NELP-VII) with PI-30%

The PEL was obtained on 01.12.2010 and exploration activities are in early stages.

· In AA-ONN-2009/3 (Teok, NELP-VIII) with PI-50%

The PSC was executed on 30.06.2010 and exploration activities are in early stages.

MAHANADI BASIN (Area 14041 Sq. km.)

· In MN-OSN-2000/2 (NELP-II) with PI-20%: one appraisal well was completed during the year and being dry was abandoned. Final Development Plan (FDP) does not show economic viability at US $ 5 mbtu gas price in a standalone basis. Approval for extension of appraisal phase up to 22.12.2012 a waited from MoP and NG.

· In MN-DWN-2002/1(NELP-IV) with PI-20%: drilling of exploratory well MDW#9 (TD 6500m WD 2549m) was terminated at depth of 4900 m due to severe drilling complications and abandoned. Prognostication for 2nd well is in progress.

WEST BENGAL BASIN (Area 3940 Sq. km.)

• In WB-ONN-2005/4 (NELP-VII) with PI-25%: legacy geo-scientific data of the block has been studied. Currently acquisition of 3D seismic data is in progress.

KRISHNA-GODAVARI BASIN (Area 41034 Sq. km.)

• In KG-DWN-98/4 (NELP-I) with PI-15%: MWP in all phases has been completed. Three dry wells have been drilled to date. The third well was drilled during 2010-11. Final review of the block is in progress.

• In KG-DWN-2002/1(NELP-IV) with PI-20%: In Phase -I, out of four committed MWP wells, two have completed (both dry). Post drill analysis is in progress.

• In KG-DWN-2004/5(NELP-VI) with PI-10%; 2D acquisition and processing of 7928 LKM has been completed. Interpretation of 2D seismic data and 3D acquisition are in progress as per program.

• In KG-DWN-2004/6(NELP-VI) with PI-15%: 2D & 3D Seismic data acquisition and processing has been completed. Interpretation of 2D seismic data and 3D seismic data are in progress as per program.

• In KG-DWN-2009/1(NELP-VIII) with PI-15%: the PSC was executed on 30 June, 2010 and exploration activities are in early stages.

• In KG-OSN-2009/4(NELP-VIII) with PI-30%: G and G interpretation of legacy data is in progress.

CAUVERY BASIN (Area 12425 Sq. km.)

• In CY-DWN-2001/1 (NELP-III) with PI-20%: MWP commitment of Phase-I has been completed. Exploratory drilling of third well as per committed MWP has been completed in 2010-2011 without success, based on which it is felt prudent to recommend surrender of the block.

ANDAMAN BASIN (Area 24853 Sq. km.)

• In AN-DWN-2005/1(NELP-VII) with PI-10%: arrangement of acquisition of 2D seismic and GM data in the block is in progress. Total 4900 LKM 2D seismic data acquired and processing is in progress.

• In AN-DWN-2009/1 with PI-30%, AN-DWN-2009/2 with PI-40% and AN-DWN-2009/18 with PI-30%: all NELP-VIII blocks, the PSCs were executed on 30th June, 2010 and all the three blocks are in early stages of exploration.

NON-OPERATED PRE-NELP BLOCKS

• AAP-ON-94/1(Area 305 Sq. km.) with PI-16.129% and carried interest of 30%: This block has Dirak Discovery (Area-14 Km2 ). 3D API has been completed during fiscal 2010 and three additional prospects have been identified. Appraisal wells are being drilled.

• GK-OSJ-3(Area 5725 Sq. km.) with PI-15%: Work has been suspended due to rig moratorium.

NON-OPERATED PRODUCTION SHARING CONTRACT (PSC)

. Kharsang Oil Field in Arunachal Pradesh (Area 11.75 Sq. km.): The Company with a Participating Interest of 40%, entered into a PSC with the Government of India in consortium with M/s Geo Petrol International Incorporation France (25%), M/s Jubilant Enery (Kharsang) Private limited, India (25%) and operator M/s Geo Enpro Petroleum Limited India (10%) on 16.06.1995 for 25 years. The field is producing around 280 KLPD oil. 3D seismic API is nearing completion and exploratory drilling of one well to probe the deeper prospects in the Tipams is planned for fiscal 2012.

CBM BLOCK: CBM ROUND IV(NON-OPERATED) (Area 113Sq. km.)

AS-CBM-2008/IV with PI-40%: A total of 15 Core Holes have been identified for drilling in this block after preliminary survey. Presently, Environmental Clearance, Forest Clearance and grant of PEL are awaited.

EXPLORATION PROJECTS OVERSEAS

OPERATED BLOCKS

• Libya: Area 86, and Block 102/4 with PI-50%: Per MWP in both blocks, OIL has completed three exploratory wells of which two were drilled this year. However, commercial hydrocarbon could not be encountered in any of the wells. Process of relinquishment of both blocks has been hampered due to civil unrest in the country.

• Gabon: Block Shakti with PI-45%: Per MWP, they have so far completed processing and interpretation of 1000 LKM of 2D seismic and acquisition and processing of about 140 SQKM of 3D seismic data. Interpretation of the processed 3D seismic data is in final stages. One exploratory well is planned by first Quarter of fiscal 2012.

NON-OPERATED BLOCKS

• Libya: Area 95/96 with PI-25%: 2D seismic data acquisition (2652 KLKM) and processing completed. Interpretation of the data is in progress. Processing of 1st phase of 3D data acquired (1480 Sq KM) in progress. Work held up due to political unrest in Libya.

Nigeria: Block OPL-205 / OML 142 [JV M/s Suntera Nigeria 205 Ltd.-70% (Operator) & M/s Summit Petroleum(30%)]:

OIL has 25% equity holding in M/s Suntera Nigeria 205 Limited along with Suntera Resources limited.(50%) and IOCL(25%).M/s Suntera Nigeria 205 Ltd.holds 40% particticipating interest and further 30% economic interest in Block OPL-205 .Based on the presence of existing gas/condensate discovery within the block, the lease area has been converted from OPL-205 (prospecting license) to OML 142 (mining license).JV is now planning to undertake further activity viz,. 3D seismic followed by 1 well.

• Yemen: Block Nos. 82 & 83 with PI-12.75%: The PSC with Yemen government was executed in April, 2008 and Presidential decree obtained in March 2009. Contract for acquisition of 2D / 3D seismic was awarded to a China based company. Physical activity on the blocks commenced and is currently suspended due to civil unrest in the country.

• Timor- Leste (East Timor): Area-K with PI-12.50%: The Farm-in-agreement was executed during June, 2008. The consortium has completed the MWP including drilling of the commitment well this year. No commercial hydrocarbon was however encountered in the well. Consortium is planning to relinquish the block.

• Egypt: Block Nos. 3 & 4 with PI-25%: The Consortium is waiting for execution of the PSC after formation of new government in the country.

INORGANIC GROWTH

Venezuela: [SA(PDVSA)-60%, OVL-11%, IOCL-3.5%, OIL-3.5%, Rapsol -11%, PETRONAS-11%]

The Company had recently acquired 3.5% of Participating Interest in a Mixed Company formed with Corporation Venezolana del Petroleo ("CVP"), a subsidiary of state oil company Petroleos de Venezuela S.A. ("PDVSA") of Bolivarian Republic of Venezuela. The Mixed Company will be responsible for developing two blocks, Carabobo -1 North and Central, of Extra Heavy Oil in Orinico heavy oil belt. The Bolivarian Republic of Venezuela during February 2010, awarded a 40% ownership interest to a consortium of ONGC Videsh Limited, Indian Oil Corporation Limited, Oil India Limited, Repsol and Petroliam Nasional Berhad (collectively, the "Consortium"), for developing the Carabobo 1 Norte and Carabobo 1 Centro blocks located in the Orinoco Heavy Oil Belt, Venezuela. "CVP" holds the remaining 60% equity interest. The formal contract was executed on 12 May, 2010.

A wholly owned subsidiary of OIL has been created at Sweden named as OIL INDIA SWEDEN AB (OILSWED). OILSWED has 50% share in a joint venture created with IOCL at the Netherlands named INDOIL NETHERLANDS BV (INDOIL). INDOIL will hold 7% in the Mixed Company at Venezuela (3.5% of OIL and 3.5% of IOCL). The liabilities of INDOIL will equally be shared with IOCL.

The mixed company contract was signed on 12.05.2010 at Caracas, for a period of 25 years, extendable by another 15 Years. The Mixed Company was incorporated on July 29, 2010 as M/s Petrocarabobo SA. A Service company CIC,SA has been incorporated on Jan 21, 2011 by Minority Shareholders (MS). Based at Puerto La Cruz, Venezuela, the Service Company would be an executing body for Mixed Company. Master Plan and budget of USD 100 million for 2011 have been approved. First oil through accelerated early production is expected by Q4, 2012.

Iran: Exploration Service Contract- Farsi Offshore[ OVL 40%, (operator), IOCL 40%,OIL 20%]

Gas Commerciality for Farzad-B gas field has been approved by National Iranian Oil Company (NIOC). The consortium has submitted a draft Master Development Plan (MDP) to Iranian Offshore Oil Company (IOOC), subsidiary of NIOC and is responsible for development of Farsi Block. Negotiations on way forward will start soon. Location for onshore Gas processing facilities have been finalized. However, considering the UN sanctions on Iran, due to the uncertainty of furtherr progress, on a conservative basis, the investments herein have been provided for write-off per requirements of Accounting Convention.

Sudan: Product Pipeline [OVL-90 %, (operator) & OIL -10 %]

Further to completion of the product pipeline in 2005, the consortium has received from MEM, Sudan, in total eleven installments so far out of eighteen installments.

OPPORTUNITIES FOR INORGANIC GROWTH

As part of continuous efforts on inorganic growth, The Company has been continuously scouting /evaluating various upstream opportunities and presently is actively pursuing producing properties in Australia, Russia, Kazakhstan, Canada amongst others.

OTHER PROJECTS

Study on Direct Coal Liquefaction

They carried out various activities in continuation of its efforts towards Coal Liquefaction Project during fiscal 2011, which are mentioned below:

Pre-Feasibility Report (PFR) for a 10,000 BPD DCL Plant

In view of low availability of coal and to minimize investment and risk associated with the new technology i.e. Direct Coal to Liquid(DCL) technology of Headwaters CTL, USA, it was deemed necessary to scale down the capacity of the plant to 10,000 Barrel Per Day (bpd) and go for a Pre-Feasibility Study (PFS) through external consultants. HCTL provided conceptual process design data and equipment cost estimates for their proprietary DCL process for preparation of a PFR. Per the report, a 10000 bpd plant is not economically viable.

Coal - Liquid Study Production and Optimization of Direct Coal Liquefaction (DCL) Derived Low Carbon Footprint Transportation Fuels:

On HCTL's initiatives, Department of Energy (DOE), USA sponsored a study on "Production and Optimization of Direct Coal Liquefaction derived Low Carbon - Footprint Transportation Fuels". The study utilized the syncrude produced by OIL in its DCL studies. The objective of this study was to upgrade and characterize raw DCL liquids to fuel grade products and evaluate whether these fuels meet existing specifications for standard petroleum based fuels. In addition, this study provided an engineering assessment of carbon emissions, water use and preliminary economics of a moderate scale DCL facility to produce fuel grade products. This study has been completed and results indicate that the coal-derived syncrude can be upgraded to finished grade transportation fuels.

Characterization of Coal Derived Liquid (Suncrude):

M/s. Indian Oil Corporation Limited (IOCL), R&D Centre, Faridabad was awarded a contract to characterize the stabilized syncrude derived from Assam Coal during Direct Coal Liquefaction (DCL) studies. The objective of this study was to characterize the raw DCL liquids and evaluate whether these fuels meet existing specifications for standard petroleum based fuels. The characterization study has been completed and the report has been received from IOCL. The results indicate that the raw DCL liquid needs up-gradation to meet existing specifications for standard petroleum based fuels.

Characterization of Tertiary Coals of Meghalaya for Hydrocarbon:

The state of Meghalaya in the N.E. Region has immense coal reserves, which are reported to be having similar properties as those of Assam Coal. A collaborative study by OIL and the Department of Geological Sciences, Guwahati University, Guwahati on "Characterization of Tertiary Coals of Meghalaya for Hydrogenation" is in progress and expected to be completed shortly. The project would assess coal availability and quality of coal for generation of data / information for future use

Business Description

Oil India Limited (OIL) is an India-based company. The Company is engaged in business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of liquefied petroleum gas (LPG). It has four segments: crude oil, natural gas, LPG and transportation. It has operations in Assam/ Arunachal Pradesh and Rajasthan. It is engaged in the exploration of crude oil and natural gas in Egypt, Gabon, Libya, Nigeria, Timor Leste and Yemen. During the fiscal year ended March 31, 2010, fiscal 2010), the Company produced 3.572 million metric tons (MMT) of crude oil and 2415 million metric standard cubic meters (MMSCM) of natural gas. Oil India Sweden AB is the subsidiary of the Company. For the fiscal year ended 31 March 2010, Oil India Limited's revenues increased 9% to RS 88.6B. Net income increase 21% to RS26.1B. Revenues reflect an increase in income from Crude Oil segment, higher income from Natural Gas segment and an increase in income from Transportation segment. Net income also reflect a decrease in provision against debts, advances and other write-offs and a fall in interest expense.

OVERVIEW:

Oil India Limited is an upstream petroleum company, with supporting pipeline network across India. Its operations are spread across India, and other countries like Egypt, Venezuela, Yemen and Nigeria. It has a strong presence across oil and gas value chain, with substantial oil and gas reserves. During 2010, it was able to further improve its liquidity position. Moreover, in light of the growing oil and gas demand in India, it entered into strategic agreements, and has planned to foray into shale gas in Argentina. However, its low debt-equity ratio, lack of autonomy, and signs of declining growth, could hinder its growth. It is further challenged by intense domestic competition, stringent regulations and volatile oil and gas markets.

Contingent Liabilities:

Claims against the Company not acknowledged as debts amounting to ` 11120.300 Millions (Previous year ` 6409.500 Millions) include:

In respect of claims under Income Tax, Sales Tax, Service Tax and Other Acts:

(i) ` 179.400 Millions (Previous year ` 161.100 Millions):- Demand raised by the District Revenue Authorities on account of premium / revenue on Government ceiling surplus land occupied by the Company.

(ii) ` 131.200 Millions (Previous year ` 131.200 millions) – Demand raised by District Revenue Authorities on Account of revised rate of Land revenue against which has been disputed by the Company and obtained Stay from the Gauhati High Court.

(iii) ` 36.600 Millions (Previous year ` 33.800 Millions) being the demand raised by Govt. of Rajasthan for alleged short payment of PEL fee and penalty thereon, which has been disputed by the Company

Fixed Assets:

* Freehold Land

* Leasehold Land

* Building (including Roads and Bridges)

* Railway Sidings

* Plant and Machinery

* Furniture and Fittings

* Motor Vehicles

Nayan Mani Borah – Chairman of the Board, Managing Director

Shri. Nayan Mani Borah serves as Chairman of the Board, Managing Director of Oil India Limited. He also currently holds the additional charge of Director (Operations) of the Company. He holds a bachelor’s degree in petroleum engineering from the Indian School of Mines, Dhanbad. He also holds a post graduate diploma in petroleum prospecting and reservoir evaluation from the Norwegian Institute of Technology, Trondheim, Norway. He is also associated with the Society of Petroleum Engineers, USA and the Society of Petroleum Geophysics. He has over 35 years of experience in the oil and gas exploration and production industry. He is a member of the top level strategy team in the Company and is responsible for the Company’s foray into international exploration activities. As Director (Operations) he is responsible for the Company’s exploration, development, resource management, oil, gas and LPG production and pipeline business in North India. Previously, he also held the post of Group General Manager (Main Producing Area) and General Manager (Geosciences) at the Company. He joined the Board on May 6, 2004 as Director (Operations) and was elevated to the position of Chairman and Managing Director with effect from December 1, 2008.

Education (Source: RT ) B Petroleum Engineering, Indian School of Mines university

Compensation/Salary: 5,207,000

MANAGEMENT

Ghanshyambhai Hiralal Amin – Non Executive Independent Director

Shri. Ghanshyambhai Hiralal Amin serves as Non-Executive Independent Director of Oil India Limited. He holds a bachelor’s degree in science and law from Gujarat University. He has 35 years experience as an advocate in the Gujarat High Court. He is also currently the director of National Federation of State Co-operative Limited, National Film and Fine Arts Co-operative Limited and is also the director and chairman of Gujarat region in Cosmos Co-operative Bank Limited. He was the former Chairman of the Bar Council of Gujarat and the Ahmedabad District Co-operative Bank. Mr. Amin is also a President of the National Cooperative Union of India.

Education (Source: RT )

B Science, Gujarat University

T.K Ananth Kumar- Finance Director

Shri. T. K. Ananth Kumar serves as Director - Finance, Director of Oil India Limited. He holds a bachelor’s degree in commerce from Osmania University. He is also a member of the Institute of Chartered Accountants of India. He has 28 years of experience in the oil and petroleum industry. Prior to joining the Company, he was the Director (Finance) of NRL for over three years and prior to joining NRL he worked with HPCL for 22 years. He is responsible for the entire financial management as well as the strategic management of the Company. He joined the Board on January 18, 2007.

Education (Source: RT )

B Commerce, Osmania University

Compensation/Salary: 4,820,000

Nripen Kumar Bharali – Human Resources and Business Development, Director

Reuters Biography (Oil India Limited) Mr. Nripen Kumar Bharali is Director - Human Resources and Business Development, Director of Oil India Limited. He has passed out from the Indian School of Mines, Dhanbad and also an alumnus of IIM, Ahmedabad, Bharali has had a distinguished career in oil. Prior to becoming a director of OIL, he was General Manager (Human Resources and Business Development) and earlier GM (Production) in the same company. His appointment by the Public Enterprises Selection Board as a Director of oil has been hailed by the petroleum industry, according to industry sources. Published by HT Syndication with permission from Assam Tribune.

Compensation/Salary: 1,116,000

Sushil Khanna – Non Executive Independent Director

Reuters Biography (Oil India Limited) Prof. Sushil Khanna serves as Non-Executive Independent Director of Oil India Limited. He holds a bachelor’s degree in Science and Postgraduate Diploma in Management from the Indian Institute of Management, Calcutta and Fellow (PhD) of IIM, Calcutta. He has 38 years of professional experience in merchant banking and academics. He is a faculty member in the areas of Economics and Strategic Management at Indian Institute of Management, Calcutta. He is a Fellow (Ph.D) of IIM, Calcutta and also a member of the Board for Restructuring Public Sector Enterprises constituted by the Gol.

Education (Source: RT)

PHD , Indian Institute of Management, Calcutta

PRESS RELEASE:

India Limited Likely To Invest In Hindustan Petroleum Corporation Limited's Refinery Projects-WSJ

Sep 15, 2011

The Wall Street Journal reported that Oil India Limited is likely to invest in Hindustan Petroleum Corporation Limited's (HPCL) refinery expansion and new projects. Oil India and refiner HPCL in August signed an initial pact to pursue business opportunities.

Oil India Limited Studying Stake Buy In Maurel and Promoters Assets In Gabon-DJ

Aug 25, 2011

Dow Jones reported that Oil India Limited is studying the possibility of buying a stake in the oil exploration assets of Maurel and Prom in Gabon. The executive said a decision on investments in Gabon will be taken after completion of a feasibility study.

Rajbhasha Award for OIL

Assam Tribune (India)

04 October 2011

GUWAHATI, Oct. 4

The Oil India Limited, Pipeline Headquarters, Narengi has has been awarded with National Millennium Rajbhasha Shield by the Rashtriya Hindi Academy, Rupambara for the progress shown by it in the use of the Official Language, a press release stated. The shield along with a citation was received by HK Barman, Manager (OL) from the Deputy Speaker of Lok Sabha, Kariya Munda on the occasion of All India Official Language Conference held at Mount Abu, Rajasthan on October 2. Published by HT Syndication with permission from Assam Tribune.

India holds secret talks with Iran on gas field

Statesman, The (Pakistan)
01 October 2011

NEW DELHI, Oct. 1 -- In a sign of revival of ties with Iran, India quietly concluded a major part of negotiations for a lucrative gas field days before Prime Minister Manmohan Singh met Iranian President Mahmound Ahmadinejad in New York and accepted an invitation from him to visit Tehran.

As is the case with all major projects with Iran, the one to develop the Farzad-B gas field was stalled for two years despite India's need for compressed natural gas. New Delhi was compelled to move following a gentle warning from Iran that it was planning to reduce the stake of Indian companies in the project.

Intensive negotiations over five days on Iran'sKish Island saw both sides negotiating the main part of the contract which had been left partly discussed when talks last broke off in November 2009, government sources told The Hindu.

Both sides will now hold the next round of talks here in November when the more important issue of internal rate of return and security of investment will be discussed.

The renewal of talks on energy projects could set the stage for purposeful discussions on the development of the Iranian port of Chabar, said to be the shortest route for sending supplies into the southern Afghanistan. Some developments on the Chabar front such as extending the free zone area to the port are in line with Indian preconditions for expanding its capacity five times.

A short distance away from the Gwadar port, Chabar can be connected to the hinterland of Afghanistan as well as its major cities and even beyond to Central Asia. This could be facilitated by linking up Chabar to the Iranian border town of Milak. An Indian-built road from the corresponding Afghan border town of Zaranj then leads to the Afghan garland highway.

India had been pursuing the project for some time before it was stalled following American moves to isolate Iran. There was no response to invitations to hold talks on the Iran-Pakistan-India pipeline, the system of payments for importing crude from Iran was frequently changed and unsatisfying talks on Chabar.

Iran is learnt to be keeping its fingers crossed with respect to talks on the gas field given India's reluctance so far to take negotiations on any of the projects forward.

Oil and Natural Gas Corporation (ONGC) and Indian Oil hold 80 per cent stake in the block and Oil India the remaining 20 per cent. India went for talks after Iran said it was planning to shift the project to an Iranian consortium and offered only a 30 per cent stake to the ONGC.

Informed sources expected the thaw to have some impact on the situation in Afghanistan. Both countries approve a regional solution with India taking up the gauntlet for the Shanghai Cooperation Organisation (SCO) Plus countries. The SCO consists of four Central Asian countries, besides Russia and China. The SCO Plus includes India, Iran and Pakistan as Observers and Afghanistan as a Special Invitee. Published by HT Syndication with permission from The Statesman.

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. 49.07
UK Pound	1	Rs. 76.65
Euro	1	Rs. 66.18

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	8
--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
-	NB	New Business	-

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.