Key Takeaways
- Oil India is exploring methods to retrieve a $300 million dividend stranded in Moscow.
- The dividend is held in the Moscow branch of State Bank of India due to sanctions.
- Oil India plans to commission a new crude unit at its Assam refinery by March.
Oil India, a state-run Indian oil exploration company, is actively seeking ways to repatriate a $300 million dividend that is currently stranded in Moscow due to sanctions imposed on Russian entities and banks following the invasion of Ukraine.
Chairman Ranjit Rath informed shareholders that the dividend is held in the Moscow branch of State Bank of India and that the company is working towards finding a solution to transfer the amount.
Rath did not provide further details on the specific methods or strategies being employed to retrieve the funds, only stating that a solution is expected to be found in the near future.
In other developments, Rath announced that Numaligarh Refinery Ltd, a unit of Oil India, will commission a 120,000 barrel-per-day crude unit at its plant in the northeastern state of Assam by March, which will increase its overall crude processing capacity to 180,000 barrels per day.
Additionally, Oil India is close to signing a long-term liquefied petroleum gas (LPG) import deal with Algeria’s Sonatrach for 2027, according to sources.
The company is also laying a 1,635-kilometre crude pipeline from Paradip port in eastern Odisha state to its refinery in Assam, which is expected to be commissioned by the end of 2026.
Oil India has also exited from exploration projects in Gabon and Bangladesh, with Rath stating that the company continues to export diesel to Bangladesh from its Numaligarh refinery through a pipeline and that there is no payment backlog.
Rath emphasized the company’s commitment to operational efficiency and diversification, highlighting the various ongoing projects and strategic moves to ensure the company’s continued growth and financial stability.
