Oil India Q1 Review - Baghjan Field Is Back On Its Feet, Stable Outlook Ahead: Motilal Oswal
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Motilal Oswal Report
Oil India Ltd. reported volume is in line with our estimate, while lower opex led to the Ebitda beat.
The management said majority of the gas production is accruing from the Baghjan field currently as the fire-related issues are resolved.
Oil India is targeting ~5 million metric standard cubic metre per day of gas from this field over the next three to five years.
It has started working on three more drilling wells, while one well was completed recently in the Baghjan field.
Brent prices have started cooling off from its peak (of $75/barrel of oil in July 2021 to ~$70/bbl).
We expect it to return to normal levels of $60-65/bbl as Organization of the Petroleum Exporting Countries plus gradually increase its oil production.
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