Oil India explores ways to get back Russian dividend

NEW DELHI: Oil India is exploring ways to repatriate a $300 million dividend for its stake in two Russian assets which is stranded in Moscow, its chairman Ranjit Rath told shareholders on Thursday.

State-run explorer Oil India, along with Indian Oil Corp and Bharat PetroResources, holds a 23.9% participating interest in JSC Vankorneft and a 29.9% stake in Tass Yuryakh Neftegazodobycha.

“It is only a matter of time. We will be able to find a solution to transfer the amount,” Rath said, adding the dividend is in the Moscow branch of State Bank of India. The dividend is stuck because of western sanctions on Russian entities and banks relating to Moscow’s invasion of Ukraine. Rath did not elaborate how his company will get back the stranded money.

Rath also said 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, lifting its overall crude processing capacity to 180,000 bpd.

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Rath said the 1,635-kilometre crude pipeline Oil India is laying from Paradip port in eastern Odisha state to its refinery in Assam will be commissioned by the end of 2026.

Oil India has exited from exploration projects in Gabon and Bangladesh, Rath said.

Oil India exports diesel to Bangladesh from its Numaligarh refinery through a pipeline. Rath said supplies to Bangladesh are continuing and there is no payment backlog.