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Oil India Ltd
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On behalf of Emkay Global Financial Services, I welcome you all to the Q3 FY '22 post earnings conference call of Oil India Limited. We have with us the senior management of Oil India Limited, headed by Mr. Harish Madhav, Director of Finance, and Mr. P.K. Goswami, Director of Operations.So without any further delay, I would now request management for the opening remarks, and then we can move over to the question-and-answer round. Over to you, sir.
Good morning, ladies and gentlemen. I'm Harish Madhav, Director of Finance. Along with me, as was just introduced, Mr. Pankaj Goswami, Director of Operations. I will request our EP Finance, Sanjay Choudhuri, to read the opening remarks. And then we can start the question and answer.
Thank you, sir. Good morning, dear friends. At the outset, I would like to thank Emkay Global Financial Services Limited for lending this call. I'm Sanjay Choudhuri, VP Finance and Account. And today we have with us like Mr. Madhav had mentioned Shri. Harish Madhav, Director of Finance and Shri. Pankaj Goswami, Director of Operations will be providing the value insights.We appreciate the interest shown by you on the company. The financial results of Q3 2021, '22 have been shared with all the analysts and posted on the website as well. I hope all of you have received them.I will briefly give some indications about the performance of the company both in physical and financial terms. The consolidated turnover of OIL for the 9 months ended 31st December 2021 is INR 21,141 crores versus INR 15,982 crores for the cost [indiscernible] period 9 months ended 31st March 2020.The consolidated PBT for the 9 months ended 31st December 2021 is INR 5,699 crores versus INR 2,354 crores for the same period last year. The profitable tax at the group level of the company for 9 months ended 31st December 2021 is INR 4,192 crores versus INR 3,033 crores for the 9 months ended 31st December 2020.Now proceeding on to the stand-alone results we will begin on the production front. Crude oil production for Q3 '21, '22 is 0.754 MMT, which is almost in the same range for the past operating period last year. There's a margin increase of about 0.8%. Crude oil production for the 9 months is 2.262 MMT versus 2.247 MMT, which is also in the same region with the margin increase of 1.01%. Natural gas production, however, has shown a substantial increase because in quarter 3, 2021, '22, it's been 793 MMSCM versus 673 million SCM for Q3 2021, which like I mentioned, is an increase of about 18%. Natural gas production for the 9 months ended 31st December 2021 is 2,311 million standard cubic meters versus 1,193 million standard cubic meters for the same period ended 31st December 2020, which is an increase of 16%. On the financial side, the company's profit after tax in Q3 2021 is INR 1,244.90 crores versus INR 903.67 crores in Q3 2021. For the 9 months ended 31st December 2021 profit after tax is INR 2,257.30 crores versus profit of INR 894 crores for the 9 months ended 31st December 2020. The company's EBITDA in Q3 '21, '22 is INR 2,235.72 crores versus INR 277.42 crores in 2021. And EBITDA for the 9 months ended 31st December 2021 is INR 4, 813.63 crores versus INR 1,453.66 crores for the 9 months ended 31st December 2020.The EPS has reduced to INR 11.48 per share in Q3 '21, '22 as compared to INR 8.33 in Q3 2021. For the 9 months ended 31st December 2021, EPS is INR 20.82 per share vis-a-vis EPS of INR 8.24 per share for 9 months ended 31st December 2020.The Board of OIL has recommended a second interim dividend of INR 5.75 per share of our financial year 2021, this is the second interim dividend which resulted in a total interim dividend till date of INR 9.25 per share. We have a face value of INR 10 during the financial year '21, '22.The average crude oil price realization for Q3 '21, '22 is USD 78.59 per barrel versus USD 44.09 per barrel for Q3 of 2021, which is increased by 78%. Crude oil price realization for the 9 months ended 31st December 2021 is USD 72.41 per barrel versus USD 38.98 per barrel for 9 months ended 31st December 2020, which is also increased in excess of 85%. The increase in price has led to increase in turnover by INR 3,841 crores and profitability by around INR 1,900 crores for the 9 months ended 31st December 2021.Average natural gas price for Q3 '21, '22 is USD 2.90 per MMBtu versus USD 1.79 per MMBtu for the quarter -- for the cost spending quarter last year, which is increased by USD 1.01 per MMBtu.Natural gas price realization for the 9 months ended 31st December 2021 is $2.16 per MMBtu versus $2.19 per MMBtu for the 9 months ended 2020, which was reduced by USD 0.03 per MMBtu. The decrease in prices has led to decrease in turnover by INR 21.27 crores and profitability that is backed by INR 13.81 crores for the 9 months ended 31st December 2021.In the current quarter, OIL has taken a provision in [indiscernible] to the tune of INR 272 crores n Q3 '21, '22 versus INR 537 crores in the same quarter last year.OIL acquired INR 39,84 36,929 equity shares in NRL on 26th March 2021, including 7,74,80,746 shares on behalf of Government of Assam at a total investment of INR 8,675 crores. The transfer process for the entire number of equity shares which is purchased from BPCL on behalf of the Government of Assam has been completed on 3rd of January 2022.After transfer of the Government of Assam shares, OIL present equity holdings in NRL stands at 69.63%.The OIL-AGCL, that is Assam Gas Company Limited consortium, where OIL holds 49% and AGCL holds 51% have received letter of intent for grant of authorization for development of CGD in 3gs, 2 in Tripura and 1 in Assam in the recently concluded 11th round of CGD bidding launched by the PNGRB for development of CGD network in the country.Now coming to the financial performance of the Numaligarh Refinery Limited, profit after tax of NRL for Q3 '21, '22 is INR 794 crores, as you can see it's INR 41 crores in Q3 2021. And as gross refinery margin has improve to USD 12.4 per barrel in Q3 2021 from USD [indiscernible] in Q3 2021. And EPS is INR 10.8 per share in the third quarter of '21, '22 is INR 11.43 per share in the third quarter of the previous year.With this, my opening remarks on the performance of the company is over, and we are now open to the Q&A session. Over to you.
[Operator Instructions] The first question is from the line of Aishwarya Agarwal from Nippon India Mutual Fund.
I have 2 questions, sir. One is the -- how do you see the gas price going forward on the 1st of April and the 1st of October? My understanding is they should be around $6 and $9, respectively. How do you calculate and how you see the number? Could you share your view? That will be really helpful.
I'm Harish Madhav. The gas prices, of course, will be declared by PPAC on 31st of March. But going by the trend, we anticipate anywhere between $5.5 to around $5.75 per MMBtu effective 1st April. Not $6 and maybe it's a final corrections little bit here and there but around -- that is the rate. And going forward effective April it will be $6 and $6.5 per MMBtu, $7 1st of October onwards.
Sorry, it couldn't get that, 1st of October is $7.5?
Around October around $6.5 to $7. And the current effective 1st April $5.5 to $5.75. This is as per our calculation, but these are all estimates because PPAC sources, though we are all aware, we do estimate but then actual calculation is slightly different.
Sure. And sir, do you see any indications of any of the under recoveries coming to us especially on the LPG side. The LPG under recovery, I understand was absorbed by the OMCs in the third quarter. And the fourth quarter is the one where there is an apprehension, so what's your read on that, sir?
I don't think so. [indiscernible] As we gotten, it's coming with, see, last several years, we have to stop sharing any under recovery. So there should be no apprehension that some under recovery burden is likely to come on us. In any case, going by the indication in the budget provisions, government has provided only INR 4,000 crores of LPG subsidiaries.So it's very, very likely that all the price increases, as the government has been passing on, will be passed on in [indiscernible] prices with a little bit subsidiary mechanism, which is in place today. That will be continued. So the burden is going to be very less. And the INR 4,000, the government has already provided. Beyond that and the OMCs, whatever they observed I'm not having any idea whether it was only an ambiguous option or government will reimburse in subsequent period or what it is. But upstream companies, especially Oil India, you can be rest assured that no subsidy absorption of any kind is likely to come to us.
So that is very helpful. And my last question is, sir, how we should look at the CapEx number for the next financial year. Should we see an increase in the CapEx number because we have the better oil and gas realization?
Yes. CapEx for the next year, that is 2023 is already worked out, around INR 4,300 crores. We have already offered the plans. So that could be the numbers.
Sure. I mean -- okay. So you don't see any further increase in -- on the top of this INR 4,300? And...
CapEx plan is all decided. Aishwarya, CapEx plan is decided almost 6 months before. Even in November we had worked out. So in case there is any requirement, of course, we will have a midterm review sometimes in August, September. So in case any requirement comes up, we will certainly invest. But then it is not overnight that suddenly in 6 months' period, we can increase our CapEx or like that because the drilling plan, production plan, assets, whatever the infrastructure is to be developed, all those things are to be planned, and then the investments made. So there should not be any significant increase over this INR 4,300 crore number. But whatever is required, certainly, we will explain.
Sure Harish, sir. And this INR 4,300 includes the CapEx on the subsidiaries, JVs, everything together?
No. Subsidiaries means NRL.
Yeah, NRL and whatever [indiscernible] you have...
NRL, we don't envisage any equity investment in the FY '23. The rest of the overseas companies, overseas projects, whatever joint venture projects, domestic OALP, any [ LP], DSF block exploration, all those things are included in this.
And sir, one last thing, sir. Do we see any increase in the OpEx number going forward because of any reason? Or it will remain stable the way it is, excluding the royalty, which is a percentage of...
Yes. Royalty increase is allowed as well as on levies. So they, of course, will go up or down as the crude prices or the gas prices behaves. But apart from that, we don't anticipate any increase. Maybe a minor corrections here and there. Otherwise, no major increase in the operating cost.
The next question is from the line of Somaiah V. from Spark Capital.
So my first question is with respect to the other income. So this time around in Q3, we have had a higher number of other income. Really, Q4 is the quarter where we have a higher other income. Can you just help us understand -- I think you had categorized this under miscellaneous income. So what is driving this? And what is your outlook for Q4?
Other income is higher basically due to -- yes, it's higher basically due to higher dividend income.
Okay. And this is from IOCL, that's part of...
Yes. And this is basically because 265 from IOCL, 265 from Oil India International and 245 from -- 260 of NRL, 260 from OIL International and 245 from IOCL.
Sorry, sir. Can you just repeat the numbers, 265...
Yes. NRL INR 265 crores, IOCL INR 242 crores, OAPL 265 crores and INR 2 crores from [ BNPLO ].
OAPL is our overseas subsidiary in Singapore, which is -- through which we are holding our investments in the Russian assets of Taas and Vankor. So during last current year, that company has also paid us a dividend.
Got it, sir. Sir, is this -- do you see some kind of a timing impact? I think like you've got it preemptively in Q3 and Q4 probably would be lower when compared to the previous year's?
Q4 number may be slightly lower because Oil India International or OIPL, we will not be getting any dividend. But certainly, IOCL has declared dividend. NRL also may declare, of course, they have not declared so far, but they may be declaring something in the next one because as and when there is a review by the government. So we expect some more dividends from IOCL. And NRL and IOCL of course, has been declared already.So it will be less but not very, very -- not very -- lesser to a large extent, no. But certainly, it will be lesser than the third quarter.
Understood, that's very helpful. Yes, sir. Sir, my second question is with respect to NRL. So I think you did mention close to INR 800 crores of PAT. And last year, PAT, you had said is INR 841 if I'm right. And GRM of 12.4% this year and was it 0.8% last year. Is that what you said?
GRM last year for the 9-month period was 1.44 and this year GRM is about 10.43.
Sorry, sir. I'm looking for Q3 this year versus last year?
Q3 numbers?
Yes.
Just Q3 -- what you mentioned was a correct numbers. I think, 0.8 last year, [ 28 ] something currently.
Sorry, sir, because of your voice, I couldn't get -- so it's 0.8 last year? And is it 12.4 this Q3 '22. Is that right?
Yes. 12.4 is current at Q3 and last year Q3 was 0.82.
Okay. I think the PAT numbers you mentioned is also for Q3, the 794 and 841?
Yes. Yes.
So given that the GRM has been substantially high this time [indiscernible] PAT is relatively lower, what would explain that?
There was a correction in the excise duty, INR 10 per liter on diesel and petrol in the third quarter compared to last year. So that has made the difference.
Got it. Sir, what would be the debt at NRL currently?
Can you repeat your question, please?
Can you provide the debt net number at a consol level and probably break it at the subsidiaries also to be helpful?
What numbers you do?
The net debt numbers, sir.
Net debt numbers?
Yes. Yes.
Net debt at the consol level is what we have already declared, I think, in our result.
Net debt at the group level as of 31st December 2021 would be around INR 17,000 crores.
So this would include how much at the stand-alone and how much at the international subsidiaries and NRL?
Standalone is INR 12,800 -- INR 12,900 crores is the standalone.
Got it, sir. And possible to give on the international subsidiary? Will that number be available?
17 minus 12 which is about INR 4,500 crores, INR 4,200 crores is the...
So NRL continues to be almost...
As of now, NRL continues to be debt free. But going forward, we will be drawing out of the debt funding they have arranged for the indexation program. And going forward, NRL will be drawing them from. But as of 31st of December, they were debt free.
Got it. And one last question from my side, continuing with NRL. So what is the CapEx that you have invested so far as part of the expansion program in NRL and what we envisage for next year? And I also mentioned that you don't see any equity contribution from our side for mix. Can you just elaborate a bit on the spending and the plan, sir?
Can we move forward with the other question in the meantime? By the time we collect this details and I'll let you know the CapEx.
The next question is from the line of Varatharajan Sivasankaran from Antique Limited.
Am I audible?
Yes, sir. You are but request you to speak a bit louder.
Sir, if you can give some clarity on the quarterly provision numbers and the service cost which seem to be volatile even now, though it is kind of steady quarter-on-quarter [indiscernible] behind this number moving up and down.
Sorry, could you repeat the question, please?
Yes. On the OpEx, you have this provision as well as this service cost number, which seems to be fairly volatile. If you can give some insight into what and how -- what is kind of a stable number which we should consider on an annual basis, it's not quite as...
These provision numbers basically led to [indiscernible] and provision for impairment of investments. Yes. Did you get the [indiscernible]?
Sure. Not a problem. You're talking about INR 4,300 crores of CapEx for FY '23, I believe. Okay. Any guidance on going forward as well? Or would you mean broadly at those levels? Or should we look at any kind of major CapEx apart from NRL and possibly Mozambique?
NRL, I think CapEx will be around in that range only, INR 4,200, INR 4,500, in that range.
Okay. Any breakups available in terms of what goes there, exploration development?
Exploration, it's only about exploration and development put together, you can say around 60% after the trend will be in that activity. And about 15%, 16% in overseas and the rest in infrastructures.And there was a question by the previous gentleman about the NRL CapEx detail. So NRL so far on the exploration project, we have spent about INR 3,200 crores, INR 900 crores last year -- last financial year; and current year, up to December, around INR 2,100 crores. And this year, their plan is to invest around INR 3,600 crores. That is another -- about INR 1,500 crores will come in the fourth quarter.
The next question is from the line of Gagan Dixit from Elara Capital.
What is your...
Sorry to interrupt you, Mr. Dixit. May I request you to come on the handset mode? Your audio is not very clear.
Am I audible now?
This is better. Please go ahead.
Yes. What your production guidance for gas and oil separately for this FY 23?
I request gas -- oil and gas production numbers.
You're talking about production numbers?
Yes. Any guidance on your expectations for next year, sir?
Okay. As of now, as we can see the trend, the crude oil production has increased marginally. And the present target, if you talk about the targeting total production by end of this year is around 3 million metric tonnes for oil. And -- okay. You're asking about '22, '23?
Yes. Yes, sir.
Okay. In that case, I have to change by revenue. In fact, you may be knowing that oil is picking up a very deep expansion plan in some trust areas where we are growing more and we are getting room for exploration drillings and as for difference, by end of '23, '24, our production, what is presently at 3 will be 4. So as of now, '22, '23 will be around 3.6 million metric tonnes of crude oil. And similarly, for gas, also, we are going to increase the production to around 4 million. So that is the target as of now.
Okay. Sir, so what are the -- if you can give some color on what are the major peaks that you are trying to bring online? And what is the -- I mean the peak production that's expected? Just want to get the sense that whether this FY '23 will be the peak? Or might we expect it more from going forward?
In fact, presently, we are targeting some 5 trust areas where the exploration is presently going on -- drilling activities are going on, out of which 1 is at Rajasthan, 1 is at Arunachal and rest 3 are in Assam. So these are the 5 fields identified.And over and above, you may be knowing that Oil India has started drilling in the first OALP block, that is in Rajasthan. And 1 deep drilling we've started in [indiscernible]. So that is 1 in OALP block. So these are the 2 new fields we have now started. These are purely exploration activities. We cannot say anything right now, but we have started exploration in these new fields.But the rest of the production, we are expecting it from the old fields, that is by exploratory drilling in the 5 major trust areas that I have mentioned.
Yes. And sir, on the domestic production point, particularly in the past, you have the problem, especially from the natural gas side. Because of the demand constraints, you are not able to increase the production. So what's the guidance we are seeing in the rise in the production in FY '23, so may I assume there would be constrained by the demand or there is the possibility to further increase, I mean is the demand constrained? Or might you see there further -- I mean, possibility of increase in the production from those fields?
Yes. There is great possibility of increasing production because we have many commitments to the nearby industries in Northeast. So there are requirements for enhancement of capacity in the Namrup power drills, then the expansion of capacities in the [indiscernible] plants. So we have a new commitment. So I don't think there will be the market constraint, we'll be able to produce more.
Okay. Sir, you mean that if you were able to increase the production, so demand is there, that's all?
Yes, exactly.
The next question is from the line of Kirtan Mehta from BOB Capital.The next question is from the line of Vishnu Kumar from Spark India.
A few questions. Firstly, on the gas pricing, so we have until June for the October reset, I understand. So if the gas prices globally remains pretty high and, let's say it is towards $8 to $9, is there any risk that the government may cap it at a certain price? I'm sure some conversations are going given the fertilizer cost and other things that governments are -- overall subsidy outlay increases. So any thoughts on that, let's say, if gas prices were to move towards $8, $9?
No. Currently, there is no thought process, no discussion going on as well as the issue of capping of the gas price is concerned. The formula which is in place since October 2014 is continuing. And no discussion, nothing is in place to apprehend that there may be some correction or some capping. But of course, October is a bit far off as of now. So if anything happens in between it's a different thing. But as of today, there is no indication.
Sir, how many -- how much percentage of our gas, if you could split into what is that we get at the APM and, say, other pricing methodologies?
Oil India 100% gas production comes at the APM price only.
As of now our bidding is APM.
So if we move to this 3.6 to 4 BCM, which you mentioned, that gas also will be part of APM? Or you will have a differential price?
That will be APM only because that production growth will come from the existing feeds only.
Understood, sir. My second question is on the NRL side. You -- could you just give us the GRM with the excise benefit? That will be useful, sir.
GRM with excise duty benefit, it's not readily available. Maybe we can get back to you.
Understood. Any color on the inventory gain that you had on NRL this time, sir, on the $12.4 you mentioned?
Out of $12, how much is on account of inventory gain? The absolute inventory gain numbers possibly, we'll be able to share. But converting that into [indiscernible] will be...
Yes. Even absolute gain would be good enough, sir.
We will respond to you separately on this query.
If you can, on the excise duty [indiscernible] accessory [indiscernible], please?
[Operator Instructions] The next question is from the line of [indiscernible] from ICICI Securities.
Sir, with respect to the -- am I audible?
Yes, absolutely.
Sir, just on the guidance of around 20% growth that we are looking at in terms of oil for FY '23 and a further 10% on that maybe by FY '24. In terms of the 5 trust areas, is it possible to put a number on the reserves being targeted, sir, the incremental reserve additions that you're targeting? What I'm trying to get at is how -- for what period of time can this production increase sustain as a result of this exploratory drilling and the 5 trust areas you are developing. So is there any data available on that front?
It's a very difficult question to answer because exploration is totally -- we are not sure what we'll be getting up the exploration but as of now, the program is that by end of '23, '24, we have been this production tier. But all the 25 blocks in OLP that we have already taken, we -- the 3 programs were launched. So once the 3 programs are completed, then we take the data and get the interpretation ready. Then we are going to give you some figures regarding the reserves figure. But as of now, the reserve figures, we do not have for the periods given '24, '25.
In any case, you must be knowing that reserve estimates are done on the year-end every year. So March was the last result that you need as it was March '22 will be the next estimate, '23 next estimate like that. And whatever the 5 trust areas that operations we just mentioned for which we are targeting for increase, basically faster exploration and development.So of course, the production growth we are anticipating, there will be a reserve increase. Also, there may be a reserve increase in this subsidiary with the new exploration. But that estimate can be done only at the end of March or this year or March next year like that.
Okay. So my -- is my understanding correct that this 0.601 MMT oil addition that you are looking to do from 3 MMT to 4 MMT, we already have a fair idea of which results we'll be targeting? It's not necessarily incremental results?
We have a fair idea that there are possible results are available. To what extent those results are there, that will be known only through further exploration that which we are targeting.
Okay. And sir, just one question. I'm sorry if you've answered that. The NRL expansion completion time line, what are we looking at as of now?
I think it is '24, '25.
Yes. Financial year '24, '25.
The next question is from the line of Avishek Datta from Prabhudas Lilladher.
Sir, just following on the previous question. Just wanted to understand what is the CapEx for NRL -- revised CapEx?
NRL total CapEx for this refinery expansion project is about INR 28,000 or INR 30,000 plus. And for the target for current year, cumulative target is around INR 4,000 crores -- sorry, INR 4,500 crores. INR 900 crores, we have already spent last year, INR 3,600 crores is the CapEx target for current year.
And what will be the government contribution for this CapEx?
The government total liabilities cap funding of INR 1,000 crores.
Only INR 1,000 crores?
Only INR 1,000 crores. No, everything is funded by either debt or by internal debt accruals or equity contribution by some others.
And sir, during this quarter, what was the throughput for NRL?
1 second. Throughput for the quarter, third quarter current year, it was 614 TMT, 6-1-.
Okay. This is for Q1?
This is Q3 current year, October, December.
Okay, sir. And sir, I just wanted to reconfirm the dividend amount, which you received, IOCL is INR 242 crores, OIPL is INR 265 crores?
Yes. Yes.
And NRL is?
INR 265 crores again.
The next question is from the line of Kirtan Mehta from BOB Capital Markets.
I wanted to go back to the production question, your production. Again, you are looking for sort of an increase from 3 million to 3.6 million tonnes in FY '23 and then further to 4 million tonnes in FY '24. And is this primarily on the back of success on the exploration? Would they be connected that fast to deliver another incremental 0.6 million tonnes in production through FY '23? Is that the expectation currently?
Yes. This is from the existing products -- producing fields, what we are targeting right now. Only some accelerated drilling in the existing producing fields and from that, we'll be getting the additional production.
Would you be able to give us a breakup of where -- how the incremental 0.6 million tonnes, could you be associated with the fields that we are looking at?
Yes. There are 5 fields we have identified. One is Kumchai at Arunachal Pradesh, then in Assam, Balimara, Baghjan and Lakwagaon. These are the 3 fields. And in Rajasthan, the Baghewala. These are the 5 fields we have identified. We have been producing from these fields right now. And we are going from accelerated drilling activities in this year and through that accelerated drilling we'll be getting additional production. That means the number of wells will increase.
Understood. So these are not the exploratory wells? These are basically the infill development wells, which will help increase the production level?
It's a mixture of both at present.
Sure. And in terms of the natural gas production, which are the fields where we are looking to sort of increase the production to 4 BCM next year?
Mostly this is from Baghjan.
Right. And in terms of the Baghjan, could you also sort of take us through the progress that you've made over this year?
Yes. This entire production gain that has -- that we have been getting right now is from Baghjan only, gas production. So this is a very positive field and we have been expecting more gas in those areas. In fact, we are targeting some high-production wells which are additional design features so that we can get more gas from the same well.
Right, sir. One more question. On the provision side, you mentioned that there was one well write-off, and there was some investment, right, impairment of investment as well. Would you be able to give us the numbers for a well write-off and give more details about the specific well write-off that has been taken?
There were 3 wells which are up in our operation area in Assam, [indiscernible] fields, okay? And the 3 wells accounted for about INR 220 crores. And regarding the provision, we took a provision for the impairment of the investment in Venezuela. That amounted to around INR 200 crores, which was also set up by INR 100 crores because we gained on the write-back of impairment on our [indiscernible]. So net-net impairment was INR 100 crores of investment and around INR 220 crores on wells.
Right. Sir, one last question, if I may. There is always in the comprehensive item, there are equity instruments which are directly sort of impacting the earnings in the comprehensive income. This year, the number -- quarter, the number was INR 670 crores of loss. What does this pertain to? And what are the key drivers for them?
[indiscernible] is a major driver for this, in fact, the only driver for this as far as this quarter is concerned.
Sorry, which share? Could you repeat?
[indiscernible]
[indiscernible]
The change in the valuation of Indian Oil Corporation shares is routed to the OCI.
The next question is from the line of Sabri Hazarika from Emkay Global.
I actually have a question on behalf of an investor. So next year, what kind of GRM are you expecting from NRL? And what would be the CapEx for NRL for next year, for FY '23?
Sabir, about the GRM part, I will not be able to respond because GRM, of course, purely behave depending on how the crude oil prices behave.CapEx part is around INR 11,000 crores. This is the planned CapEx for the refinery expansion project next year.
That is like for the year itself, not cumulative. That is for...
That is '22, '23 year only. Cumulative will be around INR 14,000, say, around INR 15,000 crores, INR 15,500 crores.
Yes. And secondly, 69.3% is your effective stake right now?
Yes.
So I mean exactly how much was the actual outflow for you, for this NRL equation?
For 69%?
Yes. From 26% to 69%?
INR 8,600 crores minus INR 2,100 crores.
It's around INR 6,500 crores.
INR 6,500 crores, right?
Yes.
[Operator Instructions] The next question is from the line of Vipul Shah from Sumangal Investments.
I just want to know what is the current capacity of NRL? And what will be the capacity after the expansion? And what will be the debt position of NRL right now? And what will be the fixed debt of NRL?
Current capacity is 3 million tonnes per annum of crude oil processing capacity. Post expansion, it will be 9 million. Current debt is nil. And the peak debt after the extension would be INR 18,300 or INR 18,900, something like INR 18,400 crores.
So related question, what will be fixed debt of consolidated Oil India in that case?
Fixed debt consolidated 70% of INR 18,000 crores, you can add, how much would it be? Around INR 12,000 crores. INR 12,000 plus -- around INR 26,000 crores, INR 27,000 crores. But certainly, out of that, by the time the NRL debt is drawn, we will be liquidating certain debt. So you can say around INR 23,000 crores, INR 24,000 crores.
Okay. And are you expecting any write-off from your Mozambique asset?
No.
Because there was some political problem there?
There are some security-related issues [indiscernible] is trying to resolve and get the project back on track as soon as possible. Right now, there is no indication that we will be taking any write-off or any provision for this project.
And sir, lastly, regarding the expected increase in production, that is coming from which field, you said?
There are 5 areas which the Director of Operations just mentioned. I think...
One is in Arunachal Pradesh, that is Kumchai field. 3 are from Assam, Baghjan, then Balimara and Lakwagaon and the fifth one is from Rajasthan, that is Baghewala field.
And sir, lastly, are you going to post the transcript of this call on your website, sir?
Yes. We'll be doing that.
The next question from the line of Kirtan Mehta from BOB Capital Markets.
Just one follow-up. Actually, it's not a question, a request. Would it be possible for you to share the NRL results also as a part of your analysis of the results that you shared with analysts?
Not all the same but maybe some key numbers, we can start sharing in our -- details -- the analysis of details what we share with the GRM and all those things we can possibly share. We can explore that in the next quarters.
That could be very helpful. For the first time, if you can give us sort of a 6, 7 quarters' history at one go and then afterwards in the specific quarters, that will allow us to do a better modeling for the NRL.
We will decide. We will explore that possibility, certainly.
The next question is from the line of Vipul Shah from Sumangal Investments.
What excise benefits for NRL expansion will be available? I mean so what will be the sunset date for that?
There is no sunset date. As per the approval given by the cabinet, the excise duty benefit is available to the entire exploration project, entire production or the life -- as of now, there is no sunset cloud behind.
As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you, analysts. I'm Harish Madhav again. Thank you for your interest in the company and in these quarterly results that we declared on Friday. We could not have the call earlier because the results were declared Friday in the afternoon only and then Saturday, Sundays. So earliest we could do was today's morning. So we hope that we have responded to all the inquiries. In case something more is required, any analyst is looking for some more information, please send e-mail or messages to us. And our team will be responding to them to the extent possible.And thank you very much once again. And we hope that the results, the performance, financial, physical performance of the company has been viewed in a positive perspective by the investors and the analysts. And any feedback on that, any feedback on further improvement in the information sharing is always welcome if we're able to do that. Thank you so much.
Thank you. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you. Thank you.