Oil India, GAIL sign 15-year agreement to supply natural gas to state-run power plant in Rajasthan

Oil India Ltd (OIL) and Gail Ltd on Wednesday, July 9, signed a 15-year gas sale and purchase agreement for supplying nine lakh standard cubic meters per day (SCMD) of natural gas from the former’s Rajasthan-based oil fields.

Effective from July 1, 2025, the agreement signed by the two Maharatna PSUs extended the existing gas sale and purchase agreement for another 15 years, OIL said in a regulatory filing.

The nine lakh SCMD gas sourced will be supplied to the state-run Rajasthan Rajya Vidyut Nigam Ltd power plant for the production of power, the filing further stated.

The agreement was executed by Ranjan Goswami, Executive Director of Business Development at OIL and Sumit Kishore, Executive Director of Gas Marketing at GAIL, under the aegis of the Ministry of Petroleum and Natural Gas.

The pact was finalised at GAIL’s corporate office in New Delhi, the filing said.

Oil India March quarter results

The PSU’s net profit stood at ₹1,591.5 crore in the fourth quarter of FY25, declining 22% year-on-year (YoY) from ₹2,028.83 crore in the corresponding period a year ago.

In the quarter under review, Oil India’s revenue from operations stood at ₹5,518.94 crore, compared to ₹5,239.66 crore in Q4 FY24.

Its capital expenditure utilisation for the 2024-25 fiscal year was at ₹ ₹8,467.33 crore, increasing 123.07%.

Oil India stock performance

The shares of OIL India closed 0.65% higher at ₹446 apiece on the National Stock Exchange (NSE) on Wednesday. However, the agreement execution was announced after the market closed.

The stock has lost 0.08% over the week but gained 2.57% since the beginning of July. The scrip surged 12.28% in the June quarter of FY26 and 3.4% on a year-to-date basis.

It reached a 52-week low of ₹325 on April 7, 2025, and a high of ₹767.90 on August 30, 2024.

Oil India has a total market capitalisation of ₹72,546.71 crore, as of July 9, 2025, as per data on the NSE.