Dr Ranjit Rath, CMD, OIL, speaks to ET NOW

First of all, thank you very much for having me. Good morning to you and all your viewers. It is always a pleasure talking to you. I wish I could predict oil prices; that's anybody's guess. But considering the outlook that we have created for ourselves, it is about $65 plus or minus a dollar or so. Given the fact that we are sure that the growth percentage of demand and the growth percentage of supply are at a discord — the supply is more — we are looking at that number. As far as our preparation is concerned, as an E&P company, we are actually well geared with our cost optimization strategy so that we will be able to maintain our margins.

Sure. So as part of the National Critical Mineral Mission, we have also picked up two blocks: one a graphite and vanadium block in Arunachal Pradesh, and one is a potash block in Rajasthan. Hindustan Copper has been a miner, and we understand that the E&P expertise that Oil India possesses, and the regional control that we have in the northeastern region, having HCL with us from a mining point of view will create a good synergy gain. So the MoU is focused on creating an ecosystem of exploration and development in critical and strategic minerals in the domestic sector, where they are going to join us as part of the exploration campaign in the graphite and vanadium deposit in Arunachal Pradesh. And just to share with you, as we speak, the geological mapping and the initial exploration work has already started, and we are getting excellent traction from both the state governments, whether it is graphite and vanadium block in Arunachal Pradesh or the potash block in Rajasthan. So we are looking forward to this collaboration where tomorrow, after we convert this composite lease to mining lease, should there be enough economic viability post exploration, Hindustan Copper will join us for the mining activities.

I would actually give you a perspective. We are an E&P company with significant presence in the upstream part of the natural resources value chain, and we understand subsurface better than anybody else in the manner that we have been handling a mineral that is liquid fuel. Now having gathered this expertise, we strongly believe that we have a role to play in the upstream value chain of the critical minerals, and that is where our strategy is. We would first secure a couple of blocks, both domestic and overseas — overseas discussions are going on where we have collaborated with KABIL, that is Khanij Bidesh India Limited, Coal India Limited, and OVL. So our focus would currently be on the natural resources part upstream value chain, and then the downstream, and possibly we will have a look at the recycling somewhat later.