New Delhi [India], September 18 (ANI): State-run Oil India Limited (OIL) is exploring options to repatriate about USD 300 million in dividend income currently held at the State Bank of India’s Moscow branch, with the company considering routes to transfer the funds either to India or Singapore.
While talking with reporters after company’s Annual General Meeting on Thursday, Oil India Chairman and Managing Director (CMD) Ranjit Rath said discussions are underway to find a route for transferring the funds and stressed that the company is not concerned over the pending repatriation.
“We have about 300 million US dollar dividend in SBI branch of Moscow. So it has not yet been repatriated but we are not concerned because it is a work in progress where discussions are in underway to explore the possibility of getting the money either to Singapore or to India. Singapore is the subsidiary investment that we have created,” Rath said.
The dividend is linked to Oil India’s investments in two Russian oil assets and has remained in Moscow amid restrictions on cross-border financial transactions following Western sanctions on Russian entities and banks.
Oil India, along with Indian Oil Corporation (IOC) and Bharat PetroResources Limited (BPRL), holds a 23.9 per cent participating interest in JSC Vankorneft and a 29.9 per cent stake in Tass-Yuryakh Neftegazodobycha.
The funds have remained in Russia as sanctions have complicated the movement of money from the country. Oil India, however, continues to explore mechanisms for repatriating the dividend, with Rath’s comments indicating that Singapore could serve as one of the possible routes alongside a direct transfer to India.
The company has maintained that the money remains secure despite the delay in repatriation.
Oil India’s Russian assets form part of its overseas exploration and production portfolio, while the company is simultaneously stepping up investments in exploration, refining and transportation infrastructure in India.
The company is also expanding its deepwater exploration programme and plans to spend around Rs 15,000 crore over the next three years, with plans to drill eight wells depending on the interpretation of seismic data.
Oil India’s subsidiary Numaligarh Refinery Limited (NRL) is also expanding its refining capacity, while the company is developing a 1,635-km crude oil pipeline connecting Paradip port in Odisha with the refinery in Assam. (ANI)
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