President of India-Backed Oil Exploration Company Signs MoU with Mahanagar Gas Limited (MGL)

Oil India Limited (OIL), a Maharatna Public Sector Undertaking with integrated capabilities across the oil and gas value chain, and Mahanagar Gas Limited (MGL), a leading City Gas Distribution (CGD) company, signed a Memorandum of Understanding (MoU) on October 6, 2025. The signing ceremony was attended by senior officials from both companies, including the ED (BD) of OIL and the VP (BD, BIS, Commercial & STU) of MGL, in the presence of the Directors of Operations and HR from OIL and the Managing Director of MGL. This partnership aligns with the strategic focus of both entities: OIL is committed to an expansive exploration and development program aimed at significantly increasing its gas production and pursuing clean energy projects, while MGL, which has successfully entered the Liquefied Natural Gas (LNG) value chain, operates LNG retail stations and is also actively advancing clean energy initiatives.

The core objective of the MoU is to establish a framework for collaboration between OIL and MGL to explore and capitalise on various opportunities within the LNG value chain and in emerging clean energy sectors. This cooperation leverages OIL's strength as a key hydrocarbon explorer and producer and its roadmap for clean energy transition, alongside MGL's expertise in city gas distribution and its existing presence in the LNG and clean energy space. By combining their capabilities, the two organisations aim to strategically support the growth of gas as a cleaner fuel in India and jointly pursue projects that contribute to the nation's energy transition goals.

About the Company

Oil India Ltd (OIL) is a fully integrated National Oil Company, actively involved in the exploration, development and production of crude oil and natural gas. Beyond upstream activities, the company is also engaged in the production of Liquefied Petroleum Gas (LPG), the transportation of crude oil and natural gas and has ventured into the generation of renewable energy. Additionally, OIL provides a range of Exploration & Production (E&P) related services for oil blocks, solidifying its comprehensive presence across the hydrocarbon value chain.

The stock’s 52-week high is Rs 594.15 per share and its 52-week low is Rs 322.15 per share. The company has a market cap of over Rs 69,000 crore and has been maintaining a healthy dividend payout of 26.1 per cent. The stock has a PE of 11x whereas the sectoral PE is 12x with ROE and ROCE of 13 per cent each. The President of India owns the majority of the stake, i.e., 56.66 per cent. The stock is up by 33 per cent from its 52-week low of Rs 322.15 per share.

Disclaimer: The article is for informational purposes only and not investment advice.