Oil India Limited SWOT Analysis, Competitors & USP

Oil India Limited

Oil and Gas

Energy & Power

Bringing energy to life

Asia's oldest and biggest pioneer oil exploration and production company

Enterprises and individuals with energy requirements

Entities which require oil, gas, LPG, hydrocarbons etc

The fastest growing energy company with a global presence providing value to the shareholder

Below are the Strengths in the SWOT Analysis of Oil India Limited:

1. Its heavy investment and strong focus on R&D has resulted in it developing better exploration methods, increasing efficiency of MEOR (Microbial Enhanced Oil Recovery) processes, reducing flow problems etc., which has resulted in improved production from its oil wells
2. Robust production capabilities enables it to continuously enhance its efficiency, to evaluate opportunities to reduce costs, and to improve processes, thereby helping it increase the reliability of order fulfillment and satisfaction of customer needs.
3. A strong financial performance provides financial stability to the company, which can be leveraged to seek more growth avenues in the future.
4. Its strong acreage position coupled with its integrated business operations gives it a competitive edge over others in the market
5. Its market reputation is extremely strong due to recognition from industry on various facets of excellence like corporate governance, CSR, safety and environmental concerns

Here are the weaknesses in the Oil India Limited SWOT Analysis:

1. Although it is present in a few foreign nations, the bulk of its operations are in India, which is a competitive disadvantage as its exposure to local risks is higher than that of its competitors, which carry out a wider scale of operations
2. It presently faces substantial debts and added to it, is raising even more debt, for funding its recent acquisition in the Rovuma hydrocarbon block in Mozambique

Following are the Opportunities in Oil India Limited SWOT Analysis:

1. Energy demand in global as well as the domestic Indian market is set to accelerate, due to growing oil, fuel demands and OIL is well positioned to capitalize on it
2. Strategic acquisitions of national and overseas exploration blocks and oil and gas properties (like the Rovuma hydrocarbon block in Mozambique, assets in Gabon, shale assets in the Denver-Julesberg Basin in Colorado etc.), and similar agreements will help increase its revenues and thereby, its market share
3. It already has the Navratna status accorded by the GOI, which exempts it from taking the government’s permission for investments and with its increasing revenue record, it can soon get a Maharatna status which will allow it to make investments of INR 5 Billion without the government’s permission
4. New Exploration Licensing Policy by the GOI can possibly see OIL bidding for more blocks and winning more

The threats in the SWOT Analysis of Oil India Limited are as mentioned:

1. Geopolitical risks (esp., international sanctions on Iran, the second largest petroleum exporter to India) can push up oil prices, increase India’s import oil bill and thus affect its businesses severely
2. Subsidy burden, which it faces due to GOI policies, can adversely impact its cash flows
3. A highly competitive market, with numerous private players now in the fray, which have larger resources and asset bases, can erode its market share
4. The global economic scenario and political and economic volatility can result in sudden rapid fluctuations in demand/price of oil thereby harming the company’s interests

Below are the top 4 competitors of Oil India Limited:

1. ONGC
2. GAIL India Ltd.
3. Cairn India Ltd.
4. IOCL