ONGC, Oil India Plan Rs 32 Billion Offshore Drilling Campaign

25 Sep 2025 CW Team

In the first phase, four wells will be drilled in the deepsea regions of the Andaman, Mahanadi, Saurashtra, and Bengal sedimentary basins. Global energy major BP will provide technical expertise in site selection and drilling operations.

Stratigraphic drilling, also called a stratigraphic test well, is exploratory in nature. It examines underground geological formations without producing oil or gas immediately. Data is gathered through coring, petrophysical logging, and seismic integration to build a detailed geological profile, helping assess whether the area contains commercially viable hydrocarbon resources.

“ONGC has confirmed that a rig is available, and drilling is expected to commence in early 2026,” an official involved in the project said. The government will reimburse ONGC and OIL for the campaign, including payments to BP for its services.

The government retains ownership of the blocks and will decide how any discovery is monetised, either via auction or allocation to a company or consortium. BP may seek a right of first refusal in future development, though no formal agreement has been conveyed.

India currently imports almost 88 per cent of its crude oil and half of its natural gas, costing around USD 150 billion annually. The stratigraphic drilling campaign is part of a broader strategy to raise domestic production.

The government has reduced ‘no-go’ zones by 99 per cent, unlocking over 1 million square kilometres of India’s Exclusive Economic Zone for exploration. Reforms, including improved gas pricing formulas and a cloud-based National Data Repository, aim to attract international investment.

Officials noted that a stratigraphic well may take up to three months to drill, with three to four quarters required to interpret the results.

State-owned oil explorers ONGC and Oil India Limited (OIL) plan to launch a Rs 32 billion stratigraphic drilling campaign in untapped offshore areas early next year, officials said. The initiative forms part of efforts to discover new hydrocarbon reserves and reduce India’s reliance on imports.In the first phase, four wells will be drilled in the deepsea regions of the Andaman, Mahanadi, Saurashtra, and Bengal sedimentary basins. Global energy major BP will provide technical expertise in site selection and drilling operations.Stratigraphic drilling, also called a stratigraphic test well, is exploratory in nature. It examines underground geological formations without producing oil or gas immediately. Data is gathered through coring, petrophysical logging, and seismic integration to build a detailed geological profile, helping assess whether the area contains commercially viable hydrocarbon resources.“ONGC has confirmed that a rig is available, and drilling is expected to commence in early 2026,” an official involved in the project said. The government will reimburse ONGC and OIL for the campaign, including payments to BP for its services.The government retains ownership of the blocks and will decide how any discovery is monetised, either via auction or allocation to a company or consortium. BP may seek a right of first refusal in future development, though no formal agreement has been conveyed.India currently imports almost 88 per cent of its crude oil and half of its natural gas, costing around USD 150 billion annually. The stratigraphic drilling campaign is part of a broader strategy to raise domestic production.The government has reduced ‘no-go’ zones by 99 per cent, unlocking over 1 million square kilometres of India’s Exclusive Economic Zone for exploration. Reforms, including improved gas pricing formulas and a cloud-based National Data Repository, aim to attract international investment.Officials noted that a stratigraphic well may take up to three months to drill, with three to four quarters required to interpret the results.

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