India to Launch Rs 3,200 Crore Offshore Stratigraphic Drilling

ONGC and Oil India Ltd (OIL), the state-operated oil explorers, are preparing for a Rs 3,200 crore stratigraphic drilling initiative in unexplored offshore basins, which will begin in early 2026.  This represents a larger push by India to enhance domestic hydrocarbon production and reduce expensive imports of hydrocarbons.

The plan is to drill a total of four wells in the first phase - across the Andaman, Mahanadi, Saurashtra and Bengal basins. BP, a global energy behemoth, will provide technical assistance including site selection and drilling coordination. Unlike production wells, stratigraphic drilling aims to recover geological data through coring, logging and integration prospecting to assess the economic potential of hydrocarbon deposits.

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It was confirmed that the project cost, including BP's costs, will be absorbed by the government.  The offshore blocks are still under the jurisdiction of the government, while the process of monetising any recoverable hydrocarbons through auctions or nominations is yet to be established. Industry associates expect BP to request a first right of refusal when any economic development is consummated, but no formal request has been made to this effect at this time.

India is importing 88% of its oil and almost half of its gas, contributing to an annual import bill of roughly USD 150 billion. To improve energy security the government opened 99% of the previously “no-go” offshore areas, developed new price standards for gas to permit deepwater projects to proceed, and installed a streamlined permitting regime for all hydrocarbons.

Powered by the reforms and the data availability with the National Data Repository, India is now attempting to attract exploration commitments from companies while making a significant move in decreasing energy imports dependence.