India’s search for energy security is set to intensify as state-run Oil and Natural Gas Corporation (ONGC) prepares to begin stratigraphic drilling in multiple offshore sedimentary basins at the start of 2025. Partnering with global oil major BP, the campaign will focus on deep-sea prospects in the Andaman, Mahanadi, Saurashtra, and Bengal basins, with an investment commitment of ₹3,200 crore.
The drilling campaign will aim to build a deeper geological understanding of India’s underexplored offshore areas. Stratigraphic wells, unlike conventional exploratory drilling, are primarily designed to study rock sequences and petroleum systems. These findings will inform future exploration decisions, helping identify potential hydrocarbon-bearing structures.
ONGC had signed an agreement with BP in July this year, marking a strategic collaboration to strengthen India’s energy outlook. Under the terms, ONGC will finance the operations, while BP will provide technical expertise, particularly in deep-water exploration and advanced seismic analysis. The collaboration is expected to unlock new hydrocarbon potential in frontier basins that have so far remained largely untested.
BP’s global experience in designing and executing deep-water projects is seen as crucial for India’s exploration ambitions. The company’s involvement will help refine well locations and optimize drilling designs, thereby increasing the chances of successful outcomes. Union Petroleum Minister Hardeep Singh Puri, who witnessed the signing of the memorandum of understanding at the Urja Varta 2025 event in Delhi, has described the partnership as a critical step in reducing India’s import dependence.
The Andaman and Nicobar offshore basin is drawing particular attention. Located at the tectonic boundary between the Indian and Burmese plates, the region is characterized by stratigraphic traps that are favorable for hydrocarbon accumulation. Its proximity to proven petroleum systems in Myanmar and North Sumatra further adds to its geological promise. Recent discoveries of natural gas in South Andaman offshore Indonesia have strengthened global interest in the basin, underscoring its potential continuity with established petroleum provinces.
In recent years, ONGC and Oil India Ltd. (OIL) have expanded their exploration footprint in the Andaman ultra-deepwater region, targeting depths of up to 5,000 metres. A wildcat well drilled in the East Andaman Back Arc region, designated ANDW-7, has already yielded promising results. Geological samples from the well revealed traces of light crude and condensate, as well as heavier hydrocarbons such as C-5 neo-pentane, establishing evidence of an active thermogenic petroleum system for the first time in the area.
These findings suggest that the Andaman basin has working petroleum systems similar to those of Myanmar and North Sumatra, though the scale of commercially viable reserves is yet to be confirmed. Officials believe the discoveries lay the foundation for more targeted exploration campaigns, moving India closer to tapping into potentially significant deep-water resources.
Highlighting the broader progress of exploration, the Minister noted that ONGC has so far made hydrocarbon discoveries in 20 blocks, with reserves estimated at 75 million metric tonnes of oil equivalent. Oil India Ltd., in parallel, has announced seven discoveries in the last four years, with reserves amounting to 9.8 million barrels of oil and over 2,700 million standard cubic metres of gas.
The partnership with BP and the scale of planned investments underline India’s resolve to expand domestic hydrocarbon production at a time when global energy markets remain volatile. With growing energy demand and limited indigenous supplies, India currently imports around 85 percent of its crude oil requirements. Reducing this dependence is viewed as central to long-term energy security and economic stability.
By opening new frontiers in deep-water exploration, ONGC and BP are positioning India to potentially unlock untapped reserves. While risks and uncertainties remain inherent to offshore drilling, the latest campaign marks one of the most ambitious efforts yet to diversify India’s energy base and strengthen its resilience against external shocks.
