State-owned Oil and Natural Gas Corporation (ONGC) is planning to invest between $18 billion and $20 billion in new drilling activities, according to industry sources. The investment will primarily be used to hire drilling rigs, including drillships and submersible rigs, with contracts expected to run for up to five years.
The move is part of a broader government strategy to boost domestic production. Currently, India depends on imports for more than 80% of its crude oil needs and around 50% of its natural gas consumption, making it highly exposed to global price volatility.
In line with this strategy, Narendra Modi last year announced a national deepwater exploration campaign aimed at unlocking offshore energy reserves and improving self-reliance. The initiative focuses on tapping underexplored basins, particularly in eastern offshore regions.
Supporting this push, Oil India recently reported its first-ever gas discovery in the Andaman Sea, marking a significant milestone for the country’s exploration efforts. Early indications suggest strong potential, with high methane content, raising hopes for future large-scale production.
The urgency of boosting domestic output has intensified following ongoing geopolitical tensions in the Middle East, which have disrupted global energy supply chains and increased price volatility. As the world’s third-largest crude importer, India remains particularly vulnerable to such shocks.
India’s growing shift toward domestic exploration and production highlights its long-term strategy to reduce import dependence, stabilize energy costs, and enhance resilience against global supply disruptions.
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