State-run explorers Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) will begin a ₹3,200 crore stratigraphic drilling campaign in early 2026, targeting unexplored offshore sedimentary basins in a bid to expand domestic hydrocarbon reserves and curb reliance on costly imports.
Senior officials confirmed that the programme, backed by government funding, will be one of the largest exploration pushes in recent years.
The first phase of the campaign will see four test wells drilled in the deep waters of the Andaman Sea, Mahanadi, Saurashtra and Bengal basins. These frontier regions have long been identified as having the potential for sizeable oil and gas finds but have remained largely untapped due to high costs, technical risks and regulatory constraints.
Global major BP has been brought on board to provide technical expertise, helping to identify drilling sites and guide operations. The data generated from the stratigraphic wells will allow scientists to create detailed subsurface profiles, offering critical insights into whether the basins contain commercially viable reserves.
The government has pledged to bear the full cost of the campaign, with ONGC and OIL carrying out the operations. Any discoveries will remain under state ownership, and decisions on monetisation—whether through auctions, nominations or other mechanisms—will be taken later. Officials have not clarified if BP will have any preferential rights in case of commercial finds.
The project comes at a time when India is seeking to strengthen its energy security amid rising demand and volatile global oil prices. The country currently imports nearly 88 percent of its crude oil and around half its natural gas requirements. Exploration coverage remains low, with only about a tenth of India’s sedimentary basin area under active work. The government has recently opened up vast swathes of the exclusive economic zone for drilling, cutting “no-go” areas by nearly 99 percent in order to attract investment.
Stratigraphic drilling is expected to play a crucial role in narrowing India’s knowledge gap in these remote basins. While the wells themselves are not designed for immediate production, they will provide continuous coring and geological data that can help assess the commercial viability of future exploration. Industry experts say it may take several quarters after drilling begins to interpret the results and determine the scale of any hydrocarbon deposits.
The campaign is part of a broader strategy that includes reforms to pricing formulas for gas from difficult and deep-sea areas, aimed at making exploration more viable for investors. By launching one of its most ambitious offshore drilling drives to date, India is signalling its intent to move beyond traditional onshore assets and into deepwater plays that could reshape its energy landscape.
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