Oil and Natural Gas Corporation Limited (ONGC) is set to invest Rs 8,110 crore for the onshore development and production of oil and gas from 172 wells across eight Production Mining License (PML) blocks in Andhra Pradesh.
The investment is part of the company’s ongoing efforts to expand domestic hydrocarbon production and strengthen India’s energy security.
The PML blocks, spread across key oil- and gas-producing regions of the state, are expected to contribute significantly to ONGC’s output over the coming years.
This development will involve the drilling of new wells as well as the augmentation of existing infrastructure, with the company deploying advanced technologies aimed at enhancing extraction efficiency and optimizing production from mature fields.
Officials said the initiative is expected to generate substantial employment opportunities in Andhra Pradesh, both directly and indirectly. Ancillary industries supporting oil and gas operations, such as logistics, equipment manufacturing, and maintenance services, are likely to benefit from the large-scale development.
The move is also expected to provide a boost to the local economy in the areas surrounding the PML blocks.
ONGC has been steadily increasing its focus on onshore operations in Andhra Pradesh, building on its established presence in the Krishna-Godavari basin and other productive regions.
The company has previously invested in exploration, appraisal, and development projects in the state, with several wells already contributing to domestic oil and gas output. The latest investment marks one of the largest single-year onshore development initiatives by ONGC in the region.
This investment aligns with the central government’s broader strategy to encourage domestic oil and gas exploration, reduce import dependence, and achieve self-reliance in energy.
By intensifying production from onshore fields, ONGC aims to strengthen India’s energy portfolio while ensuring a steady supply of crude oil and natural gas to meet growing domestic demand.
Experts say such large-scale investments are crucial for sustaining long-term growth in the sector, particularly as global oil prices remain volatile and energy security becomes a strategic priority.
With the project set to roll out over the next few years, Andhra Pradesh is likely to emerge as an increasingly important hub for India’s oil and gas industry, supported by modern infrastructure and investment in technology-driven production.