Oil and Gas Corporation of India signs agreement with British Petroleum for offshore oil drilling operations
The Indian Oil and Natural Gas Corporation Limited (ONGC) and British multinational oil and gas company BP plc have joined forces in a strategic partnership to drill stratigraphic wells in India's Category II & III offshore sedimentary basins. The collaboration, formalised through a Memorandum of Understanding (MoU) signed in July 2025, is set to significantly enhance India's energy security and hydrocarbon exploration potential.
The partnership, signed in the presence of Oil Minister Hardeep Singh Puri at Urja Varta 2025, leverages ONGC's investment with BP's global expertise in deepwater exploration and seismic technologies. The focus of the collaboration extends beyond the oil and gas fields mentioned in the initial MoU, encompassing offshore gas fields across various basins.
This strategic move is expected to deepen geological understanding of underexplored offshore sedimentary basins, potentially unlocking untapped hydrocarbon resources and discovering new reserves. The collaboration supports the government's goal of Atmanirbhar Bharat (self-reliant India) by discovering indigenous energy sources to meet long-term demand.
Stratigraphic wells provide critical information on subsurface rock layers and their properties, improving exploration accuracy and reducing drilling risks. BP's experience with advanced seismic technology and deepwater operations will enhance evaluation techniques, helping identify productive zones with higher confidence. The collaborative exploration in diverse offshore basins could lead to new hydrocarbon provinces or discoveries, increasing India's proven reserves.
BP's Head of Country, Kartikeya Dube, expressed excitement about the partnership and believed that drilling new stratigraphic wells could lead to a new understanding and potential. The partnership does not involve any FMCG activities, as previously reported in separate news items.
It is worth noting that ONGC is not only collaborating with BP but is also discussing potential collaborations with multiple global energy companies, including Shell and Petronas, for several offshore gas fields. The corporation expects to start production in new fields such as Tapti Daman area, Kutch field, and the Mahanadi basin, in addition to reversing the decline in matured fields.
Financial details about the BP collaboration were not provided in this announcement. However, BP has indicated a potential increase of up to 60% in Oil and Oil Equivalent of Gas production over a 10-year contract period. This partnership represents a significant step toward diversifying and strengthening India’s upstream oil and gas capabilities through international cooperation.
- The finance aspect of the partnership is estimated to potentially boost India's oil and gas production by up to 60% over a decade, as stated by BP.
- Amidst the collaboration, ONGC is also considering partnerships with other global market players like Shell and Petronas, diversifying its offshore gas fields.
- The weather, though not directly mentioned, is an indirect factor as the successful exploration of offshore gas fields could be influenced by favorable weather conditions, ultimately impacting the economy and sports sectors through improved energy security.
