CORPORATE
ONGC, OIL embarking on a Rs 3,200-cr drilling campaign for hydrocarbon reserves
- IBJ Bureau
- Sep 22, 2025
Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) are planning to begin a Rs 3,200-crore stratigraphic drilling campaign in untapped offshore areas early next year. The campaign is a part of efforts to discover new hydrocarbon reserves and cut reliance on imports, according to executives of both the State-run oil exploration and production companies.
In the first phase, four wells will be drilled in the deep sea of Andaman, Mahanadi, Saurashtra and Bengal sedimentary basins.
Global energy giant BP will provide technical expertise in identifying locations as well as drilling, the executives add.
Stratigraphic drilling – also known as a stratigraphic test well – is a type of exploratory drilling aimed at studying underground geological formations rather than producing oil or gas. These wells are drilled to gather data on sub-surface layers through continuous coring, petro-physical logging and integration with seismic data. The objective is to build a detailed geological profile to support future hydrocarbon exploration without any immediate intent to extract resources.
This exercise will help in confirming if an area holds hydrocarbon resources that could be commercially produced.
“ONGC has said that it has a rig, and we hope to start drilling sometime in early 2026,” an executive involved in the process has said.
The government has agreed to compensate ONGC and OIL for the cost of the stratigraphic drilling campaign. The Rs 3,200 crore of estimated cost includes a fee to be paid to BP for its services, the executives have said.
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