State-run oil giant ONGC will invest about $10.5 billion over five years to explore deepwater and ultradeepwater fields, with 87 wells planned by March 2031 as India looks to tap untapped offshore reserves and reduce pressure from declining domestic crude production.
India’s Oil and Natural Gas Corporation (ONGC) plans to invest around 1 trillion rupees ($10.5 billion) over the next five years to explore deepwater and ultradeepwater oil and gas fields, as the state-run energy company seeks to unlock new domestic reserves and counter a prolonged decline in crude production.
ONGC Chairman A.K. Singh said the company will drill 87 deepwater and ultradeepwater wells by March 2031, marking a major expansion of its offshore exploration programme.
India has significant untapped oil and gas reserves in deepwater blocks, Singh said, adding that advances in technology have made it possible to access resources that were previously difficult to exploit.
The investment push comes as ONGC faces the challenge of reversing declining oil and gas output. India’s crude oil production fell in fiscal 2026 for the 11th consecutive year, underscoring the need for new discoveries to strengthen domestic supply.
The deepwater programme is therefore central to ONGC’s efforts to replenish its resource base and boost production from domestic fields.
ONGC to build strategic petroleum reserve
Alongside its exploration plans, ONGC will invest about 70 billion rupees to build a 1.75 million-tonne strategic petroleum reserve (SPR) at Mangalore in southern India.
More from BusinessSingh said the government has asked ONGC to build the reserve and that the company has already acquired the land for the project.
India, the world’s third-largest oil importer and consumer, has been gradually expanding its strategic petroleum storage capacity to help protect the economy from global crude oil price and supply volatility.
The additional storage is expected to strengthen India’s ability to respond to disruptions in global oil markets, particularly given the country’s heavy dependence on imported crude.
ONGC eyes Dubai or Singapore trading hub
Separately, ONGC is planning to establish a trading unit in Dubai or Singapore by the end of March 2027 through a joint venture with a global company.
The proposed joint venture could trade as much as 50 million tonnes of crude oil, refined fuels and gas annually, according to Singh. The business would not be limited to ONGC group products and would also trade third-party volumes.
The proposed trading operation would broaden ONGC’s presence in international energy markets while adding a new commercial arm to its upstream-focused business.
The three-pronged strategy — expanding deepwater exploration, strengthening strategic oil storage and building an international trading operation — comes as India seeks to improve energy security while managing its exposure to volatile global crude markets.
