ONGC to invest ₹1 trillion in deepwater exploration over five years, plans 87 wells by 2031

State-owned Oil and Natural Gas Corporation (ONGC) plans to invest ₹1 trillion over the next five years to explore deepwater and ultra-deepwater oil and gas fields in India, Chairman A.K. Singh said on 31 August. The company aims to drill 87 deepwater and ultra-deepwater wells by March 2031.

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The investment amounts to about $10.5 billion based on Reuters calculations using prevailing exchange rates. Singh announced the plan during a press conference, saying India has significant untapped oil and gas reserves in deepwater blocks and that available technologies now make it possible to develop those resources.

Push to reverse production decline

The investment comes as ONGC seeks fresh discoveries to counter falling domestic oil and gas output. India's crude oil production declined in fiscal 2026 for the eleventh consecutive year, according to Reuters.

As India's largest upstream oil and gas producer, ONGC is looking to expand exploration activity in offshore areas to strengthen domestic energy production and reduce dependence on imports.

Strategic petroleum reserve project

Separately, ONGC will invest about ₹70 billion to build a 1.75 million-tonne strategic petroleum reserve (SPR) at Mangalore in Karnataka, Singh said.

The Indian government wants ONGC to develop the facility, and the company has already acquired land for the project. Reuters reported that India, the world's third-largest importer and consumer of crude oil, has been expanding its strategic petroleum reserve capacity to cushion the impact of global supply disruptions and price volatility.

Overseas trading venture

ONGC is also planning to establish a trading unit in either Dubai or Singapore by the end of March 2027 through a joint venture with a global company, Singh said.

The proposed venture could trade around 50 million tonnes of crude oil, refined petroleum products and gas annually. In addition to handling volumes from ONGC group companies, it is expected to trade third-party cargoes as well.

Wider energy strategy

The exploration programme forms part of ONGC's broader effort to increase domestic hydrocarbon production at a time when India continues to rely heavily on imported crude. Deepwater and ultra-deepwater discoveries are seen as important for improving the country's energy security and supporting long-term supply growth.

Source: Reuters interview and press conference remarks by ONGC Chairman A.K. Singh. Additional context from Reuters reporting on India's oil production and strategic petroleum reserve expansion.