With new oil and gas exploration projects underway in Bihar’s Samastipur and Uttar Pradesh’s Ballia, the region could emerge as a game changer for India’s energy security
India, heavily reliant on imports for 87 per cent of its oil needs, is now eyeing a potential energy revolution in its underexplored eastern basins. South Bengal, Bihar, and Eastern Uttar Pradesh are emerging as key oil hotspots, with untapped reserves that could reshape the region’s economy. The Oil and Natural Gas Corporation (ONGC)’s exploration in Ballia and Samastipur spans 308 sq km, holding the promise of transforming some of India’s most impoverished areas.
The new oil and gas exploration in Bihar’s Samastipur and UP’s Ballia holds the potential to reshape India’s energy landscape. However, challenges in land acquisition remain, necessitating strong local support for seamless drilling operations. A commercial discovery here could unlock the entire Ganga Basin, spanning Bihar, Uttar Pradesh, and West Bengal, for further exploration. Initial investments in the two explorations are likely to be about Rs 125 crore — Rs 85 crore for Ballia and Rs 35 crore for Samastipur. Explorations are on in the Punjab — Haryana Ganga basin too. The study is being conducted in — Machhiwara, Samrala, Ludhiana East tehsils, Nawanshahr, Jalandhar, Gurdaspur, and Amritsar.
The discovery at Ashoknagar, yielding high-quality crude superior to Bombay High, has positioned the Bengal Basin as India’s eighth commercially producing hydrocarbon sone. Meanwhile, the Andaman and Nicobar Islands hold vast untapped natural gas reserves, estimated at 610 million tons. With just 10 per cent of India’s sedimentary basins currently under exploration, the country plans to expand this to 16 per cent within a year — paving the way for a new era in domestic oil and gas production. The monetisation of the Ashoknagar-1 discovery has made the Bengal Basin India’s eighth commercially producing hydrocarbon zone, leading to its upgrade to a Category-I productive basin. With this, ONGC has discovered seven out of eight producing basins in the country.
The seven basins discovered and put into production by ONGC are: Krishna-Godavari, Mumbai Offshore, Assam Shelf, Rajasthan, Cauvery, Assam — Arakan Fold Belt, and Cambay. India is on track to increase its exploration acreage to one million square km by 2030, and oil and gas yields are expected to increase significantly.
The approval process for exploration and production activities in the petroleum industry has been simplified, reducing 37 approval processes to just 18, of which nine are now available for self-certification. The new Oilfields (Regulation and Development) Amendment Bill in 2024, passed by the Rajya Sabha in December 2024, ensures policy stability for oil and gas producers and enables a single licence for all hydrocarbons. This opens up the entry of private companies. The ONGC has signed a MoU with BP to explore collaboration in oil and gas projects in India and abroad. The partnership will focus on enhancing production, trading, and exploring new energy vectors. This collaboration aims to boost ONGC’s output, optimise the management of fields, and create value in additional energy vectors such as carbon sequestration.
Key export destinations India has witnessed a remarkable surge in petroleum product exports over the last decade. The country’s refining capacity, now exceeding 250 million metric tonnes per annum (MMTPA), has enabled it to cater to global markets. Key export destinations include South Asian, African, and European countries.
The emphasis on export — oriented growth and establishing Special Economic Zones (SEZs) for refineries have further boosted this trend. Exports not only contribute to foreign exchange reserves but also enhance India’s stature as a global energy supplier. As of April 2021, India’s crude oil reserves were estimated at approximately 587.335 million metric tonnes, with the western offshore region holding the largest share, followed by Assam and Gujarat.
The Bihar and UP discoveries add to the hope of the country’s hydrocarbon exploration efforts, promising long-term gains in energy production and economic growth.Through intense seismic surveys since 2016-17, the ONGC made 68 discoveries and monetised 36. Key discoveries in Kutch, Saurashtra, West Bengal, and the KG Basin reinforced confidence in upgrading these basins to category-I (producing). It has identified 26 sedimentary basins, categorised into four groups by the Directorate General of Hydrocarbons (DGH) based on their hydrocarbon prospectivity.
To harness the country’s untapped oil and gas potential, ONGC is actively exploring reserves across 13 of these basins under the Nomination and New Exploration Licensing Policy (NELP) regimes. The exploration successes have strengthened India’s domestic hydrocarbon reserves. India is set to become a key driver of global oil demand by 2030, fuelled by economic growth, urbanisation, and rising vehicle ownership. With the new finds India’s capacity in refinery is to reach 295 million tonnes.
Oil imports may rise to 5.6 million barrels. But for the new oil basins, output is to drop to 540,000 barrels a day. By 2035, domestic oil production is likely to rise but so are imports by an aspiring nation with larger activities. Though battery vehicles are being junked by US President Donald Trump, India continues with it. It too has heavy import liabilities in battery and other components. The ONGC produces 1.26 million barrels a day, 76 per cent of this of high quality.
India’s import dependence is rising, with the oil ministry telling the standing committee that the share of import in the volume of crude processed will increase to 91 per cent. Despite efforts to enhance energy efficiency, India’s growing energy needs will necessitate a balanced approach between exploration, imports, and refinery expansion.
India’s energy demand is set to rise to 11 per cent of global demand by 2040, positioning the country as a key player in the global oil and gas sector.India’s crude oil imports rose to 179.3 million tonnes in December, from 173.7 million tonnes in the same period the previous year.
Meanwhile, domestic oil production declined slightly to 21.6 million tonnes from 22 million tonnes, according to the latest data from the Petroleum Planning and Analysis Cell (PPAC). Once the Gangetic Valley finds go for commercial production, the PPAC projection may have to be revised. India hopes to maintain a balance in the import and export of petroleum products.
India’s oil and gas exploration efforts are poised to reshape its energy landscape, reducing import dependency and boosting domestic production. New discoveries in Bihar, Uttar Pradesh, and West Bengal, along with policy reforms, signal a promising future for the sector.
With ONGC expanding its exploration footprint and collaborating with global players, India is strengthening its hydrocarbon reserves. As energy demand rises, balancing imports, exploration, and refinery expansion will be crucial for sustaining economic growth and energy security.
(The writer is a senior journalist. Views expressed are personal)
