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By Shivaji Sarkar<\/strong><\/p>\n \n 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\u2019s economy. The Oil and natural Gas Corporation (ONGC)\u2019s exploration in Ballia and Samastipur spans 308 sq km, holding the promise of transforming some of India\u2019s most impoverished areas.<\/p>\n The new oil and gas exploration in Bihar\u2019s Samastipur and UP\u2019s Ballia holds the potential to reshape India\u2019s 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 oil exploration.<\/p>\n Initial investments in the two explorations are likely to be about Rs 125 crore \u2013 Rs 85 crore for Ballia and Rs 35 crore for Samastipur. Explorations are on in Punjab-Haryana Ganga basin too. The study is being conducted in – Machhiwara, Samrala, Ludhiana East tehsils, Nawanshahr, Jalandhar, Gurdaspur, and Amritsar.<\/p>\n The discovery at Ashoknagar, yielding high-quality crude superior to Bombay High, has positioned the Bengal Basin as India\u2019s eighth commercially producing hydrocarbon zone. Meanwhile, the Andaman and Nicobar Islands hold vast untapped natural gas reserves, estimated at 610 million tonnes. With just 10 per cent of India\u2019s sedimentary basins currently under exploration, the country plans to expand this to 16 per cent within a year\u2014paving the way for a new era in domestic oil and gas production.<\/p>\n The monetisation of the Ashoknagar-1 discovery has made the Bengal Basin India\u2019s 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 of 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.<\/p>\n India is on track to increase its exploration acreage to\u00a01million\u00a0square km by\u00a02030, oil and gas yields are expected to increase significantly. The\u00a0approval process for exploration and production activities in the petroleum industry has now been\u00a0simplified, reducing 37 approval processes to just 18, of which nine are now available for\u00a0self-certification.<\/p>\n 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 single licence for all hydrocarbons. This opens up 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\u2019s output, optimise management of fields, and create value in additional energy vectors such as carbon sequestration.<\/p>\n India has witnessed a remarkable surge in petroleum product exports over the last decade. The country\u2019s refining capacity, now exceeding\u00a0250 million\u00a0metric tonnes per annum (MMTPA), has enabled it to cater to global markets.<\/p>\n Key export destinations include\u00a0South Asian, African, and European countries. The emphasis on export-oriented growth and establishing\u00a0Special Economic Zones (SEZs) for refineries\u00a0have further boosted this trend. Exports not only contribute to foreign exchange reserves but also enhance India\u2019s stature as a global energy supplier.<\/p>\n As of April 2021, India\u2019s 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\u2019s hydrocarbon exploration efforts, promising long-term gains in energy production and economic growth.<\/p>\n Through intense seismic surveys since 2016-17, the ONGC made 68 new 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).<\/p>\n It has identified 26 sedimentary basins, categorized into four groups by the Directorate General of Hydrocarbons (DGH) based on their hydrocarbon prospectivity. To harness the country\u2019s 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.<\/p>\n These basins include the Assam Shelf, Assam-Arakan Fold Belt, Cambay (including offshore), Cauvery (including offshore), Krishna-Godavari (including offshore), Mumbai Offshore, Rajasthan (Jaisalmer), Kutch Offshore, Mahanadi Offshore, Saurashtra Offshore, Himalayan Foreland, Bengal, and Vindhyan basins spread across Assam, Mizoram, Tripura, Gujarat, Tamil Nadu, Andhra Pradesh, Rajasthan, Himachal Pradesh, West Bengal, and Madhya Pradesh. The basins extend along eastern and western coasts, strengthening domestic energy security.<\/p>\n The exploration successes have strengthened India\u2019s domestic hydrocarbon reserves. India is set to become a key driver of global oil demand by 2030, fuelled by economic growth, urbanization, and rising vehicle ownership. With the new finds India\u2019s capacity in refinery is to reach 295 million tonne. 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.<\/p>\n By 2035, domestic oil production is likely to rise but so are imports by an aspiring nation with larger activities. Though battery vehicle is being junked by US President Donald Trump, India continues with it. It too has heavy import liabilities in battery and other components.<\/p>\n The ONGC produces 1.26 million barrels a day, 76 per cent of this of high quality. India\u2019s 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\u2019s growing energy needs will necessitate a balanced approach between exploration, imports, and refinery expansion.<\/p>\n India\u2019s 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. Its crude oil imports rose to 179.3 million tonnes in April-December, from 173.7 million tonnes in the same period the previous year. Meanwhile, domestic oil production declined slightly to\u00a021.6 million tonnes\u00a0from 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 balance in import and exports of petroleum products. \u2014 INFA<\/p>\n \n \n \n \n","protected":false},"excerpt":{"rendered":" Ganga Valley Sees Oil Boom By Shivaji Sarkar 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\u2019s economy. 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