Image Source: Business Upturn
India’s quest for greater energy security received a significant boost today as Oil and Natural Gas Corporation Limited (ONGC) and Oil India Limited signed a Joint Operating Agreement (JOA) for three highly strategic blocks awarded under the ninth round of the Open Acreage Licensing Policy (OALP-IX). The ceremonial signing took place on August 12, 2025, at ONGC’s Deendayal Urja Bhavan in Vasant Kunj, New Delhi.
India’s Sedimentary Basins Poised for Fresh Investment
The newly inked agreement covers two onland blocks and one ultra-deepwater block. These are located in three important geological regions:
-
Meghalaya, in the Assam Basin
-
Gujarat, in the Cambay Basin
-
Offshore Mahanadi Basin, along India’s eastern coast
Together, the blocks span an impressive area of approximately 10,964 square kilometers, making them some of the most substantial assets allocated in OALP-IX. By pooling ONGC’s seasoned operational expertise with Oil India’s deep exploration experience, the consortium aims to unlock significant hydrocarbon potential within these basins.
Key Highlights from the Signing
-
ONGC will serve as the Operator for all blocks, leveraging its extensive project execution capabilities.
-
Exploration programs are set to begin immediately, focusing on advanced seismic data acquisition, exploratory drilling, and environmental mapping.
-
The collaboration is expected to fast-track India’s movement towards self-sufficiency in oil and gas, supporting long-term national energy goals.
-
The JOA was finalized in the presence of senior company officials, including Saloma Yomdo (Director, E&D, Oil India), Arunangshu Sarkar (Director, Strategy & Corporate Affairs, ONGC), and Om Prakash Sinha (Director, Exploration, ONGC).
Strategic Importance and Future Prospects
The OALP scheme, part of India’s Hydrocarbon Exploration & Licensing Policy (HELP), enables companies to identify and bid for exploration acreage on demand. Round IX saw robust participation, with ONGC emerging as a leading bidder across several blocks. The blocks secured today include a mix of onshore and offshore assets, enabling exploration in both established and frontier basins.
-
The Assam Basin block in Meghalaya taps into reserves with proven productivity and proximity to major refineries.
-
The Cambay Basin, Gujarat block, augments exploration in western India’s well-known hydrocarbon hub.
-
The ultra-deepwater block in the Mahanadi Basin is especially notable for its frontier status, potentially holding significant untapped reserves.
Each block presents unique technical and logistical challenges. The partnership’s phased work plan addresses site surveys, stakeholder engagement, and local content development to maximize project value and community impact.
Vision for Collaborative Energy Security
The ONGC-Oil India JOA marks a milestone in India’s upstream energy sector, delivering on the government’s goal of encouraging domestic exploration by fostering collaboration between leading state-owned enterprises. The consortium’s expertise is well-positioned to drive new discoveries that can reduce reliance on energy imports.
While details about investment figures and anticipated production timelines remain confidential, sources indicate swift mobilization of resources and expedited regulatory clearances. Initial exploratory activities are expected to generate significant technical data, laying the foundation for future development wells and commercial production.
Current Industry Sentiment
The news has been received with optimism in India’s energy and investment circles, noting the potential for new reserves, job creation, and technological advancements. It comes amid broader sectoral shifts, with ONGC and Oil India pivoting towards enhanced domestic exploration and innovation.
In summary, today’s Joint Operating Agreement underscores the enduring commitment of ONGC and Oil India to unlocking the nation’s hydrocarbon resources, contributing to the India’s strategic energy roadmap, and setting the stage for breakthrough discoveries in the coming decade.
Source: Indinpsu.com, Reuters (Trading View), X.com
Advertisement
Advertisement
