State-run Oil India plans major investments in deepwater and ultra-deepwater exploration as it steps up efforts to identify potential offshore drilling locations.
Highlights
- Oil India Ltd (OIL) plans to invest around ₹15,000 crore over the next three years in deepwater and ultra-deepwater exploration.
- The company has completed 2D and 3D dimensional seismic surveys at the Krishna-Godavari and Mahanadi basins.
- Processing and reprocessing of seismic data is underway to identify potential drilling locations.
New Delhi: State-run Oil India Ltd (OIL) is preparing a major push into deepwater and ultra-deepwater exploration, with plans to invest around ₹15,000 crore over the next three years as it searches for new oil and gas reserves.
The company has completed two-dimensional and three-dimensional seismic surveys in the Krishna-Godavari (KG) and Mahanadi basins, according to the report. Processing of the acquired seismic data and reprocessing of older information are currently underway to identify potential drilling locations.
Oil India Chairman and Managing Director Ranjit Rath said the company has already prepared a capex of about ₹15,000 crore as part of its exploration plans. The investment is aimed at strengthening the company’s ability to pursue opportunities in offshore areas, including deepwater and ultra-deepwater regions.
OIL has acquired two blocks each in the Krishna-Godavari and Mahanadi basins, giving it access to offshore acreage and exploration prospects. Its overall offshore portfolio spans more than 100,000 square kilometres, according to the report.
The company is currently evaluating data to identify promising drilling prospects. Seismic surveys play an important role in offshore exploration by helping energy companies understand geological structures below the seabed before deciding where to drill exploratory wells.
The investment follows the government’s efforts to increase domestic oil and gas exploration and reduce India’s dependence on imported energy. Offshore and deepwater basins are considered an important part of the country’s search for new hydrocarbon resources.
Oil India’s exploration programme also includes other sedimentary basins. The company is using seismic surveys, data processing and geological analysis to assess potential resources before moving to drilling.
The planned spending indicates that offshore exploration will remain a key component of OIL’s investment strategy over the next three years, although actual discoveries and commercial production will depend on the results of exploration and subsequent drilling.
