Earlier this month, delegates from Cairn had the opportunity to attend an insightful and forward-looking session hosted by S&P Commodity Insights, offering a deep dive into the evolving Indian Exploration & Production (E&P) landscape. The S&P New Delhi Market Brief provided valuable perspectives on how strategically positioned India is in its pursuit of energy security.
With a bold vision to scale up domestic oil and gas production, the Indian government is actively introducing progressive reforms to attract global investment, promote innovation and unlock previously untapped regions. One of the most significant shifts discussed was the opening of 1 million sq. km of previously classified “No-Go” offshore areas, now offering new opportunities for E&P companies to explore and drill.
Another key highlight was the discussion around the ORD Amendment Bill, 2024, which supports unconventional exploration and simplifies the regulatory landscape. These changes are fostering a more predictable and investor-friendly environment, encouraging both domestic and international players to take bold steps forward.
Under the Open Acreage Licensing Policy (OALP), plans are underway for 487 exploration wells across 134 blocks, including 58 offshore blocks spanning deep and ultra-deepwater zones. The 14 discoveries made so far highlight the immense resource potential that lies beneath Indian waters.
However, realizing this potential requires more than ambition. There is a growing need for strategic partnerships between Indian entities and global IOCs, especially in technically challenging frontier regions. As exploration shifts focus from traditional structural traps to stratigraphic and combination traps, collaboration becomes key from technology exchange and risk-sharing to leveraging local expertise.
With global offshore E&P spending projected to reach $263 billion by 2028, India is poised to benefit from this upward trend. Our offshore upstream investments, particularly in shallow water, are expected to reach $4-5 billion annually over the coming years. While deepwater exploration is still in its early stages, it holds tremendous promise, ready to be unlocked through the right partnerships and innovation-driven approaches.
To sum up, while the momentum is building, accelerating India’s hydrocarbon journey will depend on deepening global collaborations, embracing advanced technologies and sustaining strategic investments across high-potential areas.
Contributed by Nishtha Raghav
