Deepwater, data and de-risking: How ONGC is reworking its exploration playbook

As the Government of India is emphasising energy security amid a rapidly changing global energy landscape, ONGC is also revising its exploration plans. In an exclusive interview with Millennium Post, O P Sinha, Director (Exploration), ONGC, talks about how the changing dynamics of exploration are being driven by government support, technology, and collaboration, even as the state-owned PSU faces challenges posed by the energy transition and capital discipline.

Q: Over the next five years, which areas will ONGC prioritise for exploration—deepwater, frontier, mature, or near-infrastructure—and how is capex being distributed?

Exploration has been the backbone of any E&P company, and ONGC currently maintains a balanced exploration portfolio. Traditionally, a significant part of exploration has focused on near-infrastructure and mature areas, which offer quicker monetisation and lower risk.

However, if the objective is to achieve large and meaningful discoveries, greater emphasis has to be placed on frontier and deepwater areas. Over the last decade, globally, most major discoveries have come from these challenging domains.

Keeping unchanged the activity in shallow or mature areas, ONGC is now also focusing on deepwater exploration. This shift is supported by strong policy backing from the government, including incentives and dedicated deepwater initiatives. ONGC is therefore planning to deploy additional resources—both financial and technical—towards deepwater exploration, alongside its existing programmes.

Q: Deepwater exploration is capital-intensive and high-risk. How do government initiatives, including recent announcements, help ONGC move forward in this space?

There is no doubt that deepwater exploration involves very high costs and risks, as offshore operations are inherently capital-intensive. However, deepwater discoveries also have the potential to be large and long-lasting, making them strategically important.

Recognising this, the government has introduced policy and fiscal support mechanisms, including partial allocation and risk-sharing measures. Some exploration costs are now supported upfront, which was not the case earlier. This has created a much more favourable investment environment, allowing ONGC to take calculated risks in deepwater areas with greater confidence.

Q: Despite multiple licensing rounds, large parts of India’s sedimentary basins remain under-explored. What geological or regulatory gaps still exist, and how is ONGC addressing them?

One of the major constraints earlier was the existence of restricted areas, especially offshore, where exploration activity was not permitted due to defence and security concerns. Nearly one million square kilometres were inaccessible to explorers.

The government has now cleared many of these restricted zones, allowing E&P operators to undertake exploration activities. This has opened up a significant new opportunity. ONGC has already made a few discoveries in these newly opened areas, which is encouraging.

With more acreage becoming available and improved regulatory clarity, ONGC expects better participation and outcomes in upcoming licensing rounds.

Q: What technologies and operational strategies is ONGC using to boost success and commercial viability in deepwater exploration?

ONGC is increasingly adopting a collaborative model, partnering with experienced global operators. This allows ONGC to benefit from international deepwater expertise, while partners gain from ONGC’s deep understanding of Indian sedimentary basins.

When geological knowledge and advanced technology are combined, success probabilities improve significantly. On the cost side, collaborative investment models help distribute capital risk, making projects more viable.

Q: How has ONGC’s exploration success ratio evolved in recent years, and what changes are being made in seismic interpretation, data analytics, and drilling strategy?

ONGC’s exploration success rate compares favourably with global averages, though success ratios always remain relative due to inherent geological uncertainties. There is no fixed success percentage in exploration.

The focus is on continuous de-risking—through acquisition of better data, reprocessing of legacy seismic data, improved interpretation, and refined drilling strategies. With increasing use of advanced processing and analytics, ONGC is steadily improving its understanding of subsurface geology, which enhances exploration outcomes.

Q: How extensively is ONGC using AI, ML, and 4D seismic in exploration and field development?

Advanced seismic technologies, including 4D seismic, have already been deployed across most of ONGC’s major fields. These technologies support not only exploration but also production optimisation in mature fields.

Artificial Intelligence and Machine Learning are now becoming integral tools. We now have in-house teams actively working on AI

And ML applications for prospect identification and risk-reduction. In addition, ONGC is collaborating with specialised global firms to adopt best practices and accelerate capability building.

Q: What is the current status of ONGC’s unconventional resources such as CBM, shale gas, and tight oil?

ONGC is already producing Coal Bed Methane (CBM) from several blocks. The primary constraint earlier was a lack of evacuation infrastructure, particularly pipelines. As the national gas grid expands, these constraints are being addressed, and CBM production is expected to scale up significantly.

Shale gas potential has also been established, and evaluation work continues. Tight oil and tight gas resources are being assessed alongside conventional developments.

Q: As India pushes for energy transition, how does ONGC justify continued large investments in exploration while managing emissions and environmental risks?

Energy transition is inevitable, but for a country like India, no single energy source can replace another overnight. To meet growing energy demand, all forms of energy will be required for the foreseeable future.

ONGC’s approach is to strengthen exploration and production while simultaneously reducing emissions by improving operational efficiency, adopting cleaner technologies, and aligning with global environmental standards. Optimising existing processes and lowering the carbon intensity of operations is the key focus.

Q: By 2035–2040, how will ONGC define success in exploration—discoveries, faster monetisation, or energy security?

Success will be a combination of all three. Over the next five to ten years, ONGC’s immediate priority is the monetisation of existing discoveries, particularly in basins such as Mahanadi, where ONGC and other operators have made significant finds.

The government’s move towards shared infrastructure, including common evacuation and processing facilities, will play a crucial role in accelerating monetisation.

Faster development of discoveries will not only improve ONGC’s performance but also strengthen India’s long-term energy security.