State-run Oil India Ltd (OIL) plans to invest around 15,000 crore over the next three years in deepwater and ultra-deepwater exploration, as it prepares to identify drilling prospects across 48,000 square kilometres of offshore acreage and tap benefits under the Centre’s 84,084-crore Samudra Manthan scheme, chairman and managing director Ranjit Rath said on Thursday.
The company has acquired two blocks each in the Krishna-Godavari (KG) and Mahanadi basins and completed two-dimensional (2D) and three-dimensional (3D) seismic surveys. Processing of the acquired data and reprocessing of older seismic information are underway to identify potential drilling locations.
“As a matter of preparedness, we have already created a capex of about Rs 15,000 crores,” Rath told reporters after the company’s annual general meeting (AGM).
“Our idea is that we will be able to avail the benefits from the Samudra Manthan scheme,” he said, adding that the company was in the process of identifying potential drilling prospects.
OIL currently has a presence across multiple onshore and offshore sedimentary basins, with an exploration footprint exceeding one lakh square kilometres. Its offshore portfolio includes acreage in the Andaman, Krishna-Godavari, Mahanadi and Kerala-Konkan basins, including ultra-deepwater blocks, according to a company statement issued after the AGM.
The investment plan follows the Union Cabinet’s approval of Samudra Manthan, the National Offshore Exploration Scheme, on July 31. The Rs 84,084-crore programme, running through FY31, provides for large-scale seismic surveys, accelerated deepwater and ultra-deepwater drilling, common offshore infrastructure and development of domestic manufacturing and service capabilities.
OIL also reported progress in the Andaman basin. “Sri Vijayapuram-2 established a natural gas occurrence, while Sri Vijayapuram-3 resulted in a gas discovery with continuous flaring,” the company said.
These findings provide “encouraging evidence of an active petroleum system in this frontier basin”, it added. OIL is strengthening its offshore capabilities through advanced seismic evaluation, technology partnerships and preparations for future drilling campaigns.
During FY26, OIL produced 3.450 million metric tonnes (MMT) of crude oil and 3.186 billion cubic metres (BCM) of natural gas. It completed 74 wells, comprising 22 exploratory and 52 development wells, while its reserve replacement ratio improved to 1.02.
Crude production increased 11% year-on-year to 0.950 MMT in the first quarter of FY27. OIL is targeting around 10 million metric tonnes of oil equivalent in annual oil and gas production by the end of the decade.
“OIL will remain focused on growing domestic oil and gas production, expanding India’s hydrocarbon resource base, building capabilities for frontier offshore exploration and developing scalable new energy businesses, while maintaining capital discipline and a strong balance sheet,” Rath said.