In a significant development for India's oil and gas sector, the Ministry of Petroleum & Natural Gas has declined to extend the Production Sharing Contract (PSC) for the CB-OS/2 Block. The application for extension was jointly filed by Vedanta Limited, Oil & Natural Gas Corporation (ONGC), and TATA Petrodyne Ltd.

Block Details and Current Production

The CB-OS/2 Block, an offshore asset located on India's west coast, was originally awarded under the Pre New Exploration Licensing Policy PSC on June 30, 1998. The Production Mining Lease for the block was subsequently granted in 2002. Currently, the block houses two productive fields:

• Lakhsmi Field
• Gauri Field

These fields collectively yield:

SCMD: Standard Cubic Meters per Day

Government's Decision and Next Steps

Following the rejection of the extension application, the government has taken decisive action to ensure uninterrupted operations:

1. ONGC has been instructed to assume control of the block as the Government Nominee.
2. The state-owned company will be responsible for overseeing all aspects of the block, including:
   • Data management
   • Asset control
   • Operational responsibilities
   • Safeguarding of petroleum reserves

Interim Measure and Future Prospects

The government has emphasized that ONGC's takeover is an interim measure. This step has been taken to:

• Maintain continuity of petroleum operations in the public interest
• Ensure the protection of valuable petroleum reserves

The block is expected to be re-awarded to another party in the future, although no specific timeline has been provided for this process.

This development underscores the government's active role in managing India's strategic energy assets and its commitment to optimizing the country's oil and gas resources. The transition of control to ONGC is likely to be closely watched by industry stakeholders for its potential impact on production levels and operational efficiency.

State-run oil explorers Oil & Natural Gas Corporation (ONGC) and Oil India Ltd are set to launch an ambitious Rs 3,200 crore stratigraphic drilling campaign in untapped offshore areas. The initiative, slated to commence in early 2026, aims to bolster India's domestic hydrocarbon production and reduce its substantial import dependency.

Exploration Strategy

The campaign's first phase involves drilling four wells in deep-sea areas across diverse sedimentary basins:

• Andaman Basin
• Mahanadi Basin
• Saurashtra Basin
• Bengal Basin

ONGC plans to utilize its available rig for the drilling operations, which are expected to begin in early 2026.

BP's Technical Expertise

In a significant move, British oil major BP will provide technical expertise for the project. BP's role will be crucial in:

1. Identifying optimal drilling locations
2. Supporting drilling operations

The Indian government has agreed to compensate both ONGC and Oil India for the campaign costs, including BP's service fees.

Stratigraphic Drilling: Unveiling Geological Secrets

The primary objective of stratigraphic drilling is to study underground geological formations. This exploration technique helps determine whether areas contain commercially viable hydrocarbon resources. Each stratigraphic well is estimated to require:

• Three months for drilling
• Three to four quarters for results interpretation

Government Ownership and Future Plans

Currently, the government owns the blocks where drilling will take place. Any discoveries made during this campaign will be subject to government decisions on monetization methods.

Reducing Import Dependency

This exploration initiative aligns with India's broader strategy to reduce its hefty oil and gas import bill. Key statistics highlight the importance of this campaign:

By increasing domestic production, the government aims to significantly cut down on these import expenses.

Timeline and Expectations

With drilling set to commence in early 2026, the results of this extensive exploration campaign are eagerly anticipated by the energy sector. The findings could potentially reshape India's domestic oil and gas landscape, paving the way for reduced import dependency and enhanced energy security.

As this strategic initiative unfolds, it marks a significant step in India's quest for energy self-sufficiency, combining state-run expertise with international technical knowledge in the exploration of promising offshore reserves.