ONGC Plans $20 Billion Deepwater Expansion to Boost Domestic Energy Output

Oil and Natural Gas Corporation (ONGC) is planning to invest around $18–20 billion to hire deepwater drilling rigs as part of its largest-ever exploration programme.

• The company is looking to hire drillships and semi-submersible rigs
• Contracts may run for up to 5 years
• Rigs are expected to be deployed quickly, within 80 days

Why This Move Matters

India is heavily dependent on energy imports, and this move aims to:

• Reduce reliance on imported oil and gas
• Increase domestic production
• Strengthen energy security amid global uncertainties

Currently, India imports:

• Around 88% of crude oil
• About 60% of LPG
• Nearly 50% of natural gas needs

Part of a Larger Strategy

The project is part of the government’s Samudra Manthan programme, which focuses on boosting deepwater exploration.

• ONGC recently started ultra-deepwater drilling in Andaman
• The eastern offshore region is believed to have large untapped reserves

Global Partnerships in Focus

ONGC is also working with global energy giants to improve exploration:

• Companies like Chevron Corporation, ExxonMobil, TotalEnergies, and Shell plc have shown interest
• The company already has partnerships with BP plc

Background: Rising Energy Concerns

The push comes amid ongoing tensions in West Asia, a key supplier of energy to India. The government has been focusing on diversifying sources and increasing domestic output to reduce risks.

ONGC Share Price Movement

Oil and Natural Gas Corporation share price (NSE: ONGC) closed at ₹269.70 on March 25, 2026, up ₹1.65 or 0.62% for the day. The stock opened at ₹267.35 and touched a high of ₹271.50 and a low of ₹266.40 during the session. The company has a market capitalisation of ₹3.40 lakh crore and trades at a P/E ratio of 8.94. Its 52-week high stands at ₹293.00, while the 52-week low is ₹205.00. ONGC offers a dividend yield of 5.01%, with a quarterly dividend amount of ₹3.38.

Conclusion

ONGC’s large-scale deepwater investment signals a strong shift toward energy self-reliance. If successful, it could reduce import dependence and strengthen India’s long-term energy security.

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