India’s Oil and Natural Gas Corporation (ONGC) has initiated a significant campaign aimed at enhancing domestic oil and gas production. The effort focuses on optimizing existing wells and expediting production from newly discovered resources. According to a report by Fortune India, ONGC is responsible for approximately 70% of the country’s crude oil and 84% of its natural gas output.
Despite its substantial contributions, ONGC has experienced a steady decline in production due to natural depletion. In an effort to reverse this trend and improve self-sufficiency in hydrocarbons, the company reported a decrease in crude oil production from 22.533 million metric tons in 2020 to 20.892 million metric tons in 2025. Similarly, natural gas production fell from 22.816 billion cubic meters to 20.19 billion cubic meters in the same period.
Geopolitical Pressures and Domestic Supply Challenges
The timing of ONGC’s campaign is crucial. The United States has issued warnings to India regarding potential secondary tariffs unless the country ceases its crude oil purchases from Russia. This pressure is part of a broader effort by the U.S. and European nations to expedite an end to the ongoing conflict in Ukraine. Despite official statements from India refusing to halt Russian oil imports, media reports indicate that Indian refiners are increasingly sourcing U.S. crude and reducing their reliance on Russian oil.
Current data from Kpler highlights that Russian oil shipments to India are averaging around 2 million barrels per day this month. This underscores the complexity of India’s energy landscape, where domestic oil and gas production still falls significantly short of meeting demand, with imports accounting for approximately 85% of total oil needs.
New Discoveries and Exploration Rights
In the current financial year, ONGC has reported nine new discoveries that could play a pivotal role in reversing the decline in production. Furthermore, the company secured exploration rights to 15 blocks tendered by the Indian government, marking a proactive approach to enhance its output capabilities.
While India’s domestic oil and gas production remains insufficient to satisfy even half of its demand, any increase in local supply could alleviate some dependence on imports. As ONGC embarks on this ambitious initiative, the outcome will be closely watched, particularly in light of the geopolitical pressures and economic ramifications facing the country.
