Oil and Natural Gas Corp. plans a capital expenditure of Rs 30,000 crore on oil exploration in the next three years, according to Director of Exploration Sushma Rawat.
"The capex for oil exploration will be aggressive in the current and next year," she told BQ Prime.
Although the company's internal resources could support its capex plans, Rawat said it is looking for joint venture partnerships. "Since exploration is a risky business, we want to mitigate risks when we go for high-cost ventures," she said. The company intends to go into deep and underwater oil exploration, and these projects do get cost-intensive, Rawat said.
ONGC currently has 1.67 lakh square kilometres of oil acreage through various regimes, and the company wants to increase this area to 5 lakh square kilometres in the next three years, she said.
According to Rawat, the company will increase the number of wells it drills. ONGC has oil commitments that will cater to more than 110 wells per year, and this number could even increase to 125-130 wells per year, Rawat said.
Exploration Expansion and Potential
ONGC is assessing sedimentary basins to expand its oil exploration acreage from 1.67 lakh to 5 lakh square kilometres in the next three years. The company has acquired 43,000 square kilometres under its Open Acreage Licencing Policy and plans to double exploration acreage in a year, said Rawat.
The company has also submitted its bid for OALP Rounds 8 and 9 and will acquire non-seismic data for logistically challenging areas, along with seismic data for onshore and offshore activities, the director of exploration said.
Based on prognostic results, ONGC's current exploration potential on its acreages is 14–15 billion out of a total of 42 billion. Rawat mentioned that the company is not only expanding by area but also exploring deeper plays. It has identified 188 plays, with extensive exploration up to around 3,000 metres in shallow areas. However, the deeper plays remain unexplored, she said.
Reducing Carbon Footprint
ONGC is committed to reducing its carbon footprint and has set ambitious targets, aiming to cut 9 million metric tonne of carbon emissions over the next 15 years. Their clear objectives include achieving Scope 1 emissions reduction by 2030 and attaining Scope 2 net-zero status by 2038, Rawat said.
ONGC is committed to renewable energy, exploring solar, wind, CCUS, biofuels, geothermal energy, and green hydrogen. It has forged strategic partnerships and MOUs with entities like NTPC Ltd. and the Icelandic government for geothermal projects, as well as bio-tech firms to bolster their renewable energy initiatives, Rawat said. Over the next three to five years, this sector is poised for exponential growth, according to her.
ONGC is innovatively sourcing external carbon dioxide to boost production in mature reservoirs, though costs are a concern, said Rawat. The company is actively mapping reservoirs for CO2 capture and emissions centres, along with geochemical studies, to assess capacity and plume progression for the coming 100–200 years, supported by digital software models, she said.
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