ONGC, Reliance and BP Alliance Win Offshore Oil Block in Gujarat

For the first time ever, ONGC, Reliance Industries and global energy firm BP have teamed up to win an offshore oil exploration block in Gujarat. This consortium secured the GS-OSHP-2022/2 block located in the Saurashtra Basin as part of India’s ninth Open Acreage Licensing Policy (OALP-IX). ONGC holds a 40% stake, while Reliance and BP each own 30%. This strategic alliance is seen as a major step toward strengthening India’s energy independence.

OALP-IX: Key Highlights and Major Winners

The OALP-IX round offered 28 oil and gas blocks covering over 1.36 lakh square kilometres across various terrains. ONGC emerged as the biggest winner, bagging 15 blocks – 11 on its own and four through joint ventures. Vedanta Ltd, led by Anil Agarwal, won seven blocks despite bidding for all 28. Oil India Ltd also secured nine blocks, with six individual wins and three in partnership.

Government’s Push for Energy Reforms and Exploration

The government is continuing its drive to boost domestic exploration through policy reforms. During the contract signing ceremony, Union Petroleum Minister Hardeep Singh Puri launched the next bidding round (OALP-X) and emphasised the importance of modernising the oil and gas sector. This includes amendments to the Oilfields (Regulation and Development) Act and the introduction of the new Petroleum and Natural Gas (PNG) Rules 2025, which focus on improved lease management, dispute resolution and decarbonisation.

Investment Outlook and Future Potential

The Indian upstream sector is expected to attract over $100 billion in investment by 2030. The partnership of ONGC, Reliance and BP is seen as a signal of growing public-private collaboration. Meanwhile, the government has also launched the fourth round of Discovered Small Fields (DSF-IV), offering 55 discovered fields with significant oil and gas potential to private players, including Adani Welspun Exploration and Hindustan Oil Exploration.

Private vs Public Participation in Exploration

Although the OALP policy allows companies to suggest exploration areas, public sector firms like ONGC have dominated most rounds. Vedanta was the only private company with consistent participation, winning 41 out of 55 blocks in the first round and securing more in later stages. Despite this, the new ONGC-RIL-BP consortium hints at increasing private involvement, aiming to reduce India’s heavy dependence on crude oil imports, which currently cost over $220 billion annually.

Conclusion

This collaboration between ONGC, Reliance and BP marks a new chapter in India’s energy exploration journey. It reflects a shift toward stronger public-private partnerships and increased domestic exploration efforts. As the country works towards energy self-reliance, such strategic alliances and government initiatives will play a key role in securing future energy needs and driving economic growth.

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