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Evolution of Oil and Gas Exploration in India 11
1.4 Institutional Foundations: ONGC bidding rounds between 1980 and 1995.
and Oil India – The Twin Pillars (1955–
1969) • ONGC and OIL retained rights to participate
post-discovery.
To systematize petroleum exploration, the Oil • Two Development Rounds (1992–1993)
and Natural Gas Directorate was set up in 1955 offered small and medium-sized discovered
and later reconstituted as the Oil and Natural fields to private players, with Production
Gas Commission (ONGC) in 1956. It became a Sharing Contracts (PSCs) signed for 29 fields.
statutory body in 1959. ONGC quickly recorded
breakthroughs in Cambay, Ankleshwar, Kalol, • A standout success of the Pre-NELP era was
and other prolific areas. the RJ-ON-90/1 block in Rajasthan, originally
awarded to a consortium of Shell India
In parallel, Oil India Limited (OIL) was Production Development (SIPD) and ONGC.
incorporated in 1959 as a joint venture between Over time, Cairn Energy acquired Shell’s
the Government of India and Burma Oil Company participating interest and went on to discover
to develop the Naharkatiya and Moran fields. By the Mangala, Bhagyam, and Aishwariya
1961, it evolved into a 50:50 partnership and was fields—among the largest onshore oil finds
later nationalized as a fully government-owned in India. These discoveries transformed
enterprise. Together, ONGC and OIL became the Barmer basin into a major petroleum
the two flagship National Oil Companies province and made a lasting contribution to
(NOCs), driving India’s upstream exploration India’s domestic oil production.
through coordinated efforts across onshore and
offshore terrains. Though early results were mixed, Pre-NELP
established a precedent for competitive
1.5 Game Changers: Offshore participation, leading to infrastructure upgrades,
Discoveries and the Rise of Mumbai joint ventures, and the development of marginal
Offshore (1970s–1980s) fields.
India's offshore era began with ONGC’s seismic 1.7 Transition to Competitive Markets
work in the Gulf of Cambay in 1962. The (1990s)
landmark discovery of Bombay High (now By the mid-1990s, the Government of India
Mumbai Offshore) in 1974 transformed India’s intensified efforts to attract private and foreign
oil landscape. This field alone contributed to a investments. Five bid rounds offered drawing
sharp reduction in crude imports and ushered participation from Shell, Enron, Aramco, and
in an era of self-reliance. Subsequent discoveries emerging domestic players like Hindustan
included Bassein (major gas field), Heera, and Oil Exploration Company (HOEC). ONGC
Neelam on the west coast, and PY-3 and Ravva also explored Coal Bed Methane (CBM) and
on the east coast. Enhanced Oil Recovery (EOR) strategies,
OIL, traditionally focused in Assam, also particularly in Gujarat.
expanded to Orissa, Rajasthan, and the Andaman These reforms laid the foundation for a fully
offshore in the late 1970s and 1980s—playing liberalized framework under the New Exploration
a strategic role in building India’s geographic Licensing Policy (NELP).
exploration footprint.
1.8 Strengthening Oversight:
1.6 Transition Phase: The Pre-NELP Formation and Governance of DGH
Regime (1980–1995) (1993)
Despite major state-led discoveries, India’s As private participation in exploration grew,
technological limitations and capital constraints the Government recognized the need for an
prompted a shift toward public-private independent technical and regulatory body.
collaboration. The Pre-NELP regime introduced Following recommendations from the Dasgupta
in 1980 marked India’s first step toward and Kaul Committees, the Directorate General
liberalization of the upstream sector.
of Hydrocarbons (DGH) was established on
Under this regime: April 8, 1993, under the Ministry of Petroleum
and Natural Gas (MoPNG).
• 28 blocks were awarded through successive