Oil and natural gas reserves

Petroleum and natural gass production areas UPSC

Petroleum producing drilling areas

Petroleum Natural Gas India:


  • Petroleum is obtained from sedimentary rocks. Most of the oil reserves in India are associated with and fault traps in the sedimentary rocks.
  • India is the 3rd oil consuming nation in the world as it consumes 230 million tonnes of oil and oil products per year(2022-23).
  • The estimated reserves of crude oil in India in 2018 stood 49 million tones, ranking 24th in the world and accounting for about 0.3% of the world's total oil reserves.
  • India import 82% of its oil needs and aims to bring it down to 67% by 2022 by replacing it with local exploration, renewable energy and ethanol fuel.


Oil producing regions in india:

(a) Assam Oil Region

  • It is India's most important and oldest oil region. The main sites are Digboi, Naharkatia, Moran-hugrijan and Surma river valley.
  • Natural gas is also found in Hugrijan-Moran


(b) Gujarat Oil Region

  • The major oil areas in Gujarat are Khambat and Ankleshwar while other important oil producing regions are N awagaon, Kosamba, Olpad, Dholka, Mehsana and Kalol.
  • Mineral oil has also been found in Aliabet Island, 45 km away from Bhavnagar in Saurashtra region (Gujarat).


(c) Mumbai High Region           

  • Mumbai High region is located 176 km away from Mumbai coast, is also an important oil region. The mineral oil exploration started in this region since 1976.
  • The ship named Sagar Samrat was called from Japan to extract oil from deep oceanic part of this region.
    Moreover, 60% of the total oil produced in the country is extracted from this region.


  • The mineral production in the off-shore regions is not considered part of state explorations rather it is mentioned separately. Therefore, its production is not included in the production of Maharashtra.
  • Gujarat - The largest producer of crude oil and natural gas in India is Gujarat.
  • Krishna Godavari basin -At present, mineral oil is also extracted from the Ravva oil blocks in Krishna Godavari basin.
  • Rajasthan -Cairn Energy and ONGC have jointly started producing oil at commercial level from Mangala oil field in Rajasthan. It was the biggest on-shore discovery of the last two decades. Bhagyam and Aishwarya oil fields in Rajasthan are also having large amounts of oil reserves. It has been estimated that 1 million barrel of oil can be extracted from all the three oil fields. Mangala oil field can produce 20% of domestic production for next two years.

NATURAL GAS producing drilling areas

Ravva oil blocks in Krishna Godavari::


Krishna Godavari Basin

  • It is the largest natural gas reserve in India, discovered by Reliance Industries in 2003.
  • A new reserve of natural gas has been found at Yanam in Andhra Pradesh which is 6 km away and 5,061m deep from Kakinada coast.
  • Reliance Industry Ltd, a private sector company, has started production of natural gas from Krishna Godavari Basin (K.G. Basin) D.B, Block located in Bay of Bengal from 1st April, 1009.
  • This area was allotted to reliance industries(RIL) during initial phase of new oil and petroleum exploration licensing schemes.
  • Project in KG-D6 is also known as KG-DWN-98/1. This Project had the potential to change India's energy fortune.



ONGC Foreign Stakes

Oil and Natural Gas Corporation (ONGC)

  • ONGC was established in 1956 for systematic Oil Exploration and Production. Government of India holds 68.94% equity stake and it was the largest profit making PSU in India during 2016-17 fiscal year. It is involved in exploring and exploiting hydrocarbons in 26 sedimentary basins. ONGC produces around 70% of Indian crude oil and 62% of its natural gas.
  • ONGC launched its Sagar Samriddhi project in August, 2003 to conduct deep water exploration in eastern and western coasts with the help of its fifth generation ultra-modem drill-ship Belford Dolphin, which is capable of drilling upto a depth of 3,000 m under water.
  • ONGC Videsh Ltd (OVL) has invested in the oil-region of Sakhalin Island of Eastern Russia for the production of oil and natural gas, in which its share is 20%. This is the largest overseas investment made by any Indian company.
  • ONGC videsh has stake in 41 oil and gas project in 20 countries, maximum 7 project in Colombia.
  • The first shipment from the Russian oil fields started in April, 2006.
  • The production work in Myanmar has started since December, 2005. The OVL and Gas Authority of India Ltd have 20% and 10% stakes respectively in it.
  • In search of oil and natural gas in South China Sea, Indian company ONGC Videsh Ltd (OVL) and Petro Vietnam (Vietnam oil and Gas group) have signed an agreement.

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