| Study Period | 2021 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2021 - 2023 |
| CAGR | 1.00 % |
| Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
India Oil & Gas Upstream Market Analysis
The India Oil and Gas Upstream Market is expected to register a CAGR of less than 1% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Currently. The market has reached pre-pandemic levels.
- Over the long term, factors such as increasing oil consumption and government efforts to reduce dependence on energy imports are expected to drive the market during the forecast period.
- On the other hand, a lack of new discoveries, coupled with insufficient exploration activities, is expected to restrain the market's growth during the forecast period.
- Nevertheless, the thorough exploration and development of hydrocarbon reserves across the large acreage spread across 16 prospective onshore basins in India remains a significant growth opportunity for the market during the forecast period.
India Oil & Gas Upstream Market Trends
Offshore Production to Dominate the Market
- In May 2022, India produced nearly 2550.5 thousand metric tons of crude oil, of which offshore production accounted for around 1257.68 thousand metric tonnes (49.2%) of the oil produced and almost 68.3% of the gas produced in India. India has 26 sedimentary basins, of which only seven have commercial production of oil and gas. According to MOPNG, crude oil production from offshore increased by nearly 4.6% from May 2021, while natural gas production rose by almost 7.9% in the same period.
- The oil products market is expected to dominate the market due to its large share in the oil and gas business. Oil demand is also likely to remain higher than natural gas demand. However, the rate of growth in demand for natural gas is expected to be much higher, which is due to the government lead initiatives like the Urja Ganga gas project.
- In November 2022, the country launched a new licensing round in accordance with the India Open Acreage & Licensing Policy (OALP). The round will include 23 blocks and cover almost 220,000 square kilometers. A total of 15 blocks lie in ultra-deep waters; eight others are shallow-water acreages.
- According to the Ministry of Petroleum and Natural Gas, as of 2022, the offshore oil production in the eastern offshore region was 38.19 thousand metric tons; similarly, in Gujarat, offshore and the western offshore region was 30.85 and 1110.14 metric tons, respectively.
- Hence, offshore oilfields are expected to dominate the market due to economically viable gas basins being concentrated in the water bodies of the exclusive economic zone of India.
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Increase in Oil Consumption to Drive the Market
- Oil Consumption in the country increased by 2.9% to 220.5 Million tonnes oil equivalent, in 2021 from 214.2 Million tonnes oil equivalent, in 2020. The steady increase in consumption is expected to be the most prominent driver in the forecast period.
- In 2021, Oil production became 619 thousand barrels/day, which decreased from 744 thousand barrels/day , in 2017. The decrease in production is consistent over the 2017 - 2021 period. Poor reservoir performance, high water cut, and human errors are the primary reason for the decline.
- Changes in the policies for exploration and production have led to some growth in the industry. Companies look prudent as changes may bring ease in the sector. In a significant overhaul of oil and gas exploration permits, the government decided, in 2019, not charge any share of profit on hydrocarbons produced from less explored areas as it looks to attract the elusive private and foreign investment to raise domestic output.
- India's state-run Oil & Natural Gas Corp. has finalized a series of international partnerships in an effort to draw the expertise of some global oil majors to expand upstream output. ONGC recently signed an agreement with Chevron New Ventures PTE Limited, a subsidiary of California-based energy major Chevron Corporation, to assess exploration potential in India.
- The company has also sealed an agreement with Equinor ASA for collaboration in the areas of E&P, midstream, downstream and clean energy options, including carbon capture, utilization and storage. ONGC has also sealed a heads of agreement with ExxonMobil for deepwater exploration on the eastern and western coasts of India. The collaboration will focus on the Krishna Godavari and Cauvery basins in the eastern offshore and the Kutch-Mumbai region in the western offshore.
- Hence, oil consumption is expected drive the oil and gas market. Increase in investment in the sector is also expected to increase the growth in the industry.
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India Oil & Gas Upstream Industry Overview
The India oil and gas upstream market is consolidated. The major players (in no particular order) include Oil and Natural Gas Corporation, Reliance Industries Limited, Oil India Limited, Larsen & Toubro Limited, and BP PLC, among others.
India Oil & Gas Upstream Market Leaders
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Oil and Natural Gas Corporation
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Reliance Industries Limited
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Oil India Limited
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Larsen & Toubro Limited
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BP PLC
- *Disclaimer: Major Players sorted in no particular order
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India Oil & Gas Upstream Market News
- In May 2022, the State-owned Oil and Natural Gas Corporation (ONGC) is offering a stake to foreign companies in its ultra deepsea gas discovery and a high-pressure, high-temperature block in the KG basin. the company floated an initial tender for partners in the development of the Deen Dayal West (DDW) block as well as ultra-deep discoveries in Cluster-III of its KG-D5 area.
- In May 2022, Oil and Natural Gas Corporation (ONGC) drafted a comprehensive roadmap to intensify its exploration campaign, allocating about USD 4 billion in capital expenditures during FY 2022-25. ONGC holds two blocks for exploration in the Andaman Basin under the Open Acreage Licensing Policy (OALP). The Indian government has also acquired seismic data in some sectors within 'No-Go' areas and a few prospects have already been identified. In the next three years, ONGC plans to drill six wells (two under its commitment to work and four under government assistance).
India Oil & Gas Upstream Industry Segmentation
Upstream refers to the exploration and production stages of the oil and gas industry. From the preliminary exploration stage through extraction, the upstream sector of the oil and gas industry focuses on all steps involved.
India oil and gas upstream market is segmented by location of deployment. By location of deployment, the market is segmented into onshore and offshore. For each segment, the market sizing and forecasts have been done based on production and consumption (thousand barrels per day).
| Location of Deployment | Onshore | Overview | Existing Projects | |
| Projects in Pipeline | ||||
| Upcoming Projects | ||||
| Offshore | Overview | Existing Projects | ||
| Projects in Pipeline | ||||
| Upcoming Projects | ||||
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India Oil & Gas Upstream Market Research FAQs
What is the current India Oil and Gas Upstream Market size?
The India Oil and Gas Upstream Market is projected to register a CAGR of less than 1% during the forecast period (2025-2030)
Who are the key players in India Oil and Gas Upstream Market?
Oil and Natural Gas Corporation, Reliance Industries Limited, Oil India Limited, Larsen & Toubro Limited and BP PLC are the major companies operating in the India Oil and Gas Upstream Market.
What years does this India Oil and Gas Upstream Market cover?
The report covers the India Oil and Gas Upstream Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the India Oil and Gas Upstream Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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India Oil & Gas Upstream Industry Report
Statistics for the 2025 India Oil and Gas Upstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Oil and Gas Upstream analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
