ONGC 2.0: Deep-Sea Drilling & ₹13,000 Cr Pipeline Surge in 2026

New Delhi: Oil and Natural Gas Corporation (ONGC) is accelerating its transformation into a deepwater and frontier exploration powerhouse in 2026. With aggressive execution under India's energy self-reliance drive, the company is advancing key offshore projects, global partnerships, and infrastructure revamps. As ONGC's stock trades near its 52-week high around ₹275-₹280, investors are eyeing these high-impact initiatives for production revival and long-term growth.

Here are the top five projects shaping ONGC's 2026 pipeline:

1. Andaman Basin Frontier Exploration (AND-P-1 Well) ONGC has entered ultra-deepwater territory in the Andaman Basin. The stratigraphic well AND-P-1 was successfully spudded on January 27, 2026, approximately 267 nautical miles from the Andaman and Nicobar Islands. This scientific well, part of the #SamudraManthan initiative, aims to gather critical subsurface data on geological formations and hydrocarbon potential in this frontier Category II/III basin. It supports India's push to unlock untapped reserves and reduce import dependency.
2. ₹13,000 Crore+ Pipeline Replacement Overhaul To combat aging infrastructure and prevent production declines, ONGC is executing major Pipeline Replacement Projects (PRP) in Western Offshore fields. Key efforts include PRP-VIII (Group A & B) and PRP-9, covering replacement of hundreds of kilometers of subsea pipelines (e.g., nearly 285 km in PRP-9 across Mumbai High, Neelam-Heera, Bassein, and satellites), plus topside modifications on dozens of platforms. Recent subcontracts (e.g., SEAMEC's $5.61M award for installation in PRP-VIII and DUDP) and competitive bids (often 30% below estimates) are delivering cost efficiencies. Completion timelines extend into 2026, ensuring safe and reliable evacuation.
3. Global Technical Service Provider (TSP) Tender for Western Offshore Clusters Building on the successful BP partnership at Mumbai High (which stabilized output since 2025), ONGC has launched a global tender for a TSP to boost recovery in other Western Offshore fields (excluding Mumbai High). Target fields: Bassein, Heera, Neelam, and associated clusters. ONGC has directly approached CEOs of majors like ExxonMobil, Shell, Chevron, TotalEnergies, and others. Bid submission deadline: March 16, 2026, with targeted closure by June 2026 after data reviews and discussions. This "BP Model" aims to bring world-class technology and expertise for mature field revival.
4. Western Offshore Deep-water Upside Development Project (DUDP) The highly anticipated DUDP—targeting clustered gas discoveries in the Daman area at depths over 400 meters—is in its final commissioning phase as of mid-February 2026. Subsea infrastructure, pipelines, and related installations are complete. First gas production is imminent within the current quarter (Q4 FY26), promising a significant boost to domestic gas output and reduced LNG import reliance. This ties into four mega infrastructure projects nearing completion for enhanced offshore recovery.
5. Strategic Ethane Carrier JV with Mitsui O.S.K. Lines (MOL) In a diversification step announced in late January 2026 at India Energy Week, ONGC formed 50:50 joint ventures (Bharat Ethane One and Two) with Japan's MOL. The deal secures a 15-year charter for two newbuilding Very Large Ethane Carriers (VLECs), to be built by Samsung Heavy Industries (delivery late 2028+). These will transport U.S. liquefied ethane as feedstock to ONGC Petro additions Limited (OPaL) in Dahej, Gujarat—positioning ONGC to build one of the world's largest ethane fleets and secure petrochemical supply chains.

Also Read: ONGC Bid Farewell to Shri Arunangshu Sarkar on Superannuation After Distinguished Career

ONGC 2026 Project Snapshot

• Andaman AND-P-1: Active drilling (spud Jan 27, 2026)
• Pipeline Replacements (PRP-VIII/9): Active execution, cost savings noted
• Western Offshore TSP (Bassein/Heera/Neelam): Tender open, bids due March 16, 2026
• DUDP Gas Start: Final commissioning, first gas expected soon
• Ethane Carriers JV: Signed Jan 2026, long-term charter

The Bigger Picture ONGC's FY26 capex of ₹34,900 crore is already 81% utilized (as of January 2026), reflecting strong execution momentum. Exploration spending targets scaling to ₹12,000 crore in FY27, with ongoing global outreach for deep/ultra-deepwater blocks.

Disclaimer This article is for informational purposes only, based on publicly available data as of February 26, 2026, and does not constitute financial, investment, or trading advice. Readers should verify the latest details from official ONGC/BSE/NSE sources and consult qualified professionals before making any decisions.