Global energy major BP has announced plans to significantly expand its presence in India's upstream oil and gas sector, with $3-4 billion in total investment planned by 2030. According to Business Standard, approximately two-thirds of this investment will be directed towards upstream activities, including participation in exploration bidding rounds and ramping up exploration efforts. The company's upstream portfolio in India includes its partnership with Reliance Industries in the KG-D6 block, where it holds a 33.33% interest, as well as growing cooperation with state-run Oil and Natural Gas Corporation (ONGC).
BP India Chairman Kartikeya Dube told Business Standard that the government's Samudra Manthan initiative represents a transformative step for India's exploration and production sector. The initiative supports 2D and 3D seismic data collection and exploration activities, including stratigraphic wells that provide insights into reservoir potential. Dube noted that the government has previously amended the ORD Act, simplified procedures, and introduced revenue-sharing contracts, demonstrating exploration as a strategic priority. BP has already participated in bidding for shallow-water blocks under OALP-X and plans to participate in deepwater blocks as well.
According to the interview, upstream and mobility segments will receive the maximum investment allocation in the coming years. In mobility, BP operates fuel retail outlets, active technology fuel that provides 4% more mileage and reduces engine wear, doorstep delivery of diesel to industrial customers, and electric vehicle charging infrastructure. The company's focus aligns with BP's global strategy on oil and gas, efficient downstream operations, and capital discipline.
Regarding crude oil price expectations, BP anticipates prices between $75 and $80 per barrel this year, as reported by Business Standard. The company expects slightly higher price levels through next year, driven by countries utilizing inventory and replenishing reserves. In India's LNG market, BP views it as attractive due to structurally long-term demand, with the company holding several long-term LNG contracts with power plants and plans to bring more LNG to India.
