ONGC Turns To AI-Led Drilling To Crack Deepwater Exploration Challenge
This technology push is critical as ONGC doubles down on deepwater and ultra-deepwater exploration, areas Singh believes hold the key to any future large-scale discoveries in India.
The Gist
ONGC is leveraging artificial intelligence and digital centralization to enhance exploration success in high-risk deepwater areas.
- Chairman Arun Kumar Singh highlighted AI's 98.5% accuracy in well location.
- The company invests in digital infrastructure and data expertise to enable remote drilling.
- ONGC aims to improve efficiency and secure new oil and gas discoveries amid rising demand.
ONGC is increasingly turning to artificial intelligence, advanced seismic interpretation and digital centralisation to improve its odds in high-risk deepwater and ultra-deepwater exploration, as it looks to secure fresh oil and gas discoveries amid rising energy demand.
Chairman and managing director Arun Kumar Singh told The Core during a conversation as part of Indian Energy Week that AI-driven analysis is already showing tangible results in well planning and location accuracy. “One of the thing we should is that, when AI driven well location drilling was 98.5% accurate,” he said, calling recent AI use cases a significant breakthrough for the state-run explorer.
The company has been investing heavily in digital infrastructure, data scientists and global consulting expertise, while centralising operations to enable remote and autonomous drilling. Singh said this shift is aimed at making better use of ONGC’s data and talent pool. “Unless you are centralised, you can't be digitalised. And unless you are digitalised, you can't bring efficiency in the system,” he said, underscoring the strategic rationale behind the transformation.
Exploring Ultra-Deep Water Wells
This technology push is critical as ONGC doubles down on deepwater and ultra-deepwater exploration, areas Singh believes hold the key to any future large-scale discoveries in India. “If India at all we succeed in our exploration mission, it is going to be deep and ultra-deep water,” he said, noting that conventional onshore and shallow-water basins are largely mature.
Globally, most major oil and gas discoveries over the past decade have come from deepwater basins in the Americas, driven by better seismic interpretation and sustained drilling. Singh said ONGC’s own experience mirrors this trend. Despite drilling around 60 deepwater and ultra-deepwater wells, success rates have been lower than desired, reflecting the inherently high geological risk of such plays.
Deepwater exploration, he said, requires persistence and progressive de-risking. Drawing parallels with Guyana’s experience, Singh noted that major discoveries can come only after decades of drilling and data accumulation. “Like Guyana, the 47th well went discovery and it is a large discovery,” he said.
Given the scale of investment — ultra-deepwater wells can cost nearly 20 times more than conventional western offshore wells — ONGC is increasingly relying on partnerships with international oil companies to share costs and access specialised capabilities. “New world, you won't succeed without collaboration,” Singh said, adding that alliances are structured based on strategic fit rather than a one-size-fits-all approach.
At the same time, the company is under pressure to rein in costs in a subdued oil price environment. With crude prices hovering in the $60–65 per barrel range, Singh said efficiency gains have become imperative. “What choice do we have at 60–65 dollar world?” he said, pointing to ONGC’s efforts to cut Rs 5,000–10,000 crore annually through operational efficiencies and digital integration.
India Can't Give Up On Oil And Gas
On the demand side, Singh said oil and gas consumption continues to grow globally and in India, despite a gradual energy transition. For India, he said, oil and gas will remain central to energy security for decades. “I do not think India has any choice of giving up oil and gas,” he said.
While ONGC continues to evaluate overseas opportunities, Singh said geopolitical fragmentation and rising nationalism have strengthened the case for prioritising domestic exploration. The company’s near-term focus, he said, remains on technology-led exploration, stabilising production from existing fields, and improving efficiency across operations.
