India is gearing up for one of its largest offshore oil and gas exploration campaigns in recent years.
The government has planned extensive geological surveys across multiple eastern offshore basins.
The timing is no coincidence. India still sources nearly 85% of its crude oil from overseas, along with a significant chunk of its natural gas needs.
That dependence leaves the economy exposed; any spike in global crude prices, geopolitical flare-up, or supply disruption abroad quickly feeds into higher fuel costs and inflation at home.
According to media reports, survey ships are expected to soon begin scanning vast stretches of the Bay of Bengal and nearby offshore regions to hunt for commercially viable hydrocarbon reserves buried beneath the seabed.
The government has floated bids for a large-scale multi-basin exploration project covering the Bengal-Purnea, Mahanadi, Krishna-Godavari, Cauvery, and Andaman offshore basins—all using advanced 2D Broadband Marine Seismic and Gravity-Magnetic surveys.
The scale is striking. Bengal-Purnea and Mahanadi alone will cover nearly 45,000 line kilometres. Krishna-Godavari and Andaman will each see surveys across roughly 43,000 line kilometres, with Cauvery adding another 30,000.
The work involves specialised seismic vessels fitted with long streamer cables that fire sound waves deep into the ocean floor and read the signals that bounce back, essentially giving scientists an X-ray of underground rock formations that may have trapped oil and gas over millions of years.
As India pushes hard to boost domestic output and chip away at its import bill, here are five stocks worth keeping on your radar.
Asian Energy Services
The company is an oil and gas service provider offering end-to-end services across the upstream value chain.
Its operations span geophysical data acquisition, integrated oil & gas field development, EPC production facility, enhanced oil recovery operations, material handling, exploration services, and other services.
With over two decades of experience and a strong seismic asset base, the company provides advanced 2D and 3D land seismic services, transition-zone acquisition, seismic consulting, interpretation, and real-time wireless seismic operations.
Following its acquisition by Oilmax Energy, the company expanded its offerings across the entire exploration and production value chain, leveraging its existing capabilities and industry credentials.
Asian Energy Services is also pre-qualified by several global and domestic energy majors, including Petronas, TotalEnergies, ONGC, Oil India Limited, Reliance Industries and Essar Group.
As India accelerates large-scale offshore oil and gas exploration across multiple basins, companies involved in seismic data acquisition and exploration services could witness rising opportunities.
Given its expertise in geophysical surveys and exploration-related solutions, Asian Energy Services remains a stock to watch from higher exploration activity and increased government focus on boosting domestic energy production.
Deep Industries
The company is a leading energy sector solutions provider.
It specialises in air and gas compression services, drilling and workover services, gas dehydration solutions, and integrated project management services.
Over the years, the company has evolved into a one-stop solutions provider for oil and gas field operations by offering a wide range of equipment and services on a rental and charter-hire basis.
Its portfolio spans multiple segments of the oil & gas value chain, from exploration and production services to midstream operations.
Deep Industries has been active in the onshore oil & gas services segment for more than three decades.
To strengthen its offshore presence, the company acquired Dolphin Offshore Enterprises (India) through the NCLT route in 2022.
This expanded its capabilities in offshore oil & gas operations, including services for shallow-water and deep-water energy platforms, as well as offshore renewable energy projects such as offshore wind platforms.
As India ramps up offshore exploration activities across multiple basins, Deep Industries is a stock to watch due to its growing offshore capabilities and diversified oil & gas services portfolio.
Rising offshore activity could increase demand for drilling, compression, offshore support, and project management services.
Jindal Drilling and Industries
The company is one of the leading private-sector offshore drilling companies in India’s oil & gas industry. Part of the D.P. Jindal Group, the company has been operating in the offshore drilling space since 1989 and brings nearly three decades of industry experience.
The company operates across key segments, including offshore oil & gas drilling, horizontal and directional drilling, and mud logging services, making it an important player in India’s upstream energy ecosystem.
As India accelerates offshore oil and gas exploration across multiple basins, demand for offshore drilling and related technical services could rise significantly. With its established presence in offshore drilling and long operational track record, Jindal Drilling and Industries is a stock to watch.
Oil India
Next on the list is Oil India, a Maharatna PSU and integrated energy company with operations spanning the upstream, midstream, and downstream segments of the energy value chain.
The company is engaged in the exploration, development, and production of crude oil, natural gas, LPG, and condensate, while also providing services such as pipeline transportation and renewable energy generation.
Oil India possesses strong expertise across the upstream exploration and production value chain, including seismic data acquisition, drilling, wireline logging, field development, reservoir management, enhanced oil recovery (EOR), and pipeline laying.
Its infrastructure capabilities include 2D and 3D seismic crews, 19 drilling rigs, 28 workover rigs, and 10 logging units.
The company also operates a 1,157-km crude oil pipeline with a capacity of over 6 MMT and holds the record for drilling the deepest onshore well in India.
Oil India has also been expanding its offshore presence through exploration activities in the Mahanadi, Andaman, and Kerala-Konkan basins.
As India ramps up domestic oil and gas exploration to reduce import dependence, Oil India’s integrated operations, strong exploration expertise, and growing offshore presence make it a stock to watch.
Oil and Natural Gas Corp.
It is India’s largest crude oil and natural gas producer, accounting for nearly 71% of the country’s domestic production.
As a Maharatna PSU, the company plays a critical role in India’s energy security and remains one of the country’s most important upstream energy companies.
ONGC has integrated in-house capabilities across the entire exploration and production value chain, including offshore and onshore exploration, drilling, production, and oilfield services.
The company operates extensively across both onshore and offshore oil & gas fields, making it a key beneficiary of India’s rising focus on boosting domestic hydrocarbon production.
Its wholly owned subsidiary, ONGC Videsh, serves as the company's overseas exploration arm and holds interests in 35 oil and gas assets across 15 countries.
The subsidiary focuses on exploration, development, and production of overseas oil & gas reserves, further strengthening ONGC’s global presence.
As India accelerates offshore exploration across major basins, ONGC’s dominant market position, extensive offshore expertise, and integrated exploration capabilities position it as a key stock to watch in the energy sector.
Conclusion
India’s aggressive push toward offshore oil and gas exploration could create long-term opportunities for companies involved in drilling, seismic surveys, exploration services, and energy infrastructure.
However, investors should note that offshore exploration is a long-gestation and capital-intensive sector, where earnings visibility often depends on crude oil prices, government policies, project execution, and global energy demand.
While the sector offers strong long-term potential amid India’s energy security push, stock selection and valuation remain crucial.
Investors should carefully evaluate factors such as crude oil price volatility, order inflows, execution capability, debt levels, and the long gestation nature of offshore projects before investing in these stocks.
Investors should study these companies' fundamentals, corporate governance, and valuations as key factors when conducting due diligence before making investment decisions.
Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com