India Opens Its Upstream Sector to Global Capital with Tech-Driven Reforms

The Minister reaffirmed the Government’s commitment to a stable, transparent, and globally competitive framework, aimed at attracting sustained domestic and international capital.

The Ministry of Petroleum and Natural Gas (MoPNG) has accelerated India’s upstream transformation with a high-impact series of investor and technology-focused engagements in Mumbai on 19 January 2026, signaling that the country’s oil and gas exploration landscape is entering a new, reform-backed growth phase.

The day-long programme drew strong participation from domestic and international upstream operators, E&P service providers, global consulting firms, financial institutions, insurers, academia, and industry experts, underscoring rising global interest in India’s upstream reform agenda and upcoming bid opportunities.

A Reformed Upstream Sector, Open for Investment

In his virtual address, Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri described the recent legislative, regulatory, and policy changes as a landmark shift in India’s upstream ecosystem. He highlighted that reforms—combined with data-led exploration initiatives and government-driven basin studies—have unlocked substantial investment opportunities, particularly in offshore and frontier areas.

The Minister reaffirmed the Government’s commitment to a stable, transparent, and globally competitive framework, aimed at attracting sustained domestic and international capital.

Financing India’s Next Phase of Exploration Growth

A central feature of the programme was the workshop on “Financing India’s E&P Growth”, which examined whether India’s financial ecosystem is prepared to support the scale, depth, and continuity of upstream investments envisaged under initiatives such as Samudra Manthan.

Global consulting leaders including S&P Global, Deloitte, A.T. Kearney, and EY shared international best practices on upstream financing, risk allocation, and capital mobilisation. Financial institutions and insurers such as State Bank of India, New India Assurance, and Bajaj Allianz provided insights into evolving risk frameworks, exposure norms, and innovative instruments like insurance-backed surety bonds.

Key discussions focused on:

• Limitations of balance-sheet-based lending

• Capital inefficiencies caused by traditional bank guarantee requirements

• Front-loaded capital needs in exploration and development

• New policy-enabled risk mitigation and financing mechanisms

Secretary, MoPNG Shri Neeraj Mittal stressed that timely access to capital will be decisive for execution, calling for deeper and continuous engagement between policymakers, operators, and financiers.

Regulatory Certainty Meets Contractual Clarity

A dedicated session on the amended Oilfields (Regulation and Development) Act, revised Petroleum and Natural Gas Rules, and the updated Model Revenue Sharing Contract (MRSC) positioned India as one of the most investor-aligned upstream jurisdictions globally.

MoPNG noted that these reforms complete a decade-long effort to remove ambiguity and enhance predictability. The Directorate General of Hydrocarbons (DGH) explained how the updated MRSC operationalises policy intent, ensuring seamless alignment between legislation and on-ground contracts.

Industry feedback during the session was described as constructive and encouraging, with emphasis now shifting toward consistent, large-scale implementation.

New Bid Rounds: Data, Digital Tools, and Scale

The bid promotion segment translated reform into opportunity, outlining how regulatory evolution, improved data access, and digital exploration tools are reshaping India’s upstream investment case.

Sh. Srikant Nagulapalli, Director General, DGH, unveiled details of upcoming bid rounds:

• OALP Round X: 25 exploration blocks covering 182,589 sq. km (91% offshore)

• DSF Round IV: 9 contract areas with 55 discoveries and ~200 MMTOE of 2P reserves

• CBM Rounds 2025–26: 16 blocks with 74 BCM prognosticated gas in 2025 and 200 BCM in 2026

The University of Houston shared basin prospectivity insights for India’s East Coast, while Schlumberger demonstrated how advanced subsurface imaging, digital workflows, and data analytics are unlocking frontier basin potential.

Why India’s Upstream Sector Is Now Tech-Investment Ready

The sessions highlighted a compelling investment proposition:

• 3.9 billion tonnes of oil equivalent in yet-to-find resources

• Full marketing and pricing freedom

• Low regulatory overhead under revenue-sharing contracts

• High-quality E&P data via the National Data Repository

• Strong policy alignment with energy security goals

Call to Action for Investors, Energy-Tech Firms, and Financiers

With reforms in place, contracts clarified, data opened, and bid rounds announced, India’s upstream sector is actively seeking early movers—from global operators and private equity players to energy-tech startups, digital subsurface specialists, and innovative financiers.

The message from Mumbai is clear: India’s upstream opportunity is no longer future-ready—it is live, data-driven, and open for business.