BP Eyes Expanded Gas Output From NEC-25 Block; Praises India’s Energy Reforms

Global energy giant BP Plc aims to unlock nearly 10 million standard cubic meters per day (mmscmd) of natural gas from the NEC-25 block in the Mahanadi Basin off Odisha’s coast.

The company is accelerating development plans, spurred by the Modi government’s recent upstream oil and gas policy reforms.

“Block NEC-25 represents an opportunity to unlock the hydrocarbon potential of a new hub on India’s East coast, with production potential of up to 9.9 mmscmd of gas,” said Murray Auchincloss, CEO of BP, while addressing media during a visit to India earlier this month.

India’s Policy Overhaul Attracts Global Interest

Auchincloss praised India’s new upstream legislation, which amended the Oil Fields (Regulation and Development) Act of 1948, calling it a game-changer for foreign investors.

The updated law expands coverage to include shale oil, shale gas, and coal bed methane, while offering longer lease periods and allowing international arbitration in disputes.

“The new legislation made several improvements that are important for foreign investors like us,” he told PTI. “We believe these reforms can mitigate risks and create an investor-friendly environment.”

BP-Reliance Ramp Up Production In KG-D6 Block

BP and Reliance Industries Ltd (RIL) currently produce 28 mmscmd of gas, or nearly a third of India’s total output, from the KG-D6 block in the Krishna-Godavari Basin.

The companies are exploring multiple strategies to sustain and augment this production, including infill drilling and well workovers.

The partners also hold two additional exploration blocks—KG-UDWHP-2018/1 and KG-UDWHP-2022/1—acquired under different rounds of India’s Open Acreage Licensing Policy (OALP).

According to Auchincloss, any successful discoveries there could benefit from existing infrastructure.

Modi Government Reforms Spur Revival Of NEC-25

The NEC-25 project, originally proposed in 2012–13 with an investment plan of $3.5 billion, had stalled due to regulatory disputes.

However, BP and RIL have revived it in light of the government’s recent policy revamp.

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BP and RIL collectively control the NEC-25 block, with Reliance holding a 66.67% stake and BP owning 33.33%.

While some earlier discoveries were relinquished, the current focus remains on those with strong production potential.

India’s Growth Drives Energy Investment

Auchincloss described India as one of the fastest-growing global economies and a ‘highly attractive investment destination’ due to its stable governance, young population, infrastructure development, and expanding energy demand.

“India’s large, high-capability talent pool and policy support make it very attractive. BP wants to be India’s trusted energy partner,” he said, adding that the company will bring its global expertise to support India’s energy transition and security.

Collaboration With ONGC To Boost Domestic Production

In a strategic move, BP and RIL joined hands with ONGC for the OALP-IX bid round, targeting blocks in the Gujarat-Saurashtra basin.

This marked the trio’s first formal collaboration, combining ONGC’s public sector experience with the technical agility of the Reliance-BP joint venture.

“We believe this approach aligns with India’s aim to reduce import dependency by boosting domestic output,” Auchincloss said.

Strong Downstream Presence Via Jio-BP JV

Beyond upstream efforts, BP is expanding in India’s downstream market through Jio-BP, its joint venture with Reliance Jio.

The JV operates nearly 2,000 fuel stations and is rapidly building a network of EV charging stations.

“We expect growing demand in India for fuels, EV charging, and biofuels. We aim to serve customers efficiently, regardless of what they drive,” Auchincloss stated.

He added that the venture is also working on aviation fuels, bio CNG, LNG for trucking, and convenience retailing, aiming to become the ‘first choice for Indian customers’.

Gas Marketing And LNG Expansion In Focus

BP is also scaling up efforts in marketing domestic gas and imported LNG to industrial clients.

By aggregating LNG demand and leveraging its global trading network, BP seeks to strengthen its role in India’s gas value chain.

“We’re building integrated solutions for the future, aligning with India’s energy goals,” Auchincloss concluded, reinforcing BP’s commitment to long-term investment and innovation in India’s evolving energy landscape.