India’s Hydrocarbon Outlook 2024 13 A Report on Exploration & Production Activities production, leading AR&T to acquire petroleum rights in the Makum area. Subsequently, AR&T established the Assam Oil Company (AOC) in 1899 to manage these newfound resources. AOC’s efforts included settingup a small refinery at Margherita. Later in 1901, Asia’s first Oil Refinery was set up at Digboi which continues to operate today, holding the distinction of being the world’s oldest continuously operating refinery. The early 20th century saw the arrival of the UK-based Burma Oil Company (BOC) in Upper Assam (1911). BOC gradually acquired oil business interests in the region, eventually taking over AOC’s holdings by 1921. Meanwhile, the Tata Engineering Company of India also made its mark by drilling wells in Gujarat during the 1930s, leading to small-scale gas production. A pivotal moment arrived in 1937 when BOC, along with British Petroleum and Shell, proposed a geophysical survey of key Indian plains. This proposal was accepted, paving the way for a new approach to oil exploration. The successful seismic survey conducted in Naharkatiya during 1937-39 marked a turning point. This innovative method not only yielded positive results in the form of well NHK-1 but it also fueled renewed enthusiasm for oil exploration across India, leading to future discoveries in Assam and other basins. Dawn of Independence & New Era: Recognizing Oil’s Importance, Building Expertise and Establishing Institutions and Taking Charge (1947-1955) With India’s independence in 1947, the nation’s leadership understood the crucial role oil played in rapid industrialization and national security. The colonial-era policies designed to serve the British Empire’s raw material needs were revamped. The development of a robust domestic petroleum industry became a top priority during the formulation of the 1948 Industrial Policy. By 1948, the Geological Survey of India (GSI) embarked on a geophysical survey in the Cambay area. This period also saw the first oil discovery in independent India, achieved by the Assam Oil Company (AOC) in Naharkatiya (1953) and Moran (1956), both located in Upper Assam. However, foreign companies, primarily BOC, continued to dominate the oil industry for a considerable period after independence. Recognizing the need for domestic expertise, a delegation led by Mr. K.D. Malviya, the Minister of Natural Resources, visited European countries in 1955-56. This visit aimed to study their oil industries and facilitate training for Indian professionals. Additionally, foreign experts were invited to share their knowledge. The erstwhile USSR played a significant role by assisting in the creation of a detailed plan for geological, geophysical surveys, and drilling projects within India’s Second Five-Year Plan (1956-1961). The Birth of ONGC and Early Discoveries (1955-1969) With the aim of intensifying exploration efforts across the country, the Oil and Natural Gas Directorate was established in 1955 as a subordinate office under the Ministry of Natural Resources and Scientific Research. Staffed primarily by geoscientists from the GSI, it soon became evident that a more empowered entity was needed. In early 1956, the Directorate’s status was upgraded to a Commission. The Oil and Natural Gas Commission (ONGC) was further strengthened by an Act of Parliament in October 1959, granting it statutory body status and broader powers while remaining under the Ministry’s purview. ONGC’s mandate was clearly defined: to plan, organize, and execute programs for petroleum resource development, production, and sale of petroleum products. Additionally, it could undertake any other function assigned by the central government. Following a systematic approach, ONGC initiated geophysical surveys in prospective areas identified through global comparisons.
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