India's Oil & Gas Manufacturing to gain mid-decade Peak in 2027

India’s oil and gas production is projected to reach a mid-decade peak between 2023-32, around 2027, mainly due to KG-Basin projects operated by Reliance Industries Limited (RIL) and Oil and Natural Gas Corporation (ONGC), according to S&P Global Commodity Insights.

"However, these are old discoveries that have been in development for a while and arriving online during 2023. These projects include Cluster 2A in KG-DWN-98/2 and the Dhirubhai 55 (MJ) field," the research company said in a statement.

Petroleum minister Hardeep Singh Puri had recently stated India must pursue an aggressive upstream policy to ensure energy security as the bulk of the demand will come from the oil and gas industry in the foreseeable future, despite the transition to cleaner fuels changing the energy landscape.

“The major growth space is gas, again led by KG Basin discoveries being operationalized. However, considering the increased maturity of India’s existing basins, new basin-opening initiatives need to bear fruit and quickly, which is a big ask,” said Mansi Anand, senior research analyst, at S&P Global.

The country's domestic crude oil manufacturing decreased from 32.2 million tonne (MT) in 2019-20 to 30.5 MT in 2020-21, 29.7 MT in 2021-22, and further to 29.2 MT in 2022-23, according to the latest date sourced from Petroleum Planning and Analysis Cell (PPAC), an arm of the oil ministry.