India’s upstream energy sector is on the cusp of transformation. India has nearly 3.4 million sq. km of sedimentary basin area, with over half of it still under-explored.1 India’s yet-to-find in-place hydrocarbon potential is believed to be 12.9 billion tonnes of oil equivalent.2 In a landmark move in 2022, the government released 1 million sq. km. of no-go areas for exploration3, signaling a renewed push toward energy security and self-reliance.

      Over the past decade, India has introduced a series of progressive reforms–from HELP (Hydrocarbon Exploration and Licensing Policy) and OALP (Open Acreage Licensing Policy) to the Amended Oilfields Regulation and Development (ORD) Act in 2025. These reforms aim to simplify processes, attract investments, and accelerate exploration. The amended ORD Act, in particular, introduced structural changes such as single permits for all hydrocarbon types, frameworks for infrastructure and resource sharing, and fiscal stability throughout lease tenure.

      Despite these strides, India’s hydrocarbon potential remains largely untapped. Urgent interventions are needed to move from underexplored acreage to integrated, data-rich subsurface intelligence. This is where digitalisation and advanced analytics come into play–reshaping exploration workflows, improving accuracy, reducing cycle times, and strengthening cost efficiency.

      The journey from rock to cloud is not just technological–it reflects a mindset shift. Exploration is evolving from resource extraction to sustainable, future-ready energy development. AI, machine learning, and cloud platforms are enabling geoscientists to interpret complex geological data with unprecedented precision. These tools are helping identify not only hydrocarbon reserves but also opportunities for carbon capture, geothermal energy, and other low-impact alternatives.

      However, technology alone is not enough. India’s geological diversity and energy needs require solutions that are contextually relevant. This demands deeper collaboration across the ecosystem–geoscientists, data specialists, engineers, global partners, startups, and academia must co-create solutions tailored to India’s subsurface challenges.

      Equally important is the empowerment of talent. The next wave of breakthroughs is expected to come from younger professionals who are encouraged to experiment, challenge assumptions, and innovate with speed. Organisations must foster a culture of curiosity and rapid iteration, investing in training, mentorship, and open innovation platforms.

      India’s upstream story is being rewritten–not just with rigs and reservoirs, but with algorithms, cloud platforms, and collaborative ambition. The convergence of data, technology, talent, and policy reform is creating a new paradigm–one where exploration is smarter, faster, and more sustainable.

      To realise this vision, stakeholders must act with urgency and unity. Government policies should continue to support digital adoption and incentivise innovation. Industry leaders must prioritise data integration and open collaboration. Educational institutions should align curricula with emerging industry needs. And startups must be encouraged to bring fresh perspectives and disruptive solutions to the table.

      Conclusion:

      India’s vast sedimentary basins represent more than geological formations–they are opportunities to redefine the nation’s energy future. By embracing digitalisation, fostering collaboration, and empowering talent, India can transform its upstream sector into a model of innovation and sustainability.

      Sedimentary basins of India, Government of India, 8 December 2025.
      2 India’s Oil & Gas Exploration: Reforms, Big Discoveries Pave Way For Viksit Bharat, News18, Payal Mehta, 18 June 2025, 8 December 2025.
      3 India Energy Week 2025, Government of India, 12 January 2025, 8 December 2025.

      Author

      Vivek Rahi

      Partner and National Head - Oil & Gas

      KPMG in India

      How can KPMG in India help

      Energy has been universally recognised as one of the most important inputs for economic growth and human development.

      India has a unique challenge in looking to grow its energy sector rapidly while decarbonising simultaneously

      The economic, social and political environment globally and in India seems to be evolving



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