A significant crude oil reserve has been discovered near Sagarpali village in Ballia district, Uttar Pradesh, marking a pivotal development in India’s energy sector. The Oil and Natural Gas Corporation (ONGC) has initiated exploration efforts on land belonging to the family of renowned freedom fighter Chittu Pandey. This discovery has the potential to transform the region’s economy and contribute substantially to India’s domestic oil production.

Discovery Details and Exploration Efforts

Following a comprehensive three-month geological survey in the Ganga basin, ONGC confirmed the presence of crude oil at a depth of approximately 3,000 meters in Ballia. The drilling site is strategically located between National Highway 31 and the Ganga River in Sagarpali village, adjacent to Vaina Rattu Chak, the ancestral home of Chittu Pandey, a key figure in the Quit India Movement.

To facilitate exploration, ONGC has leased six-and-a-half acres from the Pandey family for a three-year period, with an annual rent of 10 lakh. The corporation has obtained environmental clearance to conduct drilling across a 302-square-kilometer block, with its exploration license valid until April 2026. An investment of 85 crore has been allocated to drill the initial well, a process expected to take 5-6 months.

Potential Impact on Local Farmers and Land Acquisition

If the reserves prove commercially viable, ONGC may proceed with large-scale drilling and land acquisitions, significantly impacting local farmers. The corporation has indicated that, upon successful extraction, additional wells will be drilled at other identified locations within the 300-kilometer crude oil belt, stretching from Sagarpali in Ballia to Phaphamau in Prayagraj. This expansion could lead to further land leases or acquisitions, potentially benefiting farmers through increased land value and rental income.

Indias Crude Oil Reserves and ONGCs Role

As of April 2022, India had estimated crude oil reserves of approximately 651.77 million metric tonnes, marking an increase of over 10% from the previous year. The Western Offshore region accounts for the largest share of these reserves (33%), followed by Assam (23%).

ONGC, established in 1956, is India’s leading entity in the exploration and production of crude oil. The corporation has played a pivotal role in discovering and developing the country’s oil fields, including the Mumbai High field, India’s largest oil field, which significantly contributes to the nation’s crude oil production. In recent years, ONGC has made several new discoveries to bolster India’s oil reserves, including five new oil and gas discoveries in 2024, encompassing both onshore and offshore fields. These efforts are part of ONGC’s ongoing strategy to enhance domestic oil production and reduce dependency on imports.