India’s private sector powerhouse Reliance Industries and UK energy major BP are reviving development plans for Block NEC-25, located in the Mahanadi basin off India’s east coast.
The offshore block, which holds several mid- to deepwater natural gas discoveries, has remained undeveloped for over 15 years due to concerns over commercial viability and the lack of suitable deepwater technology at the time. Discovered in the early 2000s, the block is estimated to hold more than 1 trillion cubic feet (tcf) of gas reserves.
In 2013, Reliance and BP jointly submitted a $3.5 billion development plan for NEC-25, aiming to tap into these reserves. However, the proposal was never approved by India’s upstream oil and gas regulator, the Directorate General of Hydrocarbons (DGH), which cited unresolved technical issues.
Now, with advancements in subsea technology, improved economics for deepwater gas, and India’s growing energy demand, the partners are re-engaging with the project. Preparatory work is underway to address regulatory requirements and reassess the commercial framework for the block’s development.
The renewed push aligns with India’s broader strategy to boost domestic gas production and reduce reliance on imported LNG, as the country targets a gas-based economy and aims to raise the share of natural gas in its energy mix from around 6% to 15% by 2030.
Industry observers see NEC-25 as a potential game-changer for India’s east coast offshore sector if development hurdles can be cleared this time around.