Search for oil began in India as early as in 1866 in the Upper Region of Assam. It was, however, only after independence that a systematic oil exploration programme covering the entire country was taken up  with  earnestness.

Oil was discovered at Makum near Margherita at a depth of 36 metres as far back as in 1867 and later on at Borbhil now known as Digboi in 1890. After a considerable lapse of time, the Burma Oil Company succeeded in finding oil in Naharkatiya and Moran areas in Assam in 1953 and 1957 respectively. Subsequently, the Government of India joined hands with Burma Oil Company in 1959 and formed an exploration company called 'Oil India Limited' on 50:50 partnership. Exploration was also carried out in West Bengal by the Government of India in association with the then Standard Vacuum Oil Company of USA in 1953. After drilling 10 wells in this area, which proved dry, the Standard Vacuum Oil Company gave up further efforts.

In 1954, Government of India decided to set up a petroleum exploration division in the Geological Survey of India which evolved into the present Oil & Natural Gas Commission on August 14, 1956. After the formation of ONGC, an extensive programme for exploration was taken up in hand, covering the entire country.

India has a sedimentary area of about 1.4 million sq-kms. In the offshore, it is 390 thousand sq-kms. upto the continental shelf of 200 metres. On the continental slope there exists another 4 lakh kms. of sedimentary area.

Oil was first struck by ONGC at Cam­ bay in 1958 and later on at Ankleshwar in 1960. Starting with 100 tonnes per day, annual production of crude onshore today stands at 14250 tonnes per day (5.2 million metric tonnes per annum)  and gas 1.968 million cubic metres per day. The associated and free natural gas from Gujarat fields has provided great impetus to the industrial growth of Gujarat. Two major thermal power stations, a  large sized refinery, a giant fertilizer complex and vast petrochemical industry near Baroda in Gujarat are based on ONGC's supplies of natural  gas  and  crude  oil. In: the Eastern: Region, crude oil is supplied to the Gauhati and Barauni refineries and gas to tea estates and Assam State Electricity  Board.

However, in the recent years, it is the offshore drilling which has prominently projected itself. The development of Bombay High was conceived in various phases which were followed under a timebound programme. Starting with 2 million tonnes of Oil production in 1975, it is planned to produce 12 million  tonnes of crude oil in the current  year. Further a 4 million cubic metre per day capacity gas fractionating plant along with LPG extraction facility for  198,000 tonnes per annum,  and a  crude  stabilisation  plant were  completed  by  March,   1981.

India's consumption of oil was around 2.7 million tonnes in 1948 and indigenous production  mainly  from Assam region was around 0.25 million tonnes. While the consumption pattern of petroleum has been  steadily  increasing  in  India  the exploration  and  production activities have also  been:  increased  at  a  constant  pace. With the production level of 17.91 million tonnes  of  crude  oil  by  the  ONGC  and 3.04 million tonnes of Oil India, the country is able to match indigenously 66% of the present consumption level.

With the accelerated effort of Oil production the Country is poised for achieving self-sufficiency in the years  to come.

The Indian Posts and Telegraphs Department is happy to issue a special stamp on 'Oil Exploration'.

Source : Information Folder issued by Indian Posts & Telegraph Department, Government of India