History of oil industry in India

Ajoy Kumar Bhaumik

Department of Applied Geology
IIT(ISM), Dhanbad
 History of oil industry in India
• Oil was first discovered in India in 19th century
• By British soldiers, local tea planters, merchants
• As seeps in river banks of Bramhaputra valley,
Assam
• Such seepage first scientifically assessed by Mr.
Henry Benedict Medlicott of GSI in 1865
• First few test well were carried out as per his
recommendation during 1867-69 in Makum-
Namdang area
• In 1881, Assam Railway & Trading Company
(AR & T Co.) Limited developed plan to plant
railway line close to the seepage area
• Construction started in 1882
• Prolific oil seepage were found in Borbhil
(Digboi)
• AR&T Co. decided to drill oil
• The first production well (Digboi-1) was
completed in 1890 at a depth 202m
• This event marks the dawn of petroleum era in
India
• Later AR & T Co. established a subsidiary as Assam Oil
Co. Ltd (AOC)
• By 1920, AOC had failed commercially and was taken
by Burma Oil Co. which had already explored &
developed an oil field in Badarpur (1911)
• During world war II, extensive surveys were made in
upper Assam and Surma
• No further oil field then occur until after independence
• 10 years later, Nahorkatiya-1 discovery by seismic
study was there which was drilled in 1953
• The well reached a depth of 3095m in the Oligocene
sands
• These oil field came under the control of Govt. of India
under the banner of OIL
• In 1961, the India Government become an equal partner
with Burma Oil Company
• OIL was nationalized in 1981
• In 1956, Oil & Natural Gas Commission (ONGC) was
created
• In 1959, power was bestowed on ONGC
• It started work with Jawalamukhi in Himachal pradesh
• Discovery of Cambay (1959) and Ankleswar (1960)
• In 1974, giant oil field was discovered at 160 km offshore
of Bombay at water depth of 75m (Bombay high)