The Rise of Enhanced Oil Recovery in India

Unlocking the Depths: The Rise of Enhanced Oil Recovery in India

As global energy dynamics shift in 2026, India is increasingly turning toward Enhanced Oil Recovery (EOR) to bridge the gap between its stagnant domestic production and its soaring energy appetite. With legacy oilfields in Gujarat, Assam, and Rajasthan naturally declining, EOR has transitioned from an "optional" technology to a cornerstone of India's national energy security strategy.

I. The Strategic Imperative: Why EOR Now?

India currently imports approximately 85% of its crude oil requirements. To mitigate this dependency, the Government of India has set ambitious targets to reduce imports by at least 10%. EOR provides a path to extract the "difficult" oil—often up to 30–60% of a reservoir's original oil in place (OOIP)—that remains trapped after conventional primary and secondary recovery methods (like water flooding) are exhausted.

II. Dominant EOR Technologies in India (2026)

Indian national oil companies (NOCs), specifically ONGC and Oil India Limited (OIL), are deploying a diverse toolkit of technologies tailored to the unique geologies of Indian basins:

• Chemical EOR (CEOR): This is the most widely adopted method in India. By injecting polymers and surfactants (notably in the Cairn-operated Mangala field in Rajasthan), operators increase the viscosity of water to "sweep" oil more effectively toward production wells.

• Thermal EOR: Primarily utilized in the heavy oil belts of North Gujarat, steam injection and "in-situ combustion" (fire flooding) are used to heat the thick crude, reducing its viscosity so it can flow more freely.

• CO2-EOR & CCUS: In a landmark shift for 2026, India is integrating EOR with its decarbonization goals. ONGC’s Gandhar field pilot in Gujarat is now a flagship project for Carbon Capture, Utilization, and Storage (CCUS), where industrial $CO_2$ is captured and injected to both boost oil recovery and sequester carbon underground.

III. Key Projects and Milestones

IV. Policy Framework: The "EOR Policy"

The Ministry of Petroleum and Natural Gas has introduced several fiscal incentives to encourage high-risk EOR investments:

1. Cess Waivers: Reduction or waiver of oil cess for production derived specifically from EOR technologies.

2. Investment Tax Credits: Support for the high CAPEX required for $CO_2$ pipelines and chemical mixing plants.

3. Hydrocarbon Exploration and Licensing Policy (HELP): Providing operational flexibility for operators to switch to EOR methods mid-lifecycle.

V. Challenges and the Path Forward

Despite the momentum, the road to "Oil Security" through EOR faces hurdles:

• High Costs: EOR projects are significantly more expensive than standard drilling, making them sensitive to global oil price volatility.

• Technical Complexity: Indian reservoirs are often highly compartmentalized, requiring site-specific chemical "recipes."

• Supply Chain: Sourcing $CO_2$ for injection remains a logistical challenge, though the expansion of the "Hydrogen and CCUS" hubs in 2026 is beginning to solve this.

Summary

In 2026, Enhanced Oil Recovery is no longer just a technical curiosity in India; it is a vital industrial pillar. By combining digital twin modeling with chemical and carbon-capture innovations, India is successfully breathing new life into its brownfields, ensuring that every drop of domestic resource is utilized in the journey toward Atmanirbhar Bharat (Self-Reliant India). >> enhanced oil recovery companies