For India’s oil and gas (O&G) industry, digitalisation has become increasingly important as the industry shifts from a volume-based to a value-based business model amid evolving demand patterns and constrained capital. Coupled with the growing integration of renewable energy, the increasing adoption of natural gas, and changing market dynamics, these shifts are driving the need for greater operational efficiency, agility and data-driven decision-making across the value chain.
Digitalisation, underpinned by the fourth industrial revolution (4IR) technologies such as artificial intelligence (AI), big data and analytics, internet of things (IoT) and blockchain, is becoming a key enabler of this transition. By leveraging real-time data and advanced analytics, these technologies can improve operational efficiency, optimise asset performance across the oil exploration and production activities, smart metering, automation and the adoption of robotic technologies. As the industry adapts to a rapidly evolving energy landscape, digital transformation is expected to play a pivotal role in enhancing competitiveness, improving resource utilisation, and supporting the long-term sustainability of India’s O&G industry.
Digital initiatives in oil exploration and production activities
Digitalisation is transforming India’s O&G industry by making exploration and production activities increasingly data-driven, connected and intelligent. Traditionally characterised by high capital intensity, geological uncertainty and operational risks, upstream operations are now leveraging digital technologies to improve exploration success, optimise drilling decisions, and maximise asset productivity. The convergence of information technology (IT) and operational technology (OT), together with the adoption of AI, machine learning (ML), digital twins, predictive maintenance and others, is transforming exploration and production operations. These technologies enable companies to interpret geological data more accurately, monitor field performance in real time, optimise drilling and production activities, and shift from reactive to predictive and increasingly autonomous operations.
Among the most significant trends is the growing adoption of AI and advanced analytics across exploration workflows. For instance, the Oil and Natural Gas Corporation (ONGC) has significantly expanded the use of AI and advanced analytics to process and interpret seismic data, enabling faster identification of prospective hydrocarbon zones and reducing exploration uncertainty. AI is also being integrated into geoscience workflows to support drilling decisions and optimise exploration campaigns. As part of its largest ever deepwater exploration programme launched in July 2025, involving investments of nearly $20 billion, ONGC is deploying AI and advanced seismic technologies to de-risk deepwater drilling, enhance reservoir characterisation, and prioritise drilling prospects in technically challenging offshore basins. Furthermore, the company has entered into a technology collaboration with British global energy firm BP PLC to deploy AI-enabled exploration technologies across India’s Category II and Category III offshore sedimentary basins, namely, Andaman, Mahanadi, Saurashtra, and Bengal. The collaboration aims to improve subsurface imaging, reservoir understanding and hydrocarbon discovery in previously underexplored areas. The broader upstream industry is witnessing a similar digital transition. Indian exploration and production companies are increasingly deploying AI, ML and advanced analytics to streamline drilling planning, enhance reservoir modelling, improve seismic interpretation, and optimise exploration efficiency. Simultaneously, connected technologies are enabling continuous monitoring of field assets through real-time sensors, while predictive maintenance is helping minimise equipment downtime and extend asset life.
In June 2026, Oil India Limited (OIL) successfully deployed a large-scale digital well-head monitoring system across 77 production wells. The initiative, which was undertaken in partnership with Kelton, combined 482 field devices, including 390 sensors and gauges, secure telemetry gateways, and solar-powered infrastructure to provide real-time operational data and production intelligence. Another notable example is OIL’s Project Digital Readiness for Innovation and Value in Exploration and Production (DRIVE). Leveraging AI, IoT, advanced analytics and cloud-based platforms, the company has implemented digital solutions such as AI-enabled reservoir modelling, real-time production and drilling monitoring, digital well planning, condition-based monitoring and other initiatives under project DRIVE. Building on these initiatives, OIL is advancing initiatives under DRIVE 2.0, which envisages a state-of-the-art command and control centre and wider deployment of AI, robotics, drones and other IR 4.0 technologies to create a more intelligent, integrated and data-driven upstream ecosystem.
Automation and robotics for safer operations
Automation and robotics are transforming O&G operations by improving workplace safety, enhancing asset reliability and reducing human intervention in hazardous environments. Autonomous inspection robots, unmanned aerial vehicles, and underwater robots are increasingly being deployed to inspect O&G pipelines, storage tanks, offshore platforms and subsea infrastructure. This has helped to enable frequent and accurate monitoring while minimising personnel exposure to high-risk conditions. The integration of robotics with AI, cloud computing and advanced sensors is further enabling real-time analytics, predictive maintenance and condition-based asset management.
Leading global operators are already incorporating robotics into routine operations. Shell India, for instance, uses explosion-safe inspection robots to autonomously detect gas leaks, read gauges, and collect visual, thermal and acoustic data for proactive leak detection and corrosion monitoring. The company also deploys drones for refinery and infrastructure inspections, while its FlatFish autonomous underwater vehicle conducts close inspections of subsea pipelines and structures, reducing inspection costs, offshore vessel requirements and associated carbon emissions. The growing adoption of robotics reflects a broader shift towards safer, data-driven and less labour-intensive operations. By automating repetitive inspections and generating high quality operational data, these technologies enable early identification of structural defects, optimise maintenance planning, and allow skilled personnel to focus on higher-value analytical and operational tasks.
Smart metering
Smart gas metering is emerging as a key digital initiative in India’s city gas distribution (CGD) segment, enabling utilities to improve operational efficiency, consumer service and network safety. In April 2026, a committee constituted by the Petroleum and Natural Gas Regulatory Board recommended a nationwide transition from conventional domestic piped natural gas meters to smart prepaid meters. Through its “Roadmap for Implementation of Smart Domestic PNG Metering” report, the committee identified advanced metering infrastructure (AMI)-based smart diaphragm meters with narrowband (NB)-IoT or long-term evolution for machine-type communications (LTE-M) as the preferred technology for large-scale deployment. The road map highlighted benefits such as automated meter reading, real-time consumption monitoring, prepaid billing, remote leak detection and shut-off, tamper alerts, accurate billing, demand-side management and lower operational costs, while recommending that the additional cost of smart meters be absorbed by CGD entities to accelerate adoption.
The industry is also witnessing growing private sector participation in smart metering. In December 2025, Vodafone Idea (Vi) Business, the enterprise unit of the Indian telecom firm, expanded its AMI portfolio by launching IoT-enabled smart gas metering solutions for CGD companies. The platform enables remote meter reading, real-time consumption monitoring, automated billing and network monitoring, further strengthening the digitalisation of gas distribution operations. Collectively, these developments signal India’s transition towards AMI-enabled, IoT-connected smart gas metering, with a greater focus on operational efficiency, consumer safety, revenue protection and intelligent utility management.
Key challenges
Despite the growing adoption of digital technologies across India’s O&G value chain, achieving digital maturity remains a key challenge. While companies are increasingly investing in AI, predictive analytics, digital twins and connected assets, scaling these technologies beyond isolated pilots and integrating them into existing operational ecosystems remains a major hurdle. The coexistence of legacy infrastructure, enterprise resource planning platforms, supervisory control and data acquisition systems and standalone digital applications has created fragmented digital environments, resulting in disconnected data, limited interoperability and poor enterprise-wide visibility.
Another critical challenge is the lack of reliable, standardised asset data. Inaccurate and fragmented information across the asset life cycle constrains predictive maintenance, asset performance management and AI-driven decision-making, reducing the effectiveness of digital investments. Further, digital transformation is constrained by organisational and financial barriers. Resistance to adopting new digital workflows, continued reliance on manual processes, shortages of skilled professionals in areas such as data science, automation and cybersecurity, and the high upfront cost of implementing advanced digital solutions often delay large-scale deployment and limit returns on investment. Alongside this, the increasing digital connectivity has heightened concerns around cybersecurity, data governance and system resilience. As OT becomes more closely integrated with enterprise IT systems, ensuring secure data exchange, interoperable platforms and robust cyber resilience will be essential for sustaining digital transformation across the O&G industry.
Navigating future pathways
As India’s O&G industry advances towards connected operations, digitalisation must transition from isolated technology deployments to a unified, enterprise-wide strategy. Greater convergence of IT and OT, supported by scalable AI, IoT, cloud computing, advanced analytics and digital twin platforms, will be critical to creating a connected value chain that enables real-time decision-making, predictive asset management and operational excellence. Integrating cybersecurity by design into digital infrastructure is equally important. As industrial control systems, operational networks and critical energy infrastructure become increasingly interconnected, cyber resilience must evolve into a core operational requirement rather than merely an IT function. Robust network security, continuous monitoring, secure OT environments, and strong data governance frameworks will be essential to safeguard operations and ensure uninterrupted energy supplies.
The next phase of digital transformation should prioritise connected worker technologies. IoT-enabled track-and-trace solutions, remote operations, geofencing and automation have already demonstrated measurable improvements in health, safety and environment performance, operational efficiency and process monitoring globally. Wider adoption of these technologies, coupled with continuous workforce reskilling, can significantly improve worker safety while enabling more efficient field operations. Finally, a supportive policy and investment ecosystem will be crucial to accelerate digital adoption. As India seeks to expand domestic exploration and strengthen energy security under the new exploration regime, greater collaboration between technology providers, energy companies and policymakers, alongside interoperable digital standards and investment in digital capabilities, will be key to building a resilient, competitive and future-ready O&G industry.
Aditi Gupta
