Why has critical minerals become so important? Critical mineral as you know is called critical because it's very very important as part of both the supply chain and the sourcing and then the processing and then its usage across the domains within the economy. As far as oil India is concerned, we saw that there is a commonality of exploration in critical minerals. As we do exploration for oil and gas, we saw that same exist for critical minerals a select few. One is a graphite and a vanadium block in Arunachal Pradesh. About 5 million metric ton of reserves in terms of graphite and 5 million metric ton of reserves of vanadium. Similarly for the first time in the country we have also picked up one potash block which is a 100% import substitution opportunity where we have got access to about 25 to 26 million metric ton of potash. Once we establish how the mining process will happen, we will get into production. So that's the critical mineral story for Oil India.
As the government balances energy security, affordability, and decarbonization, the India Energy Week starting January 27th takes center stage in the global energy conversation. The 2026 agenda brings together ministers, policymakers, and industry leaders from world over shaping the future of energy. And this prelude series features voices driving that transition. Joining me today is the Chairman and Managing Director of Oil India, Dr. Ranjit Rath. Dr. Rath, thank you very much for joining me. It's been a year since we last met. So let me pick up on two things. One is what we spoke about last time and what we did not speak about last time. So what we did not speak about last time which is clearly in the news now is critical minerals. So why has critical minerals become so important in the larger context of where we are as a country, and for Oil India Limited? It's always a pleasure speaking with you, and yes, it's been a year. Before we made the last IEW edition, while we are all waiting to see this year's, not this year's 2026 IEW.
IW, once again greetings on behalf of Oil India Limited. Critical mineral as you know is called critical because it's very very important as part of both the supply chain and the sourcing and then the processing and then its usage across the domains within the economy.
Whether you call it health, you take department of space, you take our space research, you take our defense, you take our medical systems, you take our mobility purpose, you take our communication, everywhere you have these small critical elements useful whether it is lithium, cobalt, nickel, vanadium, graphite, etc. As far as Oil India is concerned, you are right. Last year we didn't talk about it. We were about to diversify under the National Critical Mineral Mission which Government of India has rolled to enhance our exploration efforts in critical minerals, our production efforts in critical minerals, our overseas collaborations in critical minerals. Oil India being an E&P company primarily focused on exploration and production. We saw that there is a commonality of exploration in critical minerals as we do exploration for oil and gas. We saw that same exist for critical minerals a select few. So out of the identified 24 we have shortlisted about eight of them.
And basis we also had another sort listing parameter. We said wherever we have our area of operation. So as we speak we have got two blocks exploratory blocks. It's in composite license mode unlike the oil and gas block. One is a graphite and a vanadium block in Arunachal Pradesh near a place called Pope about 5 million metric ton of reserves in terms of graphite and 5 million metric ton of reserves of vanadium. It's a composite license. We will do exploration, establish its economic viability and then take up mining. Similarly for the first time in the country we have also picked up one potash block which is a 100% import substitution opportunity in Hanuman in Rajasthan where we have got access to about 25 to 26 million metric ton of potash.
So that is also an exploratory block now and it will be a composite license. Once we establish how the mining process will happen, we will get into production. So that's the thing as far as domestic critical mineral ecosystem is concerned. Currently the trench six is underway. We are evaluating couple of more blocks. But in addition to this as we are scouting assets overseas for our oil and gas we are also scouting assets overseas in critical minerals in collaboration with Kabil that is Khanij Bidesh India Limited. It's a JV promoted by Ministry of Mines where Oil India has collaborated. We are looking at geographies like Australia, Argentina, Bolivia, Chile and African continents. So that's the critical mineral story for Oil India.
Right. So let me start with graphite and vanadium that you talked about. So graphite is something that one encounters or comes across. Tell us about vanadium. Tell us about potassium. I mean where do they fit?
Potash is one of the major input for your fertilizer.
So today you are import dependent on that and we understand. And why are we import dependent on that?
Because potash is not available in the country so far. It is not yet mined so far.
Globally. Now is that because of the cost of mining it or?
It has not been done before. It was never been auctioned.
This was lying at a depth of about 500 to 600 m. So it was never been attempted. So we thought we will take a pioneering step. Two ways of looking at it. The drilling component for exploring potash and the harvesting of potash. There is a commonality of the way we drill in oil and gas. And there is a commonality of doing work over in such solution mining. Should we decide to go for solution mining in potash or if we go for a conventional mining then it's a normal mining but there is a commonality of approach. As far as graphite is concerned, we feel that northeast is a place where we have a significant presence and lot of data that is available with us in terms of seismic that we do otherwise. But recently we have acquired about 40,000 square kilometer of advanced airborne gravity radiometry data basis Government of India's campaign. So we thought those data could be an input for such exercises and of course we have got a very good collaborative framework with Geological Survey of India. Therefore these inputs are helping us to zero down. So we were very choosy in selecting which blocks to be taken up and then we participated in auction and we wanted to win. As far as vanadium is concerned, while its utility is very well established, what is important is to procure and establish the process flow diagram of this vanadium. So we are collaborating with CSIR lab say IIT and NML. We are also collaborating with Indian Bureau of Mines. We are also collaborating with global players to establish the process flow diagram and then we will take it forward. But the first being an exploration company we are taking up drilling and exploration of these assets.
So I'll come back to the drilling and exploration. But you know when we talk about minerals and rare earths usually they're spoken of together and obviously the world's attention has been focused on rare earths because of China and the fact that they've been holding back exports to most countries including India. So tell us about where rare earths fits in the overall critical minerals outlook.
Rare earths is just another critical mineral. It's a group of minerals. They are primarily occurring in shallow but a very typical geological setting. Till now in the country there was a focus on bulk minerals and hydrothermal minerals. So we were earlier focused on limestones, bauxite, iron, manganese, and hydrothermal is copper, lead, zinc, and block. So the thrust on rare earths and critical minerals literally happened last 4 years or so. There is a concept called obvious geological potential areas with GSI maps. That mapping has already been done. There is a significant thrust from Government of India as a two-prong strategy. One is enhance exploration per se. So that GSI and under NCMM, National Critical Mineral Mission, certain identified public sector undertakings like OVL, Oil India, Coal India, then ONGC, then Indian Rare Earths Limited under Department of Atomic Energy. So we are together pursuing this agenda of doing exploration. Simultaneously government is also putting thrust because what is more important in this particular value chain is the processing part. So significant thrust is underway to acquire processing technology and also to encourage both private sector and public sector and the research organizations to work on the processing technology.
Right. In the case of China for example, it's not that they are producing all these minerals. It's that they're processing a lot of it which including they're producing and importing raw material, processing, and sending it back. So they have the processing capacity.
They have established a significant quantum of monopoly in terms of processing facility.
Right. So let me come back to India and the path that you've taken. So if you were to look at this as a young geoscientist, would you say that basically I could now look at drill for anything that's subsurface including oil, because normally I set out to be an oil engineer or an oil man or a woman and that's where my career takes me, but what you're saying now is that today your career could go in any direction. You could be drilling for minerals or you could be drilling for oil and these are fairly distinct at least from a user point of view.
You are absolutely right. They are from a host rock point of view. Certain minerals they have a common presence. Say lithium you could find out in sedimentary rocks where oil and gas resides. It also occurs on hard rock where minerals reside. Potash is actually co-existent with oil and gas. Because the potash exploration that we intend to do in Rajasthan we do foresee that there is a possibility of establishing presence of hydrocarbon there. So there is a commonality, there is an overlap. But probably this is the greatest time from a geoscience point of view to be able to pursue exploration in either of minerals because oil and gas is also a mineral. So whether it is hard rock mineral, sedimentary rock mineral, or liquid fuel, it's a very exciting period.
So if I were to ask you to sort of say where we are in the journey to achieving some level of optimum output and capacity in minerals as a country first and then as Oil India Limited, where are we in minerals? We are pretty advanced whereas critical mineral is concerned we have got a significant thrust today through international collaborations through domestic efforts but we have to cross a certain path maybe a decade or so. And in general, maybe one of the last questions on critical before I come to exploration of oil, in general what is the lay of the land when it comes to the world at large? You said Australia and Argentina and you mentioned Bolivia and...
So it's like this, if you look at lithium, lithium occurs in two formats. One is hard rock: Australia is full of it. The lithium brine you have significant presence of lithium brine in Argentina, Bolivia, Chile, that's called ABC for lithium. But lithium is just one such mineral. You have significant presence of lithium in America, in USA, in Canada, in Russia. Potash is available across the globe in select geographies. All the critical minerals, see oil and gas is just one portfolio. Critical minerals from an India point of view there is 24 of them. And entire Africa is a destination for critical minerals. Even I would like to say through you to the august audience, India is also having enough of critical minerals. It's a matter of exploration and to prove it. So significant work has kickstarted. It's a matter of time we establish the resource pool.
So the bottom line or topline question. So we are importing more than 80% of our crude oil requirements and we're only able to produce 20%. I'm talking about crude oil not gas. When it comes to minerals, where do we stand in terms of what we are seeing? Minerals is across the scope like we have enough of bauxite, we have enough of iron ore, we have massive deposits of coal, massive deposits of limestone. The entire value chain is in place. As far as critical mineral is concerned, our import dependency is on a very high order touching 100%. More in terms of the revolutions I would use, revolutions which is happening in EVs or in various other sectors, we are actually buying the finished products. So it will take time to establish the entire value chain. So my question I guess is that if we were to look a little ahead, could we achieve greater self-sufficiency in minerals, critical minerals, than we have achieved in oil because of what we have or we have been naturally endowed with? I wish we have greater sufficiency across the value chain for all the natural resources because that's why exploration is very important. Whether you do it for critical minerals, you do it for rare earths, or you do it for natural gas or coal, the story remains same that greater self-sufficiency is so important for us.
Okay. So let me come to oil now and crude oil. So one of the things that you've talked about this year particularly is the focus on deep water and ultra deep water drilling as a way to enhance what is already there. Correct. So and you also collaborated with Total Energies for that. So tell us about where that journey is right.
As I speak, I think just to connect from last year's discussion. As I speak today, we are drilling the third well in Andaman Nicobar shallow water offshore basin. Kerala Konkan shallow water offshore basin. The both deep water assets in KG and in Mahanadi which we acquired during the OALP9 round. Because last time I had not talked about it. We got the petroleum exploration licensing awarded to us in the month of April and as we speak two of the vessels are currently suiting for us and for acquiring 3D seismic data 5,000 square kilometer. And we foresee going forward these deep water blocks in Mahanadi and KG going to be the mainstay of our exploration because we have done a substantial amount of petroleum system modeling studies. As far as Andaman is concerned, you rightly said on the second well, and I reiterate on the second well of Oil India's effort in Andaman and Nicobar we have established occurrence of natural gas. And I'm not saying or claiming it as a discovery considering the fact that you have to establish where is the source rock, where is the pathway, and where is the entrapment. But one thing that we have established by virtue of this reported occurrence that petroleum system exists in Andaman Nicobar basin, and that's our achievement or an accomplishment. While we are drilling the third well, we expect that a similar setup would provide us a similar kind of signature. We have also started our appraisal process. The first, second well where we have established natural gas, we could do it with 2D seismic lines. Now when you do a 2D seismic line you only talk about a XY plane, and when you do 3D it's an XYZ block. So having established now, we want to establish what is the structure, where is the source rock, what is the likelihood of potential. For that 3D seismic is a need. So we have already identified about 300 square kilometer of area for 3D seismic and we are going to drill an appraisal well to re-establish the potential. And the collaboration with Total is very very significant for us. And I must acknowledge and having discussed this, I must tell you we have got tremendous amount of support from honorable Minister of Petroleum and Natural Gas, Secretary PNG, and entire ministry in navigating this process. So by virtue of this collaboration, we are looking forward to three things. One, Total is on board to help us in the appraisal process. Two, Total by virtue of our collaboration with Total Energy, they are going to help us in pursuing all the seismic data acquisition for the deep water because that is where the story begins. Three, they're also going to help us in identifying the locations for drilling and helping us even the well design and overseeing the drilling process for those deep waters. Most importantly, as I speak in West Coast, we also have now spudded a well in Kerala Konkan basin. This is another shallow water but our target is to reach 6,000 meters. So this will be if we are successful in terms of drilling, we will come back to the potential. This will be the deepest offshore well in this part of the globe.
So anything more than other oil majors have done including ONGC and others. Yes. So that's 6 km down.
6 km down from the sea bottom. We are targeting two horizons below the trap. Because we did and all these efforts of offshore shallow water, deep water, and ultra deep water are backed by robust petroleum system modeling studies done both in-house assessment and global consultants. So all the locations that we have released for the purpose of drilling are vetted or reaffirmed by external consultants.
