First under Samudra Manthan: ONGC strikes gas in Mahanadi offshore

In a major breakthrough for India's deepwater exploration programme, state-run Oil and Natural Gas Corporation (ONGC) has struck gas in the deep waters of the Mahanadi Basin off the Odisha coast, recording encouraging flow and sustained reservoir pressure. 

ONGC on Monday announced that it made the discovery on September 18 at the MN-DW18-1-H-D well, which was drilled to a target depth of 1,623 metres. This was the first well the company drilled in the basin under the government’s Samudra Manthan initiative, the national offshore exploration mission. 

Gas was encountered between 1,441 metres and 1,452 metres. The proximity of the well to the coast, about 43 km off Konark, could help facilitate early monetisation if the discovery is found to be commercially viable, subject to further appraisal and evaluation, ONGC said. 

 

“The well is flowing gas with encouraging flow and reservoir pressure for the last three days. The discovery strengthens ONGC’s deepwater exploration programme and India’s efforts to expand its indigenous hydrocarbon resource base. This find, along with other discoveries in the area, can be a candidate for development through shared facilities enabled by the PNG Rules, 2025, bringing deepwater resources onstream,” ONGC said in a statement. 

The gas discovery comes as the government seeks to increase domestic exploration and production, particularly in offshore and deepwater areas. The government had launched the ₹84,000 crore Samudra Manthan initiative in July to support exploration in India's offshore areas by reducing drilling costs and exploration risks. 

The drilling was launched on July 25 when Union Petroleum and Natural Gas Minister Hardeep Singh Puri spudded the well remotely from New Delhi. It is located about 23 nautical miles from ONGC’s Konark discovery. 

“The current flow test is an important step in determining the quality and commercial potential of the reservoir. Although the initial gas flow and pressure response are encouraging, we will assess the reservoir and the recoverable resource before taking any decision on its commercial development,” an ONGC official said. 

The development assumes significance amid ONGC's intensified push into deep and ultra-deepwater areas as India seeks to expand domestic hydrocarbon production and reduce its dependence on imported oil and gas. The Mahanadi offshore basin has gained importance in recent years following ONGC's Utkal and Konark discoveries, which have strengthened the geological case for further exploration in the basin. 

The government has made nearly a million square kilometres of previously restricted offshore areas available for oil and gas exploration under the Open Acreage Licensing Policy, with deepwater and ultra-deepwater acreage. 

According to ONGC, India’s eastern and western offshore basins, extending to water depths of up to 3,000 metres, are estimated to contain more than 5,600 million tonnes of oil equivalent of hydrocarbon resources. 

The Mahanadi offshore basin, stretching along the Odisha coast, is among the areas where ONGC has been seeking to establish a clearer understanding of the deeper geological structures. The company's recent discoveries in the basin have provided additional geological data and encouraged further exploration. 

During the drilling operations, Arun Singh, chairman and CEO of ONGC, Vikram Saxena, director (technology and field services) and O P Sinha, director (exploration) visited the drillship and encouraged the crew onboard.   

"Every prospect evaluated, well drilled and discovery made will contribute towards enhancing domestic production, reducing import dependence and strengthening India's energy security and self-reliance. Hopefully, a new chapter in India's energy frontier," ONGC added.