In a big breakthrough, Oil and Natural Gas Corp (ONGC) has discovered gas in a deepwater well off India’s eastern coast. The find is located close enough to Odisha and may potentially enable quicker development if further appraisal establishes that it is commercially viable, the state-run explorer said on Monday.The discovery also comes at a time when ONGC is increasing its focus on frontier offshore acreage. Deepwater discoveries can require substantial investment in appraisal and infrastructure before they can progress to commercial production.For the Mahanadi Basin discovery, ONGC’s next phase of work will involve additional reservoir appraisal, evaluation of recoverable resources and a commercial assessment. A decision on development will be taken only after these steps are completed.
ONGC’s gas discovery
The discovery was made on September 18 at the MN-DW18-1-H-D well in the Mahanadi Offshore Basin, around 43 km from Konark, as part of ONGC’s Samudra Manthan deepwater exploration campaign, the company said in a statement.This was the first well drilled by ONGC in the Mahanadi Basin under the campaign. The well encountered gas at a depth of 1,441-1,452 metres after drilling reached a target depth of 1,623 metres.According to ONGC, the well has continued to flow gas for the past three days and has shown “encouraging flow and reservoir pressure.”The company said the discovery will now undergo further appraisal and commercial evaluation.Reacting to the development, Oil minister Hardeep Singh Puri called it a major milestone for India’s offshore energy exploration.ONGC said the well’s relatively close location to the Odisha coastline could help bring the discovery into production sooner if it is ultimately found to be commercially viable. The discovery could also potentially be developed alongside other finds in the region by making use of common facilities.The company said such an approach could be supported by the Petroleum and Natural Gas Rules, 2025, which allow deepwater resources in the area to be brought into production using shared infrastructure.The Mahanadi Basin find comes as ONGC steps up exploration activity across India’s deepwater basins. The company is seeking to expand domestic hydrocarbon output as India works to reduce its dependence on imports.The well was spudded on July 25 using the drillship Platinum Explorer.
Samudra Manthan
The Samudra Manthan National Offshore Exploration Scheme has been designed to tap India’s offshore oil and gas potential through a broad-based exploration programme. The initiative will focus on extensive seismic surveys, deepwater exploration, scientific drilling, common offshore infrastructure and the development of an integrated manufacturing ecosystem.The scheme is planned to run through FY 2030-31 and is expected to add more than 600 Million Metric Tons of Oil Equivalent (MMTOE) to India’s reserves.A major component of the programme will be the large-scale collection, processing and interpretation of high-quality seismic data to identify offshore hydrocarbon resources. It will also push for faster exploratory drilling in deepwater and ultra-deepwater areas, along with scientific drilling in frontier basins.The scheme also envisages the creation of common offshore production and evacuation infrastructure, which can support the development of resources discovered in offshore areas. Alongside this, an integrated Oil & Gas Manufacturing and Services Zone is proposed.Digital programme management will form another part of the initiative, along with capacity building, adoption of technology, engagement with stakeholders and international outreach.Overall, the programme is expected to bring more than 600 MMTOE into India’s reserves, while substantially widening offshore exploration activity and helping increase domestic oil and gas production.The push comes against the backdrop of India’s heavy dependence on imported crude oil. Nearly 90% of the country’s crude oil requirements are met through imports. This dependence became particularly evident during the US-Iran conflict, when the closure of the Strait of Hormuz exposed India to the risk of an oil and gas supply shock.India moved quickly to diversify its sources of procurement, but the episode also highlighted the limited availability of domestic supply.It is against this backdrop that the Samudra Manthan scheme assumes greater significance.
