ONGC Strikes Gas In Mahanadi Deepwater Well, Eyes Faster Monetisation Near Odisha Coast

Oil and Natural Gas Corp (ONGC) has struck gas in a deepwater well off India's eastern coast, with the discovery's proximity to Odisha potentially allowing faster development if appraisal confirms commercial viability, the state-run explorer said on Monday.

ONGC made the discovery on September 18 at the MN-DW18-1-H-D well in the Mahanadi Offshore Basin, about 43 km off Konark, as part of its Samudra Manthan deepwater exploration campaign, the company said in a statement.

The well, the first drilled by ONGC in the Mahanadi Basin under the campaign, encountered gas at a depth of 1,441-1,452 metres after being drilled to a target depth of 1,623 metres.

The well has been flowing gas for the past three days, with "encouraging flow and reservoir pressure," ONGC said.

The discovery is subject to further appraisal and commercial evaluation, the company said.

Its relatively short distance from the Odisha coast could support early monetisation if the discovery proves commercially viable, while the find and other discoveries in the area could potentially be developed using shared facilities, ONGC said.

Such development could be enabled under the Petroleum and Natural Gas Rules, 2025, allowing deepwater resources in the area to be brought into production through shared infrastructure.

The discovery adds to ONGC's push to expand exploration in India's deepwater basins as the country seeks to increase domestic hydrocarbon production and reduce reliance on imports.

The well was spudded on July 25 using drillship Platinum Explorer.

The discovery comes as ONGC expands its focus on frontier offshore acreage, where successful deepwater finds can require significant investment in appraisal and infrastructure before commercial production begins.

For the Mahanadi Basin discovery, the next steps will include further appraisal of the reservoir, assessment of recoverable resources and a commercial evaluation before any development decision is taken.