ONGC Strikes Natural Gas in Deep Waters of Mahanadi Basin
Bhubaneswar: The Oil and Natural Gas Corporation (ONGC) has made a promising natural gas discovery in the deep waters of the Mahanadi Basin, around 43 km off the Konark coast of Odisha, opening up fresh prospects for offshore energy development and strengthening India’s ongoing efforts to expand its domestic hydrocarbon resources.
The discovery was made in the MN-DW18-1-H-D (MDW-28) well, the first well drilled under ONGC’s current deepwater exploration campaign in the Mahanadi Basin. The campaign was launched on July 25, 2026, when Union Minister for Petroleum and Natural Gas Hardeep Singh Puri inaugurated the drilling operation under the government’s Samudra Manthan initiative.
The well was drilled to a target depth of 1,623 metres and encountered gas in the 1,441–1,452 metre interval. Following evaluation of subsurface data, ONGC perforated the well on September 18. The company said the well is currently flowing gas at encouraging rates with sustained and healthy reservoir pressure.
ONGC, however, has emphasised that further appraisal and commercial evaluation will be required to establish the size of the discovery, recoverable reserves and its commercial viability.
The discovery, along with other finds in the area, could potentially be developed through shared offshore facilities under the framework enabled by the Petroleum and Natural Gas Rules, 2025, according to ONGC.
The location of the discovery, approximately 43 km from the Odisha coast, could offer potential advantages for future development and monetisation. However, any assessment of commercial production will depend on further exploration, reservoir testing and economic evaluation.
The discovery is significant in the broader context of India’s energy requirements. The country imports a substantial portion of its energy needs, including natural gas. A commercially viable domestic gas resource could increase indigenous supply and contribute to efforts to reduce dependence on imported energy.
Natural gas is widely used for electricity generation, fertiliser production, city gas distribution and industrial applications. Increased domestic production could therefore have implications across several sectors of the economy.
The latest discovery adds to ONGC’s continuing exploration efforts in the Mahanadi Basin. The company had reported the Utkal and Konark gas discoveries in 2024, following sustained exploration activity in the offshore region.
ONGC began deepwater exploration in the Mahanadi Basin nearly two decades ago, and subsequent drilling programmes have helped establish the hydrocarbon potential of the offshore area.
The latest find does not immediately translate into commercial gas production. ONGC will have to undertake additional testing and appraisal drilling to determine the extent of the reservoir, the volume of recoverable gas and the technical and economic feasibility of extraction.
Odisha Deputy Chief Minister K.V. Singh Deo congratulated ONGC on the discovery and said the encouraging gas flow and reservoir pressure reaffirm Odisha’s importance in India’s energy landscape.
Singh Deo linked the development with the Union Cabinet-approved Samudra Manthan – National Offshore Exploration Scheme, aimed at unlocking the country’s offshore energy resources. He noted that the scheme has an outlay of ₹84,084 crore up to FY 2030-31.
He said Odisha remains committed to strengthening the country’s energy resilience while supporting economic growth and self-reliance.
Deputy Chief Minister Pravati Parida also congratulated ONGC, saying the discovery off the Konark coast could provide fresh momentum to Odisha’s energy sector and contribute to the country’s energy security and economic development.
Leader of Opposition Naveen Patnaik welcomed the discovery and congratulated ONGC, noting the encouraging gas flow and reservoir pressure. He said the development could strengthen India’s energy resilience and contribute to Odisha’s economic growth.
The discovery comes as ONGC continues to expand exploration across India’s deep and ultra-deepwater frontiers in search of additional hydrocarbon resources.
The company has said it will continue pursuing offshore exploration in support of India’s long-term energy security objectives. If further appraisal confirms significant recoverable reserves, the Mahanadi Basin could emerge as an important contributor to India’s efforts to expand domestic energy production and strengthen energy security.
