New Delhi, September 22: State-owned Oil and Natural Gas Corporation (ONGC) has struck natural gas in the deep waters of the Mahanadi Basin off the Odisha coast on September 18. This discovery is a critical step aimed at bolstering domestic energy production and reducing reliance on imported fuels.
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The discovery was made at an exploration well located about 43 kilometers (23 nautical miles) off the coast of Konark, Odisha. Drilled to a total depth of 1,623 meters, the well encountered gas-bearing zones between 1,441 and 1,452 meters. Initial testing showed steady reservoir pressure and encouraging flow rates, strengthening market confidence in the commercial viability of the Mahanadi deepwater blocks, though the volume of gas discovered hasn’t been disclosed.
This find represents the first major success under ONGC’s flagship deepwater exploration campaign, “Samudra Manthan.” Launched in late 2025, the initiative aims to explore untapped oil and gas reserves and reverse domestic production declines. The campaign is backed by a massive ₹1 lakh crore ($12 billion) capital expenditure plan dedicated entirely to deepwater exploration over the next five years. Encouraged by this, ONGC is aiming to drill 87 offshore wells by the end of fiscal year 2031.
Situated just 43 kilometers from the shore, the well enables faster development and earlier commercialization than remote deepwater projects. Furthermore, under the newly established Petroleum and Natural Gas (PNG) Rules of 2025, ONGC plans to utilize a “cluster development” strategy. By grouping this new find with existing regional discoveries such as Utkal and Konark, the company can share production infrastructure, thereby substantially reducing both operational costs and time-to-market.
With India currently importing over 88% of its crude oil and remaining heavily dependent on liquefied natural gas (LNG), this gas find directly supports the national objective of increasing domestic gas’s share in the primary energy mix. Beyond this, the development validates the immense potential from India’s eastern offshore basins, which are estimated to hold over 5,600 million metric tonnes of oil (MMTOE), boosting India’s long term energy demands.
