THEBUSINESSBYTES BUREAU

NEW DELHI, SEPTEMBER 21, 2026

Oil and Natural Gas Corporation (ONGC) has struck gas in a deepwater exploration well in the Mahanadi Offshore Basin, opening the possibility of faster development of the discovery given its proximity to Odisha’s coast, subject to successful appraisal and commercial viability.

The state-run energy major said the discovery was made on September 18 at the MN-DW18-1-H-D well, located around 43 km off Konark, as part of its Samudra Manthan deepwater exploration campaign.

The well, ONGC’s first drilled in the Mahanadi Basin under the campaign, encountered gas-bearing zones at a depth of 1,441-1,452 metres after reaching a target depth of 1,623 metres.

Importantly, the well has been flowing gas for the past three days, with ONGC reporting “encouraging flow and reservoir pressure”—early indicators that will now undergo detailed technical assessment.

The discovery, however, remains subject to further appraisal, resource assessment and commercial evaluation before ONGC takes any development decision.

The discovery’s location relatively close to the Odisha coastline could provide a potential advantage in bringing the resource to market if commercial quantities are established. ONGC said the discovery, along with other potential finds in the region, could potentially be developed through shared offshore infrastructure, helping optimise capital expenditure and development timelines.

Such an approach could be supported by the Petroleum and Natural Gas Rules, 2025, which provide a framework for deepwater resources in the area to be brought into production through shared facilities.

For ONGC, the discovery is significant as the company intensifies exploration across India’s frontier offshore acreage. Deepwater discoveries can require substantial investment in appraisal, subsea infrastructure and production facilities, making proximity to existing or shared infrastructure an important consideration for eventual monetisation.

The well was spudded on July 25 using the drillship Platinum Explorer. The discovery adds momentum to ONGC’s efforts to expand its presence in deepwater basins as India seeks to raise domestic oil and gas production and reduce its dependence on imports.

The company’s immediate priority will be to establish the size and quality of the reservoir and determine the recoverable resource base. Further appraisal drilling and technical studies will be crucial in establishing whether the discovery can support a commercially viable development.

For the Mahanadi Offshore Basin, the find also underscores the region’s emerging potential as India steps up exploration of frontier offshore acreage.

The discovery therefore marks an important exploration milestone for ONGC — but the path from gas discovery to commercial production will depend on what the next phase of appraisal reveals.