In a significant stride towards energy security, the Oil and Natural Gas Corporation (ONGC), India’s state-owned energy major, has marked two consecutive natural gas discoveries in the Mahanadi basin deepwater block in the Bay of Bengal. The latest exploration endeavors in the block MN-DWHP-2018/1 under the open acreage licensing policy have unveiled substantial gas reservoirs, reinforcing ONGC’s strategic focus on high-risk deepwater exploration.
Sources with direct knowledge of the development revealed that the first discovery, named Uktal, was made in waters 714 meters deep and demonstrated an initial flow of over 3 lakh cubic meters per day of gas during testing. The second discovery, situated at a water depth of 1,110 meters, underscores the success of ONGC’s calculated game plan, which also involves venturing into areas of national security significance.
These breakthroughs have significant implications for India’s energy landscape. As a nation that imports nearly half of its gas requirements, the discovery of new gas reserves aligns with India’s goal of increasing the share of natural gas in its energy basket to 15 percent by 2030, up from the current 6.3 percent. Natural gas, considered a transition fuel with a lower carbon footprint, plays a pivotal role in India’s commitment to achieving net-zero carbon emissions by 2070.
The discoveries in the Mahanadi basin are vital not only for energy security but also for the nation’s broader environmental goals. Natural gas extracted from beneath the earth or sea surface is utilized for electricity generation, fertilizer production, and as compressed natural gas (CNG) for automobiles. It also serves as a cleaner alternative in household kitchens for cooking purposes.
ONGC has promptly notified the Directorate General of Hydrocarbons (DGH) about these discoveries and is currently engaged in assessments of pool size and commercial viability. This positive development comes as a result of the government’s strategic move to free approximately one lakh square kilometers of exploration areas from restrictions, providing energy companies like ONGC the flexibility to explore and produce oil and gas.
The Mahanadi offshore success is anticipated to stimulate new exploration initiatives, attracting more investments. Last year, ONGC signed a memorandum of understanding with TotalEnergies, a French energy giant, for information exchange on deepwater offshore acreage, specifically in the Mahanadi and Andaman basins. This collaboration aims to leverage TotalEnergies’ technical expertise in deepwater exploration and production.
ONGC’s exploration achievements in the Mahanadi basin contribute to positioning India as an attractive destination for global energy players, fostering partnerships and investments in the country’s energy sector.