The state-owned Oil and Natural Gas Corporation (ONGC) has successfully unearthed two substantial natural gas reserves in the Mahanadi basin block located in the Bay of Bengal. This accomplishment marks a notable achievement for ONGC’s foray into high-risk deep-water exploration, yielding promising results.
The discoveries were made within the block MN-DWHP-2018/1, secured by ONGC in the third round of auction under the open acreage licensing policy in 2019. The region, previously designated as a ‘no-go’ area due to national security concerns, has now proven to be rich in natural gas deposits.
The first discovery, named Utkal, lies at a water depth of 714 meters and exhibited a substantial flow of over 3 lakh cubic meters per day during initial testing. The second find is located at a water depth of 1,110 meters. ONGC has promptly informed the upstream regulator Directorate General of Hydrocarbons (DGH) about these discoveries and is currently engaged in assessments of pool size and commercial viability.
This breakthrough is poised to significantly bolster India’s energy security, given that the country currently imports nearly half of its gas requirements. India aims to increase the share of natural gas in its energy mix to 15 percent by 2030, up from the current 6.3 percent, and increased domestic production will play a pivotal role in achieving this target.
Natural gas, recognized as a vital contributor to India’s nets zero emission goal by 2070, has a lower carbon footprint compared to conventional fossil fuels. It is employed in electricity generation, fertilizer production, and as CNG for automobiles, along with being piped to households for cooking purposes. A greater reliance on natural gas is expected to replace coal in power generation and liquid fuels in industrial processes.
This breakthrough became possible after the government lifted restrictions on over one lakh square kilometers of the area, which were previously considered ‘no-go’ zones due to concerns related to missile testing and satellite launch routes. The removal of restrictions in 2022 on more than 98 percent of these areas has provided energy companies, including ONGC, the opportunity to explore and extract oil and gas, further contributing to India’s energy independence and sustainability goals.
