The central utility Oil and Natural Gas Corporation (ONGC) recently received the required approval from the Mamata Banerjee Government in West Bengal to start extensive oil drilling activities in Ashoknagar, North 24-Parganas district of West Bengal. The decision transpired after mineral oil was found in the region. The reserves were found at several sites, most notably in the vicinity of Baigachhi in the area. The government decided to provide 50-acre of land for the project.
The framework for additional exploration was laid in December 2020 when Dharmendra Pradhan, the Union petroleum minister at the time, officially opened commercial oil and gas extraction there. However, the endeavor was unable to proceed further due to the lack of a formal nod for extraction from the state government. ONGC is now prepared to extend its activities throughout Bengal with the state government’s assent.
The preparations for drilling and land leasing at four locations in North 24-Parganas are reportedly close to completion. Furthermore, land acquisition has begun in two other locations, Bhagwanpur II block in East Midnapore and Chapatla gram panchayat in Deganga of North 24-Parganas. Thirteen locations in North 24-Parganas, three in South 24-Parganas, one in Nadia, and five in East and West Midnapore districts have been selected by ONGC for drilling.
An estimated five acres of leased land would be needed for each project. According to reports, these districts in Bengal contain substantial oil reserves. ONGC intends to lease land in strategic areas in order to extract oil. However, extraction didn’t commence so far due to lack of state administration permission which has now been granted and the work is scheduled to begin soon. Full-scale extraction won’t start until after comprehensive evaluations of the oil and gas deposits at depths between 2,500 and 6,000 meters, as per the ONGC officials.
“If the findings are favourable and conducive, commercial extraction will proceed, unlocking new economic opportunities for the state. We are hopeful that this venture will significantly bolster Bengal’s economic landscape, particularly in India’s energy sector,” an ONGC officer conveyed. In 2018, ONGC made the first discovery of an oil field in eastern India, in Ashoknagar within the Bengal Basin. The natural gas reserves there were formally inaugurated by Union Minister Pradhan by December 2020. ONGC anticipated that the reserves could produce between 45,000 and 50,000 cubic meters of natural gas per day.
Repeated reminders, a massive loss and furious opposition
A reply in Lok Sabha exposed the staggering loss incurred due to the reluctant behavior of the West Bengal administration despite repeated appeals by the center. “Petroleum and Natural Gas Rules, 1959, the state government is empowered to grant Petroleum Mining Lease (PML) with the prior recommendation of the central government. The application for PML was made in 10.09.2020, based on Early Development Plan (EDP) considering the single well, Ashoknagar-1 (discovery well) for an area (5.88 sq. km. subsequently increased to 99.06 sq. km.). The recommendation of the central government for grant of PML was conveyed to state government of West Bengal on 21.10.2020, followed by government of India subsequent reminder letters dated 01.02.2023 and 12.01.2024,” it stated.
The document further informed, “The matter was also flagged to the government of West Bengal in the Eastern Zonal Council Meeting held on 04.07.2024. In the absence of PML, the operator continued with the appraisal/exploratory drilling activities and established hydrocarbon presence in other wells namely Kanpul-1, Bhurkunda-1 and Ranaghat-2. Provisional PML was subsequently granted by state government of West Bengal on 24.02.2025.”
18274 m³ of oil were expected to be produced from these oil fields in the first four years. December 2020 saw the start of test production for the well Asokenagar-1. During prolonged testing from December 2020 to July 2022, the well’s actual production was 352 m³. The well’s output, however, had to be postponed due to PML’s delay. The remaining 17922 m³ of oil will be monetized as part of the block’s future production plan now that the PML has been granted.
“Integrated Field Development Plan of Asokenagar-1 discovery has been approved by government on 10.07.2024. The provisional PML was issued by state government on 24.02.2025. The production of oil and gas in sync with activities approved under FDP, is projected within 10 and 17 months respectively, post execution of the deed,” the document added.
Meanwhile, Bharatiya Janata Party’s Amit Malviya hit out at Mamata Banerjee government and remarked, “Approved on February 24, 2025, the lease covers 99.06 sq. km. under the New Exploration Licensing Policy (NELP). While this should have been a milestone years ago, bureaucratic delays have cost Bengal immensely.” He quoted the official figures and asked, “Bengal holds immense energy potential, but can we afford such delays again?”
He then declared that it’s time for effective government to make sure Bengal’s resources propel its development and added, “It is time to vote out Mamata Banerjee.”
After a five-year delay, the West Bengal government has finally granted the Petroleum Mining Lease (PML) for the Ashoknagar Oil Field to ONGC.
— Amit Malviya (@amitmalviya) March 17, 2025
Approved on February 24, 2025, the lease covers 99.06 sq. km. under the New Exploration Licensing Policy (NELP). While this should have… pic.twitter.com/n9grNze3GP
The Mahanadi-Bengal-Andaman basin encompasses the Ashoknagar field. West Bengal has consistently shown promise as a site for gas and oil. Although ONGC has been investigating the state for many years and has made significant investments, the sample’s economic viability has always been a problem. After extracting 20 kl (kiloliter) of crude oil from the Ashoknagar oilfield, ONGC transported the sample to Indian Oil’s Haldia Refinery for processing. The results of the tests showed that the product was of good quality, reported Business India.
According to the Indian government’s Early-Monetization Plan, Ashoknagar I is now considered an oil producer. This indicates that ONGC has found and developed seven of its eight basins in India, which accounts for 83% of the known oil and gas reserves in the country. The company accounts for 72% of India’s hydrocarbon production, making it the nation’s top producer of gas and oil.
The Bay of Bengal engulfs roughly two-thirds of the Bengal Basin, which spans around 122,000 square kilometers. ONGC has so far spent ₹3,361 crore to investigate hydrocarbons in the Bengal Basin, per the 2021 news report. Over the next two years, an additional ₹425 crore were set to be invested in the basin’s exploration efforts. According to reports, the field’s natural gas reserves are probably greater than its oil reserves. Oil is found in the topmost stratum, which is 2,268 meters below the surface, while gas is located another 100 meters below.
Long-term growth in the area might be promoted by the expansion of oil and gas operations, which could also lead to infrastructural development and job creation.
