ONGC discovers gas off Odisha coast at a depth of over 1,400 Metres, says tests needed before production decision

Oil and Natural Gas Corporation (ONGC) has discovered gas in a deepwater well off Odisha’s coast. ONGC said on Monday, 21st September, that it discovered the gas on 18th September at the MN-DW18-1-H-D well in the Mahanadi Offshore Basin. The well is located around 43 km from Konark and was drilled as part of ONGC’s Samudra Manthan deepwater exploration campaign. It is the first well drilled by the company in the Mahanadi Basin under this campaign.

Gas found at over 1,400 metres depth

The well was drilled to a target depth of 1,623 metres. Gas was found between 1,441 and 1,452 metres. ONGC said the well has been flowing gas for the last three days and has shown “encouraging flow and reservoir pressure”.

The well was spudded on 25th July using the drillship Platinum Explorer. ONGC said the initial results are encouraging, but the discovery will still have to go through further appraisal and commercial evaluation before a decision is taken on production.

“The current flow test is an important step in determining the quality and commercial potential of the reservoir. Although the initial gas flow and pressure response are encouraging, we will assess the reservoir and the recoverable resource before taking any decision on its commercial development,” an ONGC official said.

Why the location matters

The discovery’s location, relatively close to the Odisha coast, could make it easier to develop if the gas reserves are found to be commercially viable. ONGC said the discovery, along with other finds in the area, could potentially be developed using shared facilities.

The company said such development could be supported by the Petroleum and Natural Gas Rules, 2025, which allow deepwater resources in the area to be brought into production through shared infrastructure. ONGC said the discovery is part of its larger push to explore India’s deepwater and offshore regions. The company is looking to increase domestic oil and gas production as India continues to depend on imports to meet a large part of its energy needs.

The next steps for the Mahanadi discovery will include detailed appraisal of the reservoir, estimating the amount of recoverable gas and assessing whether commercial production is financially viable.