State-run Oil and Natural Gas Corporation (ONGC) has discovered gas in a deepwater exploration well off India's eastern coast, with the find located relatively close to Odisha, potentially offering an advantage for development if further appraisal establishes commercial viability.
According to a PTI report, the discovery was made on September 18 at the MN-DW18-1-H-D well in the Mahanadi Offshore Basin, around 43 km from Konark. The well was drilled as part of ONGC's Samudra Manthan deepwater exploration campaign.
Gas found at depth of nearly 1,450 metres
The exploration well encountered gas between depths of 1,441 metres and 1,452 metres. It was drilled to a target depth of 1,623 metres and is the first well drilled by ONGC in the Mahanadi Basin under the Samudra Manthan campaign.
The well was spudded on July 25 using the drillship Platinum Explorer.
ONGC said the well has been flowing gas for the past three days and recorded "encouraging flow and reservoir pressure".
ONGC to assess commercial potential
The discovery is not yet a confirmed commercial resource. ONGC said further appraisal and commercial evaluation will be required to establish the scale and viability of the find.
The company will assess the reservoir and its recoverable resources before taking any decision on development.
Proximity to Odisha coast may aid development
The discovery's location, around 43 km from the Odisha coast, could potentially support faster monetisation if the gas resource is found to be commercially viable.
ONGC said the discovery, along with other finds in the region, could potentially be developed through shared infrastructure and facilities. Such an approach could help reduce the need to establish separate infrastructure for individual discoveries.
The company said development could be supported under the Petroleum and Natural Gas Rules, 2025, which provide for deepwater resources in the area to be brought into production using shared infrastructure.
ONGC steps up deepwater exploration
The Mahanadi Basin discovery is part of ONGC's broader push into India's frontier offshore areas. Deepwater exploration is seen as an important avenue for increasing domestic hydrocarbon resources, although discoveries typically require additional appraisal, infrastructure and investment before commercial production can begin.
For the latest find, ONGC's immediate focus will be on determining the reservoir's extent, estimating recoverable resources and evaluating whether the discovery can be developed commercially.
The outcome of these assessments will determine the next stage of the project.
Inputs from PTI
