ONGC Discovers 2 Major Gas Reserves in Mahanadi Basin

In a significant progress towards strengthening India's energy security, state-owned Oil and Natural Gas Corporation (ONGC) has successfully discovered two significant natural gas reserves within the Mahanadi Basin block in the Bay of Bengal.

This milestone marks the success of ONGC's strategic endeavor in high risk deep water exploration.

According to media reports, the unprecedented discoveries were made within the block MN-DWHP-2018/1 secured by the Maharatna company in the third round of auction under the Open Acreage Licensing Policy in 2019.

The exploration took place in an area that was previously designated as a 'no-go' zone due to national security interests. The first discovery, named Utkal, is located in water depth of 714 meters, with initial test flow rates of over 3 lakh cubic meters of gas per day. The second discovery is located at a depth of 1,110 meters.

After immediately informing the upstream regulator Directorate General of Hydrocarbons (DGH), ONGC is currently engaged in assessment of pool size and commercial feasibility.

This breakthrough is set to significantly enhance India's energy security, addressing a critical aspect as the country currently imports about half of its gas requirements. India's ambitious target of increasing the share of natural gas in its energy mix to 15 per cent by 2030 from the current 6.3 per cent is expected to get substantial support from the increase in domestic production.

Natural gas has long been recognized as a critical element in India's transition towards achieving net-zero carbon emissions targets by 2070.

With a lower carbon footprint than traditional fossil fuels, natural gas is used for power generation, fertilizer production as well as automotive fuel and compressed natural gas (CNG) for piped heating in homes for cooking. Is distributed through.

The recent success story was made possible after the government's decision to free more than one lakh square kilometers of area from the ban on oil and gas exploration and production.

Previously designated as 'no-gas' areas due to interference with missile testing or satellite launch routes, more than 98 percent of these restrictions were lifted in 2022, allowing energy companies to explore for oil and gas. Got it. Had the opportunity to deploy ships and drill ships.