Oil and Natural Gas Corporation Ltd (ONGC) struck gas at the deepwater well MN-DW18-1-H-D in the Mahanadi Offshore Basin off the Odisha coast on September 18, 2026. The well was drilled to a target depth of 1,623 metres and recorded the gas strike at the 1,441-1,452 metre interval. According to ONGC Director (Exploration) OP Sinha in an exclusive interview with NDTV Profit, the well has tested at close to 2.25 million cubic metres of gas per day, though testing is still underway and a final flow rate has not been confirmed. The well is located approximately 43 km off Konark and represents the first well drilled in the Mahanadi Basin under the Samudra Manthan campaign. The well has been flowing gas with encouraging flow rates and reservoir pressure for the last three days since the discovery.
As reported by NDTV Profit, ONGC Director (Exploration) OP Sinha emphasized that the Mahanadi basin holds an estimated 600 million tonnes of oil equivalent in resources, though converting that into confirmed reserves is a continuous process. The discovery is particularly significant as it will significantly cut India's import dependence, currently at 50% of demand. Sinha noted that the government is targeting an increase in gas's share of the country's energy mix to 15% by 2030, from roughly 6-7% now, and the Mahanadi discovery would support this national goal. The company has two-three more wells lined up in the current drilling campaign, building on 2D and 3D seismic surveys ONGC had already carried out across the basin's different channels. Deeper prospects, going down to around 3,000 metres in other basins, are also being explored as part of the same campaign.
According to ONGC's official press release dated September 21, 2026, the well was spudded on July 25, 2026, by Petroleum and Natural Gas Minister Hardeep Singh Puri using drillship Platinum Explorer. As reported by NDTV Profit, the campaign was launched on July 25, 2026 by Hon'ble Minister of Petroleum and Natural Gas. ONGC Chairman and CEO Arun Kumar Singh, Director (Technology & Field Services) Vikram Saxena and Director (Exploration) O. P. Sinha visited the drillship and interacted with the team involved in the drilling campaign on August 27, 2026. The company plans to drill 60 deepwater wells under the Samudra Manthan scheme and unlock what the government estimates is more than 5,600 million tonnes of oil equivalent in hydrocarbon resources across India's eastern and western offshore basins. The well's relatively close location to the Odisha coastline could help bring the discovery into production sooner if it is ultimately found to be commercially viable.
The Samudra Manthan scheme, approved by the Union Cabinet with a total outlay of ₹84,084 crore, is the government's National Offshore Exploration Scheme to accelerate offshore oil and gas exploration until FY 2030-31. As reported by NDTV Profit, under the scheme, the government provides financial support of up to 50% of the cost of deepwater exploration wells, capped at ₹675 crore per well. The programme covers the full offshore exploration chain, from large-scale seismic data acquisition and interpretation to deep-water and ultra-deep-water exploratory drilling, alongside common production and evacuation infrastructure. Sinha clarified that Samudra Manthan works as part-funding, not a subsidy, with the government offering budgetary support for seismic surveys, funding the drilling of wells (its largest component), and backing the development of common infrastructure shared across operators. The scheme also envisages the creation of common offshore production and evacuation infrastructure, which can support the development of resources discovered in offshore areas.
The gas discovery has positioned ONGC as a key focus stock for Tuesday, September 22, following the announcement. As reported by Upstox, the discovery highlights the potential of deepwater exploration in the Mahanadi basin, while the government's ₹84,084 crore Samudra Manthan scheme aims to accelerate offshore exploration, drilling and development. However, Sinha was cautious on investment numbers, calling it "too premature" to put a figure on the capital expenditure needed to develop the find" until ONGC establishes the reservoir's extent and depth across both the shallower and deeper zones. Six ancillary companies are likely to benefit from the exploration push: Jindal Drilling & Industries, Deep Industries, Dolphin Offshore Enterprises, SEAMEC, Antelopus Selan Energy, and Hindustan Oil Exploration Company (HOEC). These companies operate across drilling rigs, offshore services, subsea services, and engineering segments that could see increased demand as exploration activity rises.
