ONGC Reports Deepwater Gas Find In Mahanadi Well: 6 Oil & Gas Stocks In Focus

India’s gas import bill could come under pressure if ONGC’s latest deepwater discovery in the Mahanadi Basin proves commercially viable, with the state-run explorer saying the find could significantly reduce the country’s dependence on imported gas.

ONGC struck gas at its maiden deepwater well under the government’s Samudra Manthan exploration programme in the Mahanadi Offshore Basin, around 43 km off Konark in Odisha. The well has been flowing gas at an encouraging rate with sustained reservoir pressure, according to the company.

In an interview with NDTV Profit, ONGC Director (Exploration) O.P. Sinha said the well, at a depth of about 1,600 metres, has tested at close to 2.25 million cubic metres of gas a day. Testing is still underway, so the final flow rate has not yet been established.

The significance of the discovery extends beyond ONGC. India currently imports around 50% of its gas demand, Sinha said, while the government is targeting a rise in natural gas's share of the country's energy mix to 15% by 2030 from about 6-7% currently.

Mahanadi Gas Find And India’s Import Dependence

The Mahanadi discovery also comes as the government steps up spending on offshore exploration. The ₹84,084-crore Samudra Manthan scheme provides financial support for deepwater exploration, including up to 50% of the cost of eligible exploration wells, subject to a cap of ₹675 crore per well. The programme is aimed at expanding exploration across India's offshore basins.

That could increase activity for companies involved in drilling, offshore services and oilfield equipment as more wells are drilled and discoveries move towards appraisal and development.

Jindal Drilling & Industries is one such company, with rigs deployed with ONGC and a recently secured three-year contract for its Jindal Pioneer rig at an effective day rate of ₹45.8 lakh. ONGC has also floated a tender for deepwater drilling rigs under the Samudra Manthan programme.

Deep Industries, through its oilfield services and offshore operations, could also see greater activity if exploration gathers pace. Its subsidiary Dolphin Offshore Enterprises provides offshore engineering and marine services, while SEAMEC operates in diving, inspection, maintenance and other offshore services.

Antelopus Selan Energy has a more direct link to the Mahanadi region. The company holds a 100% participating interest in the D-11 offshore block, which has six gas discoveries and is currently at the development stage. Hindustan Oil Exploration Company, meanwhile, has offshore exploration and production assets and recently secured a new contract area in the Mumbai Offshore Basin.

For ONGC, the immediate task is to establish the size and extent of the reservoir. Sinha said it was too early to estimate the capital expenditure required for development, with two to three more wells planned in the current campaign. The company has already carried out 2D and 3D seismic surveys across different channels of the Mahanadi Basin.

The basin is estimated by ONGC to hold around 600 million tonnes of oil equivalent in resources, although converting those resources into confirmed reserves will require further exploration and appraisal.

For the market, the discovery marks an early step rather than an immediate production boost. The next milestones will be the final flow-rate results, further drilling, confirmation of commercial reserves and eventual development plans. If those steps are successful, the impact could extend from ONGC to the wider ecosystem of drilling, offshore engineering and oilfield-service companies.

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