India’s next energy frontier is deep waters: Hardeep Puri as ONGC begins Mahanadi drilling
NEW DELHI: The first deepwater appraisal well in the Mahanadi offshore basin was spudded on Friday, marking a key step in assessing the hydrocarbon potential of one of India’s most prospective offshore regions and paving the way for higher domestic oil and gas production.The well, named MN-DWN18-1-HD, is the first of four planned deepwater appraisal wells in the basin. The drilling programme will use deepwater technology to evaluate the commercial viability of hydrocarbon reserves.Petroleum minister Hardeep Singh Puri, who flagged off the drilling, said the exercise marks “the beginning of a new chapter” in India’s efforts to strengthen energy security and reduce dependence on imported crude oil and natural gas.India imports nearly 90% of its crude oil requirement and about half of its natural gas demand, making higher domestic production a key component of its long-term energy security strategy to reduce exposure to global supply disruptions and price volatility.The appraisal drilling is expected to provide a clearer assessment of the basin’s resource potential before any commercial development is taken up.The minister said a series of policy reforms over the past decade have reshaped the country’s exploration and production sector. These include the Hydrocarbon Exploration and Licensing Policy (HELP), the Open Acreage Licensing Programme (OALP), a revenue-sharing regime, and opening nearly 99% of the country’s previously restricted offshore “No-Go” areas for exploration.According to the minister, about 81% of India’s active exploration acreage has been awarded since 2014, reflecting increased investor interest following the reforms.Puri said govt has also expanded geoscientific data generation through initiatives such as Mission Anveshan, the National Seismic Programme and the National Data Repository to improve exploration success in frontier basins.Under OALP, 172 exploration blocks covering nearly 3.8 lakh sq km have been awarded so far, attracting committed investments of more than $4.3 billion. During 2025-26, around 674 exploration wells were drilled, five new hydrocarbon discoveries were made and seven discoveries were brought into production, he said.The minister said govt’s strategy is focused on both discovering new oil and gas resources and improving recovery from existing producing fields by deploying advanced technologies and global best practices.
