The Oil and natural gas Corporation Limited (ONGC) has made a natural gas discovery in the deepwater Mahanadi Basin offshore Odisha, one step closer towards national hydrocarbon exploration on a national scale.
The discovery comes as ONGC steps up exploration activity in the Mahanadi offshore area, among the promising deepwater basins in India. Deepwater exploration requires sophisticated drilling technology, modern offshore infrastructure and investment– all these things are now in place.
The Mahanadi Basin has been a focus of India’s offshore exploration programme for years. Government data has already recorded several hydrocarbon discoveries by ONGC in the Mahanadi offshore area. A 2024 government release said ONGC had made two gas discoveries in the Mahanadi offshore region, including in a block where 94% of the area had previously been classified as a “No-Go” area for exploration.
More recently, the government announced that the first appraisal well MN-DWN18-1-HD in the Mahanadi Offshore Basin began drilling on 25 July 2026. The well is the first of four planned deepwater wells to thoroughly assess the hydrocarbon potential of the basin.
🚨 ONGC discovers natural gas in its first deepwater well in Odisha’s Mahanadi Basin. pic.twitter.com/wbft3HJXMj
— India Live (@IndiaLiveIN) September 22, 2026
The latest development underlines the increasing importance of India’s eastern offshore region in the country’s energy strategy. Deepwater and ultra-deepwater areas are believed to have significant untapped hydrocarbon potential, but further exploration is required to determine their size, quality and commercial viability.
The Union government approved the National Offshore Exploration Scheme (Samudra Manthan) with a budget of ₹84,084 crore for the financial year 2030-31. It will enable offshore exploration and relieve some of the high-cost deepwater drilling risks. In order to do so, the government will invest up to 50% of the cost of drilling deepwater exploration wells.
The Mahanadi Basin is one of the offshore regions to have significant hydrocarbon potential in the future. Along with the Krishna-Godavari and Cauvery basins and the Andaman region, it is likely to be key for India to further develop domestic exploration.
ONGC is hoping discoveries in the Mahanadi offshore area will enhance its exploration portfolio and provide more information about the geological potential of the eastern offshore basin. Nevertheless, a gas discovery does not immediately translate into commercial production. Greater appraisal, technical assessment, development planning and regulatory approvals are ultimately necessary before resources can be brought into production.
The development could come at a time when India is still heavily dependent on imported energy. A boost in domestic oil and natural gas production is part of the country’s energy security strategy. And expanding domestic exploration will help to reduce import dependence and boost self-reliance in the energy sector.
The latest ONGC development therefore adds to the growing exploration activity in India's offshore basins. As deepwater drilling programmes are intensified and more and more government support is being poured into the sector to mitigate risks, the Mahanadi Basin is a key area to monitor for future discoveries of domestic gas that would further enhance India’s ability to draw on the nation’s natural gas.
