ONGC strikes gas in deepwater well off Odisha coast; appoints new production director

Oil and Natural Gas Corporation (ONGC) has struck gas at a deepwater well in the Mahanadi Offshore Basin, off the Odisha coast, in a discovery that could add to the state-run explorer’s deepwater resource base. 

The gas strike was made on September 18 at well MN-DW18-1-H-D, drilled under the Samudra Manthan initiative. The well reached a target depth of 1,623 metres, with gas encountered at a depth interval of 1,441-1,452 metres. 

Located around 43 km off Konark, the well is the first drilled in the Mahanadi Basin under the current campaign. Its proximity to the coast could potentially enable early monetisation, subject to further appraisal and commercial evaluation. 

Well records encouraging gas flow 

The well was spudded on July 25 by Petroleum and Natural Gas Minister Hardeep Singh Puri. On August 27, ONGC Chairman and CEO Arun Kumar Singh, Director (Technology & Field Services) Vikram Saxena and Director (Exploration) O. P. Sinha visited the drillship Platinum Explorer and interacted with the drilling team. 

ONGC said the well has been flowing gas with encouraging flow and reservoir pressure for the past three days. The company said the discovery strengthens its deepwater exploration programme and supports India's efforts to expand its indigenous hydrocarbon resource base. 

The discovery, along with other finds in the area, could be considered for development through shared facilities enabled by the PNG Rules, 2025, potentially helping bring deepwater resources into production. 

ONGC appoints Bhaskar Chowdary Nettem as Director (Production) 

Separately, ONGC's board has approved the appointment of Bhaskar Chowdary Nettem as Director (Production) of the company. 

Shares of ONGC closed 1.22% higher at ₹235.63 on the National Stock Exchange on Monday. 

The company had reported a sharp sequential rise in earnings for the June quarter, with standalone net profit more than doubling as higher crude oil prices and improved gas realisations boosted its top line and operating performance.

The state-run oil explorer posted a standalone net profit of ₹17,033.81 crore for the quarter ended June 30, compared with ₹6,649.97 crore in the March quarter, while revenue from operations rose 29.3% to ₹46,460.45 crore from ₹35,928.18 crore. Operational EBITDA surged to ₹28,355 crore from ₹12,666 crore in the preceding quarter, while the operating margin expanded to 61% from 35.3%.