Oil and Natural Gas Corporation (ONGC), the crude oil and natural gas company, has recently uncovered two substantial natural gas reservoirs within the Mahanadi basin block situated in the Bay of Bengal. This accomplishment is an important turning point for the company’s foray into the realm of high-stakes deep-water exploration.
Oil and Natural Gas Corporation (ONGC) is one of India’s leading exploration and production company in the oil and gas sector. Established in 1956, ONGC is a Fortune Global 500 company with an emphasis on upstream activities. It is involved in the exploration, drilling, and production of crude oil and natural gas, both domestically and internationally. ONGC plays a crucial role in meeting India’s energy demands and has a robust track record of technological innovation, environmental sustainability, and corporate responsibility in the energy industry.
The Maharatna company has revealed discoveries within the MN-DWHP-2018/1 block, which it secured in 2019 through the third round of auction under the open acreage licensing policy, as revealed by two sources possessing direct insight into the matter. This significant development has occurred in an area previously designated as a ‘no-go’ zone due to national security concerns.
The inaugural discovery, named Utkal, is situated at a water depth of 714 meters and exhibited the initial testing performance, with a daily gas flow exceeding 3 lakh cubic meters. Moreover, another finding has been made at an even greater water depth of 1,110 meters, further highlighting the company’s focus in exploring and tapping into unconventional and previously restricted areas for resource extraction.
The corporation has officially communicated its recent findings to the Directorate General of Hydrocarbons (DGH) responsible for overseeing upstream regulations. At present, the company is actively engaged in evaluating the size of the discovered gas pool and assessing its commercial viability. This discovery is set to enhance India’s energy security, considering that the nation presently relies on imports for nearly half of its gas requirements.
As part of its strategic energy goals, India aspires to augment the contribution of natural gas in its overall energy mix to 15 percent by the year 2030, a considerable increase from the existing 6.3 percent. The augmentation of domestic production is anticipated to play a pivotal role in achieving this ambitious target.
In India’s concerted effort to transition away from carbon-emitting fuels and attain a net-zero carbon emission status by 2070, natural gas emerges as a pivotal instrument. Renowned for its comparatively lower carbon footprint in contrast to environmentally detrimental fossil fuels, natural gas is procured either from subterranean reservoirs or the sea surface.
Its multifaceted applications encompass electricity generation, the production of fertilizers, conversion into Compressed Natural Gas (CNG) for automotive fuel, and distribution to household kitchens for culinary purposes. The amplification of natural gas utilization is anticipated to supplant coal in electricity generation and liquid fuels in industrial processes, thereby steering the trajectory toward a more sustainable and environmentally conscious energy landscape.
The recent advancements in exploration and production within the energy sector were made feasible through the government’s liberation of nearly one lakh square kilometers of territory from stringent restrictions, facilitating the pursuit of oil and gas reserves. Previously designated as a ‘no-gas’ zone due to its interference with missile testing and satellite launch routes, this extensive area witnessed a transformative shift in 2022. With the removal of restrictions on over 98 percent of these once-prohibited regions, energy companies gained the liberty to deploy vessels and drillships to discover and extract oil and gas resources.