ONGC spuds first deepwater well in Mahanadi basin
Analysis based on 26 articles · First reported Jul 25, 2026 · Last updated Jul 27, 2026
The commencement of deepwater drilling in the Mahanadi basin signals a significant step toward unlocking India's offshore hydrocarbon potential, which could reduce the country's energy import bill over the long term. In the near term, it boosts sentiment for ONGC and the Indian oil and gas sector, though material production impact is years away.
State-owned Oil and Natural Gas Corporation (ONGC) commenced drilling its first deepwater exploratory well, MN-DW18-1-H-D, in the Mahanadi offshore basin off the Odisha coast on July 25, 2026, under the government's Samudra Manthan mission. The well is the first of four planned deepwater appraisal wells to evaluate the basin's hydrocarbon potential. Union Minister Hardeep Singh Puri virtually spudded the well, calling it a milestone in India's energy security journey. The campaign follows Prime Minister Narendra Modi's 2025 Independence Day call to harness offshore resources. The government has opened nearly one million square kilometers of previously restricted offshore areas for exploration under the Open Acreage Licensing Policy (OALP). India's eastern and western offshore basins are estimated to hold over 5,600 million metric tonnes of oil equivalent. Recent discoveries in the Cauvery, Mahanadi, and Andaman basins have strengthened the outlook. ONGC launched its DeepX exploration centre in Mumbai in January 2026 to support the program. The drilling aims to boost domestic production, reduce import dependence, and enhance energy security.
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