India has started drilling a deep-water appraisal well off its eastern coast, a fresh test of whether one of the world’s fastest-growing energy consumers can find more oil and gas at home.
The MN-DWN18-1-HD well, operated by state-run Oil and Natural Gas Corp., sits in the Mahanadi Offshore Basin off Odisha. India’s petroleum ministry said it is the first of four planned deep-water wells intended to evaluate what officials describe as one of the country’s most prospective offshore basins.
Petroleum Minister Hardeep Singh Puri said the project was part of India’s wider effort to reduce exposure to imported fuel. “This is the beginning of a new chapter in India’s journey toward energy security,” he said in the ministry statement.
ONGC said the well builds on its Utkal and Konark discoveries. In a post on X, the company said: “The next frontier is deep waters. India is ready to explore it.”
The development adds pressure on India’s upstream sector, where domestic output has not kept pace with demand. India imports nearly 90% of its crude oil and more than half of its natural gas requirements, leaving refiners, utilities and consumers exposed when global markets tighten.
Puri pointed to exploration reforms including the Hydrocarbon Exploration and Licensing Policy, the Open Acreage Licensing Program and the opening of nearly 99% of former offshore “No-Go” areas for exploration. He said 172 exploration blocks covering about 380,000 square kilometers had been awarded under OALP, with committed investment exceeding $4.3 billion.
Markets are watching whether frontier basins such as Mahanadi, Andaman, Bengal and Kerala-Konkan can deliver commercial discoveries. For now, India has a drill bit in the seabed and a familiar problem above it: demand keeps rising faster than domestic supply.
