New Delhi, July 25 (IANS). The central government on Saturday announced the commencement of drilling of the first appraisal well in the Mahanadi offshore basin, calling it “the beginning of a new chapter” towards India’s energy security.
Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri said that the commencement of drilling of this first appraisal well is the result of visionary reforms undertaken over the last decade, which have brought about a paradigm shift in India’s exploration and production sector.
The ‘MN-DWN18-1-HD’ appraisal well is the first of the four proposed deepwater wells commissioned in the Mahanadi Offshore Basin. Through these wells, one of the most promising offshore basins of the country will be assessed in a phased manner.
According to the Petroleum Ministry, this drilling program will use world-class deepwater drilling technology, which will help in discovering new hydrocarbon resources and increasing the country’s domestic production capacity.
The Minister said that in the last ten years, the Government has transformed the entire structure of the Exploration and Production sector through landmark policy and regulatory reforms.
Congratulating ONGC, Oil India Limited, Directorate General of Hydrocarbons, technical partners and all involved in the entire exploration sector, Hardeep Puri expressed confidence that the commencement of this drilling will further strengthen India’s offshore exploration and will play an important role in achieving the country’s long-term energy security and energy self-reliance.
He said, “Today as we start drilling this first well, we are not just drilling the seabed, but strengthening the foundation of India’s future energy security. Every meter of drilling will take us closer to reducing import dependence, increasing self-reliance and realizing the vision of a developed India.”
The Minister also mentioned key reforms like introduction of Hydrocarbon Exploration and Licensing Policy (HELP), introduction of Open Acreage Licensing Program (OALP) instead of nomination based system, adoption of transparent revenue sharing system and opening up of about 99 per cent of previously restricted offshore ‘no-go’ areas for exploration.
Hardeep Puri said that about 81 percent of India’s total active exploration acreage has been allocated since 2014, which reflects the increased confidence of investors and exploration companies due to these reforms.
He said that under OALP, so far 172 exploration blocks spread over an area of about 3.8 lakh square kilometers have been allotted, in which investment commitments of more than $4.3 billion have been received.
According to the Minister, during the financial year 2025-26 alone, about 674 wells were drilled, 5 new discoveries were made and commercial exploitation of 7 discoveries was started.
–IANS
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