India has commenced drilling the first appraisal well in the Mahanadi Offshore Basin, marking a major step towards energy security and self-reliance. The project, backed by policy reforms and advanced deepwater technology, aims to unlock new hydrocarbon resources and strengthen the country’s domestic oil and gas production.
Key Highlights
- First appraisal well drilled in the Mahanadi Offshore Basin.
- Four deepwater wells planned to assess hydrocarbon potential.
- 172 exploration blocks awarded under the OALP with $4.3 billion in investments.
- Initiative supports India’s energy security and reduces import dependence.
India has launched drilling of the first appraisal well, MN-DWN18-1-HD, in the Mahanadi Offshore Basin, marking a significant milestone in the country’s efforts to strengthen energy security and boost domestic hydrocarbon production. Announcing the development, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said the project reflects the success of a decade of transformative reforms that have reshaped India’s exploration and production ecosystem. The appraisal well is the first of four planned deepwater wells that will evaluate one of India’s most promising offshore basins using world-class deepwater drilling technology.
The drilling programme is expected to unlock new oil and gas resources, improve domestic production capabilities, and reduce India’s dependence on imported energy. According to the Petroleum Ministry, the initiative forms part of the government’s long-term strategy to achieve energy self-reliance while supporting the vision of Viksit Bharat. Congratulating ONGC, Oil India Limited, the Directorate General of Hydrocarbons (DGH) and technical partners, the minister said every phase of exploration strengthens India’s path towards a secure and sustainable energy future.
Hardeep Puri highlighted several landmark reforms introduced over the past decade, including the Hydrocarbon Exploration and Licensing Policy (HELP), the Open Acreage Licensing Programme (OALP), and the Revenue Sharing framework, which have significantly improved transparency and investor confidence. He also noted that nearly 99% of India’s offshore ‘No-Go’ areas have been opened for exploration, creating new opportunities for energy companies. As a result, nearly 81% of India’s active exploration acreage has been awarded after 2014, reflecting the positive impact of these policy changes.
The minister further stated that 172 exploration blocks covering nearly 3.8 lakh square kilometres have been awarded under OALP, attracting committed investments of over $4.3 billion. During FY 2025-26, around 674 wells were drilled, five new hydrocarbon discoveries were made, and seven discoveries were monetised. These achievements underline the government’s commitment to expanding domestic exploration, increasing energy production, and building a resilient energy sector capable of meeting India’s growing demand.
