Drilling of 1st appraisal well begins in Mahanadi Offshore Basin towards energy security: Hardeep Puri

New Delhi, July 25
The government on Saturday announced the commencement of drilling of the first appraisal well in the Mahanadi Offshore Basin, describing the occasion as "the beginning of a new chapter in India's journey towards energy security".

According to Minister for Petroleum and Natural Gas, Hardeep Singh Puri, the commencement of drilling reflects the outcome of a decade of visionary reforms that have transformed India's exploration and production landscape.

The ‘MN-DWN18-1-HD’ appraisal well being spudded in the Mahanadi Offshore Basin is the first of four planned deepwater wells that will systematically evaluate one of India's most prospective offshore basins.

The drilling programme will employ world-class deepwater drilling technology to unlock new hydrocarbon resources and strengthen India's domestic production capability, according to Petroleum Ministry.

The minister said that over the past decade, the government has fundamentally transformed the exploration and production ecosystem through landmark policy and regulatory reforms.

Congratulating ONGC, Oil India Limited, the Directorate General of Hydrocarbons, technical partners and the entire exploration fraternity, Puri expressed confidence that today's commencement of drilling would further strengthen India's offshore exploration efforts and contribute to the country's long-term energy security and goal of energy self-reliance.

"As we commence this first well today, we are not merely drilling into the seabed—we are drilling into India's future energy security. Every metre drilled brings us closer to reducing import dependence, strengthening self-reliance and realising the vision of Viksit Bharat," the minister noted.

He highlighted the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP), replacement of the nomination-based approach with the Open Acreage Licensing Programme (OALP), adoption of a transparent Revenue Sharing framework and the opening of nearly 99% of the erstwhile offshore "No-Go" areas for exploration.

Puri noted that nearly 81 per cent of India's active exploration acreage has been awarded after 2014, reflecting the confidence these reforms have inspired among investors and explorers alike.

Puri said that under OALP, 172 exploration blocks covering nearly 3.8 lakh square kilometres have been awarded with committed investments exceeding $4.3 billion.

During FY 2025-26 alone, around 674 wells were drilled, five new discoveries were made and seven discoveries were monetised.