Odisha Chief Minister Mohan Charan Majhi on Monday, 27 July 2026, welcomed the commencement of ONGC's first deepwater exploratory drilling in the Mahanadi offshore basin, calling it a significant milestone in India's pursuit of energy security and self-reliance.

Context

CM Majhi described Odisha as 'a strategic frontier in India's journey towards energy security,' pointing to the new drilling campaign as evidence of the state's growing centrality to the country's hydrocarbon ambitions. He credited the development to the 'visionary leadership' of Prime Minister Narendra Modi and expressed appreciation to Union Minister Hardeep Singh Puri and the ONGC team for advancing the #SamudraManthan mission. The post signals a concerted effort by the BJP-led state and central governments to frame Odisha's offshore acreage as a cornerstone of national energy policy.

Policy Backdrop

India's push into deepwater basins accelerated after the Hydrocarbon Exploration and Licensing Policy (HELP) was introduced in 2016, replacing the earlier New Exploration Licensing Policy regime and shifting to revenue-sharing contracts designed to lower barriers for explorers. The Open Acreage Licensing Policy (OALP), launched in 2017, further allowed companies to bid for blocks throughout the year, opening up sedimentary basins including the Mahanadi to sustained interest. The Mahanadi offshore basin sits alongside the Krishna-Godavari and Cauvery basins as part of India's eastern margin plays, all of which have been progressively brought under exploration contracts to reduce the country's heavy dependence on crude oil imports.

ONGC, India's largest public-sector oil and gas exploration company, has been the primary vehicle for state-directed exploration in frontier and deepwater acreage. The SamudraManthan campaign represents a focused deepwater push in India's eastern offshore basins, building on earlier geological finds referenced as the Utkal and Konark discoveries in the Mahanadi region. CM Majhi noted that the new campaign 'will strengthen geological exploration, enhance domestic energy production and open new possibilities for future commercial development.'

Stakeholders and Impact

For Odisha, successful deepwater hydrocarbon production could transform the state's coastal economy, generating royalties, employment, and downstream industrial activity in a region that has historically depended on agriculture, mining, and steel manufacturing. The broader hydrocarbon exploration sector stands to benefit from demonstrated commercial viability in the Mahanadi basin, which could attract private and international co-investors under existing licensing frameworks. At the national level, any material discovery would contribute to Prime Minister Modi's Atmanirbhar Bharat agenda of reducing import dependence — India currently imports over 85 per cent of its crude oil requirements.

Coastal communities and fishing interests along the Odisha shoreline are among the stakeholders who will watch the drilling campaign closely, as deepwater operations carry environmental and livelihood implications for the maritime zone. Regulatory oversight from the Directorate General of Hydrocarbons and environmental clearance processes will govern the pace of activity.

What's Next

The immediate focus will be on results from the initial deepwater exploratory wells, which will determine whether the Mahanadi basin holds commercially viable hydrocarbon reserves. Positive findings could trigger appraisal drilling, block auctions, and eventually production-sharing or revenue-sharing development contracts that bring private capital into the basin. Union Minister Hardeep Singh Puri's ministry is expected to remain closely involved in shaping the regulatory and commercial framework as exploration data accumulates. Odisha's positioning as 'India's next major energy frontier,' as articulated by CM Majhi, will be tested by the geological outcomes of this first deepwater campaign.