ONGC Commences Drilling First Deepwater Exploration Well

In July 2026, Oil and Natural Gas Corporation (ONGC) commenced drilling a key deepwater exploratory well in the Mahanadi offshore basin off the Odisha coast, marking another important milestone in India’s efforts to boost domestic oil and gas exploration. The drilling campaign is formed as a part of the Government of India’s ‘Samudra Manthan’ initiative, and focuses on accelerating hydrocarbon exploration in deepwater and ultra-deepwater regions to strengthen the country’s energy security.

Located in the Mahanadi offshore basin, approximately 23 nautical miles from ONGC’s Konark discovery, the well will evaluate the basin’s hydrocarbon potential following the company’s recent offshore discoveries. The exploration program is expected to generate valuable geological data that could support future oil and natural gas development in the region.

The latest drilling campaign builds upon ONGC’s earlier Utkal and Konark discoveries, which have significantly improved the hydrocarbon prospectivity of the Mahanadi offshore basin. The company first achieved a major deepwater breakthrough in the MN-DWN-98/3 block in 2006. Since then, continued exploration activities have indicated the presence of multi-trillion cubic feet (TCF) of natural gas reserves, highlighting the basin’s long-term resource potential. Consequently, ONGC continues to intensify exploration efforts to unlock additional hydrocarbon reserves and support India’s growing energy demand.

To enhance its deepwater exploration capabilities, ONGC has established a dedicated Deepwater Exploration Mission Centre (DeepX) in Mumbai. The state-of-the-art facility brings together advanced geoscientific expertise, high-end seismic and data interpretation capabilities, specialized technical training, and international technology collaborations. The center also operates under ONGC’s ‘One Company, One Data’ strategy, which integrates geological and exploration data to improve decision-making, reduce exploration risks, and accelerate offshore resource development.

Impact on the Chemicals Market 

Deepwater exploration is one of the most promising yet complex initiatives in the energy industry. With conventional onshore and shallow-water reserves depleting, energy companies are now increasingly looking into ultra-deepwater regions in order to secure future oil and gas supplies. However, these projects come with substantial technical, economic, and environmental challenges. From high-pressure, high-temperature (HPHT) conditions to advanced subsea engineering requirements, deepwater operations demand cutting-edge innovations and strategic investments.

Artificial intelligence (AI) and machine learning are also playing an increasingly critical role in deepwater exploration. AI-driven predictive analytics are now able to optimize drilling operations, minimize downtime, and enhance reservoir characterization. Digital twins and real-time virtual models of offshore platforms allow engineers to simulate and optimize operations remotely.

The global transition toward sustainability is also helping in driving the adoption of low-carbon deepwater solutions. Floating Liquefied Natural Gas (FLNG) technology enables offshore gas production with minimal environmental impact. Carbon capture and storage (CCS) projects are being integrated with deepwater fields to reduce carbon footprints.

Impact on the Offshore Drilling Market

The global offshore drilling market size was estimated at USD 42.86 billion in 2025 and is predicted to increase from USD 46.32 billion in 2026 to approximately USD 93.13 billion by 2035, expanding at a CAGR of 8.07% from 2025 to 2035.

According to Precedence Research, the increasing need for energy worldwide makes offshore gas and oil extraction appealing. Market expansion is fueled by rising exploration expenditures from nations possessing gas and oil deposits. Companies all over the world are moving toward offshore exploration due to stricter rules prohibiting onshore drilling operations. Technological developments have also made it possible to tap into enormous resources in deep and ultra-deep waters, creating numerous opportunities.

Current drilling technology also seems to be more economical and efficient. Drilling operations have become more efficient due to automation and robotics, which also help to minimize operational downtime and manual labor requirements. Furthermore, advancements like better drill bits, cutting-edge drilling fluids, and real-time data analytics allow operators to optimize the drilling process, which lowers total project costs and speeds up drilling. Operator profitability rises, and market competition sharpens due to these efficiency gains.

Impact on the Oil and Gas Exploration and Production Market

The global oil and gas exploration and production market size accounted for USD 6.14 billion in 2025 and is predicted to increase from USD 6.88 billion in 2026 to approximately USD 19.14 billion by 2035, expanding at a CAGR of 12.04% from 2026 to 2035.

According to Precedence Research, the supportive policies for oil and gas production and rising government investment in deepwater and ultra-deepwater project investments are anticipated to accelerate the growth of the market during the forecast period. The rising widespread use of advanced techniques like 3D and 4D seismic imaging is expected to promote the growth of the oil and gas exploration and production market during the forecast period. 3D offers detailed subsurface mapping, while 4D enables monitoring of changes in reservoirs over time.

The increasing transition towards cleaner energy sources is also accelerating the exploration and production of natural gas, which is expected to create significant growth opportunities for the market during the forecast period. The rising liquefied natural gas (LNG) infrastructure investments are anticipated to fuel the expansion of the oil and gas exploration and production market in the coming years. These investments create necessary outlets for natural gas, encouraging upstream companies to enhance drilling and production activities to meet the ongoing global demand.