Spudding of first appraisal well begins in Mahanadi offshore basin

India marked a significant milestone in its offshore energy exploration programme on Saturday with the commencement of drilling of the first appraisal well, MN-DWN18-1-HD, in the Mahanadi Offshore Basin, a move aimed at strengthening domestic hydrocarbon production and reducing the country’s dependence on energy imports. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri described the launch of the appraisal well as “the beginning of a new chapter in India’s journey towards energy security,” saying the project reflects the success of a decade of reforms that have transformed India’s exploration and production sector.
The MN-DWN18-1-HD well is the first of four planned deepwater appraisal wells that will evaluate the hydrocarbon potential of the Mahanadi Offshore Basin, one of India’s most promising offshore regions. The drilling programme will employ advanced deepwater drilling technology to assess the basin’s commercial viability and enhance the country’s domestic oil and gas production capacity. Highlighting the government’s policy reforms, Puri said the exploration and production ecosystem has undergone a major transformation over the past decade through measures such as the Hydrocarbon Exploration and Licensing Policy (HELP), the Open Acreage Licensing Programme (OALP), a transparent revenue-sharing framework and the opening of nearly 99 per cent of the erstwhile offshore “No-Go” areas for exploration. 
The minister said nearly 81 per cent of India’s active exploration acreage has been awarded since 2014, reflecting growing investor confidence in the country’s upstream energy sector. Puri also underlined the government’s emphasis on scientific exploration, citing initiatives including Mission Anveshan, the National Seismic Programme, the Extended Continental Shelf Survey, the National Data Repository and the Hydrocarbon Resource Assessment Study. These initiatives have significantly expanded the country’s geoscientific database, helping unlock exploration opportunities in frontier basins.
The minister said that under OALP, the government has awarded 172 exploration blocks covering nearly 3.8 lakh square kilometres, attracting committed investments of more than USD 4.3 billion. He added that exploration activity has gathered pace, with 674 wells drilled during FY 2025-26, resulting in five new hydrocarbon discoveries and the monetisation of seven discoveries. Puri said the government’s strategy focuses not only on discovering new hydrocarbon reserves but also on maximising production from existing fields through advanced technologies and global best practices to improve recovery from mature assets.