State-run Oil and Natural Gas Corporation (ONGC) has struck gas at a deepwater well just 43 km off Odisha’s Konark coast, opening the possibility of early monetisation if further appraisal establishes commercial viability, the company said on Monday.

The discovery was made on September 18 at well MN-DW18-1-H-D in the Mahanadi Offshore Basin under ONGC’s Samudra Manthan exploration campaign. It is the first well drilled in the basin under the initiative. The well, drilled to a target depth of 1,623 metres, encountered gas in the 1,441-1,452-metre interval, ONGC said in a statement.

The company said the well had been flowing gas for three days, with “encouraging flow and reservoir pressure”, indicating positive initial results from the drilling campaign.

However, commercial production is not yet assured. The discovery requires further appraisal and commercial evaluation before a development decision can be taken.

ONGC said the well’s proximity to the Odisha coast “offers potential for early monetisation”, subject to the outcome of those assessments.

The company also identified an opportunity to develop the discovery alongside other finds in the region using common infrastructure.

“This find, along with other discoveries in the area, can be a candidate for development through shared facilities,” ONGC said, citing provisions under the Petroleum and Natural Gas Rules, 2025.

The arrangement could allow discoveries in the area to be developed through shared infrastructure rather than separate facilities, although ONGC has not announced a development plan or production timeline. The discovery strengthens ONGC’s deepwater exploration programme as the company seeks to expand India’s indigenous hydrocarbon resource base.

The well was spudded on July 25 by Petroleum and Natural Gas Minister Hardeep Singh Puri using drillship platinum explorer. The company has not disclosed recoverable gas reserves, estimated production volumes or investment requirements. Further appraisal will determine whether the discovery can move towards commercial development.