Oil India Discovers Natural Gas in Krishna-Godavari Basin, Records Peak Flow of 200,000 Cubic Metres a Day

State-owned Oil India Ltd (OIL) has discovered natural gas in shallow offshore waters of the Krishna-Godavari (KG) Basin off India’s east coast, marking a fresh addition to the country’s domestic hydrocarbon exploration efforts.

The discovery was made in the previously unexplored Matsyapuri formation, in a shallow-water block secured by the company under the government’s Discovered Small Field (DSF) bidding rounds.

According to OIL, the discovery was confirmed through testing at the Godavari-1 appraisal well in the KG-DSF/GSKW/2018 offshore block. Testing of a hydrocarbon-bearing zone at a depth of 2,024 to 2,027 metres began on October 16.

The well flowed gas at around 100,000 standard cubic metres per day (SCMD), with a peak flow rate of 200,000 SCMD recorded during continuous testing. The company also reported condensate production of approximately 170 barrels per day.

OIL is preparing to test the next higher zone to assess the formation further. However, the company has not yet disclosed the estimated size of the gas resource or its potential commercial value. The discovery’s long-term contribution to domestic supplies will depend on further exploration, resource assessment and development.

The Krishna-Godavari Basin is one of India’s key offshore hydrocarbon-producing regions and has played an important role in expanding domestic natural gas output. The latest find adds to exploration activity in the basin as India seeks to reduce its dependence on imported energy.

Natural gas currently accounts for around 6 per cent of India’s energy mix, while the government aims to increase its share to 15 per cent by 2030. Expanding domestic production is a key part of that strategy, given the country’s substantial reliance on imports to meet its gas requirements.

While the discovery is an encouraging development for exploration, its actual impact on India’s gas supplies will become clearer once the company establishes the extent of the reserves and their commercial viability.