Highlights

After union cabinet approval ONGC began oil production from Ashokenagar-1 well located in the Bengal Basin. With this Bengal Basin becomes the 8th oil producing basin in the country. The other oil producing basins of India are located in Assam Shelf, Assam-Arakan, Cambay, Mumbai Offshore, Krishna-Godavari river basin, Cauvery, Rajasthan and Fold Belt.

Points To Note

  • Ashokenagar-1 well was established under the Early Monetization Plan of Indian Government.
  • This makes Oil and Natural Gas Corporation discover seven out of eight oil producing basins in the country.
  • The ONGC covers 83 per cent of established oil and gas reserves in India.
  • According to the DGH (Directorate General of Hydrocarbons), there are 26 sedimentary basins in India.
  • The company cover 3.4 million square km. Of these 16 are on land basins, three are off-shore basins and seven are located on both on land and off-shore.

Indian Target on Oil Production

The Government of India aims to bring down the oil imports. In order to achieve this, India has planned to reduce its oil dependence on imports to 67 per cent by 2022 as compared to 77 per cent in 2013-14.

Oil & Gas industry in India

India generates 35.2 million tonnes of petroleum products from its indigenous crude oil production. India consumes 204.9 million tonnes of petroleum products. India is the second largest importer of crude oil after China.

India uses oil & natural gas for generating electricity as well. Oil and Natural Gas are the second and third largest sources of electricity generation after coal. Crude oil accounts to 10.34 per cent of electricity produced in India. On the flip side, natural gas accounts to 8.7 per cent of total electricity produced in India.

India imports oil from 15 countries Iraq, Saudi Arabia, Iran, Nigeria, United Arab Emirates, Venezuela, Kuwait, Mexico, Angola, the United States of America, Malaysia, Oman, Brazil, Qatar and Russia.

Bengal Basin

The oil & gas reserve in Bengal basin were first discovered in 2018. It falls under Mahanadi-Bengal-Andaman basin. The company has so far spent Rupees 3381 crore in the discovery of oil and natural gas in the basin.

ONGC begins production in Bengal basin ONGC begins production in Bengal basin