Economy

Mahanadi Offshore Basin and Hydrocarbon Exploration (HELP, OALP)

GS3 Energy security, hydrocarbon explorationPrelims and Mains

In the news since 25 July 2026

Why in news
On 25 July 2026, Petroleum Minister Hardeep Singh Puri marked the start of drilling of MN-DWN18-1-HD, the first appraisal well in the Mahanadi Offshore Basin. It is the first of four planned deepwater wells.
What it is
The Mahanadi Offshore Basin lies off India's east coast and is treated as a frontier basin for oil and gas. An appraisal well is drilled after a discovery to judge the size and quality of the hydrocarbon find. India's exploration reforms since 2016 rest on HELP, which uses OALP for licensing blocks and a revenue sharing contract model.
The well
MN-DWN18-1-HD is the first of four planned deepwater wells to evaluate the Mahanadi Offshore Basin.
Licensing reform
OALP replaced the nomination-based approach under HELP, along with a revenue sharing framework.
OALP progress
172 blocks covering about 3.8 lakh sq km have been awarded under OALP, with committed investment above USD 4.3 billion.
Data initiatives
Geoscientific data efforts include Mission Anveshan, the National Seismic Programme, the Extended Continental Shelf Survey, the National Data Repository and the Hydrocarbon Resource Assessment Study.
Regulator
The Directorate General of Hydrocarbons, under the Petroleum Ministry, regulates upstream exploration and runs the National Data Repository.

Don’t confuse with Appraisal well vs exploration well: An exploration well tests for a new hydrocarbon find. An appraisal well is drilled after a discovery to size it.

Don’t confuse with OALP vs NELP: NELP offered blocks the government chose in fixed bidding rounds. Under OALP, firms can ask for any block at any time and bidding follows.

Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.

No practice question for this one; the card may still help an answer. Why: Lasting topic on energy security with HELP and OALP background. Few testable fresh facts, so no question.

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 25 July 2026

    On 25 July 2026, Petroleum Minister Hardeep Singh Puri marked the start of drilling of MN-DWN18-1-HD, the first appraisal well in the Mahanadi Offshore Basin. It is the first of four planned deepwater wells.