- 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.
Why it matters
- Raises domestic oil and gas output and reduces import dependence, which supports energy security.
- Draws private and foreign investment into frontier deepwater basins.
Problems
- Deepwater drilling is costly and technically risky, and an appraisal well does not guarantee commercial production.
- Long lead times between discovery and monetisation.
Way forward
- Speed up clearances and monetisation of discoveries.
- Keep investing in geoscientific data and in revitalising mature fields with new technology.
Put in your answer
OALP awards: 172 blocks, about 3.8 lakh sq km, with committed investment above USD 4.3 billion.
No-Go areas: Nearly 99% of erstwhile offshore No-Go areas opened for exploration.
- 2025Mains GS1 · Q14Geographical distribution of world's offshore oil reserves, versus onshore differences
- 2013Mains GS1 · Q25Shale oil and gas availability and tapping issues in India
- 1999Prelims Q16Location of Ravva offshore block with oil potential among basins
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
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.