Oil India Discovers Natural Gas in Krishna-Godavari Basin, Records Peak Flow of 200,000 Cubic Metres per Day
State-run Oil India Ltd (OIL) has discovered natural gas in the Matsyapuri formation of the Krishna-Godavari (KG) Basin off India’s eastern coast, marking a significant development in the company’s hydrocarbon exploration efforts.
The discovery was made at the Godavari-1 well, an appraisal well drilled in shallow offshore waters within the KG-DSF/GSKW/2018 block. The block was awarded to OIL under the government’s Discovered Small Field (DSF) bidding rounds, with the company operating it as the sole operator.
According to OIL, hydrocarbons were encountered in one of the selected pay zones at a depth of 2,024 to 2,027 metres.
Production testing of the zone began on October 16, 2026. During testing, the well recorded a natural gas flow rate of approximately 100,000 standard cubic metres per day, with a peak flow rate of 200,000 standard cubic metres per day during continuous testing.
The company also reported condensate production of around 170 barrels per day, with an API gravity of 55.8 degrees at 60°F. The well was tested at a wellhead pressure of 1,815 pounds per square inch (psi).
OIL said the discovery is particularly significant because the Matsyapuri formation had not previously been appraised for hydrocarbons. The company is now preparing to test the next higher hydrocarbon-bearing zone in the Godavari-1 well to assess its potential.
The Krishna-Godavari Basin, located along India’s eastern coastline, is one of the country’s major sedimentary basins for oil and natural gas exploration. It hosts several onshore and offshore hydrocarbon discoveries and is an important region for strengthening domestic energy production.
Other major energy companies operating in the basin include state-owned Oil and Natural Gas Corporation Ltd (ONGC) and private-sector Reliance Industries Ltd (RIL), both of which have producing assets in the region.
The latest discovery follows ONGC’s report of natural gas in a deepwater exploratory well in the Mahanadi Offshore Basin, off the Odisha coast, in September. OIL had also reported natural gas in its third exploratory well, Vijayapuram-3, in the Andaman offshore basin in June.
These discoveries underline continuing efforts by Indian energy companies to expand domestic hydrocarbon resources as the country remains heavily dependent on imports to meet its oil and gas requirements. However, the commercial viability and production potential of the latest discovery will depend on further evaluation and testing.
To strengthen deepwater and ultra-deepwater exploration, the government has launched the Samudra Manthan scheme with an outlay of ₹84,084 crore through 2030–31. The initiative provides fiscal support for large-scale seismic surveys, the drilling of 60 deepwater and ultra-deepwater exploratory wells, shared offshore production infrastructure, and the development of domestic oil and gas manufacturing and services.
The discovery at Godavari-1 could contribute to India’s broader efforts to identify new domestic energy resources, subject to further assessment and commercial development.
