ONGC Discovers Four Oil Fields in Ashokenagar, awaits Lease Approval from state govt

State-owned Oil and Natural Gas Corporation witnessed four additional oil discoveries in Ashokenagar, West Bengal, and is awaiting a petroleum mining lease (PML) from the state government to commence development, Oil Minister Hardeep Singh Puri informed the Lok Sabha on Thursday.

ONGC’s first discovery in Ashokenagar was notified on September 24, 2018, after decades of exploration in the Bengal sedimentary basin. The crude oil discovered is of high quality, with an API gravity of 40-41 degrees, similar to Bombay High and Brent Crude.

Since then, ONGC has identified hydrocarbons in four additional wells — Ashokenagar-2, Kankpul-1, Bhurkunda-1, and Ranaghat-2 — expanding the hydrocarbon potential in the region.

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ONGC has proposed an Integrated Field Development Plan (FDP) covering 99.06 square kilometers, incorporating all four discoveries and the initial 5.88 square kilometers from the EDP area. The Government of India approved this plan on July 10, 2024.

The Ministry of Petroleum and Natural Gas has repeatedly pursued the matter with the West Bengal government, with letters sent in 2020, 2023, and 2024. The issue was also raised during the Eastern Zonal Council meeting in July 2024 in Ranchi.

“The power to grant PML lies with the state government, and the central government, along with ONGC, is consistently urging for its approval,” Puri said. The discoveries hold significant potential to boost domestic oil production, but further progress hinges on the timely approval of the mining lease by the West Bengal government.

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