ONGC begins commercial crude oil production in Bengal Basin

ONGC has commenced commercial crude oil production in the Bengal Basin at Ashoknagar, marking a significant milestone for India’s energy security. Following the spudding of development well AS-1Z on May 30, 2026, the company successfully established the flow potential of light, high-quality crude oil in less than three months.

The first consignment of approximately 1,200 liters of crude oil has been dispatched via tanker to the Indian Oil Corporation’s Haldia Refinery. Current production from the well is estimated at roughly 20 cubic meters per day. The oil undergoes a process of separation and purification to remove water before being sent for refining.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri noted that this development transitions years of exploration into actual production potential, helping to reduce India’s dependence on imported hydrocarbons. ONGC officials indicated that the reserves in the Ashoknagar area may exceed initial expectations, and the company is preparing to drill five to six additional wells in the region to further assess and expand production capacity.