Kolkata: Oil and Natural Gas Corporation Limited (ONGC) has commenced commercial production of crude oil from its Ashoknagar field at Baigachhi in North 24 Parganas, West Bengal, marking a significant milestone for the company’s exploration activities in the Bengal Basin.
The first commercial consignment of crude oil was flagged off on August 28, 2026, in the presence of Ashoknagar MLA Dr. Sumay Hira and ONGC Director (Exploration) Om Prakash Sinha, along with other senior officials of the company.
Around 12,000 litres of crude oil were transported from the oilfield to the Haldia refinery in a tanker following the flag-off ceremony.
Ashoknagar Oilfield Begins Commercial Production
The commencement of commercial production follows years of exploration and efforts to overcome operational and technical challenges at the field.
ONGC officials said the Ashoknagar field is currently producing around 20 cubic metres of crude oil per day.
The crude produced from the well is mixed with water and undergoes processing before transportation to the refinery.
The production process includes:
- Separation of crude oil and water through separators
- Treatment through an effluent treatment plant
- Transportation of processed crude to the refinery
- Further processing at the Haldia refinery
At present, two wells are operational at the Ashoknagar field.
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ONGC Plans More Wells to Increase Production
ONGC is preparing to expand production from the Ashoknagar field by drilling additional wells.
The company plans to drill another five or six wells and has set a target of transporting around 20,000 litres of crude oil to the Haldia refinery every day.
ONGC Director (Exploration) Om Prakash Sinha said the company has found indications of more oil in the Ashoknagar area than initially anticipated. He said the production response has been encouraging and is expected to increase further in the coming days.
Development Well AS-1Z Establishes Crude Oil Flow Potential
The latest development follows the successful drilling of development well AS-1Z, which was spudded on May 30, 2026.
Within less than three months, ONGC established the flow potential of light, high-quality crude oil from the field, bringing the discovery closer to full-scale monetisation.
The development represents an important step in translating years of exploration and perseverance into commercial production and strengthening West Bengal’s position on India’s hydrocarbon map.
Ashoknagar Oil Discovery Dates Back to 2018
Oil and gas deposits were first discovered at Baigachhi in 2018.
In December 2020, then Union Petroleum Minister Dharmendra Pradhan visited the site and flagged off the first consignment of crude oil produced on an experimental basis.
However, subsequent operations faced several challenges, including:
- Disruptions during the COVID-19 pandemic
- Land-related complications
- Technical issues affecting production from one of the wells
After resolving these issues, ONGC resumed production and exploration activities and subsequently identified indications of additional hydrocarbon reserves in the area.
During experimental extraction in 2020, one of the wells reportedly produced around 375 barrels of crude oil. Experts had also indicated that the quality of the crude was comparable to oil produced from the Mumbai High offshore field.
Ashoknagar Oil Production May Boost Local Economy
The expansion of commercial oil production is also expected to create economic opportunities in the region.
Ashoknagar MLA Dr. Sumay Hira said the expansion of the oilfield could generate employment opportunities for local residents and provide a boost to the regional economy. He also noted that several land-related complications that had previously affected ONGC’s operations have been substantially resolved.
The start of commercial production has generated renewed optimism in Ashoknagar after years of exploration, delays and operational interruptions.
Ashoknagar Strengthens West Bengal’s Hydrocarbon Position
Located around 48 km from central Kolkata, the Ashoknagar field represents an important development for hydrocarbon exploration in West Bengal.
With two wells currently operational and additional wells planned, ONGC is looking to increase production and establish a more consistent supply of crude oil to the Haldia refinery. The development also marks a significant step in bringing the company’s first commercial hydrocarbon discovery in the Bengal Basin closer to its full production potential.
About ONGC
Oil and Natural Gas Corporation Limited (ONGC) is a Maharatna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas, Government of India. It is India’s leading exploration and production company and is engaged in the exploration and production of crude oil and natural gas both onshore and offshore.
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