Oil and Natural Gas Corporation (ONGC) has made four additional oil discoveries in Ashokenagar, West Bengal, but is still awaiting a petroleum mining lease (PML) from the state government to commence development, Oil Minister Hardeep Singh Puri informed the Lok Sabha on Thursday.
First Discovery and Current Progress
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.
Pending Mining Lease
Despite these successes, ONGC has been unable to implement the Early Development Plan (EDP) for its first discovery due to delays in PML approval from the West Bengal government. ONGC applied for the lease on September 10, 2020, and the central government recommended its approval the following month.
“The grant of PML is still awaited, which has delayed production efforts,” the minister said.
Integrated Development Plan
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.
Efforts to Expedite Approval
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 timely approval of the mining lease by the West Bengal government.
