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Natural Gas in Krishna-Godavari Basin

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October 24, 2026

Prelims: Current events of national and international importance | Energy

Why in news?

State-owned Oil India Ltd. (OIL) said it has made a natural gas discovery in a shallow-water Krishna-Godavari basin block that the firm had won in recent Discovered Small Field (DSF) bid rounds.

  • Block Location – Godavari-1 appraisal well in the KG-DSF/GSKW/2018 shallow-water offshore block (won under Discovered Small Field bid rounds).
  • Well & Formation – The discovery was made in the previously unappraised Matsyapuri formation in the Krishna-Godavari Basin off India’s east coast, recording a peak test flow of 200,000 Standard Cubic Metres Per Day (SCMD).
  • Depth – Hydrocarbon-bearing zone tested between 2,024 and 2,027 metres, with testing initiated on October 16, 2026.
  • Record gas flows – The well has flowed gas at about 100,000 SCMD, with a maximum rate of 200,000 SCMD recorded during continuous testing; it also reported condensate output of about 170 barrels per day.
  • Strategic Context
  • Making it a key region – The exploration activity in the Krishna-Godavari Basin, one of India’s key offshore hydrocarbon-producing regions.
  • Expansion of domestic resources – The basin has been central to efforts to expand domestic gas supplies, with deepwater projects accounting for a significant share of the country’s production growth in recent years.
  • The discovery could offer an additional source of domestic gas at a time when India remains reliant on imports to meet a substantial portion of its natural gas requirements.
  • National Energy Goals – The government has set a target of raising natural gas’ share of India’s energy mix to 15% by 2030, from about 6% currently, making the development of domestic resources an important part of its energy strategy.

oil-discovery-kgb.jpeg.upsc

Quick Fact

Major natural gas reserves and production regions
  • Distributed across Western and Eastern offshore basins as well as several key onshore states.

Western Offshore & Western India

  • Western Offshore (Bombay High & Bassein) – Holds the largest share of India's natural gas reserves (around 31%), centred in the Arabian Sea near Mumbai.
  • Gujarat (Cambay Basin) – One of India's earliest and most productive onshore gas-producing regions, supporting local thermal power plants and industries.
  • Rajasthan (Barmer Basin) – Features growing onshore oil and gas exploration and production fields.

Eastern Offshore & Eastern India

  • Krishna-Godavari (KG) Basin (Andhra Pradesh) – Located off the coast of Andhra Pradesh, this deep-water basin accounts for a massive portion of India's eastern offshore reserves.
  • Mahanadi Offshore Basin (Odisha) – Features recent deep-water and ultra-deepwater discoveries by ONGC (under the Samudra Manthan initiative).
  • Cauvery Basin (Tamil Nadu) – Includes onshore and offshore natural gas fields, notably around the Cuddalore district.

Northeastern & Northern Regions

  • Assam – One of the oldest oil and gas producing states in India, with significant onshore reserves.
  • Tripura (Tripura Basin) – Houses substantial onshore natural gas reserves.
  • Andaman and Nicobar Islands – Estimated to hold very large potential offshore gas reserves (though commercial exploitation is still developing).

Reference

Business Line | Natural Gas in Krishna-Godavari Basin
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