Oil India strikes large new natural gas reserve in Krishna-Godavari Basin

State-owned Oil India Limited (OIL) has discovered a large new reserve of natural gas in the Krishna-Godavari Basin, in a significant development for the country's energy sector. The find was made in a shallow-water offshore block, and is seen as important for India at a time when uncertainty over energy supplies is growing worldwide.

Oil India had recently won the block under the Discovered Small Field (DSF) bidding process. The exploration was carried out in the shallow-water offshore well Godavari-1, in the Matsyapuri Formation of the Krishna-Godavari Basin on the east coast. On October 16, 2026, the company began testing a hydrocarbon zone at a depth of about 2,024 to 2,027 metres. The detailed testing confirmed a substantial reserve of natural gas in the area.

In the initial phase, the well yielded about 1 lakh standard cubic metres per day (SCMD) of gas. As further tests were carried out, the flow rose to a maximum of 2 lakh SCMD. The company has also said the well yields an estimated 170 barrels of condensate a day. No survey had ever been carried out in this area before, which makes the discovery a major success for researchers as well.

India currently imports about 50 per cent of the natural gas it needs and as much as 88 per cent of its crude oil. A new domestic source of gas will ease the heavy burden of imports and help save valuable foreign exchange.

For domestic and industrial use, the gas will particularly benefit CNG, PNG, chemical fertiliser production, power generation and refinery industries.

The Government of India has set a policy of raising domestic gas production to 15 per cent of total consumption. At present, only 6 per cent of the gas used in the country is produced domestically. The new discovery will make it easier to reach that target and will strengthen the country's energy security.