Commercial production from the significant Ashoknagar oil field discovery in West Bengal is poised to begin in the near future. This development follows concerted efforts by the Union government and the state administration to resolve pending formalities.
Minister Announces Imminent Start
Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, provided a positive update on the project's status. He confirmed that both the central government's Oil and Natural Gas Corporation (ONGC) and the West Bengal government are actively working to finalize the agreement, paving the way for operations to commence.
Puri expressed optimism that recent regulatory changes would expedite the process. He specifically referenced the newly notified Petroleum & Natural Gas Rules, 2025, stating he hopes issues concerning stamp duty on the land lease and royalty payments will be swiftly resolved under this framework.
A Decade-Long Journey with Major Investment
The minister shared these details while responding to questions during the Question Hour in Parliament. He revealed that the initial oil and gas discovery at the Ashoknagar site was made back in 2018.
Since that discovery, the national oil major has invested a substantial sum in the project. ONGC has already spent approximately Rs 1,000 crore on exploration and development activities at the field, underscoring the scale and importance of the venture.
State Government's Crucial Role
The West Bengal government, led by Chief Minister Mamata Banerjee, has played a key facilitative role. The state administration has taken necessary steps to allow ONGC to initiate its activities on the new oil and gas discoveries in the Ashoknagar region.
In a significant move to boost the state's industrial landscape, CM Banerjee had announced at the concluding session of the recent Bengal Global Business Summit that the government had allocated land to the oil and gas major. Notably, the land was provided on lease for a token amount of just Rs 1, signaling strong support for the project's advancement.
Path Forward for Bengal's Energy Sector
The commencement of production at the Ashoknagar field marks a pivotal moment for West Bengal's hydrocarbon sector. It represents the fruition of a major exploration effort and a successful collaboration between central and state authorities.
With the regulatory pathway now clearer and the land lease secured, the project is expected to move swiftly into the production phase. This will not only contribute to India's domestic energy production but also potentially boost the local economy and create employment opportunities in the region.
