The Mamata Banerjee government granted the central utility Oil and Natural Gas Corporation (ONGC) necessary clearance last week to commence large-scale oil-drilling operations in Ashoknagar of North 24-Parganas.

This decision follows the discovery of mineral oil in the area, with reserves identified at multiple locations, particularly around Baigachhi in North 24-Parganas.

In December 2020, then Union petroleum minister Dharmendra Pradhan inaugurated commercial oil and gas extraction in the region, laying the groundwork for further exploration.

However, in the absence of a formal nod for extraction from the state government, the endeavour could not see further progress.

Now, with the state government’s approval in place, ONGC is set to expand its operations across Bengal.

Land-leasing and drilling preparations are nearing completion at four sites in North 24-Parganas, sources said.

Land acquisition has also commenced in two additional locations — Chapatla gram panchayat in Deganga of North 24-Parganas and Bhagwanpur II block of East Midnapore.

In total, ONGC has identified 13 sites for drilling in North 24-Parganas, three in South 24-Parganas, one in Nadia and five across East and West Midnapore districts.

The selection process for these sites has been completed, sources said.

Each project is expected to require approximately five acres of leased land.

ONGC sources have indicated significant oil reserves across these Bengal districts.

The utility plans to extract oil by taking land on lease in key locations. However, extraction had been on hold pending state government approval. With the cabinet’s green light, work is set to resume.

According to ONGC officials, full-scale extraction will only begin after thorough assessments of the oil and gas reserves at depths ranging from 2,500 to 6,000 metres.

“If the findings are favourable and conducive, commercial extraction will proceed, unlocking new economic opportunities for the state. We are hopeful that this venture will significantly bolster Bengal’s economic landscape, particularly in India’s energy sector,” said an ONGC official.

Euphoric about the government’s nod, opening the scope for further exploration of natural oil resources, North 24-Parganas zilla parishad chief and Ashoknagar MLA Narayan Goswami stressed the economic potential of the project.

“The state government has leased out land to ONGC for the mineral oil project at just ₹1 as a positive gesture. If the extraction project succeeds, it will transform not only Ashoknagar but the entire district as well. I am hopeful that ONGC will be able to extract natural oil from more such places among new drilling spots,” he said.

ONGC first discovered an oil field in Ashoknagar in 2018 —the first such find in eastern India.

By December 2020, Union minister Pradhan had formally inaugurated the natural gas reserves there, which, according to ONGC estimates, have the potential to produce 45,000-50,000 cubic metres of natural gas per day.