Oil & Natural Gas Corporation has received a stop production order from the Andhra Pradesh Pollution Control Board (APPCB) for environmental violations at its Mori#05 Well. The order was received on 24.04.2026 following a well blowout and fire incident that occurred earlier this year.

Incident Details and Background

The environmental violations stem from a well blowout followed by a fire incident that occurred at Well Mori#05 on 05.01.2026. The Mori field, containing the affected well, had been handed over to Production Enhancement Contract (PEC) operator M/s Deep Exploration Services Private Limited (M/s DESPL) in 2025.

Regulatory Action and Violations

The APPCB initially issued a show cause notice to both contractor M/s DESPL and ONGC for environmental violations. Subsequently, the board issued the stop production order dated 23.04.2026, which was received at the ONGC Rajahmundry Office on 24.04.2026.

The specific violations cited include:

• Operating without obtaining Consent to Establish/Consent to Operate
• Causing air pollution and potential environmental damage

The APPCB exercised its powers under Section 33(A) of the Water (Prevention & Control of Pollution) Act, 1974 and Section 31(A) of the Air (Prevention & Control of Pollution) Act, 1981 to issue the stop production order in the interest of safeguarding public health and environment protection.

Operational Impact and Well History

The Mori#05 well has a significant operational history, having been drilled in March 1994 and remaining on production from January 1995 to April 2009. Importantly, there has been no production from the well since April 2009.

The Mori field was handed over to PEC contractor M/s DESPL via Notice of Award dated September 2024 for production enhancement. A zone transfer operation was planned by M/s DESPL to recomplete the well in the leftover zone when the uncontrolled blowout event occurred during the workover job on 05.01.2026.

Company Response and Financial Impact

ONGC successfully capped the well on 10.01.2026 through the efforts of its Crisis Management Team, and the well has remained closed since then. The company has assessed that considering the size and scale of its operations, the impact is not considered significant.

The company has indicated its intention to review the order in detail and respond accordingly to the regulatory authority. This measured response reflects the company's approach to addressing the environmental compliance issues while maintaining operational continuity across its broader portfolio.

Oil & Natural Gas Corporation Ltd. executed a significant block trade on the National Stock Exchange (NSE) worth Rs. 25.83 crores. The large-volume transaction demonstrates continued institutional interest in India's leading oil and gas exploration company.

Transaction Details

The block trade involved substantial volume and value, reflecting institutional trading activity in the stock.

Block Trade Significance

Block trades represent large-volume transactions that are typically executed by institutional investors outside the regular market order book. These transactions allow for efficient execution of substantial positions without causing significant price disruption in the regular trading session. The execution of such trades often indicates institutional portfolio adjustments or strategic position changes by large investors.

Market Implications

The transaction reflects ongoing institutional participation in ONGC shares, with the execution price of Rs. 283.30 per share providing a reference point for institutional valuation. Block trades of this magnitude typically involve sophisticated investors and can provide insights into institutional sentiment toward the company's prospects.