Oil & Natural Gas Corporation has taken operational control of Well Mori-5 at Irusumanda Village, Malkipuram Mandal in Andhra Pradesh, following a gas leak reported during workover operations on January 5. The company's senior management, including Director (Technology & Field Services) Vikram Saxena, along with Crisis Management Team experts, are now managing the situation with comprehensive safety and environmental protocols.

Gas Leak Incident and Response

The gas leak was initially flagged by operator Deep Industries during workover operations at ONGC's Mori field facility. The company confirmed there were no casualties or injuries from the incident, with the well located in a remote area having no human habitation within a 500-600 metre radius.

Operational Control and Safety Measures

The company has implemented a systematic approach to manage the well incident, with key operational milestones being achieved in the response efforts:

Infrastructure Deployment

Excavation work has been completed for creating a temporary canal from a nearby irrigation source to facilitate deployment of high-capacity firewater pumps. Fire pumps have reached the wellsite, with placement activities currently in progress. The crisis management team has successfully changed the flame direction to vertical and is witnessing a gradual reduction in both flame intensity and size.

Environmental Monitoring Protocol

ONGC has established comprehensive environmental monitoring within a 600-metre radius of the incident site to minimize environmental impact:

Market Performance and Stakeholder Coordination

Shares of ONGC ended higher by 1.55% at ₹241.79 on January 6, following the incident management updates. The company maintains continuous coordination with all relevant stakeholders including district and police administrations, local authorities, and media representatives to ensure transparency and effective incident response. All operations are being conducted with the highest standards of safety and environmental care, reflecting ONGC's commitment to responsible operational management during crisis situations.

Oil & Natural Gas Corporation announced on Monday, January 6, that it has signed joint venture agreements and capital contribution agreements with Japan's Mitsui OSK Lines Ltd (MOL) to establish two joint venture entities in GIFT City, Gandhinagar. This strategic partnership marks ONGC's expansion into specialized maritime logistics for petrochemical transportation.

Joint Venture Structure and Investment

The partnership involves the creation of two companies: Bharat Ethane One IFSC Private Ltd and Bharat Ethane Two IFSC Private Ltd. Each entity will receive an equity subscription from both partners, establishing a balanced ownership structure.

Fleet and Operations

Each joint venture entity will own and operate a very large ethane carrier (VLEC) under the Indian flag. The specialized vessels are designed to transport ethane from the United States to supply feedstock for ONGC Petro Additions Limited (OPaL), a subsidiary of ONGC.

Strategic Significance

This initiative represents ONGC's strategic entry into business diversification and growth. The deployment of VLECs for ethane transportation allows ONGC to capitalize on emerging opportunities in energy logistics while strengthening integration across its value chain.

Mitsui brings significant experience to the partnership, currently owning and operating four liquefied natural gas (LNG) ships for Petronet LNG Ltd, India's biggest LNG importer, and six ethane carriers for Reliance Industries Ltd.

Market Context

ONGC plans to import ethane starting in mid-2028 to compensate for the altered composition of LNG sourced from Qatar. This strategy addresses the growing demand for petrochemical feedstock, with ethane serving as a crucial component in ethylene production for various plastic manufacturing processes.

Shares of Oil and Natural Gas Corporation ended at ₹238.05, down by ₹3.41, or 1.41%, on Monday, January 6.