Regulatory Action / Environmental Compliance

ONGC Receives Stop Production Order from Andhra Pradesh Pollution Control Board

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ongc

BSE

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ONGC has received a stop production order from the Andhra Pradesh Pollution Control Board (APPCB) for the Mori #05 well following environmental violations linked to a blowout incident. The company stated that the financial and operational impact is not significant

PRICE-SENSITIVE TRIGGER

Event: Stop Production Order Issued

Type: Regulatory Action / Environmental Compliance

Impact: Negative

Immediate Effect: Temporary halt of operations at Mori #05 well; regulatory scrutiny increases

Key Metrics:

Affected Asset: Mori #05 Well
Operational Status: Already non-operational since April 2009
Impact Assessment: Not significant

Highlight:

No material financial impact due to non-operational status

What Happened ?

ONGC informed exchanges that it has received an order from the Andhra Pradesh Pollution Control Board (APPCB)directing immediate stoppage of operations at the Mori #05 well following environmental violations.

key highlights

Incident:
- Blowout followed by fire at Mori #05 well (Jan 2026)
Cause:
- During workover operations by contractor (DESPL)
Regulatory Action:
- Show cause notice issued for:
  - Operating without environmental consents
  - Causing air pollution and environmental damage
Final Order:
- Stop Production Order issued on April 23, 2026
- Received by ONGC on April 24, 2026
Location:
- Andhra Pradesh (Dr. B.R. Ambedkar Konaseema District)
Operational Context:
- Well has not been producing since April 2009
- Handed to contractor for enhancement in 2024

Note:

The well remains closed since the incident was contained

Risk Analysis

Key Risks

Increased environmental compliance scrutiny
Potential penalties or further regulatory actions
Reputation risk due to environmental violations
Contractor-related operational oversight concerns

Worst Case Scenario

Escalation into broader regulatory scrutiny across assets or financial penalties

Risk Level: Medium

Company Commentary

Incident contained and well capped successfully
Well already non-operational, limiting impact
Company reviewing the order and will respond
Impact not considered significant

Official Exchange Filing: ONGC Limited