ONGC Faces ₹36.17 Crore Environmental Compensation Notice over Mori-5 Blowout – Indian PSU
The Andhra Pradesh Pollution Control Board (APPCB) has issued a show-cause notice to Oil and Natural Gas Corporation Limited (ONGC), proposing environmental compensation of ₹36.17 crore over the gas blowout and fire at its Mori-5 well in Andhra Pradesh’s Dr B.R. Ambedkar Konaseema district.
The incident occurred on January 5, 2026, at Irusumanda village in Malkipuram mandal during perforation and workover operations. The well caught fire following an uncontrolled gas leak, triggering a major emergency in the area.
According to the APPCB, the operations were undertaken without obtaining mandatory Environmental Clearance and the requisite Consent to Establish (CTE) and Consent to Operate (CTO).
The pollution control board has given ONGC 15 days to explain why environmental compensation amounting to ₹36,17,10,000 should not be imposed. The proposed compensation is linked to the environmental damage caused by the incident and the alleged regulatory violations.
Contractor Was Handed Over Operations in 2025
The Mori-5 well had been handed over to a production enhancement contractor, Deep Exploratory Services Pvt Ltd, in April 2025 for workover and production enhancement activities.
The well had remained shut for several years before the contractor undertook operations to revive production.
The APPCB’s monitoring committee examined the circumstances surrounding the January 5 incident during its review on April 8, 2026. The committee reportedly found that the operations had proceeded without the necessary environmental permissions.
APPCB Had Earlier Ordered Production Stoppage
The environmental regulator had already initiated action against the well following the blowout.
On April 23, 2026, APPCB issued a stop-production order under Section 33(A) of the Water (Prevention and Control of Pollution) Act, 1974, and Section 31(A) of the Air (Prevention and Control of Pollution) Act, 1981.
The board also issued a prosecution notice on May 18, 2026.
A monitoring committee was subsequently tasked with evaluating the environmental damage, identifying remediation and restoration measures, and calculating environmental compensation in accordance with Central Pollution Control Board (CPCB) guidelines.
The committee also recommended stopping production and initiating prosecution against the occupier.
NGT Proceedings and Environmental Accountability
The Mori-5 incident also came before the Chennai bench of the National Green Tribunal (NGT) through Original Application No. 20 of 2026, filed by V. Raja Yenumula.
In its July 3, 2026 proceedings, the tribunal took note of the regulatory action initiated by APPCB, including the stop-production order, prosecution notice and the process of assessing environmental compensation.
The tribunal subsequently closed the application, observing that the APPCB had already initiated the necessary regulatory proceedings.
