Oil and Natural Gas Corporation has discovered new reserves of oil in Assam, Subir Raha, chairman and managing director of the company, said on Wednesday.

"New oil bearing zone has been discovered in Upper Assam. The results are very encouraging and the reserves are promising," Raha told PTI in New Delhi.

The well Chang Maigaon-14 had flowed oil at the rate of 74 cubic metres per day.

The new discovery would augment crude oil production in Assam. India currently produces just over 32 million tonnes of crude against a demand of 105 million tonnes annually.

He, however, did not give the reserve estimates saying the well testing was on.

Separately, ONGC has also struck oil and gas in Godavari shallow offshore block GS-KW in Bay of Bengal and Broach block in Cambay basin in Gujarat.

Three hydrocarbon bearing objects were traced in the exploratory well GS-KW#2 in Godavari shallow waters. Object-II produced gas at the rate of 55,304 cubic metres per day, while Object-III produced oil at 37.8 cubic metres per day and gas at 97,337 cubic metres per day. Object-V produced oil at the rate of 84 cubic metres per day and gas at the rate of 9821 cubic metres per day.

In Broach block, exploratory well Degam-1 flowed oil at the rate of 32 cubic metres per day.

Raha said more wells would be drilled over the next two years to establish the reserves and bring them to production.