India Sees Renewed Oil & Gas Exploration Push: Andaman Basin Emerges as Frontier Hotspot – Hardeep Singh Puri
172 discoveries reported since 2015; ONGC & OIL drilling ultra-deep wells in Andaman waters, highlights the Union Petroleum Minister
India is experiencing a significant upswing in oil and gas exploration, driven by proactive policy reforms and increased offshore activity. Union Petroleum & Natural Gas Minister Hardeep Singh Puri, in a written response in the Rajya Sabha, highlighted a major shift in exploration dynamics following the opening up of nearly one million sq km of erstwhile ‘No-Go’ offshore areas in 2022.
Since 2015, 172 hydrocarbon discoveries have been made, including 62 in offshore regions, with the Andaman-Nicobar (AN) Basin emerging as a key frontier. Geological studies suggest the basin holds promising potential due to its tectonic location between the Indian and Burmese plates and proximity to proven hydrocarbon systems in Myanmar and North Sumatra.
In a landmark development, ONGC and Oil India Ltd (OIL) have launched ultra-deepwater drilling operations, targeting depths of up to 5000 meters. One such exploratory well, ANDW-7 in the East Andaman Back Arc region, has yielded encouraging signs—traces of light crude, heavy hydrocarbons, and quality reservoir facies—indicating the presence of an active thermogenic petroleum system for the first time in this region.
So far, ONGC has reported discoveries in 20 blocks with reserves totaling 75 MMTOE, while OIL has found 7 oil and gas fields amounting to 9.8 million barrels of oil and 2,706.3 MMSCM of gas.
The Minister also referenced the 2017 Hydrocarbon Resource Assessment, which estimated the Andaman basin’s potential at 371 MMTOE. Recent 2D seismic surveys covering over 100,000 LKM, including 22,555 LKM by OIL in the Deep Andaman Offshore Survey (2021–22), have revealed promising geological structures now being validated through drilling.
The resurgence in exploration has been enabled by key policy shifts since 2014, including:
- Adoption of Revenue Sharing Contracts (RSC) in 2015
- Launch of HELP and OALP in 2016
- Creation of the National Data Repository (NDR)
- Crude oil marketing deregulation in 2022
These reforms have created a liberal, investor-friendly exploration ecosystem, enabling risk-informed, data-driven ventures into frontier basins like the Andamans. While commercial production is yet to begin, the groundwork laid signals a potential transformation in India’s quest for energy self-reliance.
