India is intensifying efforts to boost its fossil fuel-based energy production, with a recent focus on exploring reserves in the Andaman region. In a discussion with ANI on Monday, Union Petroleum and Natural Gas Minister Hardeep Puri shared updates on the government’s ongoing exploration and production initiatives. He pointed out that exploration in the Andamans is showing promising results and could lead to what he referred to as India’s “Guyana moment.”
Minister Puri highlighted that India’s sedimentary basins span 3.5 million square kilometers, but only about 8% of this area has been explored, leaving vast stretches of seabed untapped. He explained that the current government has made significant strides in unlocking potential areas for exploration, including regions previously designated as no-go zones. “One of the key decisions we made was to open up 1 million square kilometers of this sedimentary basin for exploration and production,” Puri said.
To date, 38% of the bids in the nine rounds of the Open Acreage Licensing Policy (OALP) have come from this newly accessible area. The minister is optimistic that the upcoming round will attract even greater interest, estimating that more than 75% of bids will be from this 1 million square kilometer zone. Additionally, India has offered some of the largest bidding opportunities in its history, with approximately 250,000 square kilometers up for grabs.
According to Puri, India’s sedimentary basins have the potential to hold around 42 billion tonnes of oil and gas equivalent. However, offshore exploration is capital-intensive, which is why tapping into these underwater resources has taken so long. For example, the cost of an onshore well is approximately USD 4 million, while offshore wells can cost around USD 100 million.
ONGC, India’s leading exploration and production company, has drilled the highest number of wells in nearly four decades this year, the minister noted. Drawing a comparison to Guyana, which discovered massive oil reserves after several unsuccessful attempts, Puri emphasized that India could also have its own “Guyana moments” in the Andaman region. “Guyana drilled 46 wells without finding oil. It was only after drilling the 47th that they struck oil, which turned out to be one of the largest discoveries,” he said. “India too has the potential for several ‘Guyanas’ in the Andaman.”
Puri also pointed to recent successes in India’s exploration efforts. In Suryamani, oil equivalent reserves of 4 million metric tons were discovered, while in Neelmani, the potential was estimated at 1.2 million metric tons. Additionally, a well drilled to a depth of 2,865 meters yielded both oil and gas reserves. “This is still being assessed, but it’s a significant find,” he added.
In another notable discovery in 2023-24 under OALP 3, a well drilled to 2,957 meters reached an estimated 5 million metric tonnes of oil equivalent. The minister stressed that these findings are just the beginning, with ongoing drilling at depths of 5,000 meters by ONGC and Oil India Limited. “Every new discovery adds more confidence. As we continue to dig deeper, we are uncovering new reserves,” he explained.
Currently, India imports about 80% of its oil and 50% of its natural gas needs. In light of recent global tensions, such as the Israel-Iran conflict, the minister reassured the public that India has adequate energy supplies for the coming months. A review meeting with the petroleum secretary and leaders of Indian energy PSUs last week further emphasized India’s efforts to diversify its energy sources and maintain a stable supply.
