Even as the world grapples with fuel price volatility, India’s energy sector is pushing forward with expanded capacity, new exploration, and landmark offshore finds, and the Andaman Basin is fast emerging as a geological hotspot.
Petroleum and Natural Gas Minister Hardeep Singh Puri said India’s oil refining capacity has climbed from 215 to 258 million metric tonnes per annum, with Jamnagar now the largest refinery in Asia, exporting petroleum products to more than 100 countries. He credited reforms, such as halving the number of clearances required for exploration and unlocking 2.5 lakh sq km through the Open Acreage Licensing Policy, with boosting investment and resilience.
Highlighting Prime Minister Narendra Modi’s vision for energy security, Puri noted that over $1.3 billion has been invested in upstream oil and gas production. Since 2015, exploration firms have reported 172 hydrocarbon discoveries, including 62 offshore. The Andaman and Nicobar Basin, sitting at the junction of the Indian and Burmese plates, has drawn global attention due to its stratigraphic traps, proximity to proven petroleum systems in Myanmar and North Sumatra, and parallels with recent major gas finds in South Andaman offshore Indonesia.
ONGC and Oil India Ltd are now venturing into ultra-deepwater exploration in the Andaman seas, drilling for the first time at depths up to 5,000 metres. One well, ANDW-7 in the East Andaman Back Arc, has yielded traces of light crude and condensate, heavy hydrocarbons, and confirmed an active petroleum system, a first for the region. While commercial reserves are yet to be established, the findings pave the way for focused exploration.
So far, ONGC has made hydrocarbon discoveries in 20 blocks, with an estimated 75 MMTOE in reserves, while Oil India has found nearly 9.8 million barrels of oil and over 2,700 million cubic meters of gas in the past four years.
For the islands, these developments hint at a future where the Andaman Basin’s deep geology could play a role not just in India’s energy security, but in its position on the global oil and gas map.
