Sri Vijaya Puram, June 16: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has indicated that India may be nearing a significant oil discovery in the Andaman Sea, one that could mirror the scale of Guyana’s game-changing reserves. The remarks have sparked fresh optimism in India’s energy sector and renewed focus on the strategic Andaman and Nicobar region.
Guyana, which currently holds an estimated 11.6 billion barrels of oil and ranks 17th globally in reserves, has become a benchmark for what India hopes to achieve. Speaking on the potential of the Andaman basin, Minister Puri suggested that such a find could reshape India’s energy landscape and dramatically reduce the country’s heavy reliance on crude oil imports, which currently stand at 85–86% of total consumption.
“I’m confident now that we have found green shoots, oil in several other parts, and I think it’s only a matter of time before we find Guyana in the Andaman Sea,” Puri said, underscoring the growing belief within the government that a breakthrough is imminent.
State-run companies Oil India and Oil and Natural Gas Corporation (ONGC) are spearheading exploration activities in the region. Advanced drilling and seismic surveys are underway both offshore and across the island chain. The government’s recent policy reforms have paved the way for increased interest from the energy sector.
Under the Open Acreage Licensing Policy (OALP), nearly 1 million square kilometers of India’s 3.5 million sq. kilometers sedimentary basin area has been opened for exploration. The shift from production-sharing to revenue-sharing contracts has also simplified bidding and operational processes. Recent rounds have seen growing participation, signalling improved investor confidence.
Further regulatory clarity is expected through the proposed Oil Fields Regulation and Development Amendment Bill, which aims to streamline approvals and eliminate overlaps between various regulatory bodies.
If successful, a major oil discovery in the Andaman Sea could not only reduce import dependency but also contribute to broader economic ambitions. Minister Puri suggested that an oil-driven boost could help accelerate India’s transition from a $3.7 trillion to a $20 trillion economy, a projection seen as aspirational but indicative of the sector’s long-term impact.
For the Andaman and Nicobar Islands, the potential find could mark a shift in regional development. Local communities stand to benefit through employment opportunities in exploration, logistics, and support services. Infrastructure investment and improved connectivity could follow as ancillary industries take root.
The region’s exploration history dates back to the 1950s, with initial surveys by ONGC. While commercial breakthroughs have so far remained elusive in Indian waters, neighboring regions like Myanmar and Indonesia have seen success in adjacent zones such as the North Sumatra Basin, fueling hopes that the Indian sector may soon follow.
As the government doubles down on exploration in the Andaman Sea, the coming months may prove decisive in determining whether India’s next energy milestone lies beneath its eastern frontier.
