Pointers-
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India may have discovered a large oil reserve in the Andaman Sea, similar to Guyana’s massive find.
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Early signs of oil, called “green shoots,” have already been seen in the region.
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Government reforms like the Open Acreage Licensing Policy (OALP) opened vast areas for exploration.
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ONGC drilled a record 541 wells in FY24, the highest in 37 years.
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A confirmed discovery could reduce oil imports and push India toward a $20 trillion economy.
India may be inching closer to a game-changing oil discovery in the Andaman Sea that could rival the scale of Guyana’s transformational find, Union Petroleum and Natural Gas Minister Hardeep Singh Puri revealed in a recent interview. The potential oil field could hold up to 184,440 crore litres of crude oil, dramatically altering the nation’s energy and economic landscape.
“If exploration in the Andaman succeeds, India could significantly reduce its reliance on oil imports and position itself as a major energy player. Some early signs of oil have already been found in the Andaman Sea.” Puri said.
What Made This Discovery Possible? A Look at India’s Oil Reforms
This potential oil jackpot in the Andaman Sea is not just luck — it’s the result of major changes in how India explores for oil.
Since 2016, the Indian government has introduced bold reforms like the Open Acreage Licensing Policy (OALP). This policy gave oil companies the freedom to explore almost 10 lakh square kilometres of land and sea for oil, without waiting for government auctions.
Thanks to these changes, both Indian and international companies started exploring new and untouched areas. The Andaman Sea, which was earlier not fully explored, is now a hotbed for oil exploration.
Experts say that this policy shift, combined with India’s active drilling efforts, has paved the way for what could be the biggest oil discovery in India’s recent history.
From Import-Heavy to Energy-Independent?
India currently imports over 85% of its crude oil needs, making it the third-largest importer globally. A successful oil find in the Andaman could mark a critical step toward strategic energy independence.
Puri drew a powerful comparison: just as Guyana transitioned into an oil-rich nation after discovering 11.6 billion barrels of crude. India could also experience significant economic growth, from its current $3.7 trillion GDP to $20 trillion, if such reserves are confirmed.
ONGC at the Forefront of the Oil Hunt
India’s state-run oil giant ONGC is leading the charge. In FY24, it drilled 541 wells, including 103 exploratory wells, the highest in 37 years, with a record ₹37,000 crore investment in capital expenditure.
Puri acknowledged the high-risk nature of oil exploration.
“In Guyana, it took 43 to 44 wells before they struck oil. Each well costs about $100 million,” he said.
But with ONGC’s historic drilling spree and expanding surveys in the Andaman and Nicobar region, hopes remain high.
A Strategic Shift in Oil Exploration
While India’s crude oil production has traditionally been concentrated in Assam, Gujarat, Rajasthan, Mumbai High, and the Krishna-Godavari Basin, new frontiers are now emerging. Companies like Oil India and ONGC are conducting surveys and initial drilling in the Andaman Sea, expanding India’s oil map into uncharted waters.
India also maintains strategic petroleum reserves in Visakhapatnam, Mangalore, and Padur, with new sites proposed in Odisha and Rajasthan to enhance energy security.
What’s at Stake?
A successful oil discovery in the Andaman could:
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Reduce India’s massive crude import bill
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Improve national energy security
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Attract global investment
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Propel the economy towards the $20 trillion milestone
“This could be India’s Guyana moment.”
Puri concluded, highlighting how a single deep-sea discovery could unlock unprecedented economic and strategic gains.
