India’s Energy Frontier: Andaman Oil Prospect Sparks $20 Trillion Ambition

Andaman Basin: India’s Untapped Energy Treasure?

India’s energy ambitions have taken a bold leap with the announcement that the Andaman Sea could contain oil reserves on par with Guyana’s game-changing offshore discovery. Union Petroleum and Natural Gas Minister Hardeep Singh Puri recently called attention to the region’s vast potential during a conference in New Delhi, signaling a high-stakes moment in India’s quest for energy independence.

Guyana, once a modest energy player, shot to global relevance after ExxonMobil’s discovery of over 11 billion barrels of crude in the Stabroek block. Now, with India’s Oil and Natural Gas Corporation (ONGC) launching its most aggressive exploration campaign in decades, the Andaman basin is poised to become the next big frontier. Puri even suggested that if confirmed, such reserves could contribute to India’s aspiration of becoming a $20 trillion economy a quantum leap from its current $3.7 trillion mark.

What sets the Andaman basin apart is its geological similarity to some of the most successful offshore oil fields in Southeast Asia. Yet until recently, it had largely been overlooked due to cost, complexity, and logistical challenges. That is now changing, rapidly.

Bold Policy Moves Fuel Exploration Momentum

India’s renewed hydrocarbon push stems from sweeping reforms implemented since 2016. With the Open Acreage Licensing Policy (OALP), investors can bid for any block at any time, bypassing outdated red-tape mechanisms. The shift from a profit-sharing model to a revenue-sharing regime has also made it more attractive for private players to engage in high-risk ventures like deep-sea drilling.

So far, India has offered over 1 million square kilometers of sedimentary basins for exploration. The latest bidding round alone covered 250,000 sq km, the largest in Indian history with a significant chunk targeting the Andaman basin. ONGC and other public and private sector players are now ramping up investments to tap into what could be a treasure trove beneath the waves.

Minister Puri emphasized that while deep-sea oil exploration comes with no guarantees, Guyana, after all, required over 40 deep wells to strike gold, India now has the technical capability and policy framework to make it a viable pursuit.

Energy Independence and Economic Leap

India currently imports more than 85% of its crude oil needs, a dependency that weighs heavily on its trade deficit and energy security calculus. A discovery of this magnitude in its exclusive economic zone (EEZ) could be a game-changer, reducing import bills and strengthening geopolitical leverage.

More importantly, such a find would reinforce India’s narrative as a global growth engine. According to Puri, transitioning from an importer to a net contributor in energy would not only boost fiscal strength but also enable India to invest more aggressively in clean energy infrastructure, strategic reserves and manufacturing.

Already, the oil ministry has mapped out strategic synergies between traditional hydrocarbon exploration and India’s green transition goals, including hydrogen production and carbon capture. That means the potential windfall from the Andaman reserves won’t just power engines it could fund entire industries.

As exploratory rigs prepare to drill deeper into the Andaman trench, optimism is soaring but so is anticipation. For a nation that has often relied on imports and fragile supply chains, this venture represents far more than a hunt for oil. It is a litmus test of vision, resilience, and economic grit.

Whether or not the Andaman Sea delivers Guyana-scale riches, India’s message is loud and clear: its energy story is just beginning and the world should watch closely.

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