Reviving India’s Oil & Gas Sector: Strategic Push into the Andaman-Nicobar Basin

2. Strategic Frontier: It represents a high-potential frontier for offshore oil and gas exploration due to its unique geological setting.
3. Proximity to Energy-Rich Zones: The basin is located near Myanmar and Indonesia, both of which have established petroleum systems, indicating shared stratigraphic potential.
4. Bay of Bengal Advantage: Situated in the Bay of Bengal, it offers access to deepwater resources in an underexplored marine zone.
5. Indo-Pacific Significance: Its location strengthens India’s presence in the Indo-Pacific region, contributing to strategic maritime interests.
6. Energy Security Role: Exploration in this basin can help reduce India’s reliance on West Asian imports and diversify its energy sources.
7. Maritime Security Integration: Energy activity in the region supports India’s broader maritime strategy by enhancing surveillance and infrastructural presence.

Andaman Basin: India’s New Energy Frontier

1. Tectonic Confluence Zone: The Andaman Basin is located at the junction of the Indian and Burmese plates, making it geologically active and favorable for hydrocarbon formation.
2. Proximity to Proven Basins: It shares structural and stratigraphic similarities with established hydrocarbon basins in Myanmar and North Sumatra, indicating strong exploration potential.
3. Diverse Geological Settings: The basin offers opportunities in carbonate plays and back-arc basin settings, both of which are globally known for oil and gas reservoirs.
4. Recent Policy Breakthrough: In 2022, nearly 1 million sq. km of previously restricted ‘No-Go’ offshore areas were opened for exploration.
5. Frontier Status: This move has positioned the Andaman Basin as India’s most ambitious offshore exploration zone in recent decades.
6. Strategic Importance: Its development could significantly enhance India’s energy security and establish a new offshore energy hub in the Bay of Bengal.

Technological Leap in Ultra-Deepwater Drilling

1. Pioneering Depths: ONGC and OIL have entered ultra-deepwater zones, drilling at unprecedented depths of up to 5000 metres.
2. Key Drilling Project – ANDW-7: The ANDW-7 wildcat well in the East Andaman Back Arc is a landmark initiative in India’s offshore campaign.
3. Light Crude Indications: Cutting samples from the well revealed traces of light crude and condensates, confirming hydrocarbon generation.
4. Neo-Pentane Detection: Presence of C-5 hydrocarbons (neo-pentane) in trip gases suggests an active thermogenic system.
5. Reservoir Rock Quality: Core analysis revealed reservoir-quality facies, essential for commercial oil and gas recovery.
6. Thermogenic System Confirmation: Geological evidence validates a working petroleum system, similar to Southeast Asian basins.
7. Global Exploration Parity: These findings place India’s Andaman offshore campaign on par with international deepwater efforts.

Data-Driven Exploration Through Seismic and Stratigraphic Surveys

1. Broad Seismic Mapping: A massive 2D broadband seismic survey covering 80,000 LKM has been conducted across India’s EEZ.
2. High-Resolution Andaman Survey: OIL completed 22,555 LKM of high-resolution seismic data in Deep Andaman (2021–22).
3. Geological Structure Identification: These surveys help locate faults, traps, and potential reservoirs within the offshore sedimentary basins.
4. Stratigraphic Drilling in Progress: Four stratigraphic wells, including one in the AN Basin, are currently being drilled to test subsurface data.
5. Model Validation Objective: Drilling aims to confirm geophysical models and validate hydrocarbon potential before commercial exploration.
6. De-Risking Future Operations: Stratigraphic drilling provides critical insights to minimize commercial exploration risks.
7. Scientific Precision: The integration of seismic data and test drilling marks a scientific, evidence-based approach to exploration.

Policy Reforms Driving Offshore Exploration Momentum

1. Revenue Sharing Contract Model (2015): The shift from PSC to RSC gave operators greater operational freedom and simplified cost recovery.
2. HELP – A Unified Licensing Policy (2016): The Hydrocarbon Exploration and Licensing Policy allows a single license for all hydrocarbon types.
3. Open Acreage Licensing Programme (OALP): OALP lets companies bid on blocks anytime, increasing flexibility and responsiveness in exploration.
4. National Data Repository (NDR): NDR provides open access to digitized geological and seismic data, empowering data-driven decisions.
5. Crude Oil Marketing Deregulation (2022): Deregulation allows producers to sell crude directly, enhancing competition and private investment.
6. Investor-Friendly Environment: Together, these reforms have made India’s upstream sector transparent, liberalized, and competitive.
7. Boost to Frontier Exploration: The reformed framework has catalyzed exploration in high-risk, high-reward areas like the Andaman Basin.

Institutional Backbone: Role of ONGC and OIL

1. ONGC – Energy Giant: ONGC contributes around 71% of India’s total crude and gas output, playing a dominant role in domestic production.
2. Maharatna Leadership: As a Maharatna PSU under the Ministry of Petroleum and Natural Gas, ONGC leads national energy strategies.
3. Global and Domestic Reach: ONGC is active in both Indian and international blocks, diversifying its energy portfolio.
4. OIL – The Frontier Specialist: Oil India Limited is India’s second-largest upstream PSU, focusing increasingly on frontier basin exploration.
5. Seismic and Stratigraphic Efforts: OIL is spearheading seismic surveys and stratigraphic wells in the Deep Andaman region.
6. Sustainable Operations: Both PSUs emphasize environmentally sound, safe, and technologically advanced exploration practices.
7. Driving Exploration Revival: ONGC and OIL serve as the institutional engines behind India’s offshore exploration revival.

Strategic Significance of the Andaman Basin

Challenges and Environmental Concerns

 Way Forward: Towards Energy Self-Reliance

1. Enhanced Geological Mapping: Accelerate seismic coverage and geoscientific mapping in frontier basins to identify untapped hydrocarbon reserves and improve exploration success rates.
2. Boost Private Sector Participation: Facilitate greater private investment by simplifying regulatory processes, ensuring policy stability, and offering competitive fiscal terms.
3. Infrastructure Modernization: Strengthen offshore infrastructure, including the deployment of FPSOs (Floating Production Storage Offloading units), to efficiently exploit deepwater discoveries.
4. Promote Gas-Based Transition: Invest in clean energy synergies by using newly discovered natural gas reserves to support India’s transition from coal to cleaner fuel alternatives.
5. Balance Development with Conservation: Ensure ecological sustainability by integrating green technologies, conducting thorough Environmental Impact Assessments (EIAs), and protecting marine biodiversity zones.

Conclusion

The emergence of the Andaman Basin as an exploration hotspot signals a new era in India’s energy journey. Backed by strategic policy reforms, technological prowess, and institutional strength, India is poised to unlock the potential of its offshore wealth. If successful, this could mark a historic turning point towards energy security, regional leadership in offshore E&P, and a resilient blue economy, aligning with national goals under Atmanirbhar Bharat and the National Energy Policy.