How Did India Find Oil in Andaman Sea?

India is poised for a massive oil find in the Andaman Sea. Union Minister Hardeep Singh Puri claims it could rival Guyana’s reserves. This could transform India’s energy sector..

Background of Exploration

Oil exploration in the Andaman Sea began in the 1950s. The Oil and Natural Gas Corporation (ONGC) led early surveys. By 1980, the first well, AN-I-I, found gas.

Outcrops of the Oligocene Andaman flysch. The keen observer could even distinguish some Bouma sequences. Photography: Mike Searle.

Recent reforms slashed restricted zones by 99%. This opened vast areas for drilling. Oil India Limited (OIL) and ONGC ramped up efforts in 2024.

The Andaman Sea lies east of the Andaman and Nicobar Islands. It spans 47,000 square kilometers of deepwater basins. The reserve is in India’s fore-arc basin, near the Andaman Islands. No boundary disputes exist with neighboring Myanmar, Thailand, or Indonesia. Drilling focuses on deep and ultra-deep offshore zones.

Who Confirmed the Discovery?

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced the find. He spoke to The New Indian and Indian Express in June 2025. Puri compared it to Guyana’s ExxonMobil discovery. ONGC and OIL officials back his claims. Drilling began in November 2024 under the Open Acreage Licensing Programme (OALP).

India imports 87% of its oil, straining its economy. A Guyana-sized reserve could yield 250,000 barrels daily. This would cut imports by 25%. It could stabilize fuel prices, potentially dropping petrol and diesel to ₹50 per liter. The find could boost India’s $3.7 trillion economy toward $20 trillion. It also strengthens energy security amid global tensions.

The discovery could transform the Andaman region. It may create jobs and spur development. Farmers and landowners could profit from land leases, as seen in Ballia, Uttar Pradesh. Partnerships with firms like Petrobras enhance expertise. The reserve could attract global investors. It supports India’s goal of reducing oil import reliance.

India’s Andaman Sea oil find is a game-changer. It promises economic growth and energy independence. With ONGC and OIL leading, the nation awaits a historic breakthrough.

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