India Witnesses Renewed
Spurt in Oil and Gas Exploration: Petroleum Minister
·
172 hydrocarbon discoveries reported
since 2015, including 62 in offshore area
·
Andaman Basin emerges as key frontier in
India’s energy exploration
Offshore
Oil & Gas Exploration Surge in India
India is experiencing a
renewed surge in offshore
oil and gas exploration, especially in the Andaman-Nicobar (AN) basin,
following the opening of
nearly 1 million sq km of ‘No-Go’ areas in 2022. This has
unlocked vast untapped hydrocarbon
potential, particularly in deepwater and frontier regions.
·
Since
2015, 172
hydrocarbon discoveries have been made, with 62 in offshore areas.
·
The AN basin, at the
tectonic boundary of the Indian and Burmese plates, holds geological promise due
to stratigraphic traps and proximity to proven petroleum systems in Myanmar and North Sumatra.
·
Strategic
policy changes and a
revised exploration
approach have boosted seismic data acquisition, stratigraphic
drilling, and foreign investment interest.
·
ONGC
and Oil India Ltd (OIL) have
begun ultra-deepwater drilling in the Andaman region, reaching depths up to 5000 meters.
·
The ANDW-7 wildcat well in
East Andaman revealed light
crude, condensate traces, and heavy hydrocarbons, confirming the
existence of a thermogenic
petroleum system.
·
Though
commercial reserves are yet to be confirmed, geological validation is complete, laying
the groundwork for targeted exploration.
·
ONGC has discovered hydrocarbons in 20 blocks (75 MMTOE).
·
OIL made 7 discoveries in the last 4 years (9.8
million barrels of oil + 2,706.3 MMSCUM gas).
·
A 2D broadband seismic survey
of 80,000 LKM was completed in 2024, and OIL conducted 22,555 LKM of 2D seismic
survey in 2021–22.
·
Introduction
of Revenue Sharing
Contracts (2015), HELP
& OALP (2016), National
Data Repository (2017-18), and crude oil marketing deregulation (2022).
·
These
reforms created a liberal
and investor-friendly ecosystem with targeted incentives.
The exploration
momentum, particularly in the AN
basin, could significantly enhance India’s energy security,
reduce import dependence, and establish India as a competitive hydrocarbon
exploration frontier.
India
is witnessing a renewed surge in oil and gas exploration, particularly in
offshore regions, underscoring the country’s vast untapped hydrocarbon
potential. In a written reply to a starred question in the Rajya Sabha, Union
Minister for Petroleum and Natural Gas, Hardeep Singh Puri, stated that the
opening of nearly one million square kilometres of erstwhile 'No-Go' offshore
areas in 2022 has been a landmark development. This move has unlocked
significant exploration frontiers, especially in deepwater and frontier regions
such as the Andaman-Nicobar (AN) offshore basin, and has been instrumental in
triggering the current momentum in offshore activity.
Since
2015, Exploration and Production (E&P) companies operating in India have
reported 172 hydrocarbon discoveries, including 62 in offshore areas. The
Minister highlighted the geological significance of the AN basin, which lies at
the junction of the Andaman and Nicobar Basins within the Bengal-Arakan
sedimentary system. The tectonic setting, located at the boundary of the Indian
and Burmese plates, has led to the formation of numerous stratigraphic traps
that are conducive to hydrocarbon accumulation. This geological promise is
further amplified by the basin's proximity to proven petroleum systems in
Myanmar and North Sumatra. The region has attracted renewed global interest
following significant gas discoveries in South Andaman offshore Indonesia, underlining
the geological continuity across the region.
While
the favourable geology sets a strong foundation, Mr. Puri emphasized that the
real breakthrough has come from the government’s strategic policy interventions
and a new exploration approach. The revised strategy has enabled aggressive
acquisition of seismic data, initiation of both stratigraphic and exploratory
drilling, and increased engagement with international exploration partners,
several of whom have shown keen interest in the newly accessible frontier
blocks.
National
Oil Companies have planned to drill four offshore stratigraphic wells,
including one in the AN basin. These scientific wells are designed to test
geological models, validate the existence of petroleum systems, and help
de-risk future commercial exploration. Although commercial accumulations have
not yet been confirmed, these efforts mark a major step forward in systematic
and knowledge-driven hydrocarbon exploration.
In
a significant development, ONGC and Oil India Ltd (OIL) have launched an
ambitious exploration campaign in the Andaman ultra-deepwater region. For the
first time, drilling operations are targeting depths of up to 5000 metres. One
such wildcat well, ANDW-7, drilled in a carbonate play in the East Andaman Back
Arc region, has yielded encouraging geological insights. These include traces
of light crude and condensate in cutting samples, heavy hydrocarbons like C-5
neo-pentane in trip gases, and the presence of reservoir-quality facies. These
findings establish, for the first time, the existence of an active thermogenic
petroleum system in the region, comparable to those in Myanmar and North
Sumatra. While commercial reserves remain to be established, this campaign has
validated the presence of a working petroleum system and laid the foundation
for focused exploration in the area.
Providing
an overview of the exploration outcomes so far, the Minister informed that ONGC
has made hydrocarbon discoveries in 20 blocks, with an estimated reserve of 75
million metric tonnes of oil equivalent (MMTOE). OIL, on its part, has made
seven oil and gas discoveries over the past four years, with reserves estimated
at 9.8 million barrels of oil and 2,706.3 million standard cubic meters of gas.
Referring
to the Hydrocarbon Resource Assessment Study (HRAS) of 2017, which estimated
the AN basin’s hydrocarbon potential at 371 MMTOE, the Minister stated that a
2D broadband seismic survey covering approximately 80,000 Line Kilometres (LKM)
of India’s Exclusive Economic Zone, including the AN offshore region, was
completed in 2024. Additionally, OIL acquired 22,555 LKM of 2D seismic data
during the Deep Andaman Offshore Survey conducted in 2021–22. Several promising
geological features have emerged from this data, which are now being validated
through ongoing drilling campaigns by ONGC and OIL.
Mr.
Puri underscored that the current momentum in offshore and frontier exploration
is a result of a series of progressive policy reforms introduced since 2014.
These include the transition from the Production Sharing Contract (PSC) regime
to the Revenue Sharing Contract (RSC) model in 2015, the launch of the
Hydrocarbon Exploration and Licensing Policy (HELP) and the Open Acreage
Licensing Programme (OALP) in 2016, the establishment of the National Data
Repository in 2017–18, and the deregulation of crude oil marketing in 2022.
Together, these measures have fostered a liberal, investor-friendly exploration
environment backed by targeted incentives for frontier exploration,
stratigraphic drilling, and data acquisition.
These
reforms have enabled the kind of bold, risk-informed and scientific exploration
now underway in the Andaman-Nicobar basin and other deepwater regions, offering
the potential to significantly boost India’s energy security and self-reliance.