Emerging Amidst the Russia Oil Dispute, India Claims Resilience of Its Energy Sector Amidst Global Instability
India is witnessing a renewed surge in oil and gas exploration, with the government opening nearly one million square kilometres of erstwhile 'No-Go' offshore areas, including the Andaman region, in 2022. This ambitious campaign by Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) targets unprecedented depths of up to 5,000 meters.
Recent developments in the Andaman ultra-deepwater region have yielded significant findings. A wildcat well named ANDW-7, drilled in a carbonate play in the East Andaman Back Arc region, has provided promising geological insights. Traces of light crude, condensate in cutting samples, and heavy hydrocarbons such as C-5 neo-pentane in trip gases have been discovered. These findings demonstrate the existence of an active thermogenic petroleum system for the first time in this region, comparable to known systems in Myanmar and North Sumatra.
ONGC has made hydrocarbon discoveries in 20 blocks nationwide, with estimated reserves of about 75 million metric tonnes of oil equivalent (MMTOE). Oil India Ltd. has also made seven oil and gas discoveries over the past four years, with reserves of approximately 9.8 million barrels of oil and 2,706.3 million standard cubic meters of gas.
The proximity of the Andaman region to proven petroleum systems in Myanmar and North Sumatra has amplified its geological promise. The open acreage licensing policy (OALP) Round 10 has unlocked 2.5 lakh sq km for further exploration and production.
The Indian government’s policy interventions and new exploration strategies, including aggressive seismic acquisition and engagement with international partners, have been critical in unlocking access to this frontier region and driving exploration activity.
These findings establish the Andaman region as a significant area for future hydrocarbon development, with commercial discovery confirmation pending. The progress provides a strong platform for India's energy security, aligning with Prime Minister Narendra Modi's vision of resilience.
Meanwhile, India's oil refining capacity has increased from 215 to 258 million metric tonnes per annum (MMTPA). Jamnagar is now Asia's largest refinery, exporting petroleum products to over 100 countries. The energy sector in India is rising amidst global uncertainty, driven by reforms in the oil and gas sector.
In summary, ONGC and Oil India Ltd's recent exploration efforts in the Andaman ultra-deepwater region have scientifically validated the presence of a working petroleum system at ultra-deepwater depths, marking a significant milestone. This progress provides a strong platform for future hydrocarbon development in a previously underexplored basin with considerable potential.
The discovery of hydrocarbons in the Andaman region, including light crude, condensate, and C-5 neo-pentane, indicates a promising future for energy extraction, given its proximity to proven petroleum systems in Myanmar and North Sumatra. This finding aligns with the Indian government's finance-backed initiatives, such as the open acreage licensing policy (OALP) Round 10 and strategic partnerships with international players, which aim to drive further development in the oil and gas industry.
