This comes as a new report highlights the urgent need for India to safeguard its oil and gas supply chains amidst rising global uncertainties and increasing energy demand.
India stands on the brink of a potentially massive oil discovery in the Andaman Sea, Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced, drawing an optimistic parallel to the significant oil finds in Guyana. The minister emphasized that early offshore explorations in the Andaman region are showing "green shoots" and could lead to the discovery of substantial oil reserves, potentially holding as much as 184,440 crore litres of crude oil, which could drastically reduce India's heavy reliance on oil imports.
Puri highlighted the perseverance required in oil exploration, citing Guyana's experience where oil was found in the 47th well after 46 dry attempts. "We believe India holds the potential of several Guyanas, particularly in the Indian Ocean region," Puri stated, expressing confidence that India is "looking at the possibility... of finding a Guyana."
The minister detailed several recent promising finds from various Open Acreage Licensing Policy (OALP) rounds: "Surya Mani (OALP Round 6), dug at 2,323 metres, with an estimated potential of 4 million metric tonnes of oil equivalent; Neel Mani (OALP Round 5), dug at 1,117 metres, 1.2 million metric tonnes; in 2025–26, another well from OALP Round 3 at 2,865 metres shows both oil and gas; in 2023–24, under OALP 3, Moti well at 2,957 metres revealed around 5 million metric tonnes of oil and gas equivalent." He cautioned against prematurely speculating on exact quantities but affirmed that the data, encompassing "2.5 pages of discovery listings," points in a promising direction.
India, currently importing 80% of its oil and 50% of its natural gas, stands to gain immensely from such a discovery. Even a "5-billion-barrel discovery would be a game-changer," Puri asserted. He also addressed the long-standing question of why these explorations weren't undertaken earlier, attributing it to high costs and corporate reluctance due to quarterly earnings pressures. Currently, ONGC and Oil India Limited are drilling four wells at depths of 5,000 metres.
Meanwhile, a report released by the PHD Chamber of Commerce and Industry (PHDCCI) underscores the critical need for India to fortify its energy security. With India projected to grow at over 6% annually and its primary energy demand increasing at a CAGR of 5.5%, safeguarding oil and gas supply chains is paramount, especially amidst rising geopolitical and market uncertainties. The report highlighted India's position as the world’s third-largest oil importer, with over 85% of its crude oil needs met through imports.
