India is close to discovering a massive crude oil reserve in the Andaman Sea, which could be a game-changer for the country’s energy security and economic growth.
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, recently hinted at this possibility in an interview with The New Indian Express. He stated that the Andaman Sea could hold up to 184 billion litres of crude oil, a reserve comparable to that of Guyana.
Puri said, “After the Krishna-Godavari basin, we’ve found positive signs of oil in the Andaman Sea as well. I believe this discovery could help propel India’s economy from $3.7 trillion to $20 trillion.” He drew parallels with Guyana, where massive offshore oil discoveries by American and Chinese companies transformed the nation’s economy.
Drilling Begins in Offshore Region
In recent years, the Indian government has introduced key policy reforms and increased investment to explore untapped offshore basins. Public sector companies like ONGC and Oil India Limited have already begun deep-sea drilling in the Andaman region.
In the financial year 2024, ONGC drilled 541 wells, the highest in 37 years, including 103 exploratory and 438 development wells. The company also recorded its highest-ever capital expenditure of ₹37,000 crore.
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Currently, India imports around 85% of its crude oil needs, making its energy security vulnerable. A successful discovery in the Andaman Sea could reduce this import dependency, strengthen energy independence, and ensure more stable petrol and diesel prices, ultimately boosting the economy.
Puri also shared that 43–44 wells were drilled in Guyana before oil was found in the 41st one. India faces similar challenges but remains hopeful of success soon.
The discovery of oil in the Andaman Sea could bring a revolution in India’s energy sector and significantly enhance the country’s standing in the global oil market. It has the potential to establish India as a major oil-producing nation and take the economy to new heights.