India Sees Renewed Surge in Oil and Gas Exploration with Opening of 1 Million Sq Km Offshore Area

India has opened nearly 1 million sq km of new offshore areas for oil and gas exploration, leading to renewed interest in the sector. The Andaman-Nicobar basin has shown significant geological promise, with 172 hydrocarbon discoveries since 2015, including 62 in offshore areas. The government's strategic policy interventions and new exploration approach have enabled aggressive seismic data acquisition and drilling operations, with ONGC and OIL launching an ambitious campaign in the Andaman ultra-deepwater region.

India has taken a significant step towards bolstering its energy security by opening nearly one million square kilometers of new offshore areas for oil and gas exploration. This move, announced by Minister for Petroleum and Natural Gas, Hardeep Singh Puri, in 2022, has reignited interest in the sector and underscored the potential of the Andaman-Nicobar basin [1].

Since 2015, Exploration and Production (E&P) companies operating in India have reported 172 hydrocarbon discoveries, with 62 of these occurring in offshore areas. The Andaman-Nicobar basin, in particular, has shown remarkable geological promise. The basin's tectonic setting, located at the boundary of the Indian and Burmese plates, has created numerous stratigraphic traps conducive to hydrocarbon accumulation [2].

The government's strategic policy interventions and new exploration approach have been pivotal in unlocking this potential. Aggressive seismic data acquisition, initiation of both stratigraphic and exploratory drilling, and increased engagement with international exploration partners have been key components of this strategy [1, 2]. This approach has led to ONGC and Oil India Ltd (OIL) launching an ambitious exploration campaign in the Andaman ultra-deepwater region, with drilling operations targeting depths of up to 5,000 meters [1].

One notable achievement of this campaign is the drilling of the wildcat well ANDW-7 in a carbonate play in the East Andaman Back Arc region. This well has yielded encouraging geological insights, including traces of light crude and condensate in cutting samples, and heavy hydrocarbons like C-5 neo-pentane in trip gases. These findings establish the existence of an active thermogenic petroleum system in the region, comparable to those in Myanmar and North Sumatra [1].

The exploration outcomes so far are promising. ONGC has made hydrocarbon discoveries in 20 blocks, with an estimated reserve of 75 million metric tonnes of oil equivalent (MMTOE), while OIL 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 [1].

Moreover, Reliance Industries, ONGC, and BP have signed a Joint Operating Agreement to explore offshore Block GS-OSHP-2022/2 in the Saurashtra basin, further strengthening India’s energy exploration capabilities [3].

To ensure environmental safeguards, exploration activities are subject to rigorous environmental impact assessments and stakeholder consultations, including with local communities and fisherfolk [2].

References:
[1] https://www.thehawk.in/news/science/govt-has-opened-1-million-sq-km-of-new-offshore-area-to-step-up-oil-gas-hunt-hardeep-puri
[2] https://www.hindustantimes.com/india-news/huge-potential-for-oil-gas-exploration-in-andaman-nicobar-offshore-areas-govt-101753705463747.html
[3] https://indiacsr.in/reliance-ongc-and-bp-join-hands-for-offshore-block-in-saurashtra-basin/