Oil India Limited (OIL) has announced the discovery of natural gas off the Andaman Islands, marking the first confirmed hydrocarbon find in the region’s shallow offshore block. The breakthrough could open a new chapter in India’s energy exploration and gradually reduce the nation’s dependence on imports.
Discovery and Testing
The exploratory well Vijayapuram-2, drilled about 17 km from the Andaman shoreline, struck natural gas at a depth of 2,212–2,250 metres beneath 295 metres of water. Initial tests indicated intermittent gas inflow, with samples containing 87% methane—confirming the presence of natural gas. Isotope studies are underway to determine the origin and potential of the reserves.
Exploration in the Andaman Basin
The Andaman Sea has long been viewed as a promising hydrocarbon zone due to its similarities with gas-rich belts stretching from Myanmar to Indonesia. Both OIL and ONGC have been conducting exploration under the Open Acreage Licensing Policy (OALP), though this is the first confirmed shallow offshore discovery in the basin.
Strategic Significance
India currently imports nearly 88% of its crude oil and 50% of its natural gas. A successful find in the Andaman basin could help trim this dependence and bolster energy security. Industry experts have compared the basin’s potential to Guyana’s prolific oil fields, suggesting prospects of large-scale reserves. If commercialised, the discovery could reshape India’s eastern offshore energy landscape.
Road Ahead
OIL will continue testing higher prospects in the block to assess commercial viability. The company expects the results to guide its future exploration strategy in the region. Meanwhile, ONGC’s ultra-deepwater drilling efforts in nearby blocks may complement OIL’s findings and add further momentum to the basin’s development.
Geological and Environmental Considerations
Located in a tectonically complex zone between the Indian and Burmese plates, the Andaman basin offers multiple hydrocarbon migration pathways. However, offshore drilling in this ecologically sensitive region demands cutting-edge technology and strict environmental safeguards to balance energy needs with conservation priorities.