India meets 85% of its crude oil needs through imports. Domestic production of crude oil is currently concentrated in Assam, Gujarat, Rajasthan, the Mumbai High, and the Krishna-Godavari basin. India has increased drilling for exploration in several areas, especially in those that were previously considered inaccessible.
If it is confirmed that there is such a large oil reserve in the Andaman Sea, this discovery could reshape India’s energy landscape.
India may discover a very large offshore oil find in the Andaman Sea. This oil reserve could hold 184,440 crore liters of crude oil and could rival Guyana’s transformative discovery. This was said by Union Minister of Petroleum and Natural Gas Hardeep Singh Puri in an exclusive interview with The New Indian.If this oil reserve is found, it will prove to be a major game-changer for India. Puri stated that the government’s recent reforms and aggressive exploration campaigns are laying the groundwork for a major discovery.
According to Puri, apart from small discoveries, large-scale oil exploration in the Andaman region like that of Guyana could help boost India’s economy from $3.7 lakh crore to $20 lakh crore. If it is confirmed that there is such a large oil reserve in the Andaman Sea, this discovery could reshape India’s energy landscape. Puri said it is just a matter of time, and after that, we might find a significant Guyana in the Andaman Sea.
ExxonMobil, Hess Corporation, and CNOOC discovered a massive reserve of over 11.6 billion barrels off the coast of Guyana. That discovery has placed Guyana among the top 20 countries in the world with oil reserves, leading to a new shift in the country’s economy. Puri believes that if the current drilling efforts are successful, India could move towards similar success, especially in the Andaman region.
Drilling for oil wells is not cheap
in India, drilling has increased for exploration in several areas, especially those previously considered inaccessible. Puri also mentioned the high cost of drilling wells for oil exploration. He said it requires a lot of money. He pointed out that in Guyana, he drilled 43 or 44 wells, each costing 100 million dollars. They found oil in the 41st well. Furthermore, he said that the state-owned Oil and Natural Gas Corporation (ONGC) has drilled the highest number of wells this year in the last 37 years. In the fiscal year 2024, the company drilled 541 wells, including 103 exploratory and 438 developmental wells. Overall, the company also recorded its highest capital expenditure of ₹37,000 crore.
India is the third largest oil importer.
India meets 85% of its crude oil needs through imports. The country is the third largest importer of crude oil in the world, surpassed only by the United States and China. Domestic production of crude oil is currently concentrated in Assam, Gujarat, Rajasthan, the Mumbai High, and the Krishna-Godavari basin. Strategic petroleum reserves have been established in Visakhapatnam, Mangalore, and Padur, with plans for new sites in Odisha and Rajasthan.
