An Ocean of Energy Opportunities: India’s Natural Gas Discovery in the Andaman Basin

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India has taken a decisive step in its pursuit of energy self-reliance with the confirmation of natural gas in the Andaman basin. The announcement, made by Union Petroleum Minister Hardeep Singh Puri in September 2025, has been hailed as a milestone in India’s deepwater exploration ambitions. The find, though still at an early stage, represents both a technological achievement and a strategic opportunity for India’s energy future.

The Discovery

The discovery was made by Oil India Ltd (OIL) in its shallow offshore block AN-OSHP-2018/1, awarded under the Open Acreage Licensing Policy (OALP). The drilling took place at the Sri Vijayapuram-2 exploratory well, located 17 km from the Andaman east coast, at a water depth of 295 metres and drilled down to 2,650 metres.

During initial production testing between 2,212 and 2,250 metres, intermittent flaring of gas was observed, confirming the presence of hydrocarbons. Gas samples were transported to Kakinada for detailed analysis, which revealed a high methane content of 87 percent. This result indicates the presence of clean, high-quality natural gas.

Scientific Validation

Preliminary analysis has confirmed the presence of natural gas, with further gas isotope studies underway to establish the genesis of the hydrocarbons. This could help determine whether the gas is thermogenic (formed from deeper hydrocarbon generation) or biogenic (produced by microbial activity).

Such insights are critical to assess the scale, migration pathways, and accumulation zones, which will influence both future drilling and commercial prospects.

From Occurrence to Discovery

Currently, the find is classified as an occurrence of natural gas, not yet a commercial discovery. The difference is crucial:

  • Occurrence: Evidence of hydrocarbons found in exploration wells.

  • Discovery: A confirmed accumulation that is commercially viable for extraction.

The size of the gas pool and its economic viability will be verified through further drilling, reservoir testing, and field development studies in the coming months. If commercial quantities are proven, this will mark the first significant hydrocarbon discovery in the Andaman basin.

Geological Context

The Andaman basin lies within India’s Category II basins (as per the Directorate General of Hydrocarbons). These basins are recognized to have hydrocarbon occurrences but no proven commercial production yet.

Geologically, the basin is part of the same belt that runs through Myanmar and Indonesia, both of which have significant offshore hydrocarbon reserves. The Andaman find therefore validates the long-held belief that the basin could be energy-rich, opening up a new frontier for India.

Policy & Mission Alignment

The discovery comes soon after Prime Minister Narendra Modi’s announcement of the National Deep Water Exploration Mission, termed “Samudra Manthan”, during his Independence Day address in August 2025.

This mission aims to:

  • Expand exploration in frontier offshore basins.

  • Strengthen India’s energy independence.

  • Partner with global exploration leaders like Petrobras, BP, Shell, and ExxonMobil.

Minister Puri emphasized that this occurrence strengthens India’s ability to pursue such global partnerships and represents a significant milestone in India’s energy journey during Amrit Kaal.

Strategic and Economic Implications

  1. Energy Security
    India currently imports nearly 88% of its crude oil and 50% of its natural gas needs. A commercial discovery in the Andaman basin could reduce dependence on costly imports, easing the pressure on India’s trade deficit and strengthening energy security.

  2. Economic Opportunities
    Large-scale development could create jobs, attract foreign investment, and boost supporting industries such as offshore services, pipelines, LNG plants, and shipping.

  3. Regional Significance
    The Andaman & Nicobar Islands lie at a strategic maritime crossroads in the Indo-Pacific, close to major global shipping lanes. A commercial find here could transform the region into a strategic energy hub.

Environmental Considerations

While the discovery promises economic and strategic benefits, it also raises important environmental questions:

  • The Andaman & Nicobar Islands are ecologically fragile, hosting coral reefs, mangroves, and diverse marine life.

  • Offshore drilling poses risks of spills, noise pollution, and habitat disruption.

  • India will need to balance hydrocarbon development with its commitments to the Paris Agreement and the goal of achieving net-zero emissions by 2070.

The Road Ahead

The confirmation of natural gas in the Andaman basin is just the first step in a long process. The coming months will determine whether the find is commercially viable and whether it can be developed sustainably.

If successful, the discovery could join the ranks of India’s other major east coast finds such as Reliance’s D6 block, GSPC’s KG basin fields, and ONGC’s deepwater strikes ushering in a new chapter of offshore exploration.

For now, as Minister Puri aptly put it, “an ocean of energy opportunities opens up in the Andaman Sea.”

Location: India
Welcome to EcoVisionary. I'm Dr. Anitha V, an environmentalist passionate about exploring and sharing insights on the intricate relationship between humans and the natural world. Having successfully completed my Ph.D. in Environmental Sciences, my goal is to raise awareness of pressing environmental issues and inspire actionable solutions for a healthier planet. Through engaging articles, in-depth research, and thought-provoking discussions, I aim to empower readers to embrace sustainable practices and become stewards of the environment. Join me on this journey to create a more sustainable future, where every small step can lead to significant change.

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