India May Soon Discover Major Oil Reserve in Andaman Sea, Says Minister.
India may be close to making a major oil discovery in the Andaman Sea, which could greatly reduce the country’s need to import crude oil. Union Petroleum and Natural Gas Minister Hardeep Singh Puri has said that ongoing oil exploration in the region shows strong promise. He compared it to the massive oil discovery made in Guyana, which helped transform that country’s economy. Today, India imports around 85–88% of its crude oil and is the world’s third-largest oil importer, after the U.S. and China.
Guyana became an important oil producer after companies like ExxonMobil and CNOOC discovered about 11.6 billion barrels of oil and gas off its coast. Minister Puri believes India could achieve something similar in the Andaman offshore region. He said, “It’s only a matter of time before we discover a Guyana-like oil reserve in the Andaman Sea.” He added that such a discovery could help India grow from a $3.7 trillion economy to a $20 trillion economy in the future.
To support more oil and gas exploration, the Indian government launched the Open Acreage Licensing Policy (OALP). This policy allows companies to choose and bid for oil blocks all year round. So far, over 1 million square kilometers of sedimentary basins have been made available for exploration. As a result, ONGC drilled more than 540 wells in 2023–24, the highest in nearly 40 years.
The Andaman and Nicobar region is now seen as one of the most promising areas for new oil and gas discoveries. Early studies suggest it may contain up to 70 million tonnes of oil equivalent. Global estimates vary—S&P Global believes India’s deepwater reserves could be as high as 22 billion barrels, while Rystad Energy estimates around 8 billion barrels. Experts say deepwater exploration is difficult, expensive, and takes time, so results will depend on future drilling.
India is also working with major international oil companies like ExxonMobil, Chevron, and BP to increase investments and technology in exploration. The government hopes that these partnerships will help reduce oil imports, boost energy security, and support long-term economic growth.
If confirmed, a large oil discovery in the Andaman Sea could be a major milestone for India—bringing down oil import costs, attracting global investors, creating new jobs, and helping the country become more energy independent.