Govt Exploring Oil And Gas Reserves In Andaman Nicobar
Minister of State in the Ministry of Petroleum and Natural Gas Suresh Gopi informed the Rajya Sabha on 11 August 2025 that the Indian government is taking measures to explore and identify crude oil and hydrocarbon reserves in the Andaman-Nicobar (AN) island basin so that they can contribute to the country’s long term energy security and reduce dependence on imports.
Since the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP), the government opened up approximately 23,261 sq km of the Andaman-Nicobar basin for exploration in four blocks. This has given us 8,501 line km of 2D seismic data and 3,270 sq km of 3D seismic data. Also, three wells have been dug in three blocks so far.
Another four blocks with a total area of 47,058 sq km have been offered in the Andaman basin under the Open Acreage Licensing Policy (OALP), that allows companies to select and propose blocks for exploration of oil and gas instead of the government doing so. The tenth round of OLAP which was launched in April 2025, offered up 25 exploration blocks.
Mr Gopi informed the Rajya Sabha that a Hydrocarbon Resource Assessment Study (HRAS) estimates the AN basin to hold hydrocarbon resources of 371 million Metric Tons of Oil Equivalent (MMTOE). After the HRAS in 2017, a 2D broadband seismic survey done in 2024 covered approximately 80,000 line kilometers of India’s Exclusive Economic Zone (including in Andaman offshore). This helped acquiring the essential sub-surface data required for identifying prospective hydrocarbon reserves. Government through Oil India Limited (OIL) has also acquired a total of 22,555 Line Kilometer (LKM) of 2D seismic data in Deep Andaman Offshore Survey during 2021-22.
Geologically, the AN basin lies at the intersection of the Andaman and Nicobar Basins, part of the Bengal-Arakan sedimentary system. The tectonic setting at the boundary of the Indian and Burmese plates have created numerous stratigraphic traps conducive to hydrocarbon accumulation. The basin’s geological promise is further amplified by its proximity to prove petroleum systems in Myanmar and North Sumatra. Global interest in the AN basin has been rekindled following significant gas discoveries in South Andaman offshore in Indonesia, highlighting geological continuity across this region.
Each sedimentary basin possesses distinct geological characteristics, hydrocarbon system dynamics, prospectivity, and development challenges, making direct comparison across basins inherently limited. Consequently, economic and strategic assessments are undertaken in the context of basin-specific parameters, rather than on a like-for-like comparative basis, to ensure realistic evaluation and policy decision-making.
