India May Be Sitting on Guyana-Sized Oil Reserves in the Andaman Sea, Says Hardeep Singh Puri

India May Be Sitting on Guyana-Sized Oil Reserves in the Andaman Sea, declared Union Minister Hardeep Singh Puri, igniting optimism about the country’s offshore future. If proven, reserves comparable to Guyana’s 11 billion barrels could transform India’s energy security, economic growth, and geopolitical standing.

In simple terms, Guyana went from near-zero production to about 645,000 barrels per day by 2024 after ExxonMobil’s 2015 Liza discovery, a find estimated at over 11 billion barrels of recoverable oil-equivalent resources. Puri’s analogy suggests that a similar bonanza may lie beneath the Andaman Sea’s seabed, potentially ushering in a new era of prosperity for India’s eastern corridors.

India May Be Sitting on Guyana-Sized Oil Reserves

Union Minister Hardeep Singh Puri’s “Guyana-sized” analogy encapsulates a bold vision: that the Andaman Sea may harbor reserves capable of redefining India’s energy landscape. Realizing this promise demands sustained policy clarity, cutting-edge technology, and rigorous environmental stewardship. For governments, NOCs, service providers, and investors, the time to prepare is now. With the right mix of strategy, partnerships, and innovation, India’s offshore frontier could become a defining chapter in its journey toward energy self-reliance and economic prosperity.

Why the Andaman Sea?

For decades, the Andaman Sea basin was viewed as technically challenging and economically risky due to ultra-deep water, complex geology, and limited infrastructure. However, two landmark reforms have shifted the calculus:

1. “No-Go” Zone Reduction
   In December 2022, the Directorate General of Hydrocarbons (DGH) slashed “no-go” areas by 99%, unlocking nearly the entire Exclusive Economic Zone (EEZ) for exploration. This move turned vast stretches of previously off-limits seabed into a hotbed for potential discoveries.
2. Open Acreage Licensing Policy (OALP)
   Launched in 2016, OALP allows companies to nominate any block for bidding at any time, replacing the old rigid, pre-defined bid rounds. To date, roughly 1 million km² of India’s 3.5 million km² sedimentary basins are open under OALP, with more slated in upcoming rounds.

Additional regulatory enhancements include:

• A shift from production-sharing to revenue-sharing contracts, aligning government and investor objectives.
• Streamlined approvals under the Oil Fields Regulation and Development (OFRD) Amendment Bill, which modernized rules dating back to 1948, mandated public consultations, and set clear timelines for permissions.

ONGC’s Drilling Momentum

Oil and Natural Gas Corporation (ONGC), India’s national explorer, has been at the forefront of offshore activity acceleration:

• 541 wells drilled in FY 2024, comprising 103 exploratory and 438 development wells—the highest tally in 37 years.
• A record ₹37,000 crore capital outlay focused on deepwater rigs, seismic surveys, and subsea infrastructure.
• Negotiations with international majors such as ExxonMobil, Chevron, CNOOC, and Shell to form technical alliances and share investment risk.

ONGC’s surge signals India’s urgency: learning from global precedents, confirming a world-class field often requires multiple appraisal wells—sometimes 40 or more—each costing upwards of US $100 million.

Learning from Guyana’s Success

Guyana’s Stabroek block provides a proven roadmap:

• 2015: ExxonMobil’s first Liza discovery in 1,300 meters of water depth.
• 2017–2021: Drilled over 20 appraisal wells, confirming >11 billion barrels of recoverable resources.
• 2020–2024: Brought production from zero to ~645,000 bpd; potential to reach 1.3 million bpd by 2027.

Key lessons for India:

• Heavy up-front investment in drilling rigs, floating production storage and offloading (FPSO) vessels, and subsea systems.
• Long-term service contracts and joint ventures with experienced field operators.
• Regulatory predictability to justify multi-billion-dollar commitments.

Economic Impact & Job Creation

A major Andaman discovery could yield profound economic benefits:

• GDP Growth: A sustained offshore boom might add 0.5–1.0 percentage points to India’s annual GDP growth over the next decade.
• Direct Employment: Creation of 50,000–75,000 jobs in drilling, geosciences, marine engineering, and vessel operations.
• Indirect Employment: Thousands of additional roles in ports, shipyards, fabrication yards, logistics, hospitality, and local services.
• Government Revenue: Royalties, profit shares, and corporate taxes could generate ₹2,000–3,000 crore per year, funding infrastructure, education, and healthcare in the Andaman & Nicobar Islands.

Technological Innovations in Offshore Exploration

Cutting-edge technologies de-risk and optimize offshore campaigns:

• AI-Driven Seismic Interpretation: Machine learning algorithms that reduce seismic data processing time by up to 30% and enhance reservoir detection accuracy.
• Digital Twinning: Virtual replicas of subsea fields enabling real-time monitoring, predictive maintenance, and optimized production workflows.
• Autonomous Underwater Vehicles (AUVs): Unmanned drones that map the seabed, inspect pipelines, and monitor environmental parameters without human divers.
• Managed Pressure Drilling (MPD) and Extended Reach Drilling (ERD): Techniques that maintain wellbore stability, reduce non-productive time, and access reservoirs that were previously uneconomical.

Environmental Safeguards & Community Engagement

Balancing resource development with environmental stewardship is critical:

1. Comprehensive Environmental Impact Assessments (EIAs)
   Baseline studies on coral reefs, fish stocks, mangrove ecosystems, and sensitive habitats inform drilling plans and mitigation measures.
2. Real-Time Monitoring Systems
   Sensors on rigs, pipelines, and subsea equipment detect anomalies instantly, triggering automated shutdowns and spill-response protocols.
3. Oil Spill Response Preparedness
   Pre-positioned containment booms, skimmers, and dispersants ensure rapid reaction to any incident.
4. Community Consultations
   Ongoing dialogue with Andaman & Nicobar islanders guarantees local voices are heard on job creation, training programs, and revenue-sharing agreements. Island communities can benefit from dedicated scholarship funds, vocational training centers, and small-business grants.

Geopolitical Considerations

Developing the Andaman Sea frontier can reshape India’s regional influence:

• Energy Diplomacy: Export potential to Southeast Asian markets such as Thailand, Malaysia, and Vietnam enhances India’s strategic partnerships.
• Supply Chain Security: Domestic offshore production reduces reliance on Middle Eastern suppliers and mitigates risks from maritime choke points like Hormuz.
• Marine Domain Awareness: Increased offshore presence boosts oceanographic research and maritime surveillance capabilities.

A Step-by-Step Guide to Offshore Exploration

1. Basin Evaluation

• Seismic Surveys: Deploy 2D/3D seismic vessels to map subsurface geology.
• Geochemical Sampling: Collect seabed sediments for hydrocarbon indications.
• Data Analytics: Integrate seismic, well, and production data using advanced reservoir modeling software.

2. Licensing & Bidding

• Eligibility Registration: Demonstrate financial capacity and technical expertise to DGH.
• Bid Preparation: Define exploration work program, minimum revenue share, and environmental safeguards.
• Award & Contract: Negotiate final terms, secure block award, and pay bid security.

3. Appraisal Drilling

• Exploratory Well: Drill primary well to test reservoir presence, porosity, and pressure.
• Core Analysis: Examine rock samples to assess reservoir quality.
• Appraisal Campaign: Drill follow-up wells to delineate field boundaries and confirm recoverable volumes.

4. Field Development

• FPSO Chartering: Select suitable FPSO based on water depth and field size.
• Subsea Infrastructure: Install pipelines, umbilicals, subsea trees, and manifolds.
• Onshore Facilities: Build or upgrade terminals, storage tanks, and export jetties.

5. Production & Commercialization

• First Oil: Commission facilities, perform flow tests, and initiate hydrocarbon export.
• Production Optimization: Implement reservoir management strategies, incremental infill drilling, and enhanced oil recovery (EOR) techniques.
• Scale-Up: Add additional FPSOs, drilling rigs, and export routes as needed.

Timeline & Next Steps for Stakeholders

Glossary of Key Terms

• Exploratory Well: First well drilled to test for hydrocarbons.
• Appraisal Well: Follow-up well to define reservoir size and properties.
• FPSO: Floating Production, Storage & Offloading vessel used in deepwater fields.
• Seismic Survey: Geophysical method using sound waves to image subsurface rock formations.
• Revenue-Sharing Model: Contractual arrangement where the contractor pays the government a percentage of revenue rather than sharing production.

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FAQs

Q1: What does “Guyana-sized” really mean?
It refers to potential reserves on the order of 11 billion barrels, akin to ExxonMobil’s Liza discovery in Guyana’s Stabroek block.

Q2: How soon could India see “first oil”?
Assuming a commercial discovery and smooth approvals, first oil could flow in 5–7 years from the block award date.

Q3: What are the main risks?
Technical uncertainties in ultra-deep drilling, high upfront costs (US $80–120 million per well), and environmental sensitivities. Strict ESG protocols and robust spill-response plans mitigate these risks.

Q4: Could India become a net exporter?
If multiple large discoveries emerge, India could cut import dependence (currently 85–88% of consumption) and potentially export surplus to neighboring markets within a decade.

Q5: How can professionals and investors get involved?
Monitor DGH’s open acreage portal, build partnerships with ONGC and global majors, invest in specialized drilling and seismic service companies, or explore energy-focused mutual funds and ETFs.