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Unlocking India’s Energy Frontiers: ONGC & OIL Drive Deepwater Push in Andaman Basin Amid Surge in Offshore Exploration

India’s oil and gas exploration gets a deepwater boost as ONGC and OIL target the Andaman Basin.
Indian Masterminds Stories

New Delhi: India’s oil and gas exploration sector is undergoing a transformative revival, driven by landmark policy reforms and a bold foray into untapped offshore regions. Union Petroleum Minister Hardeep Singh Puri, in a written reply to the Rajya Sabha, revealed that since 2015, a total of 172 hydrocarbon discoveries have been made—62 of which are in offshore blocks—signalling a decisive shift in exploration momentum.

Andaman Basin Emerges as Energy Frontier

A major catalyst in this surge has been the opening of nearly 1 million sq. km of ‘No-Go’ offshore areas in 2022, previously inaccessible due to regulatory constraints. The Andaman-Nicobar (AN) offshore basin, located at the tectonic confluence of the Indian and Burmese plates, has emerged as a strategic frontier with promising geological formations and proximity to established petroleum systems in Myanmar and North Sumatra.

The region has gained renewed global interest following significant gas finds in offshore Indonesia, reflecting shared stratigraphic potential across the Bay of Bengal arc. The AN Basin now stands at the centre of India’s most ambitious offshore exploration campaign in decades.

ONGC, OIL Go Ultra-Deep in Andaman Waters

Taking this opportunity head-on, Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) have launched a pioneering deepwater campaign, drilling for the first time at depths up to 5000 metres. One standout effort is the ANDW-7 wildcat well, drilled in a carbonate play in the East Andaman Back Arc. Preliminary findings have revealed:

  • Traces of light crude and condensate in cutting samples
  • C-5 neo-pentane hydrocarbons in trip gases
  • Reservoir-quality facies in core data

These insights validate the presence of an active thermogenic petroleum system in the region—comparable to discoveries in neighbouring Southeast Asian basins—and open the door to focused commercial exploration.

Seismic Survey Blitz Unlocks Geological Promise

The Andaman campaign is backed by massive seismic efforts, including:

  • 2D broadband survey of 80,000 Line Kilometres (LKM) across India’s Exclusive Economic Zone
  • 22,555 LKM of additional data from OIL’s 2021–22 Deep Andaman Offshore Survey

These efforts are revealing promising subsurface features that are now undergoing real-time validation through drilling.

Scientific Drilling and Strategic De-Risking

National Oil Companies are currently executing four stratigraphic wells, including one in the AN Basin. These wells aim to:

  • Test geological models
  • Confirm presence of petroleum systems
  • De-risk future commercial exploration

While commercial reserves are yet to be confirmed, these are critical groundwork for India’s next-generation oil & gas discoveries.

Also Read: ONGC Formalizes Offshore Energy Pact Under OALP-IX, Marking New Phase in India’s Exploration Drive

Hydrocarbon Discoveries So Far

  • ONGC: 20 discoveries across blocks with an estimated reserve of 75 MMTOE
  • OIL: 7 discoveries in the last four years, totalling 9.8 million barrels of oil and 2,706.3 million standard cubic metres of gas

These numbers are expected to rise sharply as exploratory drilling picks up in the AN basin.

Policy Reforms Paving the Way for Frontier Exploration

Minister Puri credited the surge in exploration to major policy reforms since 2014, including:

  • Shift from Production Sharing Contracts (PSC) to Revenue Sharing Contracts (RSC) (2015)
  • Launch of Hydrocarbon Exploration and Licensing Policy (HELP) and Open Acreage Licensing Programme (OALP) (2016)
  • Creation of the National Data Repository (2017–18)
  • Deregulation of crude oil marketing (2022)

These measures have created a liberal, data-driven, and investor-friendly ecosystem for exploration in high-risk, high-reward frontier basins.

About ONGC

Oil and Natural Gas Corporation (ONGC) is India’s largest crude oil and natural gas company, contributing around 71% to Indian domestic production. A Maharatna PSU under the Ministry of Petroleum and Natural Gas, ONGC is spearheading exploration and production projects both in India and abroad to secure the country’s energy future.

About Oil India Limited

Oil India Limited (OIL) is a Maharatna Public Sector Undertaking under the Ministry of Petroleum and Natural Gas, Government of India. As one of the country’s premier upstream oil and gas companies, OIL plays a vital role in exploration, production, and energy transportation. The organisation is deeply committed to environmental stewardship and operational safety, making it a leader in sustainable energy practices.

Also Read: India Energy Week 2025: Oil India Signs MoU with Petrobras to Explore Offshore Hydrocarbon Reserves


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