India's Oil and Gas Exploration Spurt: New Frontiers in Deepwater and Frontier Regions

Strategic Insights -

India's oil and gas exploration has witnessed a significant surge, particularly in offshore areas, with the opening up of nearly 1 million sq km of erstwhile 'No-Go' offshore areas in 2022. The ministry of petroleum and natural gas has stated that this bold policy move has facilitated unprecedented access for exploration and is a key enabler of the recent momentum in offshore activity. Recent claims of significant offshore oil and gas discoveries in the Andaman & Nicobar Islands have garnered attention, with geologists highlighting the region's geological promise and proximity to proven petroleum systems in Myanmar and North Sumatra.

Key Takeaways:

  • Since 2015, E&P companies operating in India have reported 172 hydrocarbon discoveries, including 62 in offshore areas, with significant gas discoveries in South Andaman offshore Indonesia rekindling global interest in the A&N basin.
  • The A&N basin's geological promise is amplified by its proximity to proven petroleum systems in Myanmar and North Sumatra, with tectonic setting conducive to hydrocarbon accumulation.
  • The government has planned to drill four offshore stratigraphic wells, including one in the Andaman-Nicobar basin, to test geological concepts and validate petroleum systems.
  • ONGC and OIL have embarked on an ambitious exploration campaign in the Andaman ultra-deepwater region, planning to drill deepwater exploration wells reaching depths of 5,000 metres, which has never been done in the past.
  • A wildcat well (ANDW-7) has provided crucial geological insights, including signs of light crude and condensate in cutting samples and the presence of suitable reservoir facies, indicating the existence of an active thermogenic petroleum system in the East Andaman Back Arc region.
  • Exploration activities are subject to environmental safeguards, with due clearance required under the EIA Notification, 2006 (as amended), involving scientific assessment, stakeholder consultation, and clearance from the Ministry of Environment, Forest and Climate Change (MoEF&CC).
  • Apart from oil and gas exploration, the ministry of mines has auctioned 13 offshore blocks, including those in Kerala for construction sand and in Gujarat for limemud, with several infrastructure and tourism projects coming up in Andaman and Nicobar.

Statistics:

  • 172 hydrocarbon discoveries reported by E&P companies operating in India since 2015 (including 62 in offshore areas) ([1])
  • 1 million sq km of erstwhile 'No-Go' offshore areas opened up for exploration in 2022 ([1])
  • 62 offshore areas have been included in the exploration discoveries ([1])
  • 4 offshore stratigraphic wells planned to be drilled by the government, including one in the Andaman-Nicobar basin ([1])
  • 5,000 metres deepwater exploration wells planned to be drilled by ONGC and OIL in the Andaman ultra-deepwater region ([1])
  • 13 offshore blocks auctioned by the ministry of mines, including 3 in Kerala for construction sand and 3 in Gujarat for limemud ([2])
  • Estimated cost of the Great Nicobar Holistic Development Project: Rs. 81,800 crore ([3])

Sources:

[1] Ministry of Petroleum and Natural Gas (Response to Rajya Sabha Question, July 28)

[2] Ministry of Mines (Auction of Offshore Blocks, as reported by HT)

[3] HT (Great Nicobar Holistic Development Project: Total Cost Estimated at Rs. 81,800 Cr)

[4] HT (Union Environment Ministry Approves Offshore Mining Blocks off Great Nicobar)

[5] HT (Several Infrastructure and Tourism Projects Coming Up in Andaman and Nicobar)