Oil and Gas Exploration in the Andaman Basin

GS3 – Infrastructure

Context

The Union Minister for Petroleum and Natural Gas has highlighted the untapped hydrocarbon potential of the Andaman Basin, comparing it to Guyana’s offshore oil reserves in the Atlantic, which have become a major energy source for South America.

Hydrocarbon Prospects in the Andaman Basin

• Regional Context:
  Discoveries of gas reserves in nearby offshore basins—North Sumatra (Indonesia) and Irrawaddy-Margui (Myanmar)—indicate promising geological conditions in the region surrounding the Andaman Islands.
• Geological Indicators:
  Geophysical surveys conducted in the region have identified mud volcanoes in the Baratang Formation, particularly in Middle and South Andaman, which are considered signs of underlying hydrocarbon deposits.
• Underexplored Basin:
  According to the 2025–26 Standing Committee on Petroleum and Natural Gas, the Andaman Basin spans around 2.25 lakh square kilometers, forming a significant portion of India’s unexplored offshore sedimentary basins.

Economic and Strategic Significance

• If substantial reserves are discovered, similar to the Guyana Basin, it could:
  • Advance India’s economic growth, supporting the ambition of reaching a $20 trillion economy.
  • Enhance domestic oil production, helping to reduce India’s current reliance on oil imports (about 90.6% of oil is imported).
  • Strengthen national energy security, particularly vital as energy demand is expected to increase in the coming decades.
  • Generate employment opportunities and spur the development of supporting infrastructure in the remote Andaman and Nicobar Islands.