Context
Oil India Ltd (OIL), a state-owned enterprise, has discovered natural gas reserves in the Andaman Islands. The find was reported from the Vijayapuram-2 exploratory well drilled in the Offshore Andaman Block AN-OSHP-2018/1, awarded under the Open Acreage Licensing Policy (OALP).
Key Highlights
- The Discovery
- Well: Vijayapuram-2 (Offshore, Andaman Basin).
- Block: AN-OSHP-2018/1.
- Indicates natural gas presence, though commercial viability is under evaluation.
- Policy Framework
- Block awarded under OALP (2017), part of the Hydrocarbon Exploration and Licensing Policy (HELP).
- OALP Advantage:
- Companies can select exploration blocks anytime throughout the year (continuous bidding).
- Replaced earlier rigid bidding rounds.
- Strategic Significance
- Andaman Basin: A frontier basin with high potential but limited exploration so far.
- Strengthens India’s energy security by diversifying domestic hydrocarbon sources.
- Reduces reliance on crude imports.
- Aligns with India’s aim of raising natural gas share in the energy mix to 15% by 2030 (from ~6% now).