India may have 'several Guyanas' in Andaman region: Minister Hardeep Puri

New Delhi: Union Petroleum and Natural Gas Minister Hardeep Singh Puri has said India may be on the cusp of a major energy breakthrough, with exploration in the Andaman region showing signs of potentially massive fossil fuel reserves, possibly akin to the oil boom recently witnessed in Guyana.

Speaking to ANI on Monday, Puri said, “We have the potential of several Guyanas in the Andaman.” He was referring to the South American nation that discovered huge oil reserves after decades of failed attempts, transforming its economic trajectory.

Highlighting the underexplored sedimentary basins of India, the minister said only 8 per cent of the country’s 3.5 million sq km of sedimentary area had been explored so far. But the government has now opened up 1 million sq km of previously “no-go” zones for exploration.

“There were parts of the sedimentary basin which were no-go areas. One of the decisions we took was to make that available for E\&P (exploration and production),” Puri noted. Of the bids received under the Open Acreage Licensing Policy (OALP), 38 per cent targeted this newly accessible area. He expects that to grow to 75 per cent in the next round.

India’s sedimentary basins are estimated to hold up to 42 billion tonnes of oil and gas equivalent. However, offshore exploration is highly capital-intensive. “An onshore well costs around USD 4 million, while an offshore well can cost up to USD 100 million,” he said.

Still, ONGC has drilled a record number of wells this year, and early findings are encouraging. Recent wells such as Suryamani and Neelmani have shown promising reserves of 4 million and 1.2 million metric tonnes of oil equivalent, respectively.

Puri added, “Each place you found oil, now you're estimating it, then you're digging deeper and deeper. As we speak, we have four places where ONGC and Oil India Limited are digging at 5,000 metres.”

India currently imports about 80 per cent of its oil and 50 per cent of its natural gas needs. Puri said recent discoveries and expanded exploration could significantly boost domestic energy security.

Last week, the minister reviewed supply preparedness with energy PSU heads and confirmed that India has adequate supplies for the coming months, amid concerns over rising global oil prices due to geopolitical tensions.