India is on the brink of a historic Andaman Sea oil discovery that could reshape its energy future. If confirmed, this potential find may rival the massive oil reserves discovered in Guyana, placing India on a new path toward energy independence and reduced reliance on imports.
This discovery comes at a critical time for India, which imports over 85% of its crude oil. Between April 2024 and January 2025 alone, the country imported around 200 million metric tonnes — a strain on both the economy and energy security. The government has intensified efforts to reduce this reliance through domestic exploration.
Currently, state-owned Oil India Limited (OIL) and the Oil and Natural Gas Corporation (ONGC) are spearheading exploration efforts in the Andaman basin. OIL recently began drilling the Vijaya Puram-1 well using the advanced ‘Blackford Dolphin’ rig in shallow offshore waters. Geologists believe the region’s sub-surface structure mirrors other hydrocarbon-rich areas in Southeast Asia.
This initiative is bolstered by the government’s post-2016 energy reforms, particularly the Open Acreage Licensing Policy (OALP), which opened nearly 1 million square kilometers of sedimentary basins to exploration. As a result, India has witnessed increased interest from both domestic and international investors.
Minister Puri noted that ONGC drilled 541 wells in FY 2024 — the most in 37 years — reflecting renewed momentum in India’s upstream sector. Further, regulatory improvements like the Oil Fields Regulation and Development Amendment Bill are expected to drive more private participation.
Should the Andaman Sea oil discovery deliver on its early promise, it could reshape India’s energy and economic future. Puri estimates that a discovery of Guyana’s scale could help grow India’s economy from $3.7 trillion to $20 trillion. The impact would extend to the Andaman and Nicobar Islands as well, creating jobs, infrastructure, and investment.
With exploration ramping up and policies aligning, India may be on the cusp of an energy revolution — one that could finally reduce its crude oil dependence and power a more self-sufficient future.