OIL begins offshore exploration in Andaman Basin to unlock India's hydrocarbon potential

Guwahati, Mar 14: As India is heavily dependent on crude oil imports, the Government of India has started aggressive campaigns to augment domestic production. As a part of the campaign, the Oil India Limited (OIL) has ventured into offshore drilling and if it becomes successful, it will reduce the country's dependence on oil imports. According to records, India has to import around 88 per cent of its crude oil requirement, which makes a big dent in the country's economy. During the period from April 2024 to January this year, India imported around 200 million metric tonnes of crude oil.

OIL sources told The Assam Tribune that in a move to unlock India's untapped hydrocarbon potential, the OIL has commenced offshore exploration in the Andaman basin, marking a significant step towards reducing the country's dependence on oil imports.

The company is currently drilling the well Vijaya Puram-1 in the shallow off- shore waters of the Andamans, utilising the advanced semi-submersible drilling rig 'Blackford Dolphin' brought in from Nigeria for this high-stakes operation.

The Vijaya Puram-1 well, represents a strategic effort to tap into potential undiscovered hydrocarbon reserves and will provide crucial geological information on the hydrocarbon prospects of the Andaman basin, potentially paving the way for future exploration and commercial production.

Sources pointed out that the Government of India has been aggressively expanding its offshore oil and gas exploration initiatives to strengthen the nation's energy security. A landmark decision to open up over one million square kilometers of previously restricted offshore 'No-Go Areas' for hydrocarbon exploration is expected to drive significant investments into the upstream hydrocarbon sector.

This move aligns with India's broader goal of enhancing domestic oil and gas production and cutting down on costly crude oil imports. Additionally, under the Open Acreage Licensing Policy (OALP), the government has completed nine bidding rounds, attracting major energy players to explore new frontiers.

OIL's drilling in the Andaman basin is a direct result of this initiative, targeting one of India's least explored but highly promising offshore regions. The basin's proximity to major shipping routes and its geological similarities to hydrocarbon-rich regions in Southeast Asia make it a prime candidate for significant discoveries.

OIL's ambitious plans align with the government's energy strategy of enhancing exploration activities in onshore and off- shore areas to augment and propel domestic production. As India seeks to reduce its dependence on imported crude oil and natural gas, aggressive exploration efforts like the ongoing in Andaman are critical.

The government's policy shift ranging from easier regulatory clearances to incentivized production-sharing contracts is de- signed to attract global investors and technology partners. The success of the Andaman exploration could trigger a wave of new offshore projects, positioning India as a more self-reliant energy powerhouse, sources said.

The OIL, which was established in 1959, mostly operated onshore and only a couple of times, the company made drilling efforts offshore. But the efforts were not as major as the present ones where modern machinery was also brought in for drilling.

By

R Dutta Choudhury