Andaman Oil Discovery: India on the Verge of an Economic Transformation

India is on the verge of a historic Andaman oil discovery, potentially rivaling Guyana's massive reserves with 184,440 crore litres.

Andaman Oil Discovery: India is on the brink of a historic breakthrough with the potential Andaman oil discovery, a development that could reshape not only the nation's energy landscape but also its economic future. Union Petroleum and Natural Gas Minister Hardeep Singh Puri has hinted that the reserves in the Andaman Sea might rival the game-changing oil finds of Guyana, potentially holding as much as 184,440 crore litres of crude oil. 

This landmark moment comes as India intensifies its exploration efforts, leveraging regulatory reforms and advanced technology to unlock its untapped offshore potential.

Key Takeaways:

• The Andaman Sea could hold oil reserves rivaling Guyana’s, with the potential to transform India’s economy.
• Policy reforms and record drilling activity signal a new era in Indian energy exploration.
• A successful find would reduce import dependence, strengthen energy security, and elevate India’s global standing.
• Environmental stewardship and strategic planning will be crucial as exploration advances.

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The Scale of the Andaman Oil Discovery

The Andaman oil discovery is being compared to Guyana’s transformational find, which propelled the South American nation into the ranks of the world’s top oil reserve holders. Guyana’s journey began with ExxonMobil, Hess Corporation, and CNOOC discovering over 11.6 billion barrels of oil, reshaping its economy and global standing. 

Union Minister Hardeep Puri draws a parallel, stating that India could be on the verge of its own "Guyana moment" if current drilling efforts in the Andaman region succeed.

“When I made this statement about the Krishna Godavari Basin… now we have found green shoots, oil, and several other places. And I think it’s only a matter of time before we find a big Guyana in the Andaman Sea,” said Puri, highlighting the immense potential of the ongoing exploration.\

India has several Guyana-sized energy reserves in Andamans: Hardeep Puri

Read @ANI Story | https://t.co/aeyAnhlVHr#India #Andaman #Guyana #HardeepPuri pic.twitter.com/pWeVXv5KWk

— ANI Digital (@ani_digital) June 16, 2025

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Policy Reforms and Accelerated Exploration

India’s renewed focus on domestic energy production is rooted in a series of policy reforms, including the Open Acreage Licensing Policy (OALP), which has unlocked nearly 1 million square kilometres of sedimentary basins for exploration. 

Previously, only 8% of India’s 3.5 million square kilometres of sedimentary basins had been explored. Now, with regulatory clarity and new investment incentives, companies are venturing into previously inaccessible regions like the Andaman and Nicobar Islands.

ONGC, India’s state-run oil giant, has ramped up drilling to a 37-year high, with 541 wells drilled in FY24—including 103 exploratory and 438 development wells—backed by a record ₹37,000 crore in capital expenditure. 

This surge in activity demonstrates the government’s commitment to reducing import dependence and boosting domestic output.

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Andaman Oil Discovery's Economic Impact: From $3.7 Trillion to $20 Trillion?

The stakes are high. India currently imports over 85% of its crude oil, making it the world’s third-largest importer after the US and China. The Andaman oil discovery, if successful, could significantly reduce this reliance, strengthen energy security, and propel the Indian economy to new heights.

Minister Puri has boldly suggested that a discovery on the scale of Guyana’s could catapult India’s economy from its current $3.7 trillion to as much as $20 trillion, underscoring the transformative potential of such a find.

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Lessons from Guyana: A Blueprint for Success

The Guyana model serves as both inspiration and caution. In Guyana, it took 43-44 wells—each costing $100 million—before the first major discovery. 

India’s own experience in the Andaman Sea mirrors this persistence, with ONGC and Oil India leading the charge in deepwater drilling. The government’s willingness to invest in high-risk, high-reward exploration signals a strategic shift towards self-reliance.

BIG BREAKING NEWS 🚨 India is on Brink of ‘Guyana-Sized’ Oil Discovery in Andaman Sea 🔥🔥

India has found green shoots, oil, and several other places.

UNION MINISTER HARDEEP PURI : "It’s only a matter of time before India finds a big Guyana in the Andaman Sea"

India's fortune… pic.twitter.com/IzYYZD3rqG

— Times Algebra (@TimesAlgebraIND) June 15, 2025

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Strategic and Geopolitical Significance

The Andaman Sea’s location near the Strait of Malacca—a vital maritime chokepoint—adds a layer of strategic importance to the oil discovery. Control over substantial energy reserves in this region would not only bolster India’s energy security but also enhance its influence in the Indo-Pacific, supporting initiatives like the Act East Policy and strengthening India’s position amid shifting regional power dynamics.

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Andaman Oil Discovery: Environmental and Social Considerations

While the economic and strategic benefits are undeniable, the Andaman and Nicobar Islands are ecologically sensitive, home to rich coral reefs, marine biodiversity, and indigenous tribes. 

Any large-scale oil extraction will require a careful balance between development and environmental stewardship to ensure sustainable growth.

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Conclusion: A Game-Changer for the Indian Economy

The Andaman oil discovery represents a potential turning point for India’s energy sector and its broader economic trajectory. With robust policy support, increased investment, and a willingness to explore uncharted territories, India is poised for a breakthrough that could redefine its role in the global energy market. 

As drilling continues and results emerge, the world watches to see if the Andaman Sea will indeed deliver India’s "Guyana moment"—a discovery that could fuel not just cars and industries, but the dreams of a $20 trillion economy.

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