Background
India’s energy landscape has entered a new era with Oil India Ltd (OIL) confirming its first trace of natural gas in the Andaman offshore basin — a discovery likened to the transformative Bombay High find of the 1970s. Established in 1889 with its first well in Digboi, Assam, OIL has been a cornerstone of India’s hydrocarbon story. Now a Maharatna enterprise with revenues above ₹41,000 crore, it has evolved from onshore exploration to deepwater frontiers. Under Dr. Ranjit Rath’s leadership, OIL has strategically pivoted to high-potential offshore domains, including the Andaman Basin — a move symbolizing ambition, innovation, and resilience.
Key Takeaways
- First-ever gas trace in the Andaman Basin discovered on September 26, 2025, in Block AN-OSHP-2018/1 (East) at a depth of 295 m water and 2,250 m sub-surface.
- The sample shows 87% methane, confirming viable natural gas presence.
- Investment of ₹3,000–3,500 crore under the Open Acreage Licensing Policy (OALP) reflects long-term strategic intent.
- Positioned along the Myanmar–Indonesia tectonic belt, the Andaman Basin shares geological traits with proven gas provinces.
Implications
The discovery could redefine India’s natural gas map, strengthen energy security, and reduce import dependence. As natural gas anchors India’s transition to cleaner fuels, this find bolsters its net-zero vision for 2070. Strategically, Andaman’s proximity to Indo-Pacific sea lanes enhances maritime and geopolitical leverage. Economically, local gas availability could fuel regional industries, logistics, and defence operations — converting the archipelago into a self-sustaining growth hub.
What’s Next?
OIL’s next steps involve advanced 3D seismic studies and appraisal drilling to gauge commercial potential. If confirmed, this could trigger India’s largest offshore gas development in decades. The Andaman Basin may well become the Bombay High of the 21st century — a cornerstone in India’s march toward energy independence and strategic self-reliance.
The above is a summary based on the Op-ed by Mr. Joydev Lahiri, Senior Consultant, SFC Asia, for India Narrative. Click here to read the entire article.