India on cusp of major oil discovery? Hardeep Puri says Andaman holds potential of 'several Guyanas'

India may be on the verge of a major oil and gas discovery in the Andaman region, with early offshore exploration pointing to promising reserves. Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday said the country could be looking at the potential of "several Guyanas," referring to the South American nation that struck massive oil wealth after years of unsuccessful drilling.

"We believe India holds the potential of several Guyanas, particularly in the Indian Ocean region. We are looking at the possibility, thanks to this additional E&P, of finding a Guyana," Puri told news agency ANI. He said Guyana dug 46 dry wells before oil was found in the 47th. 

India's sedimentary basin spans 3.5 million square kilometres, but until recently, less than 8% had been explored. "There were parts of the sedimentary basin which were no-go areas. So one of the decisions which we took was that 1 million square kilometres of that sedimentary basin, which was no-go area, has suddenly been made available for E&P (Exploration and Production),” the minister said. 

Under the nine rounds of the Open Acreage Licensing Policy (OALP), 38% of bids came from these previously inaccessible regions, with Puri expecting that figure to exceed 75% in the next round. "We've also issued some of the largest bids on offer anywhere — something like 2.5 lakh square kilometres of area has been offered out on bidding,” he added.

The minister said that offshore exploration remains capital-intensive. "An onshore well costs something like USD 4 million on an average...An offshore well costs about USD 100 million,” Puri said, noting that past delays were partly due to the high cost and commercial hesitancy of private players prioritising short-term profits.

Referring to specific sites, Puri highlighted recent progress in offshore exploration. In Suryamani, under OALP Round 6, drilling at a depth of 2,323 metres revealed an estimated potential of 4 million metric tonnes of oil equivalent. In Neelmani (OALP Round 5), a potential of 1.2 million metric tonnes was found at 1,117 metres. An unnamed well under OALP Round 3 struck both oil and gas at 2,865 metres, while the Moti well, also under OALP Round 3, showed an estimated potential 5 million metric tonnes of oil equivalent at 2,957 metres.

Puri, however, said that these are still an estimation. "They're trying to find out, but they have struck," he said, adding, "As we speak, we have four places where ONGC and Oil India Limited are digging at 5,000 metres." 

The minister further said that while it's premature to speculate exact quantities, "we do have green shoots and multiple discoveries pointing in the right direction". He, however, cautioned, people must not misinterpret exploratory drilling as confirmed discoveries. "But based on the data—2.5 pages of discovery listings—we’re seeing promising signs. As we drill deeper, the full potential will become clearer."