Andaman Basin Opens Up 4 Lakh Square Kilometers of Exploration Opportunities

Andaman Basin Expansion: Unlocking India's Energy Potential

Executive Summary

The Indian government has opened up 4 lakh square kilometers of the Andaman Basin, previously classified as a "No-Go Zone", for oil and gas exploration. This move has significant implications for India's energy security and fiscal stability, as the country currently imports the bulk of its crude oil requirements.

Key Developments

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• Oil India reported a significant natural gas find at the Shri Vijay Pavan-2 well in December 2025, establishing 87% methane gas.
• ONGC successfully drilled the Andaman West-1 well, establishing the presence of active thermogenic petroleum systems in the region.
• The Andaman Basin has "Guyana-like" potential, with the potential for game-changing discoveries that could transform India's economy.
• Global majors, including ExxonMobil, Shell, Chevron, TotalEnergies, and BP, are in advanced discussions with ONGC and Oil India for joint ventures to explore the basin.

Strategic Significance

The Andaman and Nicobar Islands play a critical role in India's energy security and strategic interests. The islands account for one-third of the country's Exclusive Economic Zone and somewhat more than one-fourth of the country's coastline.

Tourism and Infrastructure Development

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The Islands Development Agency is advancing large-scale projects to strengthen surface connectivity, aviation infrastructure, digital networks, and maritime capabilities. The government has awarded four new hospitality contracts to Radisson and Anantara, with 15 more projects set to be awarded within a year.

Key Statistics

• 836 islands in the Andaman and Nicobar Islands
• 750 km length of the territory
• 4 lakh square kilometers of the Andaman Basin opened up for exploration

Conclusion

The expansion of the Andaman Basin for oil and gas exploration has significant implications for India's energy security and fiscal stability. The strategic location of the Andaman and Nicobar Islands and the government's efforts to develop tourism and infrastructure will contribute to the country's economic growth and development.