GG News Bureau
New Delhi, 17th June: Union Petroleum and Natural Gas Minister Hardeep Puri today stated that India possesses the potential of “several Guyanas” in the Andaman region, highlighting the country’s vast unexplored energy reserves. The minister outlined various governmental measures aimed at significantly boosting domestic exploration and production (E&P) of oil and natural gas.
Speaking to ANI on Monday, Puri noted that India has a massive 3.5 million square kilometers of sedimentary basin. Historically, however, the country has explored only eight percent of this area, leaving a large expanse of its sea beds untouched. This statement comes as India intensifies efforts to ramp up its traditional fossil-based energy production.
“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 kilometers of that sedimentary basin, which was no-go area, has suddenly been made available for E&P,” Puri stated. He added that the government is committed to exploring a substantial portion of this basin.
The minister pointed out that India currently imports 80 percent of its oil and 50 percent of its natural gas, emphasizing that even a “5-billion-barrel discovery would be a game-changer.” In the nine rounds of the Open Acreage Licensing Policy (OALP), 38 percent of the offered area has received bids, covering 1 million square kilometers. Puri expressed optimism that the next round would attract bids covering more than 75 percent of the area.
“We’ve also issued some of the largest bids on offer anywhere — something like 2.5 lakh square kilometers of area has been offered out on bidding,” the minister said. He further projected that India’s sedimentary basins hold a potential of around 42 billion tonnes of oil and gas.
Puri acknowledged that exploring offshore reserves is capital-intensive, which explains why it has taken considerable time for the country to tap into this unexplored potential. He contrasted the average cost of an onshore well (around $4 million) with that of an offshore well (about $100 million), based on global and constant dollar rates.
Making a direct comparison, Hardeep Puri referred to Guyana, which recently discovered massive oil reserves after extensive drilling. “They (Guyana) dug 46 wells and they didn’t find any oil. It’s when they dug the 47th one, they found oil. And then it became the largest find,” he explained. “We have the potential of several Guyanas in the Andaman,” he asserted, signaling high hopes for the region.
Highlighting some recent domestic discoveries, the minister mentioned Suryamani, with a potential of 4 million metric tons of oil, and Neelmani, with 1.2 million metric tons. He also noted that a new well, drilled to a depth of 2,865 meters, revealed both oil and gas reserves, stressing that this is likely an “underestimation” of the actual potential.
