India’s discovery of natural gas in the Andaman-Nicobar deepwater region promises to boost domestic gas output, reduce reliance on imports and ease energy costs for consumers.
The Sri Vijayapuram-2 well, led by Oil India in Block AN-OSHP-2018/1, confirmed hydrocarbons at depths of 2,212 to 2,250 metres. Water depth at the site is about 295 metres. Officials say the gas is about 87% methane.
“Hitting this reservoir is a big win for India’s energy security,” said Hardeep Singh Puri, Minister of Petroleum and Natural Gas. He added that intermittent flaring was used during testing.
This discovery is part of India’s Samudra Manthan mission, aimed at unlocking deepwater oil and gas. It follows last year’s offshore finds in Mahanadi Basin by ONGC, Konark and Utkal.
However, the key will be the size and quality of reserves, and how fast the assets can be developed. Some analysts warn the economics could be challenging.
The find may trigger new offshore infrastructure: platforms, pipelines and floating LNG units. It could also spark more exploration activity in under-explored basins.
India currently imports the majority of its gas. A successful development here could reshape the mix, support industrial growth, and strengthen negotiating power in global markets.
Still, environmental risks loom large. Deepwater operations must guard marine ecosystems, avoid spills, and keep greenhouse gas emissions in check.
To attract global oil company investment, analysts say India will need clearer regulations and better data sharing. Until then, national oil companies like ONGC and Oil India will remain central players.
Read also: India’s diesel exports to Europe hit record highs in September
