India Nears Guyana-Scale Oil Discovery in Andaman: A Potential Boost to $20 Trillion Economy, Says Minister Hardeep Puri

India is nearing a major oil discovery in the Andaman Sea, potentially rivaling Guyana’s 11.6 billion barrel find. Union Minister Hardeep Singh Puri highlighted government reforms and intensified exploration, with ONGC drilling a record 541 wells in FY24. Estimated reserves of 184,440 crore litres could reduce India’s 85% reliance on oil imports and boost the economy from $3.7 trillion to $20 trillion. This discovery could reshape India’s energy landscape, enhancing self-reliance and positioning it as a global energy leader.

India is inching closer to a groundbreaking oil discovery in the Andaman Sea, one that could rival the scale of Guyana's massive oil reserves. Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, revealed during an interview with The New Indian that the government’s strategic reforms and intensified exploration efforts are paving the way for uncovering a significant oil field. With estimates suggesting potential reserves of around 184,440 crore litres of crude oil, such a find could fundamentally alter India’s energy landscape and economic trajectory.

A Potential Game-Changer for India’s Economy

Minister Puri expressed optimism about the prospects of a large-scale oil discovery, akin to Guyana’s 11.6 billion barrel find, which transformed the South American nation into a global energy player. He noted that previous exploratory successes in regions like the Krishna-Godavari Basin provide a strong foundation for similar breakthroughs in the Andaman Sea. “It’s only a matter of time before we find a big Guyana here,” Puri remarked, emphasizing the ongoing nature of these efforts.

A discovery of this magnitude could propel India’s economy from its current $3.7 trillion valuation to an ambitious $20 trillion in the coming years. Beyond economic growth, it would also mark a significant step toward energy independence for a nation that remains heavily reliant on crude oil imports.

High Stakes, High Costs

The path to such discoveries is neither easy nor inexpensive. Minister Puri highlighted the immense financial investments required to explore and drill for oil. Drawing parallels with Guyana's experience, he explained, “In Guyana, they drilled 43 or 44 wells, each costing $100 million, before striking oil on the 41st attempt.”

India’s state-owned Oil and Natural Gas Corporation (ONGC) is leading the charge, having drilled a record 541 wells in the fiscal year 2023-24, including 103 exploratory wells. With ₹37,000 crore allocated as capital expenditure—the highest in its history—ONGC is taking bold steps to expedite exploration and development activities.

Reducing Import Dependency

India currently imports over 85% of its crude oil, making it the third-largest importer globally, behind the United States and China. A successful oil discovery in the Andaman Sea could drastically reduce the nation’s reliance on international suppliers, bolstering its energy security and economic stability.

Minister Puri compared this potential discovery to Guyana’s, where firms like Hess Corporation and China’s CNOOC uncovered vast reserves, elevating Guyana to the 17th position globally in terms of oil reserves. India, too, could emerge as a significant player in the global energy market if its exploration efforts bear fruit.

Expanding Exploration Efforts

India's current oil production is concentrated in regions like Assam, Gujarat, Rajasthan, Mumbai High, and the Krishna-Godavari Basin. To diversify and expand its energy sources, exploration activities have now extended to the Andaman and Nicobar Islands. Companies such as Oil India and ONGC are conducting extensive surveys and drilling operations in these previously untapped areas.

Strategic petroleum reserves are also being maintained in Visakhapatnam, Mangalore, and Padur, with plans for additional facilities in Odisha and Rajasthan. These initiatives aim to strengthen India’s energy resilience while preparing for potential future discoveries.

The Road Ahead

While the journey to uncovering a Guyana-scale oil field in the Andaman Sea remains challenging, the stakes are undeniably high. With robust government policies, increased investment, and cutting-edge exploration techniques, India is well-positioned to achieve a breakthrough. If successful, this discovery could not only reshape the nation’s energy landscape but also serve as a catalyst for unprecedented economic growth.

India stands at the cusp of an energy revolution—one that could redefine its position on the global stage and secure a brighter, more self-reliant future.