Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has indicated that India could be nearing a major energy breakthrough, with a potential oil discovery in the Andaman Sea that could rival ExxonMobil’s transformative find in Guyana. In a recent exclusive interview, the minister suggested that recent exploratory indicators and policy changes point to an impending milestone for India’s energy independence.
Puri stated that the government’s focus on expanding offshore exploration is beginning to yield results, and he believes it is “only a matter of time” before India identifies a commercially significant oil reserve in the Andaman region. Comparing the prospect to Guyana’s multi-billion-barrel discovery, the minister noted that similar signs of oil-rich sedimentary formations are now emerging off India’s eastern coastline.
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India has been undergoing a strategic shift in oil and gas exploration since 2016, moving away from earlier regulatory stagnation. Puri said that between 2002 and 2016, there was little movement in unlocking India’s offshore basins. Post-2016, the government initiated a series of policy reforms, including a shift from production-sharing contracts to a more transparent revenue-sharing model under the Open Acreage Licensing Policy (OALP). These changes have opened up over one million square kilometers of sedimentary basins to both private and public players. According to Puri, this has sparked growing interest and fresh bids in exploration rounds.
The minister highlighted that in the most recent OALP round, a significant share of the bids came from areas newly made available under the revised policy. He expects that the upcoming rounds will attract even more attention, especially as India recently launched its largest-ever exploration bid, covering 250,000 square kilometers.
Investment in exploration has also increased sharply. The Oil and Natural Gas Corporation (ONGC), India’s primary exploration entity, drilled a record 541 wells in the 2023–24 financial year, the highest in more than three decades. Of these, 103 were exploratory wells, while the rest focused on development. ONGC also reported a capital expenditure of ₹37,000 crore for the fiscal year, marking its highest-ever utilization in drilling activity.
Puri acknowledged that historically, short tenures among senior officials in oil companies contributed to a reluctance to invest in long-term projects. However, he added that this mindset is shifting as companies begin aligning their strategies with the national goal of energy security. He pointed to examples such as ExxonMobil’s success in Guyana, where the oil giant struck a major reserve only after drilling over 40 wells, each costing $100 million. India, he said, is now ready to make such long-term commitments.
A key part of the government’s new energy strategy includes the introduction of the Oil Fields Regulation and Development Amendment Bill. The minister emphasized that the legislation modernizes a colonial-era framework that previously grouped oil exploration with other minerals, leading to regulatory confusion and delays. The updated law now provides clear separation, legal certainty, and simplified processes, particularly benefiting private sector companies.
The bill, introduced earlier this year, was formulated in close coordination with industry stakeholders and has gone through public consultations. It is designed to address long-standing concerns related to lease approvals and no-objection certifications, which previously hindered timely investment decisions.
Looking at the bigger picture, Puri linked the anticipated discoveries to India’s broader economic ambitions. He claimed that if India were to find a Guyana-scale oil reserve, it could catalyze to propel the country’s GDP from the current $3.7 trillion to as much as $20 trillion in the future. While such predictions remain speculative, the minister’s remarks signal a high degree of confidence in India’s offshore potential.
With an aggressive exploration policy now in full swing, record-breaking drilling activity, and updated regulations attracting fresh investment, the Andaman Sea may soon become a central chapter in India’s energy story. Whether or not the Guyana parallel materializes, India’s message is clear: the country is actively pursuing a future where its energy needs are met from within its territory.