India may be sitting on a 'game-changing' oil reserve in Andaman Sea: Hardeep Puri

India's Petroleum Minister, Hardeep Singh Puri, anticipates a significant oil discovery in the Andaman Sea, potentially comparable to Guyana's reserves.

Union Petroleum Minister Hardeep Singh Puri has claimed that India could soon unearth a "transformational" oil reserve in the Andaman Sea—potentially altering the country's energy landscape. Drawing a bold comparison, Puri likened the potential find to the massive oil reserves discovered by Hess Corporation and China's CNOOC in Guyana, a country that now ranks 17th globally in oil reserves.

Speaking to a news organisation, the minister pointed to policy shifts initiated post-2016 as the catalyst for India's growing exploration momentum. "Between February 2016, we didn't do anything. Then we started changing policies—shifting from a production-sharing to a revenue-sharing arrangement," Puri noted, referring to the structural changes that rejuvenated India's hydrocarbon sector.

Central to this push is the Open Acreage Licensing Policy (OALP), under which India has already unlocked nearly one million square kilometres of its 3.5 million sq km of sedimentary basins. "Around 37–38% of bids in OALP Round 9 came from that unlocked area. I believe nearly 80% of bids in the next round will also come from this region," Puri said.

Highlighting ONGC's increased activity, the minister said India's top explorer drilled 541 wells in FY24—the highest in over three decades. He acknowledged that oil marketing companies (OMCs) had traditionally shown reluctance in investing in long-term exploration but added that this mindset is changing.

Puri also shed light on the Oil Fields Regulation and Development (Amendment) Bill tabled this year, calling it a key legislative step. "The bill resolves overlapping regulatory concerns and brings clarity, ensuring that certain executive practices are no longer permissible. It brings certainty and predictability to the sector," he said.