Lok Sabha Question No. 813 (UNSTARRED), answered on 2025-07-24
Subject: Crude Oil and Hydrocarbon Reserves Exploration Plan in Andaman and Nicobar Region
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri M K Raghavan, Shri Shyamkumar Daulat Barve

## LOK SABHA UNSTARRED QUESTION NO. 813 TO BE ANSWERED ON 24 th  July, 2025

## Crude Oil and Hydrocarbon Reserves Exploration Plan in Andaman and Nicobar Region

†813:

Shri Shyamkumar Daulat Barve:

Shri M K Raghavan:

## पेट Ō ोिलयम एवं Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the exploration of potential hydrocarbon reserves in the Andaman-Nicobar Basin is considered extremely important from the strategic perspective of India's energy self-reliance and long-term energy security and if so, the details thereof;
- (b) the details regarding the presence of crude oil or hydrocarbon reserves in the Andaman and Nicobar Islands or the adjoining offshore areas including estimated reserves and the results of preliminary exploration surveys;
- (c) whether the primary indications of the presence of oil and gas were found in specific areas during the Deep Andaman Offshore Survey conducted by Oil India Limited (OIL) in 2020 and whether drilling has been permitted in those areas and if so, the details thereof;
- (d) whether the Government has initiated any plans for the commercial exploration or extraction of crude oil from this region and if so, the details along with the timeline for such exploration activities and the agencies or partners involved;
- (e) whether the data obtained from the National Data Repository (NDR) under the Open Acreage Licensing  Policy  (OALP)  and  Hydrocarbon  Exploration  and  Licensing  Policy  (HELP)  can  be used  to  attract  foreign  companies  for  investment  and  if  so,  the  details  thereof  along  with  the blocks in the Andaman region for which investment proposals have been received so far; and
- (f) whether the Oil and Natural Gas Corporation (ONGC) had drilled six wells in the Andaman region  during  2013-14  but  did  not  achieve  commercial  success  and  whether  the  new  strategy adopted  by  the  Government  after  2020  such  as  exploration  in  shallow  water  areas  has  been formulated considering the earlier failures and if so, the details thereof?

## ANSWER पेट Ō ोिलयम एवं Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROELUM & NATURAL GAS (SHRI SURESH GOPI)

(a)  to  (f): After  2014,  India  has  witnessed  several  major  reforms  and  policy  shifts  that  have reshaped the exploration and production (E&P) landscape. One of the most significant changes was  the  transition  from  the  Production  Sharing  Contract  (PSC)  regime  to  the  more  businessfriendly  Revenue  Sharing  Contract  (RSC)  model  in  2015.  In  2022,  the  government  made  a strategic  move  by  opening  up  areas  previously  designated  as  'NO-GO,'  thus  expanding  the scope for exploration. Furthermore, from 2016 to 2025, the government placed strong emphasis on  data-driven  exploration,  including  sedimentary  basin  data  generation,  the  expansion  of  the National  Data  Repository  (NDR),  and  the  launch  of  a  stratigraphic  well  drilling  campaign  in 2024. These efforts culminated in the landmark amendment of the Oil Fields (Regulation and Development) Act, 1948, passed by Parliament in 2025.

In addition to structural reforms, the Government of India introduced several enabling policies such as the Hydrocarbon Exploration and Licensing Policy (HELP) and its flagship initiative, the Open  Acreage  Licensing  Program  (OALP),  in  2016.  Other  supportive  measures  included granting  marketing  and  pricing  freedom  for  natural  gas,  the  Discovered  Small  Fields  Policy (2018), sedimentary basin categorisation, and fiscal and contractual relaxations in 2019, along with  the  deregulation  of  crude  oil  marketing  in  2022.  These  initiatives  aimed  to  attract investment, simplify regulatory procedures, and boost domestic hydrocarbon production.

As  a  result  of  these  concerted  efforts,  more  than  80%  of  current  exploration  acreages  were awarded after 2015, and fourteen new hydrocarbon discoveries have been made. Increased data availability through the NDR has led to greater interest in deep offshore blocks in recent bidding rounds. Participation levels in the Open Acreage Bid Rounds have also shown a positive upward trend.  Fields  awarded  under  OALP  and  the  Discovered  Small  Fields  Policy  have  begun  test production,  and  the  trend  indicates  a  promising  future  for  commercial  operations.  These achievements  reflect  India's  strong  policy  push  and  strategic  vision  to  enhance  domestic exploration, attract private investment, and move toward long-term energy security.

Further,  Government  is taking sustained  measures towards exploring and identifying crude oil and hydrocarbon reserves in the Andaman-Nicobar(AN) basin so that they can contribute to the country's  long  term  energy  security  and  reduce  import  dependence.  India's  Hydrocarbon Resource  Assessment  Study  (HRAS)  estimates  hydrocarbon  resources  of  371  Million  Metric Tons of Oil Equivalent (MMTOE) in the AN Basin. Subsequent to HRAS 2017, a 2-Dimensional (2D)  broadband  seismic  survey  has  been  completed  in  2024  in  approximately  80,000  line kilometres  of  India's  Exclusive  Economic  Zone  (including  in  Andaman  offshore).  This  has helped  acquire  the  essential  sub-surface  data  required  for  identifying  prospective  hydrocarbon reserves. Government through Oil India Limited (OIL) has also acquired a total of 22,555 Line Kilometer  (LKM)  of  2D  seismic  data  in  Deep  Andaman  Offshore  Survey  during  2021-22. Exploration  and  Production  (E&P)  companies  including  foreign  operators  have  access  to  the E&P  data  available  on  the  National  Data  Repository  (NDR)  for  carving  out  blocks  and subsequently submitting Expression of Interests (EOIs)/ or bids in OALP bid rounds. Four blocks have been awarded under the Open Acreage Licensing Program (OALP) bid rounds to M/s Oil India Limited (OIL) and M/s Oil and Natural Gas Corporation Limited (ONGC).

ONGC has not drilled any well during 2013-14 in the AN basin. However, six wells had been drilled during 2011-13 without commercial success. Government  is actively promoting exploration  in  challenging  offshore  areas  (which  includes  shallow  water  areas  of  AN  basin) through a series of policy incentives, including data acquisition as listed in Annexure-1. Basis the new data acquisitions and interpretation of the same, OIL and ONGC have undertaken extensive drilling campaigns in the AN basin.

*****

## ANNEXURE-1

1. About 1 Million Sq. Km. (SKM) 'No-Go' area in offshore, which were blocked for exploration for decades, were released for E&P activities in September, 2022.
2. The Government of India through Oil India Limited (OIL) acquired a total of 22,555 Line  Kilometer  (LKM)  of  2-  Dimensional  (2D)  seismic  data  inDeep  Andaman Offshore Survey during 2021-22.
3. For the current phase of exploration, blocks as large as 20,000 square kilometres have been delineated, signifying an ambitious and efficient approach to resource assessment in this frontier basin.
4. Extended exploration phase of 7 years period,
5. Stabilization  period  for  revenue  share  at  Lower  Revenue  Point  (LRP)  rate  up  to  7 years,
6. Three year Retention Period for Sub-Commercial Discoveries,
7. Change in consortium prior to bidding,
8. Free basic data package, Reduced Bid Bond, Rationalized Operatorship experience
9. Bidding only on 2D & 3- Dimensional (3D) Seismic with originator incentive of 10 points.