LOOKEAST

Prasanta Paul |

OIL India Limited (OIL) has stepped up exploration and supportive logistic work in the wake of striking gold in the Andaman–Nicobar basin where it made a very significant gas discovery in the Andaman Sea.

The huge find, located 17 km (9.2 nautical miles) off the east coast of the Andaman Islands in the Andaman offshore block, has a massive potential to completely change the development map of the region as well as the scenario of India’s domestic LPG supply.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri

In fact, the presence of hydrocarbons in Sri Vijayapuram–2 well (the AN–OSHP–2018/1 block) could be a valuable stepping stone towards increased domestic upstream production and greater energy security for the country.

Because, exploration in the well finally detected high–quality gas, containing approximately 87% methane, at a depth of 2,650 meters (ocean floor) in a 295–meter water depth.

Presence of hydrocarbons in Sri Vijayapuram–2 well (the AN–OSHP–2018/1 block) could be a valuable stepping stone towards increased domestic upstream production and greater energy security for the country

A Significant Milestone: Puri

Union Petroleum and Natural Gas Minister Hardeep Singh Puri called it a ‘significant milestone’ in India’s energy journey and said that it is also a major step toward expanding domestic gas production.

The discovery validates long–held geological assessments suggesting that the Andaman basin is rich in hydrocarbons. It is similar to other regions along the same belt which stretches from Myanmar in the north to Indonesia in the south.

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As the country is seized with Prime Minister Narendra Modi’s ‘Samudra Manthan’ (‘Churning of the Ocean’) mission — an initiative to explore the unexplored deep–water oil and gas potential as part of India’s broader energy strategy — this is the first confirmed hydrocarbon discovery in this region, which has long been suspected to hold significant, largely unexplored natural gas and mineral resources.

Secondly, preliminary tests indicate the gas is of high quality, 87% methane as stated earlier and hence, the find proves the success of the part of a 3–well exploration campaign, positioning the Andaman basin as the newest frontier for India’s offshore energy development.

‘Samudra Manthan’ (‘Churning of the Ocean’) mission — an initiative to explore the unexplored deep–water oil and gas potential as part of India’s broader energy strategy — this is the first confirmed hydrocarbon discovery in this region, which has long been suspected to hold significant, largely unexplored natural gas and mineral resources

To Change India’s Energy Landscape

For India which has been grappling with a slumping domestic production, new gas discoveries have become increasingly critical to the country’s energy landscape. It is destined to provide fresh resource for enhanced energy security, economic growth and a stable transition from fossil fuel dependency to a low–carbon future; on top of it, what is more important is the fact that the more such discoveries, the more India’s opportunity to discard reliance on heavy imports.

Since natural gas serves as a relatively cleaner fossil fuel, the find and its gainful exploration would provide critical support to India’s climate goals by enabling a shift away from coal in power generation and industrial use.

The discovery will help validate the hydrocarbon potential of India’s deep–water region and encourage further investments and exploration drilling. This apart, it is likely to trigger the development of new offshore infrastructure, including production platforms, pipelines and possibly floating liquefied natural gas (LNG) facilities. This could turn the basin into a significant contributor to India’s domestic gas supply.

Limitations Vs Prospect

However, all said and done, there are some inherent limitations too. Despite its huge geological promise and potential for intensive development in the analogue structures, the Andaman–Nicobar Basin has so far witnessed only a handful of exploration wells in the past several decades.

Government has been actively toying with the idea of holistic development of the entire Andaman–Nicobar region so that it could help stimulate investment in infrastructure, technology, and offshore exploration, primarily attracting international oil companies (IOC) to invest in the nation’s under–explored basins

This sparse drilling activity highlights the historically limited industry interest, with operators reluctant to commit capital in the absence of proven success. This lack of sustained well campaigns shows the basin’s frontier status and the cautious approach which the companies have taken toward its exploration.

Hence, the government has been actively toying with the idea of holistic development of the entire Andaman–Nicobar region so that it could help stimulate investment in infrastructure, technology, and offshore exploration, primarily attracting international oil companies (IOC) to invest in the nation’s under–explored basins.

“The size of the gas pool and its commercial viability will be assessed in the coming months,” Puri noted, adding that the findings will shape future exploration strategies. Efforts are underway to rope in global deep–water exploration leaders such as Petrobras, BP India, Shell, and ExxonMobil. ■

Prasanta Paul served Deccan Herald as the Chief of Bureau, Calcutta for nearly two decades before switching to work with various TV channels such as Al-Jazeera, CNN, German TV and CBS. Mr. Paul who accompanied former Prime Minister Atal Behari Vajpayee on his overseas tour of Singapore and other Asian countries, travelled extensively to Bhutan, Sikkim and Darjeeling besides other Northeastern states.