The Government of India is actively pursuing measures to explore and identify crude oil and hydrocarbon reserves in the Andaman-Nicobar (AN) Basin, with the objective of enhancing the country’s long-term energy security and reducing import dependence.
Under the Hydrocarbon Exploration and Licensing Policy (HELP), four blocks covering approximately 23,261 sq. km have been allocated for oil and gas exploration in the AN Basin. Exploration efforts so far have led to the acquisition of 8,501 line kilometers of 2D seismic data, 3,270 sq. km of 3D seismic data, and the drilling of three wells. Additionally, under Open Acreage Licensing Policy (OALP) Round X, four more blocks with a total area of 47,058 sq. km have been offered in the basin.
According to the Hydrocarbon Resource Assessment Study (HRAS) 2017, the AN Basin holds an estimated 371 million metric tonnes of oil equivalent (MMTOE). Following this assessment, a 2D broadband seismic survey covering 80,000 line kilometers of India’s Exclusive Economic Zone, including the Andaman offshore, was completed in 2024, providing critical sub-surface data for identifying potential reserves. Oil India Limited (OIL) has also undertaken the Deep Andaman Offshore Survey, acquiring 22,555 line kilometers of 2D seismic data during 2021–22.
Geologically, the AN Basin lies at the intersection of the Andaman and Nicobar Basins, forming part of the Bengal-Arakan sedimentary system. The tectonic setting at the convergence of the Indian and Burmese plates has created multiple stratigraphic traps favorable for hydrocarbon accumulation. Its geological potential is strengthened by proximity to proven petroleum systems in Myanmar and North Sumatra, and recent significant gas discoveries in South Andaman offshore Indonesia have further renewed global interest in this region due to its geological continuity.
Each sedimentary basin in India presents unique geological characteristics, hydrocarbon systems, prospectivity, and developmental challenges. Therefore, economic and strategic evaluations are carried out on a basin-specific basis rather than direct comparisons, ensuring accurate assessment and informed policy decisions.
