India may be on the verge of a significant energy breakthrough with the discovery of natural gas in the Andaman Sea by Oil India Ltd (OIL). This marks the first time the presence of natural gas has been definitively established in the Andaman basin, potentially opening up "an ocean of energy opportunities" for the country.

The discovery was made at the Sri Vijayapuram 2 well, located approximately 17 km from the shoreline on the east coast of the Andaman Islands, at a water depth of 295 meters and a target depth of 2,650 meters. Initial production testing at depths between 2,212 and 2,250 meters confirmed the presence of natural gas, accompanied by intermittent flaring. Samples of the gas, transported to Kakinada for testing, revealed a high methane content of 87%, indicating high-quality reserves.

While the size of the gas pool and its commercial viability are yet to be determined in the coming months, this discovery is a major step in confirming the hydrocarbon potential of the Andaman basin. The Andaman basin lies along a hydrocarbon-rich belt that stretches from Myanmar to Indonesia. This success strengthens India's strategic position in the energy sector and mirrors discoveries in neighboring countries.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has expressed optimism about the find, suggesting it could be a "jumbo-size discovery" comparable to those made in Guyana. If these hopes materialize, it would represent the fourth major discovery on India's east coast, following strikes by Reliance, GSPC, and ONGC in the Krishna-Godavari basin. Puri also stated that if the present estimates are reliable, India could hold 11.6 billion barrels of crude oil, which would be enough to cover all of its energy requirements at home and possibly start shipping fuel.

This discovery aligns with Prime Minister Narendra Modi's Deepwater Exploration Mission, which aims to expand India's energy portfolio through extensive deepwater drilling in offshore basins. India plans to pursue these opportunities in collaboration with leading global energy companies, including Petrobras, BP, Shell, and ExxonMobil.

The confirmation of natural gas in the Andaman basin also validates the long-held belief that the region possesses significant natural gas reserves. Establishing commercially viable hydrocarbon reserves in the Andaman Sea would increase India's stake in this strategically important sea.

The government has supported exploration through policies like the "IndraSastra" mission in 1980 and the Open Acreage Licensing Policy (OALP) launched in 2016. Oil India Limited (OIL) has already invested ₹2,500 crore in the first phase of exploratory drilling in the Andaman basin. OIL has started drilling in two shallow-water blocks and expects to drill three more.

A major oil discovery in the Andaman Sea could be a transformative step for India, potentially leading to energy independence and fueling a USD 20 trillion economy. The discovery could significantly reduce India's reliance on oil and natural gas imports.