Prospect of Energy Exploration at Andaman

Why in news?

Recently the Union Minister for Petroleum Hardeep Singh Puri said that it is a “matter of time” before a Guyana-like oil basin is discovered in the Andaman Sea.

Why is Andaman Nicobar basin significant for oil exploration?

• Gas and Condensate Availability - The region is a string of gas and condensate discoveries in the adjacent basins along North Sumatra (Indonesia) and Irrawaddy-Margui (Myanmar).
• Hydrocarbon Reserves – The region has Excellent potential for large hydrocarbon accumulations.
• Unexplored Regions - The Andaman Basin, comprised of a major chunk of unapprised (unexplored)area of the offshore sedimentary basins of India.
• Presence of Oil and Gas - mud volcanoes bearing indications of the presence of oil and gas from the outcrops of the Baratang formations of the Middle and South Andaman.

What aids the exploration of the survey?

• Deep Andaman Offshore Survey – The Andaman Basin, measuring 2.25 lakh square kilometre comprised of a major chunk of sedimentary basins of India.
• National Data Repository in 2023 – It is an integrated data repository of Exploration & Production data of the Indian sedimentary basins.
• Hydrocarbon Exploration and Licensing Policy (HELP) –This policy provided the real fillip in intensifying investment and exploration activity in the basin.
• Open Acreages Licensing Policy (OALP) – Through this Oil companies can select blocks of their choice.
• Uniform Licensing Network – The HELP covers all hydrocarbons (i.e. Conventional and Unconventional hydrocarbons) under a single licensing framework.

What are the challenges involved in exploration?

• Higher Investments - The inter-connected production and processing sites are more expensive to build than onshore shale.
• Price fluctuation - Fluctuating prices of oil might contribute unfavourably to the ambitions in the Andaman Nicobar basin.
• Delay in commercialization - After exploring a basin commercial production take several years to successfully happen.
• Operational costs - Offshore oil and natural gas production is much more expensive than onshore, or land-based productions.
• Lack of data -The report by the Standing Committee on Petroleum and Natural Gas reveal the data about the wells in the basin was scanty with data coverage being moderate to sparse.
• ‘No-Go’ zone -The area was not thoroughly explored because most was barred from drilling and production is banned.

What lies ahead?

• The change in approach, alongside a bigger Guyana-like discovery could help Indian economy scale up from being a $5-7 trillion economy to a $20 trillion economy.
• It is of immense importance to explore new energy options to ensure energy security of India.

Reference

The Hindu| Energy exploration in Andaman