The Andaman and Nicobar Basin constitutes one of India’s 26 sedimentary basins. Classified as a Category II basin, it exclusively occupies marine territory, spanning 18,074 sq. km in shallow waters and 2,07,844 in deep waters (NDR, 2023). According to Scaife and Billings (2010), it remains at the ‘frontier’ of hydrocarbon exploration, with only a few wells drilled for exploratory purposes. In the post-liberalization period- with the introduction of the New Exploration and License Policy (NELP) framework in 1999- the area garnered considerable interest from major players in India’s hydrocarbon space; with emphasis on expanding oil exploration activities to the Andaman offshore. Nonetheless, the initial spurt of exploratory activities- mainly comprising geoscientific surveys and delineation of blocks- failed to materialise in any concrete outcomes in terms of discovery and production. However, since the adoption of the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016, there has been a renewed focus on harnessing the basin’s potential. Rich in mineral resources, the basin remains significantly under-explored. As per The DGH (2022-23, p. 63) only 2 Metric Million Tons of Oil Equivalent (MMTOE) of the potential 72 MMTOE of hydrocarbon remains discovered in the basin; leaving nearly 97% of hydrocarbon resources untapped. Scaife and Billings (2010) reiterate the potential riches residing in the Andaman Sea. Drawing from existing seismic data, they assert:
“The Andaman Sea Basin fore-arc area can be shown to contain a thick succession of sediments (locally in excess of 7,000m), ranging from late Cretaceous to Recent. Only a part of this succession has been penetrated by the existing exploratory wells.”
Given the region’s hydrocarbon potential and the Government of India’s broader policy directive of reducing crude imports and boosting domestic oil and gas production, the Andaman Basin has become a key site of intervention for various stakeholders- The Ministry of Petroleum and Natural Gas (MoPNG), Director General of Hydrocarbons (DGH), oil and gas companies- in the hydrocarbon sector. Concerning the basin- and other offshore basins in Indian waters- one of the more significant policy measures taken is the unlocking of 99% of No-Go Areas in India's Exclusive Economic Zone (EEZ) for “exploration and development pursuits” in December 2022 (DGH 2022-23, p. 137; Moneycontrol, 2023). That it was done to augment domestic hydrocarbon production is further evident in Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri’s press statement:
“We had to make changes. Most of our sedimentary basins were not open for exploration because somewhere the Coast Guard had a problem, somewhere DRDO had a problem. We have opened up that space now.” (Moneycontrol, 2023)
As a result, a substantial portion of the Andaman Sea is now open to exploration (and production) activities. This provides some context for a critical study of oil and gas exploration activities in the Andaman Basin. However, in the absence of prior research- especially of a critical nature- we have to begin from scratch. To this end, we piece together a timeline of oil and gas exploration in the Andaman and Nicobar Islands, or more precisely, in the Andaman offshore. It is a good starting point for multiple reasons: helps us periodize important events, draws out connections between micro and macro-level developments, helps locate patterns and provokes questions. In effect, the timeline will help us map potential research areas. Its immediate aim, however, is to provide a comprehensive overview of the measures taken to harness the area's hydrocarbon potential. In drafting the timeline, the following were considered for inclusion:
1. Nature of and location of geoscientific studies conducted, their findings and the agencies and organisations involved
2. Details of all active and relinquished exploration blocks in the Andaman Basin
3. Details of Memorandums of Understanding (MoUs) signed by the DGH with relevant institutions which have a bearing on the Andaman basin
4. Details of MoUs signed by National Oil Companies (NOCs) and private companies- be they Indian or foreign- which have a bearing on the Andaman Basin.
This timeline comprises three segments. The first highlights key events from the pre-NELP years (post-independence to 1999), The second covers the NELP era (1999 to 2015) and the third brings to light significant events under the HELP framework (2016 to present).
Read and download the report here:
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