Amid rising crude oil prices across the world and challenges related to energy security, India is now accelerating the exploration of new reserves of oil and natural gas on its eastern coast. Its special emphasis is on the deep water areas of Mahanadi and Andaman Basin.
Big companies like ONGC and Oil India Limited (OIL) are actively working in this direction. By discovering new reserves in deep waters, India aims to reduce its dependence on imports; Due to this, it is accelerating offshore oil and gas exploration activities in the Mahanadi and Andaman Basin. India’s leading upstream oil and gas companies – such as Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) – have redoubled their efforts to identify new potential reserves in the Andaman Basin.
Why is exploration in the eastern region important?
India currently imports about 85% of its crude oil needs. Exploration and production activities in the western fields (both on land and in the sea) have almost reached their maximum capacity. As a result, the government’s focus has now shifted to the eastern regions, including the Bay of Bengal, the Mahanadi Basin and the Andaman Basin.
Mahanadi Basin: This region spread over Odisha and Chhattisgarh is considered to have immense potential.
Andaman Basin: The recent discovery of gas by Oil India (in Vijayapuram-2 well) in this region has raised new hopes. This area is very important for deep water exploration.
Mega Survey Schemes
The government is preparing to conduct a geological survey on a large scale, covering multiple basins. The initiative covers several key areas:
Bengal-Purnia and Mahanadi: about 45,000 line kilometers (LKM)
Krishna-Godavari: about 43,000 LKM
Kaveri: 30,000 LKM
Andaman: 43,000 LKM
Bids for this survey were invited on 14 May. The project will involve the use of rigs, use of 3D technology and collaboration between government agencies and private sector companies. Its objective is to reduce dependence on imports and identify new alternative reserves of oil and gas. **Current Situation**
At the time of writing, Brent crude was priced at $109.9 per barrel, while WTI was priced at around $102 per barrel. Rising prices are putting pressure on both the country’s economy and the common citizen. To strengthen energy security, India is now increasing its investment in deep sea exploration. If there is any major commercial exploration in these areas, it will not only reduce imports but will also prove to be a big step towards employment generation and self-reliance. Mahanadi and Andaman Basin could prove to be the key to India’s energy future. Due to the efforts of the government and public sector undertakings, it is expected that in the near future the country will get new resources of oil and gas, which will help in dealing with the energy crisis.
