According to media reports, India is actively pursuing oil and gas development in the Andaman deep water basin with the government preparing to fund an ONGC-led drilling effort and to ease approvals. The government's aim to increase domestic production of oil and gas and reduce imports at a time when high fuel costs are punishing consumers is centred on accelerating exploration.
After the monsoon, ONGC intends to begin the drilling campaign in the Andaman offshore, and it is now in negotiations with ExxonMobil and Shell to include them in the project, according to the company. Under the unique government-funded programme in the Andaman Sea, ONGC anticipates drilling three to four wells, each of which will cost between Rs 3.5 and Rs 4 billion.
Under its "National Island Exploration Project," the government has collected 2D seismic data spanning 22,500-line kilometres over the region designated as a "No-Go" zone. It also plans to finance the drilling of a few assessment wells in these regions.
Although ONGC has examined the data, it needs a second opinion from overseas businesses with deep-water experience. According to the individuals named above, it intends to hire international firms or consultants to study the Andaman basin, conduct petroleum system modelling studies, and de-risk identified opportunities before drilling.
ExxonMobil and Shell have been in conversations with ONGC to get their opinions on the Andaman prospects and to potentially bring them on as partners if they show interest in the project, according to the reports.
In the Andaman waters, ONGC already has two blocks that were granted in open acreage licencing rounds. In addition to this, ONGC and Oil India each have a block in the Andaman offshore that they won in licencing rounds in the past. The two firms will advance in their respective blocks more quickly because of simpler clearances.
The government's exploration drive, which in recent years has included the awarding of sizable acreages to state and private companies and the launch of the government-funded plan to acquire vast geological data in order to identify hydrocarbon potential across the country, has taken on greater urgency as a result of the high price of oil and gas.
