Oil India Limited (OIL) is embarking on a significant investment venture, earmarking over Rs 2500 crore for operations in the Andaman Islands. The company's Chairman cum Managing Director (CMD), Ranjit Rath, disclosed plans for offshore drilling to commence by September 2024, signaling a strategic move towards exploration in this region.

Speaking to the media at the side of the ongoing India Energy Week in Goa, Rath emphasized the necessity for substantial discoveries to sustain Oil India Limited's competitive edge. Despite the inherent risks associated with offshore exploration in the Andaman basin, Rath remains optimistic, drawing parallels with successful ventures in neighboring Myanmar and Malaysia.

Preparations are underway, with contracts for three rigs already secured. Pending smooth progress, the first exploration phase is scheduled to commence in September 2024. Oil India Limited holds two shallow-water blocks in the Andaman region, acquired through the third open acreage licensing policy (OALP) round.

Characterizing the Andaman basin as a 'Category II' basin, Rath explained its potential, indicating existing sub-commercial discoveries awaiting conversion into recoverable reserves. The government's strategic decision to open previously restricted areas for exploration aims to bolster domestic crude oil and natural gas production.

The Andaman basin, spanning approximately 225,918 square kilometers, presents significant hydrocarbon reserves, particularly in its shallow-water and deepwater areas. Collaborating with the Directorate General of Hydrocarbons (DGH), Oil and Natural Gas Corporation (ONGC), and other stakeholders, extensive surveys covering over 22,000 line kilometers of two-dimensional (2D) data have been conducted in the region.

As Oil India Limited forays into Andaman's offshore exploration, it stands poised to contribute substantially to India's energy landscape while navigating the challenges inherent in such endeavors.