India Confirms First Natural Gas Discovery in Andaman Basin, Union Petroleum Minister Hardeep Singh Puri Calls It a ‘Milestone’

Moneylife Digital Team 27 September 2025

Economy & Nation

India has achieved a significant milestone in its energy exploration efforts with the confirmation of natural gas presence in the Andaman Sea, marking the first definitive hydrocarbon discovery in this strategic basin. Union petroleum minister Hardeep Singh Puri announced that Oil India Ltd successfully identified natural gas at the Sri Vijayapuram 2 well, positioned 17km (kilometres) off the east coast of the Andaman Islands. The well was drilled at a water depth of 295mtr (metres), reaching a target depth of 2,650mtr. Initial production testing conducted between 2,212mtr and 2,250mtr depth confirmed the gas presence through intermittent flaring observations.

Laboratory analysis of gas samples transported to Kakinada revealed an impressive composition of 87% methane, indicating high-quality natural gas reserves.

While the commercial viability and size of the gas pool remain under evaluation, the discovery is being hailed as a major step in validating long-held geological assessments that the Andaman basin is rich in hydrocarbons. The find aligns with similar discoveries across the broader regional belt, extending from Myanmar in the north to Indonesia in the south.

An ocean of energy opportunities opens up in the Andaman Sea!
Very happy to report the occurrence of natural gas in Sri Vijayapuram 2 well at a distance of 9.20 NM (17 km) from the shoreline on the east coast of the Andaman Islands at a water depth of 295 meters and target depth… pic.twitter.com/4VDeGtt8bt
— Hardeep Singh Puri (@HardeepSPuri) September 26, 2025

“This occurrence of natural gas will help advance India’s exploration ambitions in partnership with global deepwater leaders such as BP, Shell, ExxonMobil, and Petrobras,” Mr Puri stated, describing the development as “an ocean of energy opportunities.”

If proven commercially viable, this would become the fourth major natural gas find on India’s east coast, after significant strikes in the Krishna-Godavari basin by Reliance Industries, Gujarat State Petroleum Corporation and ONGC. The Andaman discovery also carries strategic importance, strengthening India’s energy security in a region stretching from Myanmar to Indonesia where multiple gas-rich basins have already been tapped.

The announcement comes soon after prime minister Narendra Modi launched the National Deepwater Exploration Mission—dubbed “Samudra Manthan”—on Independence Day. The mission envisions accelerated offshore exploration to unlock domestic oil and gas reserves, reduce import dependence, and bolster India’s energy self-reliance during the Amrit Kaal.

Minister Puri expressed optimism that this development will accelerate India's exploration ambitions and serve as a crucial milestone in the country's energy independence journey during the 'Amrit Kaal' period, marking India's path toward becoming a developed nation by 2047.

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