India holds the potential of 'several' Guyana-like oil discoveries in the Indian ocean region, and the Centre is exploring all the possibilities here, Petroleum Minister Hardeep Puri said on June 16.
The minister was confident of oil and gas finds though he added it would be premature to speculate on the size of the reserve. "India imports 80% of its oil and 50% of its natural gas. Even a five-billion-barrel discovery would be a game-changer," Puri said, adding that the exploration in the Andamans are pointing at 'good news' of turning into India's 'Guyana moment'.
Guyana’s fortunes changed in 2015 after US energy major Exxon discovered nearly 11 billion barrels of oil off the coast of the country, making it the youngest petro-state. The country is situated on South America's northern coast, near Venezuela, Suriname, and Brazil, and has started to contribute significantly to the global supply after production commenced in 2019.
"...in Guyana, 46 dry wells were drilled before oil was found in the 47th. We believe India holds the potential of several Guyanas, particularly in the Indian Ocean region. We are looking at the possibility, thanks to this additional E&P, of finding a Guyana," Hardeep Puri told reporters.
India has seen several green shoots of oil finds - Surya Mani (Open Acreage Licensing Policy Round 6) at a depth of 2,323 metres and an estimated potential of 4 million metric tonnes of oil equivalent, Neel Mani (OALP Round 5) at 1,117 metres with 1.2 million metric tonnes of oil equivalant, and another well from OALP Round 3 at 2,865 metre depth has shown oil and gas reserves. "We currently have four wells being drilled at depths of 5,000 metres by ONGC and Oil India Limited. Why didn’t this happen earlier? High costs, corporate reluctance due to quarterly earnings pressure...Today, we welcome technical expertise from global partners...," Puri added.
The minister said India has 3.5 million square kilometres of sedimentary basin, but it never explored beyond an 8 percent area, with large expanse of seabeds untapped and unexplored
The minister cautioned that while the green shoots and discoveries point at the right direction, one must not jump to conclusion. "While it’s premature to speculate exact quantities, we do have green shoots and multiple discoveries pointing in the right direction. We must not misinterpret exploratory drilling as confirmed discoveries," he said, but cited data of discovery listings which he said are showing 'promising signs'.
"As we drill deeper, the full potential will become clearer," said the minister.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
