Andaman and Nicobar Islands Lieutenant Governor D K Joshi on Monday said the offshore oil exploration in the archipelago has gained momentum after decades of inactivity, with early findings indicating promising hydrocarbon potential.
In an interview with PTI, he said the recent exploratory drilling in the Andaman Basin has generated optimism.
"At the Sri Vijaya Puram-2 exploratory well, drilling by Oil India Limited (OIL) has indicated a gas find with around 87 per cent methane content, alongside another zone with a high probability of crude oil presence. Data validation and commercial viability assessments are currently underway," he said.
"The Andaman Basin has attracted strong interest ahead of upcoming auction rounds for oil blocks, with several global energy majors in discussions with the Oil and Natural Gas Corporation (ONGC) and the OIL for potential joint ventures. These collaborations are expected to bring in not just investment, but also advanced technology and specialised equipment required for deep-sea exploration in the region," Joshi added.
Highlighting the untapped potential of the region, the lieutenant governor noted that despite accounting for nearly one-third of India's Exclusive Economic Zone and over a quarter of its coastline, offshore exploration had remained largely absent for the first six to seven decades after Independence, as surrounding waters were designated "no-go zones".
The issue was subsequently taken up with the Islands Development Agency, paving the way for exploration activities.
Joshi said there is growing optimism about the basin's long-term potential, with some estimates likening it to large global discoveries, making it a "space to watch" in India's energy landscape.
In the hospitality sector, the lieutenant governor said the administration has awarded four major projects to firms under the public-private partnership (PPP) model.
"The response from investors has been strong, and even greater interest is being shown for upcoming projects," he said.
Joshi said the administration is expanding helicopter services to further strengthen inter-island connectivity.
Alongside augmenting the Pawan Hans fleet, expressions of interest have been floated for private operators to run licensed routes, drawing significant industry response, he said.
"With 836 pristine islands, tourism holds immense potential, and improving connectivity has been prioritised. Seaplane operations have completed trial runs and, in the first phase, will connect Sri Vijaya Puram with Long Island, Swaraj Dweep, Shaheed Dweep and Little Andaman. The administration aims to develop the region into a major seaplane hub for the Indian Ocean, and eventually the wider Indo-Pacific region," he said.
Highlighting the islands' natural strengths, the lieutenant governor said the region has vast potential for scuba diving and underwater tourism.
Plans are afoot to position the Andaman and Nicobar Islands as a premier scuba diving destination in the Indo-Pacific region, Joshi said.
On the power front, he outlined a major transition towards clean and sustainable energy.
"A decade ago, nearly 90 per cent of the islands' power generation relied on diesel, with only about 10 per cent coming from renewable sources such as solar and limited hydroelectric capacity. However, over the past 10 years, the share of diesel has reduced to around 70 per cent, while solar energy has increased to approximately 25 per cent," he said.
Looking ahead, the administration aims to cut diesel dependence to single digits -- around 8 per cent -- within the next three years. Solar power is projected to rise sharply to 70 per cent, with around 18 per cent of energy needs expected to be met through LNG-based generation, Joshi said.
He said proposals are also under examination for a high-voltage direct current (HVDC) undersea cable to connect the islands with the mainland grid, enabling greater energy stability.
The administration has also suggested exploring small modular nuclear reactors for high-demand zones such as Great Nicobar, where major infrastructure projects are being planned, he added.
Joshi said the archipelago is among India's most strategically significant and geographically expansive territories.
"While the islands may have a small population, their landmass surpasses that of several mainland Indian states. In fact, the combined land area of island nations such as the Maldives, Mauritius and Seychelles is smaller compared to the Andaman and Nicobar Islands. The archipelago is the gateway to the Indo-Pacific," he added.
Published on May 25, 2026