The Andaman Basin has emerged as a significant exploration hotspot in Southeast and South Asia, driven by recent multi-trillion cubic feet gas discoveries. Historically overlooked due to remote deep waters, lack of infrastructure, and challenging gas monetization, the basin is now attracting intense interest. This shift is fueled by regional energy security concerns and rising gas demand to support economic growth. The basin spans offshore territories of Indonesia, Thailand, Myanmar, and India.

India's Andaman Exploration Drive

India views its Andaman sector as holding immense hydrocarbon potential, pivotal to its strategy of shifting from coal to gas. Domestic gas demand is projected to rise 60% by 2030. State-owned companies are actively exploring: Oil India Limited (OIL) announced a gas discovery at its Vijaya Puram-2 well, while Oil & Natural Gas Corporation (ONGC) is conducting a three-well ultra-deepwater program. India is offering large, contiguous ultra-deepwater blocks (UD 9-12) in its OALP-X licensing round, described as strategic "crown jewels." International collaboration is growing, exemplified by a technology services agreement between TotalEnergies and OIL. Seismic data projects, like TGS's multi-client 2D-cubed survey covering 640,000 square kilometres, aim to de-risk exploration. Analysis suggests geological continuity from Indonesian discoveries into Indian waters, particularly around Block UD 12 near the Mergui Ridge.

Indonesia's Success and Development Plans

Indonesia's portion of the Andaman Sea has seen major discoveries exceeding 1 billion barrels of oil equivalent since 2022, reigniting industry interest. Harbour Energy's 2022 Timpan-1 discovery encountered a substantial gas column and flowed at 27 MMcfd. Harbour, with partners BP and Mubadala Energy, also holds the Layaran and Tangkulo discoveries in the South Andaman PSC, holding over 8 Tcf of gas initially in place. The Tangkulo project is advancing toward a final investment decision, with plans for a gas FPSO and potential startup by Q4 2028. A potential second phase could involve repurposing the aging Arun LNG facility.

Thailand's Entry and Regional Dynamics

Thailand recently launched its 26th licensing round, offering a single, vast block (A1-68) covering over 60,000 square kilometres in the Mergui Basin. The move aims to counter declining production from mature fields and reduce costly LNG imports. The offering has attracted major players like Chevron, PTTEP, and TotalEnergies. However, analysts note challenges, including a lack of available geological data and unclear fiscal and gas pricing terms. The regulator is considering a shift to concession terms from production sharing contracts, but specific incentives remain undefined.

Geological Context and Regional Potential

The Andaman Basin is a back-arc basin formed by the subduction of the Indian Plate beneath the Sunda Plate. It is connected to the Bengal Fan, termed a "frontier petroleum province." This geology creates mineral-rich areas with potential that extends across maritime borders. The basin's frontier status, combined with recent discoveries and energy security imperatives, is driving a coordinated exploration push across multiple nations.