Andaman Basin Set for Massive Geopolitical Surge as Oil Auctions and Thailand Land Bridge Elevate Strategic Value

Andaman Basin Set for Massive Geopolitical Surge as Oil Auctions and Thailand Land Bridge Elevate Strategic Value​

The Andaman and Nicobar Islands are poised for a dramatic elevation in strategic importance following the prospect of major offshore oil block auctions and the finalization of Thailand's ambitious 'Land Bridge' project, according to Lt Governor Admiral DK Joshi (Retd). These converging developments promise to profoundly reshape the region's geopolitical standing.

Joshi stated that the Open Acreage Licensing Policy (OALP) Bid Round X, which includes Andaman basin blocks, is scheduled for June 19. This event represents a pivotal moment, fueled by high expectations regarding potential oil discoveries in the area.

Offshore Oil Exploration Accelerates Strategic Focus​

Both state-run Oil India Ltd (OIL) and Oil and Natural Gas Corporation (ONGC) have intensified their exploration efforts in the Andaman-Nicobar basin since early 2026. These crucial blocks are being auctioned through OALP, signifying a commitment to resource development.

Regarding OIL's activities, three wells have been drilled: Vijayapuram-1, 2, and an ongoing third well. The drilling confirmed gas presence (87 percent methane) at Vijayapuram-2, although the results from Vijayapuram-1 were dry.

ONGC has advanced significantly with its planned 6,000-metre AND-P1 ultra-deepwater well, having completed 4,000 metres of drilling. While previous high-impact targets like ANDW-7 and ANDW-9 confirmed gas presence, the commercial viability in these areas is yet to be established.

Joshi noted that the upcoming auction represents the largest ever oil block auction, with a significant portion located within the Andaman Basin. Major firms including Shell and ExxonMobil are reportedly in advanced dialogue with Oil India and ONGC for joint ventures and memoranda of understanding (MoUs).

Thailand Land Bridge Project Rewrites Regional Dynamics​

The finalization of the Thailand Land Bridge project is set to alter the geostrategic significance of the entire region in an unprecedented manner, Joshi asserted. The announcement was made recently at the highest political levels in Thailand.

This mega-infrastructure project aims to fundamentally reshape global shipping routes by connecting the Indian and Pacific Oceans. It involves two deep-sea ports: one located in Ranong on the Andaman Sea, and another in Chumphon on the Gulf of Thailand. These locations will be linked by 90 km (56 miles) of road and rail, along with energy pipelines.

The project is a response to the closure of the vital Strait of Hormuz. By providing an alternate route for vessels, the Land Bridge aims not only to dominate the Strait of Malacca but the entire traffic across the Indo-Pacific divide, potentially saving over 1,000 kms each way or three days for ships.

Tourism Ecosystem Sees Rapid Developmental Push​

The tourism ecosystem in the island region has historically been rudimentary, but it is currently undergoing a rapid transformation. Joshi highlighted that four major hospitality contracts were awarded earlier this year: two went to the Radisson Group and two to the Thailand-based Anantara.

These contracted entities are noted as clean revenue models for the administration, with the only initial expenditure being basic infrastructure provision. In the coming weeks, 11 additional major contracts focused on basic infrastructure development will be allocated.

Joshi stressed that tourism had previously been a bottleneck for the region but added that unrealised potential is now being rapidly addressed through these new developments and investment opportunities.