Oil India Ltd Discovers Natural Gas in Andaman Offshore Region

Significant Gas Discovery by Oil India Ltd

Oil India Ltd (OIL), a state-owned exploration company, has announced a new discovery of natural gas in the offshore Andaman region, marking its second significant find during its exploration efforts in this area. This latest discovery comes from the shallow-water block AN-OSHP-2018/1, which was awarded under the Open Acreage Licensing Policy (OALP). The gas was detected in the exploratory well Vijayapuram-3, situated approximately 15 kilometers from the eastern coast of the Andaman Islands, at a depth of 355 meters.

With this recent finding, OIL has now identified hydrocarbons in two out of the three exploratory wells drilled in this block. The company had previously reported a natural gas discovery in the Vijayapuram-2 well back in September 2025.

Production testing conducted in the Vijayapuram-3 well confirmed the presence of natural gas within the Eocene formation at depths exceeding 1,900 meters. The company stated, "Initial production testing at depths over 1,900 meters in the Eocene formation has verified the existence of natural gas through continuous flaring," noting that immediate pressure build-up was observed after perforation, leading to gas production.

Ongoing Analysis

OIL is currently conducting further studies to gain a deeper understanding of the gas characteristics discovered at the site. This includes gas sampling to analyze its composition and calorific value, as well as isotope studies to investigate the gas reserves' origin and formation process. The company indicated that preliminary assessments suggest a strong indication of a source or migration pathway for hydrocarbons in the area, which will aid in planning future exploration activities.

Advancing the Appraisal Programme

In response to the gas discovery in Vijayapuram-2 last year, OIL has launched an appraisal programme to assess the broader resource potential of the block. This initiative includes the reprocessing of existing two-dimensional seismic data and the acquisition of an additional 600 square kilometers of three-dimensional seismic data. The processing and interpretation of both new and existing 3D datasets are currently in progress.

Following the seismic analysis, the next phase will involve drilling appraisal wells. OIL stated, "After processing and interpreting the seismic data, we plan to undertake appraisal well drilling. Given that this is the second reported hydrocarbon presence during our ongoing exploration in the Andaman Shallow Offshore block, we aim to keep our stakeholders informed." This latest discovery is expected to bolster India's efforts to enhance domestic oil and gas exploration and could position the Andaman offshore basin as a promising hydrocarbon region in the long term.