Oil India reports fresh natural gas discovery in Andaman offshore block

New Delhi: A day after Pakistan's state-owned oil company, OGDCL, announced a discovery of oil reserves in Sindh, India's Maharatna PSU, Oil India Limited (OIL), reported the presence of natural gas in its third exploratory well in the Andaman shallow offshore region. The discovery marks another significant milestone in the company's ongoing hydrocarbon exploration campaign in the island territory

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In a statement issued on Friday, Oil India Ltd said the discovery was made in the Vijayapuram-3 (Loc. OAEB) exploratory well, drilled around 15 km off the east coast of the Andaman Islands at a water depth of 355 metres in the AN-OSHP-2018/1 block awarded under the Open Acreage Licensing Policy (OALP).

With the latest find, Oil India Ltd has now established the presence of hydrocarbons in two out of the three exploratory wells drilled so far in the offshore block. The company had earlier reported the occurrence of natural gas in its second exploratory well, Vijayapuram-2, in September 2025.

According to Oil India Ltd, initial production testing conducted at a depth of over 1,900 metres in the Eocene formation confirmed the presence of natural gas through continuous flaring. The company said immediate pressure build-up was observed following perforation, and the well began producing gas.

Oil India Ltd is currently undertaking gas sampling to determine the composition and calorific value of the gas, along with isotope studies to better understand its geological origin.

The company said preliminary assessments indicate the discovery could point to the presence of an active hydrocarbon source, migration pathway, or accumulation within the prospect area. The findings are expected to play a crucial role in shaping future exploration strategies in the basin.

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Following the gas discovery in Vijayapuram-2 last year, Oil India had already initiated an appraisal programme. As part of these efforts, the company has completed the reprocessing of available 2D seismic data and acquired an additional 600 square kilometres of 3D seismic data in the block. Processing and interpretation of both newly acquired and legacy seismic datasets are currently underway.

Based on the outcome of the seismic studies, Oil India plans to undertake appraisal well drilling to further evaluate the hydrocarbon potential of the area.

The latest discovery strengthens the exploration prospects of the Andaman offshore basin and reinforces Oil India's efforts to expand India's domestic hydrocarbon resources amid the country's push for greater energy security.

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