Oil India reports natural gas occurrence in Andaman shallow offshore block

New Delhi: Oil India Limited (OIL), a Maharatna company under the Ministry of Petroleum and Natural Gas, announced on Friday the occurrence of natural gas in its second exploratory well, Vijayapuram-2 (Loc. OAEA), drilled in the Andaman Shallow Offshore Block AN-OSHP-2018/1. The block was awarded under the government’s Open Acreage Licensing Policy (OALP).

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According to the company, preliminary analysis of gas samples collected during intermittent inflow as part of initial production testing has confirmed the presence of natural gas. Further isotope studies are being carried out to establish the genesis of the gas.

Significance for exploration strategy

Oil India said the finding could be a “leading indicator of the presence of a source, migration pathway or accumulation of hydrocarbon,” which would help refine its future exploration and drilling strategy in the frontier basin. The company added that additional testing of higher-up prospects is also being undertaken to further evaluate the reported occurrence.

First hydrocarbon indication in current campaign

This is the first reported hydrocarbon occurrence in Oil India’s ongoing exploration campaign in the Andaman Shallow Offshore Block. The company said it was sharing the development to keep its stakeholders informed, noting that results from the studies would determine the next phase of exploration in the block.

Andaman Basin

The Andaman offshore is considered one of India’s last frontier basins, lying at the junction of the Bay of Bengal and Andaman Sea. The basin has long been on the radar of India’s upstream companies for its potential to host oil and gas reserves, but exploration has been sporadic and challenging due to deep waters, logistical constraints and limited subsurface data.

Oil and Natural Gas Corporation (ONGC) and Oil India have both held acreage in the Andaman Basin over the years, with earlier drilling attempts providing geological insights but no major commercial discoveries. The government revived interest in the region through the OALP auction rounds, hoping to open up new domestic sources of hydrocarbons.

The latest gas indication in Vijayapuram-2 marks a step forward in testing the basin’s prospectivity, though commercial viability will depend on further appraisal and testing.

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