Oil India Discovers Natural Gas in 3rd Exploratory Well in Andaman Offshore Block, Hydrocarbon Presence Confirmed in 2 of 3 Wells

Oil India Limited (OIL), a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas, has announced the discovery of natural gas in its third exploratory well, Vijayapuram-3, located in the offshore Andaman Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP).

The Vijayapuram-3 well, drilled approximately 15 km off the east coast of the Andaman Islands at a water depth of 355 metres, marks another significant milestone in OIL’s ongoing exploration campaign in the region. With this development, the company has now established the presence of hydrocarbons in two of the three exploratory wells drilled in the block so far.

The latest discovery follows the reported occurrence of natural gas in the Vijayapuram-2 exploratory well in September 2025, strengthening the hydrocarbon potential of the Andaman offshore basin.

According to the company, initial production testing conducted at a depth of over 1,900 metres within the Eocene formation confirmed the presence of natural gas through continuous flaring. Following perforation, the well exhibited immediate pressure build-up and commenced gas production.

Oil India is currently carrying out gas sampling activities to determine the composition and calorific value of the gas. The company is also undertaking isotope studies to better understand the origin and geological characteristics of the discovery.

Based on preliminary assesSMEnts, the gas occurrence is considered a positive indicator of the presence of a hydrocarbon source, migration pathway, or accumulation within the prospect area. The findings are expected to support future exploration strategies in the block.

Following the earlier gas discovery at Vijayapuram-2, Oil India had initiated an appraisal programme to further evaluate the resource potential. As part of these efforts, the company has completed the reprocessing of available 2D seismic data and acquired an additional 600 sq. km of 3D seismic data. Processing and interpretation of both newly acquired and existing 3D seismic datasets are currently underway.

The company plans to undertake appraisal well drilling after completing the seismic interpretation process, which will help determine the commercial viability and extent of the hydrocarbon resources.

Given that this is the second confirmed hydrocarbon presence during the ongoing exploration campaign in the Andaman shallow offshore block, the discovery highlights the growing exploration potential of the region and reinforces Oil India’s efforts to expand India's domestic energy resource base.

Disclaimer: The article is for informational purposes only and not investment advice.