Oil India Limited (OIL) announced the discovery of natural gas in its third exploratory well in the Andaman shallow offshore region, further reinforcing the hydrocarbon potential of the Andaman Basin. The company reported that natural gas was encountered in the exploratory well Vijayapuram-3, located approximately 15 kilometres off the east coast of the Andaman Islands. The well was drilled at a water depth of 355 metres within an offshore block awarded under the Government of India’s Open Acreage Licensing Policy (OALP).
Production Testing Confirms Presence of Natural Gas
According to OIL, initial production testing conducted in the Eocene formation at a depth exceeding 1,900 metres successfully established the presence of natural gas. The company stated that continuous gas flaring was observed during testing, confirming hydrocarbon accumulation in the reservoir. Furthermore, after perforation operations were carried out, the well exhibited an immediate pressure build-up and commenced gas production. This positive outcome highlights the exploration success achieved by OIL in the emerging offshore basin.
Detailed Gas Analysis Underway
To further evaluate the discovery, OIL has initiated gas sampling activities. The samples will be analysed to determine the gas composition and calorific value. In addition, isotope studies will be conducted to understand the origin and geological characteristics of the gas reserves. These studies are expected to provide valuable insights into the commercial viability and future development potential of the discovery.
Second Hydrocarbon Discovery in Three-Well Campaign
With the success of Vijayapuram-3, OIL has now established the presence of hydrocarbons in two out of the three exploratory wells drilled in the Andaman offshore block. Notably, the company reported its first natural gas indication from the Vijayapuram-2 exploratory well in September 2025. The latest discovery further validates the prospectivity of the region and strengthens confidence in future exploration activities.
Boost to India’s Offshore Exploration Efforts
The latest gas discovery marks another important milestone in India’s efforts to enhance domestic oil and gas production and reduce dependence on energy imports. As reported by msn.com, as exploration activities continue in the Andaman offshore region, the basin is emerging as a promising frontier for hydrocarbon development. The success of OIL’s drilling campaign could pave the way for further exploration investments and contribute significantly to India’s long-term energy security goals.
