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Oil India Reports Second Natural Gas Discovery in Andaman Offshore Block
Oil India Ltd has announced a fresh natural gas discovery in the Andaman offshore basin through its Vijayapuram-3 exploratory well. The discovery marks the second hydrocarbon find in the block during the ongoing exploration campaign and is expected to support future exploration and appraisal activities in the region.
By Finblage Editorial Desk
2:40 pm
5 June 2026
State-owned Oil India Ltd (OIL) has reported a new natural gas discovery in the Andaman offshore basin, strengthening the hydrocarbon potential of the region amid growing concerns over global energy security and supply disruptions.
The discovery was made in the Vijayapuram-3 exploratory well drilled in the AN-OSHP-2018/1 block awarded under the Open Acreage Licensing Policy (OALP). The well is located approximately 15 kilometres off the east coast of the Andaman Islands in a water depth of around 355 metres.
According to the company, initial production testing conducted at a depth of more than 1,900 metres in the Eocene formation confirmed the presence of natural gas through continuous flaring. The well began producing immediately after perforation, with pressure build-up observed during testing operations, indicating the presence of a viable hydrocarbon system.
Oil India stated that gas sampling and laboratory analysis are currently underway to determine the composition, calorific value, and origin of the discovered gas. The company said preliminary assessments suggest the find could indicate the presence of an active source rock, hydrocarbon migration pathway, or accumulation zone within the prospect area.
This is the second hydrocarbon discovery reported by Oil India in the block during its ongoing exploration campaign. The company had earlier announced the presence of natural gas in the Vijayapuram-2 exploratory well in September 2025 and has already initiated appraisal activities for that discovery.
As part of its exploration efforts, Oil India has completed the reprocessing of existing two-dimensional seismic data and acquired an additional 600 square kilometres of three-dimensional seismic data across the block. Processing and interpretation of the seismic data are currently in progress and will be used to identify future drilling targets and appraisal locations.
The company noted that the latest discovery enhances confidence in the hydrocarbon prospectivity of the Andaman shallow offshore region and will help shape its future exploration strategy. The find could also contribute to India's long-term objective of increasing domestic oil and gas production and reducing dependence on imported energy.
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