State-run explorer Oil India Ltd (OIL) has reported another natural gas discovery indicator in the Andaman offshore region, marking the second such discovery in its ongoing exploration campaign in the area. The latest development comes from the company’s shallow-water block AN-OSHP-2018/1, awarded under the Open Acreage Licensing Policy (OALP). The gas presence was identified in the exploratory well Vijayapuram-3, located around 15 kilometres off the eastern coast of the Andaman Islands at a water depth of 355 metres.
With this finding, OIL has now encountered hydrocarbons in two of the three exploratory wells drilled within the block. The company had earlier announced the discovery of natural gas in the Vijayapuram-2 well in September 2025.
According to the company, production testing carried out in the Vijayapuram-3 well confirmed the existence of natural gas in the Eocene formation at a depth exceeding 1,900 metres.
“Initial production testing of the well at the depth of 1,900-plus metres in the Eocene formation has established the presence of natural gas through continuous flaring,” the company said in a statement, adding that post-perforation, immediate pressure build-up was observed and the well started to produce.
Further Analysis Underway
OIL said additional studies are now being conducted to better understand the characteristics of the gas discovered at the site.
The company is currently undertaking gas sampling to determine its composition and calorific value. It is also carrying out isotope studies to examine the origin and formation process of the gas reserves.
“As per preliminary assessment, this is a leading indicator of the presence of source or migration pathway or accumulation of hydrocarbons in the current prospect, which will help in strategising the future exploratory programme,” it said.
Appraisal Programme Moves Forward
Following the gas occurrence reported in Vijayapuram-2 last year, OIL initiated an appraisal programme aimed at evaluating the broader resource potential of the block. As part of that exercise, the company has completed the reprocessing of existing two-dimensional seismic data and acquired an additional 600 square kilometres of three-dimensional seismic data. Processing and interpretation of both newly acquired and legacy 3D datasets are currently underway.
The next phase of the programme will involve appraisal drilling after the seismic analysis is completed.
“Post processing and interpretation of the seismic data, the appraisal wells drilling is planned to be undertaken. Given that this is the second reported presence of hydrocarbon during the ongoing exploration campaign in the Andaman Shallow Offshore block, we wish to keep our valued stakeholders informed,” OIL said.
The latest discovery adds momentum to India’s efforts to expand domestic oil and gas exploration and could strengthen the long-term prospects of the Andaman offshore basin as an emerging hydrocarbon region.
