New Delhi, June 5: Oil India Limited (OIL), a State-owned company, today announced the discovery of natural gas in the Andaman shallow offshore block, marking the second well in the block to confirm hydrocarbon presence.
The company said initial production testing at a depth of over 1,900 metres in the Eocene formation confirmed the presence of natural gas through continuous flaring.
Following perforation, the well showed immediate pressure build-up and commenced production.
The latest discovery was made at the VijayaPuram-3 well (Loc. OAEB), drilled nearly 15 kilometres off the east coast of the Andaman Islands in the Offshore Andaman Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP).
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The well was drilled at a water depth of 355 metres, the company said in a regulatory filing to the BSE and NSE.
The company said gas sampling is currently underway to assess the gas composition and calorific value, alongside isotope studies to better understand its genesis.
Earlier Discovery
OIL had earlier reported natural gas discovery in the block’s second exploratory well, VijayaPuram-2 (Loc. OAEA), on September 26, 2025.
Of the three exploratory wells drilled in the block so far, two have now confirmed hydrocarbon presence.
Leading Indicator
The latest discovery is viewed as “a leading indicator of the presence of source or migration pathway or accumulation of hydrocarbon in the current prospect,” which could help shape future exploration strategy in the region, according to the company.
Following the discovery in September last year, OIL initiated an appraisal programme involving reprocessing of existing 2D seismic data and acquisition of an additional 600 square kilometres of 3D seismic data, which has already been completed.
Processing and interpretation of both newly acquired and vintage 3D seismic data are currently underway.
The company said appraisal well drilling is planned once seismic data interpretation is completed.
OIL is a Maharatna central public sector enterprise under the Ministry of Petroleum and Natural Gas. (BVI)
