New Delhi: State-run Oil India Limited (OIL) on Friday announced the discovery of natural gas in its third exploratory well in the Andaman shallow offshore block, further indicating the region's hydrocarbon potential. The company reported this development in a regulatory filing to stock exchanges.
Details of the Discovery
The natural gas was encountered in the exploratory well Vijayapuram-3, drilled 15 kilometers off the east coast of the Andaman Islands at a water depth of 355 meters. This well is located in an offshore block under the Open Acreage Licensing Policy (OALP). According to OIL, initial production testing at a depth of over 1,900 meters in the Eocene formation confirmed the presence of natural gas through continuous flaring. Post perforation, immediate pressure buildup was observed, and the well began producing gas.
Gas Sampling and Analysis
The company stated that gas sampling is currently underway to assess its composition, calorific value, and to conduct isotope studies aimed at understanding its genesis. These analyses will provide critical insights into the quality and origin of the hydrocarbon resource.
Implications for Hydrocarbon Potential
With this discovery, OIL has now established the presence of hydrocarbons in two of the three exploratory wells drilled so far in the Andaman offshore block. The first indication of natural gas in the region came from its second well, Vijayapuram-2, in September 2025. Following that initial discovery, OIL launched an appraisal program to evaluate the extent of the find.
Preliminary Assessment and Future Plans
A preliminary assessment of the latest well indicates the presence of a hydrocarbon source, migration pathway, or accumulation in the prospect. This information will help OIL plan future exploration activities in the region. As part of the appraisal program, the company has reprocessed available 2D seismic data and completed the acquisition of an additional 600 square kilometers of 3D seismic data. Based on these results, OIL intends to drill appraisal wells to further evaluate the hydrocarbon potential of the block.
This discovery marks a significant step in understanding the hydrocarbon reserves in the Andaman region, potentially paving the way for increased exploration and production activities.
