Oil Discovers Second Natural Gas Reserve in Andaman Offshore Block, Enhancing Regional Exploration Prospects

India's Andaman Offshore Region Emerges as Promising Hydrocarbon Producer

State-run Oil India Ltd has made its second natural gas discovery in the Andaman offshore region, a development that reinforces hopes that the frontier basin could emerge as a significant hydrocarbon-producing area in the coming years.

The latest discovery was made at the Vijayapuram-3 exploratory well, located about 15 kilometres off the east coast of the Andaman Islands in a water depth of 355 metres. This marks the second successful gas-bearing well drilled by OIL in the block, following the natural gas find at Vijayapuram-2 in September 2025. Of the three exploratory wells drilled so far under the company's ongoing Andaman exploration campaign, two have now confirmed the presence of hydrocarbons, substantially improving the basin's exploration outlook.

The discovery is being viewed as a major milestone for India's offshore exploration efforts, particularly in the relatively underexplored Andaman Basin. Industry observers believe the findings could pave the way for intensified exploration and appraisal activities aimed at unlocking the region's hydrocarbon potential. OIL said the latest discovery serves as an important indicator of a working petroleum system and could point to the presence of additional hydrocarbon accumulations within the basin.

Read also: RBI's Inflation-Focused Measures May Inject Up to $75 Billion into India, Improving Rupee Outlook

Initial production testing carried out at a depth of over 1,900 metres in the Eocene formation established the presence of natural gas through continuous flaring. Following perforation, the well recorded a rapid pressure build-up and commenced production, indicating encouraging reservoir characteristics. The company said data processing and interpretation are currently underway and would guide future appraisal drilling activities.

The back-to-back gas discoveries are being seen as a significant step towards India's efforts to strengthen domestic energy security through increased exploration in offshore basins. Union Petroleum and Natural Gas Minister Hardeep Singh Puri described the development as another positive development in the country's efforts to increase exploration in offshore basins.

Andaman Offshore Region Exploration Progress

Read also: Eighth Pay Commission: Higher Fitment Factor May Increase Centre's NPS and UPS Burden

Oil India Ltd said it remains committed to advancing exploration through technological excellence and unlocking the nation's hydrocarbon potential for a secure energy future. The company has initiated an extensive appraisal programme, including reprocessing of existing seismic data and acquisition of nearly 600 square kilometres of additional 3D seismic data. With two successful gas discoveries from three exploratory wells, the Andaman offshore region is increasingly emerging as one of India's most promising frontiers for future oil and gas exploration.