Oil India Makes Second Gas Discovery in Andaman Offshore Block Amid Global Crude Supply Concerns

Oil India Ltd Reports Fresh Natural Gas Discovery in Andaman Offshore Basin

At a time when elevated crude oil prices and geopolitical tensions are raising concerns over global energy supplies, state-run Oil India Ltd has reported a fresh natural gas discovery in the Andaman offshore basin. The company said it found gas in its third exploratory well, Vijayapuram-3, drilled in the AN-OSHP-2018/1 block under the Open Acreage Licensing Policy (OALP).

The well was drilled around 15 km off the east coast of the Andaman Islands in water depth of 355 metres. With this discovery, OIL has now established the presence of hydrocarbons in two of the three exploratory wells drilled in the block so far. The company said initial production testing at a depth of over 1,900 metres in the Eocene formation confirmed the presence of natural gas.

According to the company, the well started producing immediately after perforation, with pressure build-up observed soon after operations commenced. OIL is currently carrying out gas sampling to determine the composition, calorific value, and origin of the gas. The company has completed reprocessing of available 2D seismic data and acquisition of an additional 600 sq km of 3D seismic data in the block. Processing and interpretation of the seismic data are currently underway, following which appraisal wells are planned to be drilled.

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The latest discovery follows the reported occurrence of natural gas in the Vijayapuram-2 exploratory well in September 2025. OIL said it has already initiated an appraisal programme for the earlier discovery. As per preliminary assessment, this is a leading indicator of the presence of a source or migration pathway or accumulation of hydrocarbon in the current prospect, which will help in strategizing future exploratory programs.