Oil India strikes natural gas in Andaman offshore block for second time, boosts exploration hopes

The Oil India Ltd (OIL) has made its second natural gas discovery in the Andaman offshore region, reinforcing 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, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Friday.

It 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 company said.

Puri described the development as another positive development in India's efforts to strengthen domestic energy security through increased exploration in offshore basins.

"Initial production testing of the well at a depth of 1900 plus meters in the Eocene formation has established the presence of natural gas through continuous flaring,” he said in an X post.

"Under the Samudra Manthan Mission (National Deep Water Exploration Mission) announced by Hon’ble PM @narendramodi Ji on Independence Day 2025, large number of deepwater & Ultra deepwater exploration wells are planned in our offshore basins to fully exploit our hydrocarbon reserves," the minister said in the post.

This presence of natural gas will help the country in taking forward the exploration ambitions in coordination with global deepwater exploration experts, he said.

According to the company, 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 back-to-back gas discoveries are 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.

Following the earlier Vijayapuram-2 discovery, OIL initiated an extensive appraisal programme, including reprocessing of existing seismic data and acquisition of nearly 600 square kilometres of additional 3D seismic data.

The company said data processing and interpretation are currently underway and would guide future appraisal drilling activities.

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.

Responding to Puri's post, the company said, "Oil India remains committed to advancing exploration through technological excellence and unlocking the nation’s hydrocarbon potential for a secure energy future.” PTI SN NN