Oil India discovers natural gas in third exploration well in Andaman

en.Wedoany.com Reported - Oil India has discovered natural gas in its third exploration well, Vijayapuram-3, on the east coast of India's Andaman Islands. The well is located in the offshore block AN-OSHP-2018/1, at a water depth of 355 meters, and was drilled under India's Open Acreage Licensing Policy (OALP).

Two of the three exploration wells drilled by the company in this offshore area have encountered hydrocarbons. Previously, in September 2025, Oil India reported a natural gas discovery in its second exploration well, Vijayapuram-2. Testing at Vijayapuram-3 was conducted at depths exceeding 1,900 meters in the Eocene formation, with sustained flaring during initial production testing confirming the presence of natural gas. The well recorded a pressure buildup and gas flow immediately after perforation. Oil India is conducting further gas sampling to analyze composition, calorific value, and perform isotopic studies.

Preliminary assessments indicate that this discovery points to the presence of source rocks, migration pathways, or accumulations in the area. The results are expected to aid in planning future exploration activities. Following the gas discovery at Vijayapuram-2, the company initiated an appraisal program, completing the reprocessing of existing 2D seismic data and acquiring an additional 600 square kilometers of 3D seismic data. Processing of both new and historical 3D seismic data is ongoing, after which appraisal wells are planned to be drilled.

The AN-OSHP-2018/1 block, covering an area of approximately 3,669 square kilometers, was awarded to Oil India in 2019 under the second round of OALP. The majority of the area (3,438.61 square kilometers) is offshore, with the remaining 230.64 square kilometers onshore. Under the work program commitments, the company pledged to acquire offshore seismic data and drill four exploration wells in collaboration with the Government of India. In late 2019, after submitting a swap proposal to India's Directorate General of Hydrocarbons, the company received approval to replace part of the planned 3D seismic acquisition with additional 2D seismic work. Current exploration activities aim to further assess the hydrocarbon potential of the region.

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