Sri Vijaya Puram/New Delhi, June 5: State-owned Oil India Limited has announced the discovery of natural gas in its third exploratory well in the Andaman offshore basin, further strengthening evidence of hydrocarbon potential in the strategically significant region.
The company confirmed that the Vijayapuram-3 exploratory well, designated as Location OAEB, has indicated the presence of natural gas during initial production testing. The well forms part of exploration activities being undertaken in the Offshore Andaman Block AN-OSHP-2018/1 under the Government of India’s Open Acreage Licensing Policy (OALP).
According to a regulatory filing made by the company on Friday, the well is located approximately 15 kilometres off the east coast of the Andaman Islands in shallow offshore waters with a depth of around 355 metres.
Drilling operations were carried out to a depth exceeding 1,900 metres within the Eocene geological formation.
Oil India stated that testing conducted after perforation confirmed the presence of natural gas. Continuous gas flaring was observed during the testing phase, while immediate pressure build-up followed by gas production provided further confirmation of hydrocarbon occurrence in the well.
In its filing, the company said it was pleased to announce the discovery, describing it as another important outcome of its ongoing exploration programme in the Andaman offshore area.
The latest discovery follows an earlier gas find made in September 2025 at the Vijayapuram-2 exploratory well (Location OAEA), also situated within the same offshore block.
With the Vijayapuram-3 discovery, two out of the three exploratory wells drilled so far in the block have now indicated hydrocarbon presence.
The company said gas sampling is currently underway to determine the composition and calorific value of the natural gas. Isotope studies are also being conducted to understand the origin and characteristics of the hydrocarbons encountered during drilling.
According to Oil India, the discovery serves as a “leading indicator” of the possible existence of hydrocarbon source rocks, migration pathways and accumulations within the basin.
Industry experts note that such findings are important during the early stages of exploration because they help companies better understand subsurface geological systems and refine future drilling strategies.
The Andaman offshore basin has increasingly attracted attention in recent years due to its geological similarities with hydrocarbon-bearing regions elsewhere in Southeast Asia. Exploration efforts are aimed at assessing whether commercially viable oil and gas reserves exist beneath the seabed around the Andaman and Nicobar Islands.
The Offshore Andaman Block AN-OSHP-2018/1 was awarded to Oil India under the Open Acreage Licensing Policy, which allows companies to identify and bid for exploration blocks based on available geological data.
The latest discovery is expected to provide valuable information for future exploration campaigns in the basin and may encourage further investment in offshore hydrocarbon exploration in the region.
While the presence of natural gas has been confirmed, additional studies and appraisal activities will be required before determining the commercial viability and potential size of any recoverable reserves.
The Andaman and Nicobar Islands occupy a strategically important location in the eastern Indian Ocean, and successful hydrocarbon discoveries in the region could have implications for India’s long-term energy security and offshore resource development strategy.
For now, Oil India’s latest announcement represents another positive milestone in the ongoing effort to unlock the hydrocarbon potential of the Andaman offshore basin, with exploration activities expected to continue as the company gathers more geological and production data from the area.
