Oil India finds natural gas in Andaman offshore block's 3rd exploratory well
Synopsis
Oil India has now struck natural gas in 2 of its 3 exploratory wells in the Andaman shallow offshore block — the latest at 355 metres water depth and over 1,900 metres into the Eocene formation. With gas sampling and isotope studies underway, the Andaman basin is quietly emerging as one of India's most promising frontier exploration zones.
Key Takeaways
Oil India Limited confirmed natural gas in its 3rd exploratory well , Vijayapuram-3 (Loc.
The well is located 15 km off the east coast of the Andaman Islands at a water depth of 355 metres , drilled to over 1,900 metres .
This is the second confirmed hydrocarbon presence in the block; the first was in Vijayapuram-2 in September 2025 .
2 out of 3 exploratory wells in the Offshore Andaman Block AN-OSHP-2018/1 have now yielded positive results.
Gas sampling, calorific value assessment, and isotope studies are currently underway to determine commercial viability.
Oil India Limited (OIL), the state-owned Maharatna company, on Friday, 5 June confirmed a fresh natural gas discovery in its third exploratory well in the Andaman shallow offshore block, reinforcing the region's hydrocarbon potential. The find marks the second confirmed hydrocarbon presence in the block, with 2 out of 3 exploratory wells now yielding positive results.
Details of the Discovery
The well, designated Vijayapuram-3 (Loc. OAEB), was drilled under the Offshore Andaman Block AN-OSHP-2018/1 as part of the Open Acreage Licensing Policy (OALP). It is located approximately 15 kilometres off the east coast of the Andaman Islands, at a water depth of 355 metres. Drilling reached a depth of over 1,900 metres into the Eocene formation.
In a regulatory filing to the stock exchanges, Oil India stated that initial production testing confirmed the presence of natural gas, with continuous flaring observed after perforation. The well also recorded an immediate pressure build-up followed by gas production — both considered strong technical indicators of a viable find.
What the Company Said
In its exchange filing, Oil India said: 'Oil India Limited is pleased to announce the presence of natural gas in its 3rd exploratory well Vijayapuram-3 (Loc. OAEB), drilled 15 km off the east coast of the Andaman Islands at a water depth of 355 meters in the Offshore Andaman Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP).'
The company added that gas sampling is currently underway to assess the composition and calorific value of the discovery, alongside isotope studies aimed at understanding the origin of the hydrocarbons.
Context: Building on the Vijayapuram-2 Find
This discovery follows the earlier confirmed hydrocarbon presence in the block's second exploratory well, Vijayapuram-2 (Loc. OAEA), in September 2025. With two consecutive positive results, the Andaman offshore block is emerging as a credible frontier exploration zone for India's upstream energy sector.
Notably, the Andaman basin has long been considered geologically prospective but remained under-explored due to the logistical and technical challenges of deepwater and shallow offshore drilling in the region. OIL's OALP-driven push into this area represents one of the more active frontier exploration campaigns currently underway in India.
Significance and Next Steps
Oil India described the latest find as a 'leading indicator' of a possible source, migration pathway, or accumulation of hydrocarbons in the area. The company said the results are expected to help refine its future exploration strategy for the block.
Further analysis of gas composition, calorific value, and isotope data will determine whether the discovery warrants appraisal drilling and eventual commercialisation. The broader implications for India's domestic gas supply and energy security will depend on the scale of any confirmed accumulation.
Point of View
And the Andaman basin has historically been one of India's most underexplored offshore zones. What this find does not yet answer is scale — continuous flaring and pressure build-up confirm presence, not volume. The real inflection point comes after gas composition and isotope studies, which will determine whether OIL moves to appraisal drilling. India's domestic gas production has been on a slow decline, and a commercially viable Andaman find could matter — but the distance between 'leading indicator' and 'producing field' is long, expensive, and uncertain.
NationPress
7 Aug 2026
Frequently Asked Questions
What did Oil India discover in the Andaman offshore block?
Oil India confirmed the presence of natural gas in its third exploratory well, Vijayapuram-3, in the Offshore Andaman Block AN-OSHP-2018/1. Initial production testing showed continuous flaring after perforation and an immediate pressure build-up followed by gas production.
Where exactly is the Vijayapuram-3 well located?
The well is situated approximately 15 kilometres off the east coast of the Andaman Islands, at a water depth of 355 metres. It was drilled to a depth of over 1,900 metres into the Eocene geological formation.
Is this the first hydrocarbon discovery in the Andaman offshore block?
No. The first confirmed hydrocarbon presence in the block was recorded in the second exploratory well, Vijayapuram-2 (Loc. OAEA), in September 2025. The latest find in Vijayapuram-3 is the second such confirmation, meaning 2 of the 3 wells drilled so far have returned positive results.
What happens next after this gas discovery?
Oil India has initiated gas sampling to assess composition and calorific value, along with isotope studies to determine the origin of the hydrocarbons. These results will guide the company's future exploration strategy, including any decision to proceed with appraisal drilling.
What is the Open Acreage Licensing Policy (OALP) under which this block was awarded?
The Open Acreage Licensing Policy is a Government of India initiative that allows exploration companies to select blocks of their choice from a pre-defined area, rather than waiting for government-notified bid rounds. The Andaman Block AN-OSHP-2018/1 was awarded to Oil India under this policy.
