Oil India Discovers Natural Gas In Krishna-Godavari Basin

State-owned Oil India Ltd (OIL) has announced a natural gas discovery in a shallow-water offshore block in the Krishna-Godavari Basin, with testing recording a peak flow of 200,000 standard cubic metres per day (SCMD).

The discovery was made at the Godavari-1 appraisal well in the KG-DSF/GSKW/2018 block, which the company secured through the Discovered Small Field (DSF) bidding process.

The gas was found in the previously unappraised Matsyapuri formation, marking a development in the company's offshore exploration activities.

Oil India Records Peak Gas Flow

According to the company, testing began on Oct 16, 2026, in a hydrocarbon-bearing zone located between 2,024 and 2,027 metres below the surface.

During continuous testing, the well produced natural gas at approximately 100,000 SCMD, while the maximum recorded flow reached 200,000 SCMD.

Oil India also reported condensate production of around 170 barrels per day.

The company is preparing to test the next higher zone to further assess the discovery.

However, it has not disclosed estimates of the hydrocarbon resources available in the formation or provided a timeline for potential commercial development.

Meanwhile, Oil India shares were trading at ₹447.50 on the BSE at 12.34 pm on Friday, down 1.69%.

Krishna-Godavari Basin Discovery Supports India's Energy Security Goals

The discovery adds to exploration activity in the Krishna-Godavari Basin, an important offshore hydrocarbon-producing region along India's eastern coast.

The basin plays a significant role in efforts to increase domestic natural gas production and develop indigenous energy resources.

India continues to depend on imports for a substantial portion of its natural gas requirements, making domestic discoveries important for reducing reliance on overseas supplies.

The government aims to increase natural gas's share in the country's energy mix to 15% by 2030, compared with approximately 6% currently.

Further testing will help Oil India assess the discovery's potential for future development.