Oil India Limited on Friday announced a natural gas discovery in its third exploratory well in the Andaman shallow offshore block, making it the second well in the block to confirm the presence of hydrocarbons.
The well, Vijayapuram-3 (Loc. OAEB), was drilled about 15 kilometres off the eastern coast of the Andaman Islands at a water depth of 355 metres in the Offshore Andaman Block AN-OSHP-2018/1, awarded under the Open Acreage Licensing Policy (OALP).
According to the company, initial production testing conducted at a depth of over 1,900 metres in the Eocene formation confirmed the presence of natural gas through continuous flaring. The well showed an immediate pressure build-up after perforation and subsequently started producing gas.
OIL said gas samples are currently being analysed to determine the composition, calorific value and isotopic characteristics of the discovery, which will help understand the origin of the gas.
The company had earlier reported a natural gas discovery in the block’s second exploratory well, Vijayapuram-2, in September 2025. With two successful discoveries out of three exploratory wells drilled so far, the block has emerged as a promising hydrocarbon prospect.
OIL said the latest discovery indicates the possible presence of a hydrocarbon source, migration pathway or accumulation system in the area, providing valuable inputs for future exploration activities.
Following the earlier discovery, the company launched an appraisal programme that included reprocessing existing 2D seismic data and acquiring an additional 600 square kilometres of 3D seismic data. The acquisition has been completed, while processing and interpretation work is currently underway.
The company plans to drill appraisal wells after the seismic studies are completed to better assess the size and commercial potential of the discovery.
OIL is a Maharatna public sector undertaking operating under the Ministry of Petroleum and Natural Gas.
