Oil India Finds Natural Gas in Andaman Shallow Offshore Block

11 Jun 2026 CW Team

Oil India has reported the presence of natural gas in its third exploratory well, Vijayapuram-3 (Loc. OAEB), drilled 15 km off the east coast of the Andaman Islands at a water depth of 355 metres in the Offshore Andaman Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy. The Maharatna central public sector enterprise under the Ministry of Petroleum and Natural Gas has established a hydrocarbon presence in two wells out of three drilled so far. The earlier occurrence was reported in the second exploratory well, Vijayapuram-2 (Loc. OAEA), on 26 September 2025.

Initial production testing of the Vijayapuram-3 well at a depth of 1,900-plus metres in the Eocene formation established continuous flaring and immediate pressure build-up after perforation, indicating production. Further gas sampling is underway to assess composition and calorific value and to conduct isotope studies to determine genesis. The preliminary assessment indicated a potential source, migration pathway or accumulation which will inform future exploratory strategy.

Following the reported occurrence in Vijayapuram-2, the company initiated an appraisal programme including reprocessing of available two-dimensional seismic data and acquisition of an additional 600 sq km of three-dimensional seismic data, which has been completed. Processing of the acquired and vintage three-dimensional seismic data is ongoing and will be followed by interpretation. Appraisal well drilling is planned after post-processing and interpretation.

Given that this is the second reported presence of hydrocarbon during the ongoing exploration campaign in the Andaman shallow offshore block, the company informed stakeholders of the development. The Public Relations Department in Noida issued the statement on 05 June 2026 and presented the update as part of compliance with regulatory disclosure obligations. The information is intended to support planning of the ongoing exploration and appraisal programme.

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