Oil India Reports Presence of Natural Gas in Andaman Shallow Offshore Block
Oil India Limited (OIL), a Maharatna Central Public Sector Enterprise (CPSE) operating under the Ministry of Petroleum and Natural Gas, has announced the discovery of natural gas in its third exploratory well within the Andaman Shallow Offshore Block. This finding marks the second instance of reported hydrocarbon presence during the ongoing exploration campaign in the region.The announcement, made on June 05, 2026, confirmed the presence of natural gas in Vijayapuram-3 (Loc. OAEB), which was drilled 15 km off the east coast of the Andaman Islands. The well is situated within the Offshore Andaman Block AN-OSHP-2018/1 and was targeted under the Open Acreage Licensing Policy (OALP).
Initial production testing of Vijayapuram-3, conducted at a water depth of 355 meters in the OAEB, established the presence of natural gas through continuous flaring. The discovery occurred in the Eocene formation at a depth of 1900 plus meters. Following perforation, pressure buildup was observed, and the well has commenced production.
Exploration Campaign Overview
The reporting of hydrocarbon resources extends previous findings from two wells within the Andaman Shallow Offshore Block.Key details regarding Oil India’s exploration campaign are summarized below:
| Well Location | Discovery Date/Status | Type of Finding |
|---|---|---|
| Vijayapuram-3 (Loc. OAEB) | Recent finding in June 2026 | Natural gas presence confirmed (Third well) |
| Vijayapuram-2 (Loc. OAEA) | September 26, 2025 | Natural gas occurrence reported (Second well) |
The discovery in the second exploratory well, Vijayapuram-2 (Loc. OAEA), led Oil India to initiate an appraisal program immediately.
Future Strategy and Program Status
As part of the ongoing exploration efforts, preliminary assessment indicates that this finding is a strong indicator regarding a potential source or migration pathway for hydrocarbons in the prospect area. To further assess the resource, Oil India plans comprehensive gas sampling and isotope studies to determine the composition and calorific value of the natural gas.The company has also advanced its appraisal activities following the discovery in Vijayapuram-2. This includes reprocessing available 2D seismic data and successfully acquiring an additional 600 Sq.Km of 3D seismic data. The interpretation and processing of both acquired and vintage 3D seismic data are currently underway, with subsequent appraisal drilling planned post-processing.
Oil India Limited stated that the finding in the third well contributes to ensuring stakeholders are informed about the progress of its exploration activities in the Andaman Shallow Offshore Block.
OIL Stock Price Movement
As of 2:37 PM, Oil India Limited shares are edging higher in live trading, gaining 0.14% and currently resting at ₹489.60. Trading activity remains brisk as over 1.89 million shares are transacted into the session so far.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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