New Delhi: Oil India Limited (OIL), a Maharatna public sector enterprise under the Ministry of Petroleum and Natural Gas, has confirmed the presence of natural gas in its second exploratory well, Vijayapuram-2 (Loc. OAEA), located in the Andaman Shallow Offshore Block AN-OSHP-2018/1. The block was awarded under the Government of India’s Open Acreage Licensing Policy (OALP).
This marks the first hydrocarbon indication in Oil India’s current exploration campaign in the region, a significant milestone in unlocking the potential of the Andaman Basin—one of India’s least explored but highly prospective offshore areas.
Natural Gas Discovery Boosts Andaman Basin Exploration Strategy
Oil India stated that preliminary analysis of gas samples collected during intermittent inflow in initial production testing (IPT) has confirmed the presence of natural gas. Further isotope studies are underway to determine the origin and maturity of the hydrocarbon.
According to the company, this discovery could serve as a “leading indicator of the presence of a source, migration pathway, or accumulation of hydrocarbon,” thereby influencing and refining future drilling strategies in the frontier basin.
The company is also conducting additional testing of higher-up prospects in the Vijayapuram-2 well to further evaluate the extent and nature of the gas occurrence.
Strategic Importance of the Andaman Offshore Basin
Situated at the confluence of the Bay of Bengal and the Andaman Sea, the Andaman Basin is considered one of India’s last remaining frontier regions for hydrocarbon exploration. Despite holding geological promise, exploration in the basin has been limited due to logistical, technical, and data-related challenges, especially in deepwater zones.
Both Oil India and ONGC have held acreage in the basin over the years, with earlier exploratory efforts yielding valuable geological insights but no major commercial success.
Next Steps and Industry Outlook
This latest discovery reaffirms the exploration potential of the Andaman offshore and aligns with the government’s vision to increase domestic hydrocarbon production through the OALP initiative. However, the commercial viability of the gas find will hinge on the outcomes of ongoing appraisal and extended testing.
Oil India has emphasized that it is sharing this update to keep stakeholders informed, and that detailed study results will guide the next phase of exploration in the block.
About Oil India Limited
Oil India Limited (OIL), a Navratna PSU, is India’s second-largest national oil and gas company. Headquartered in Duliajan, Assam, OIL plays a pivotal role in exploration, production, and transportation of crude oil and natural gas. The company continues to invest in skill development, sustainability, and energy security for the nation.
