Mumbai: State-owned Oil India Limited (OIL) has announced a natural gas discovery in a shallow-water offshore block in the Krishna-Godavari (KG) Basin off India’s east coast. The discovery was made in the previously unappraised Matsyapuri formation, with the appraisal well recording a peak gas flow rate of 200,000 Standard Cubic Metres Per Day (SCMD) during continuous testing.
The discovery was made in the Godavari-1 appraisal well in the KG-DSF/GSKW/2018 block, which was awarded to OIL as the sole operator under the Discovered Small Field (DSF) bidding rounds.
The development comes as India seeks to increase domestic natural gas production, reduce dependence on imports and raise the share of natural gas in its overall energy mix.
Oil India’s Godavari-1 Well Records Peak Gas Flow of 200,000 SCMD
According to OIL, hydrocarbon presence was identified in a selected pay zone at a depth of 2,024–2,027 metres in the Godavari-1 appraisal well.
Production testing of the hydrocarbon-bearing zone began on October 16, 2026. During testing, the well flowed natural gas at a rate of approximately 100,000 SCMD, while a maximum flow rate of 200,000 SCMD was recorded during continuous testing.
The company also reported condensate production of approximately 170 barrels per day (BOPD), with an API gravity of 55.8 at 60°F. The well recorded a wellhead pressure of 1,815 psi, along with water production.
The results confirm the presence of natural gas in the tested zone of the Matsyapuri formation. However, OIL has not yet disclosed an estimate of the total recoverable resources associated with the discovery.
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Testing of Next Higher Zone Under Preparation
Following the results from the tested interval, Oil India is preparing to test the next higher zone in the Godavari-1 appraisal well.
Further testing will help the company gather additional information about the hydrocarbon-bearing intervals in the block. The company has not provided details of the expected resource potential or a timeline for commercial production from the discovery.
The results of the ongoing appraisal activities will be important in determining the development potential of the discovered hydrocarbons.
Discovery Adds to Exploration Activity in the Krishna-Godavari Basin
The discovery adds to ongoing oil and gas exploration activity in the Krishna-Godavari Basin, one of India’s important offshore hydrocarbon regions along the eastern coast.
The basin has played a significant role in the country’s efforts to expand domestic natural gas supplies. Offshore exploration and production projects in the region form part of broader efforts to identify and develop indigenous hydrocarbon resources.
The latest discovery in the shallow-water DSF block provides another data point for OIL’s exploration and appraisal activities in the basin. The commercial significance of the find will depend on further evaluation, resource assessment and the feasibility of developing the discovered gas.
India Targets 15% Natural Gas Share in Energy Mix by 2030
The discovery comes at a time when India is working to increase the contribution of natural gas to its energy mix and strengthen domestic energy security.
The government has set a target of increasing natural gas’s share in India’s energy mix to 15% by 2030, from approximately 6% currently, according to the figures provided in the report.
Natural gas is used across several sectors, including power generation, fertilisers, city gas distribution and industrial applications. Increasing domestic production can help diversify supply sources and potentially reduce reliance on imported gas.
While the Godavari-1 discovery has recorded encouraging test-flow rates, its contribution to India’s future gas supply will depend on the outcome of further appraisal, resource evaluation and any subsequent development plans.
About Oil India Limited (OIL)
Oil India Limited (OIL) is a government-owned energy company under the Ministry of Petroleum and Natural Gas. It is engaged in the exploration, development and production of crude oil and natural gas, as well as related energy activities. The company operates across multiple hydrocarbon-producing regions in India and contributes to the country’s efforts to develop domestic energy resources and strengthen energy security.
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