Oil India reports second natural gas discovery in Andaman offshore block

Shares of Oil India Ltd. rose from the day's lows after the state-run explorer reported the presence of natural gas in its third exploratory well drilled in the Andaman offshore basin, marking the second hydrocarbon discovery from its ongoing exploration campaign in the region.

In a statement on Friday, June 5, Oil India said natural gas was encountered in the Vijayapuram-3 exploratory well, located around 15 kilometre off the east coast of the Andaman Islands in the Andaman Shallow Offshore Block AN-OSHP-2018/1.

The well was drilled at a water depth of 355 metre under the Open Acreage Licensing Policy (OALP). The company said initial production testing in the Eocene formation at a depth of over 1,900 metre established the presence of natural gas through continuous flaring.

According to Oil India, the well showed immediate pressure build-up after perforation and began producing gas. The company is currently undertaking gas sampling to determine its composition and calorific value, while isotope studies are also being carried out to understand the origin of the gas.

Oil India said the findings are a positive indicator of the presence of hydrocarbon source systems, migration pathways or accumulations in the prospect area and will help shape future exploration plans.

The discovery follows the reported presence of natural gas in the Vijayapuram-2 exploratory well in September 2025. With the latest development, Oil India has now established a hydrocarbon presence in two of the three exploratory wells drilled in the block, so far.

Following the earlier gas find, the company had initiated an appraisal programme, including reprocessing of existing 2D seismic data and acquisition of an additional 600 square kilometre of 3D seismic data. Processing and interpretation of the seismic data is currently underway, after which appraisal drilling is expected to begin.

Oil India said it is keeping stakeholders informed as exploration activities continue in the Andaman offshore basin.

Shares of the company were trading nearly flat at ₹488.95. The stock has gained over 14% so far this year.

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