State-run explorer Oil India Limited (OIL) has announced a natural gas discovery off the Andaman Islands. This marks the first confirmed hydrocarbon find from its current exploration campaign in the region. In a statement on Saturday, the company said that traces of natural gas were encountered in the Vijayapuram-2 exploratory well. This well was drilled in the offshore block AN-OSHP-2018/1, awarded to OIL under the Open Acreage Licensing Policy (OALP).
Discovery details
Preliminary production testing showed intermittent gas flows accompanied by flaring, at depths between 2,212 and 2,250 metres. Gas samples transported to Kakinada for analysis were found to contain 87% methane, OIL said. Further isotopic analysis is under way to determine the origin of the gas and its potential reserves.
Minister of Petroleum and Natural Gas Hardeep Singh Puri, in a post on X, confirmed that the well was drilled around 9.2 nautical miles (17 km) from the Andaman shoreline. The waters were 295 metres deep, with a total drilling depth of 2,650 metres. Calling the discovery ‘a major milestone’, he said it reinforces India’s belief that the Andaman basin holds significant natural gas potential. It’s similar to hydrocarbon-rich belts stretching from Myanmar to Indonesia.
What does the new discovery hold for India’s Energy Security
India currently imports nearly 88% of its crude oil and half of its natural gas needs. Both OIL and ONGC have been actively scouting the Andaman Sea for new reserves. These could help reduce this heavy import dependence.
ONGC had earlier drilled an ultra-deepwater well in the same basin, but has yet to disclose results. OIL’s latest discovery, though still at a preliminary stage, could pave the way for more aggressive exploration in the area.
OIL stated that additional tests on shallower prospects are also being planned. This aims to assess the wider hydrocarbon potential of the block. The commercial viability and scale of the discovery will be evaluated in the coming months.
“This first reported occurrence of hydrocarbons in the Andaman shallow offshore is a crucial step. It shapes future exploration and drilling strategy for the basin,” the company noted.
