Oil India discovers natural gas in Andaman Shallow Offshore Block, the second confirmed hydrocarbon find in the area, minister Puri calls it “an ocean of energy opportunities”

In a significant boost to India’s energy security and offshore exploration efforts, Oil India Limited (OIL) has reported the presence of natural gas in its third exploratory well, Sri Vijayapuram-3, in the Andaman Shallow Offshore Block.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, announced the development, describing it as reinforcement of “an ocean of energy opportunities” in the Andaman Sea. The minister posted on X, “Very happy to report the presence of natural gas in Sri Vijayapuram-3 an exploratory well drilled by Oil India Ltd. 15 km off the east coast of the Andaman Islands at a water depth of 355 meters.”

He further added, “Initial production testing of the well at the depth of 1900 plus meters in the Eocene formation has established the presence of natural gas through continuous flaring.”

The discovery marks the second confirmed hydrocarbon find in OIL’s ongoing campaign in the block, following the earlier success in Sri Vijayapuram-2. The company also recently discovered a new gas well in the Dandewala Field in Rajasthan’s Jaisalmer Basin.

Oil India stated, “The reported presence of natural gas in the Andaman Offshore Basin marks a significant milestone in Oil India Limited’s offshore exploration journey and underscores the immense hydrocarbon potential of India’s frontier basins.”

The Sri Vijayapuram-3 well is located approximately 15 km off the east coast of the Andaman Islands at a water depth of 355 metres. Initial production testing at depths exceeding 1,900 metres in the Eocene formation has established the presence of natural gas, evidenced by continuous flaring.

OIL is currently carrying out gas sampling to assess the composition, calorific value, and genesis of the gas through isotope studies. While the size and commercial viability of the discovery are yet to be fully determined, the find adds to growing optimism about the Andaman-Nicobar basin’s potential, which shares geological similarities with prolific hydrocarbon regions in Southeast Asia, including areas off Myanmar and Indonesia.

This latest success comes under the Open Acreage Licensing Policy (OALP) and aligns with the government’s push for enhanced domestic exploration, including the Samudra Manthan Mission aimed at unlocking deepwater reserves. Hydrocarbons have now been encountered in two out of three exploratory wells drilled in the current campaign, validating long-held expectations for the frontier basin.

This is a promising step towards reducing India’s dependence on imported oil and gas, though full commercial production could still be years away pending further appraisal, development, and infrastructure. The discovery is expected to spur greater interest in the region’s exploration activities.

OIL, a Maharatna PSU, continues its aggressive exploration programme in the Andaman basin as part of broader efforts to bolster national energy self-reliance. Shares of the company reacted positively to the announcement in trading today. The company said that it remains committed to advancing exploration through technological excellence and unlocking the nation’s hydrocarbon potential for a secure energy future.

Written by OpIndia Staff
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